Lehi has issued $70 million in bonds, through fiscal 2025, for its city-owned fiber network

Lehi has issued $70.1 million in franchise and sales tax revenue bonds to build a city-owned fiber-optic network: $53,890,000 in 2021 and $16,255,000 in fiscal 2025, according to the city's financial reports. ^[1][2]

The fiscal 2025 report says the 2025 bonds were issued "to complete the City's fiber network." ^[1]

The network cost about $55.0 million through June 30, 2025, and construction was completed in October 2025. ^[1]

What backs the bonds

The bonds are secured by the city's municipal energy sales and use tax, by local sales tax equal to half of average annual debt service, and by net revenue from the network. ^[1]

The city has pledged $118,575,622 of energy tax revenue to the bonds through 2055, and it says those revenues are expected to produce about 205% of the debt service over the bonds' life. ^[1]

Debt service on the fiber bonds was $3,090,150 in fiscal 2025. ^[1]

Including premiums, $60.3 million was outstanding on the 2021 bonds and $16.7 million on the 2025 bonds on June 30, 2025. ^[1]

Fiber fund results

The fiber fund had $2,252,994 in operating revenue in fiscal 2025 and $1,919,350 in interest expense, and its net position fell by $353,885 to a deficit of $3,442,910. ^[1]

The report says the fund, created in 2021, "will experience a deficit net position for the first few years" until the network is installed and collecting revenue. ^[1]

The city owns the network and residents buy internet service through third-party providers; the report says it had "just over 6,000 customers" and expects about $4.1 million in fiscal 2026 revenue. ^[1]

The underlying rating on the fiber bonds is A+, with an AA insured rating from Assured Guaranty. ^[1]