Orem paid $3.56 million toward UTOPIA's bond debt in fiscal 2025, with up to $62.4 million more pledged through 2040

Orem paid $3,560,710 in fiscal 2025 toward debt on bonds issued by UTOPIA, the fiber-optic network agency it helped found, according to the city's audited annual report. ^[1]

The city's remaining maximum pledge for all years through 2040 is $62,401,717, and the yearly limit can rise by up to 2% a year. ^[1]

How the pledge works

UTOPIA issued revenue bonds in 2004 and 2008, and 11 member cities, including Orem, pledged sales tax revenue to cover their shares of any shortfall. ^[1] UTOPIA's net revenues fell short in 2008, and Orem has paid its share into a debt service reserve fund every year since, the report says. ^[1]

Orem received a $1,027,959 "dividend" from UTOPIA earnings in fiscal 2025, which it uses to offset part of the pledge. ^[1]

The city's general fund held $3.63 million restricted for the UTOPIA pledge on June 30, 2025. ^[1]

Orem has also pledged up to $1,223,786 in franchise tax to the Utah Infrastructure Agency, a related agency, and did not have to make a payment in fiscal 2025. ^[1]

The city's fiscal 2027 tentative budget lists $4.26 million in its debt service fund for "Utopia, Siemens Lease, etc." ^[3]

State Auditor letter

In a May 31, 2022, letter, the Office of the State Auditor said a UTOPIA pamphlet stating "No cost to taxpayers since 2009" was "clearly inaccurate." ^[2]

The letter listed Orem as paying $3,289,546 in tax revenue toward UTOPIA's bond debt service in fiscal 2021, the second-largest amount among the 11 cities. ^[2]

UTOPIA's executive director replied that the statement was inaccurate out of context and that the agency would discard materials with that language. ^[2]