Bountiful's fiber fund ended fiscal 2025 with a $1.82 million unrestricted deficit as connections grew

Bountiful reported that the buildout of its city-owned fiber network was substantially complete in May 2025. Its fiber fund ended that fiscal year, on June 30, 2025, with unrestricted net position of negative $1,818,720, according to the city's audited annual report. ^[1]

The report says the fund is "in the start-up stages with very little subscriber revenue, so having a negative net position was anticipated." Its total net position fell by $1,506,424 during the year. ^[1]

The bonds and the contract

The city issued $45,525,000 in Series 2023 sales tax revenue bonds to finance construction of the network. At June 30, 2025, $44,835,000 of principal was outstanding. ^[1]

The city's transmittal letter says that by the end of fiscal 2025 it had paid or accrued payment to UTOPIA for $37,622,907 of a $45,432,000 contract. It says the remaining $7.8 million of the contract is for subscriber network-connection costs. ^[1]

The letter estimates it will take another three to five fiscal years "before the contracted 40% of total City connections are established and UTOPIA is fully paid." ^[1]

Revenue and expenses in fiscal 2025

Fiber charges for services rose $172,426, or 201.06%, from the year before, according to the report. ^[1]

The fund's investment earnings fell $955,979 after it used $17.7 million of its construction escrow account for network construction. ^[1]

Fiber expenses rose $309,920, or 12.52%. The report attributes the change to three factors: depreciation rose $508,793, to $530,588, after substantial completion; no bonds were issued in fiscal 2025, while the prior year included $379,814 in bond issuance costs; and other routine expenses rose $180,941. ^[1]

Connections reported in January

At the council's Jan. 15, 2026 retreat, Assistant City Manager Tyson Beck reported 2,025 connections and a 13.76% take rate, according to minutes included in the council's March 24, 2026 agenda packet. ^[2]

Beck said the original estimate was 2,811 connections and a 12% take rate by the end of year three, and that connections were averaging 192 a month. The minutes record him saying expenses had been about $40 million and revenues $816,000 to date. ^[2]

The minutes in the packet have blank signature lines. ^[2]

Debt service and an interfund loan

Minutes of the Finance and Administration Committee's review of the fiscal 2027 budget say fiber debt service has been paid from Capital Projects Fund reserves through an interfund loan, and that the committee approved continuing that through the network's initial operational phase. ^[3]

Those minutes are headed April 27, 2025, but they cover the fiscal 2027 budget and are posted with the other committees' April and May 2026 budget minutes. They give no loan balance or terms. ^[3]