Council adopts interim budget with proposed 9% tax hike, new water rates and $2.3 million Dixie Well drilling contract
June 23, 2026, 7:00 p.m. · American Fork City Hall, 31 N. Church St.
The American Fork City Council adopted an interim fiscal 2027 budget that assumes a 9% property tax increase to help staff a third fire station, pending an Aug. 11 Truth in Taxation hearing. It approved a five-year culinary water rate schedule, a new lot-size-based pressurized irrigation rate structure starting January 2027, and a $2.33 million contract with Hydro Resources-Rocky Mountain to drill the Dixie Well at 943 South 900 West. Residents packed the meeting to defend the Fitness Center's gymnastics program and to question the irrigation rates.
From the approved minutes.
Decisions at a glance
| Item | Result |
|---|---|
| Public hearing on pressurized irrigation rate schedule | Discussed |
| Release of $151,471.54 durability retainer, Edgewater North roadway, 200 South 1100 West | Approved · 5-0 |
| Ratification of payments June 3-16, 2026, and purchases over $50,000 | Approved · 5-0 |
| Interim budget for fiscal 2026-27 | Approved · 5-0 |
| Review of property tax impact schedule | No action |
| Five-year culinary water rate schedule | Approved · 5-0 |
| Pressurized irrigation rates effective Jan. 1, 2027 | Approved · 4-0-1 |
| Fiscal 2026-27 general fee schedule | Approved · 5-0 |
| American Fork Hotel zone change, 714 S. 600 East | Approved · 5-0 |
| Dixie Well land use amendment and zone change, 943 S. 900 West | Approved · 5-0 |
| Land use amendment and zone change, 375 S. 860 East (parcels 13:059:0130, 13:059:0131) | Approved · 5-0 |
| Dixie Well drilling contract | Approved · 5-0 |
| DWR grant to replace American Fork Boat Harbor docks | Approved · 5-0 |
| Steel Days management agreement with American Fork Chamber of Commerce | Approved · 5-0 |
Agenda, item by item
Item PH 1 · Taxes and fees
Public hearing on pressurized irrigation rate schedule
Discussed
Public hearing on the proposed lot-size-based pressurized irrigation rate schedule taking effect January 2027. Four residents spoke (see public comment): one supported the rates but asked that shareholders who assign half their water to the city keep avoiding a base rate; others questioned lot-size base rates, HOA meter mapping problems and the speed of implementation.
- Rates take effect Jan. 1, 2027
- Temple Ridge Estates HOA estimated 27% first-year and up to 89% by 2030 cost increase
Item Consent 3 · Development
Release of $151,471.54 durability retainer, Edgewater North roadway, 200 South 1100 West
Approved · 5-0
Consent approval releasing the improvements durability retainer held for the Edgewater North roadway improvements after the warranty period.
- Payment$151,472
- Amount released: $151,471.54
Item Consent 4 · Budget
Ratification of payments June 3-16, 2026, and purchases over $50,000
Approved · 5-0
Routine consent ratification of city payments and purchase requests over $50,000; the itemized list is in the agenda packet, not the minutes.
Item 1 · Budget
Interim budget for fiscal 2026-27
Approved · 5-0
Finance Director Anna Montoya presented the interim FY2027 budget, which includes a proposed 9% property tax increase ($660,000 a year) earmarked to partly staff a temporary third fire station (Station 53) in the Lakeview area; the money is held separately until the Aug. 11 Truth in Taxation hearing and final budget. Councilmember Tim Holley argued firefighter positions should be funded regardless of the tax outcome and that wage increases and other discretionary items should be cut first; other members said the final budget can be reshaped after the hearing. The budget message lists $15.7 million in road work, including the 700 North extension, Lakeshore Drive Phase 1, a 300 West/200 South roundabout and 100 West improvements.
- Budget$660,000
- Budget$4.00 million
- Resolution No. 2026-06-26R
- Proposed tax increase: 9%, about $660,000/yr, about $33/yr for average home
- Fire department added cost FY2027: $1.8 million (budget message)
- Fitness center repairs: $4,000,000 from general fund balance (reduces fund balance from 35% to 25%)
- Road projects: 700 North extension 100 E-200 E $2,589,681; Lakeshore Drive Phase 1 $3,720,000; 300 West/200 South roundabout $780,000; 1100 South/100 East intersection $775,000; 100 West 100 N-700 N $1,150,000; overlay/microsurface/crack seal/slurry $3,985,000
- Other capital: Lakeview Park $4M; Art Dye Trail $1.565M; police 3rd-floor expansion $1.5M; waterlines $7.2M; Boley Well $1.1M; Dixie Well $7.12M; sewer lining $1.5M; storm drain/curb $2.6M; public works facility $40M
- Patriot Station CRA: $33 million bond-financed 200 South widening; first phase Frontage Road to 570 West done
Item 2 · Budget
Review of property tax impact schedule
No action
State-required review of the property tax impact schedule adopted May 12; no action.
Item 3 · Taxes and fees
Five-year culinary water rate schedule
Approved · 5-0
Council adopted a five-year culinary water rate schedule developed over 18 months with consultant Bowen Collins & Associates, the first comprehensive update since 2018, effective July 1, 2026. Staff restored the proposed 2027 Block 2 non-residential rate to $3.53 (from $4.02). Councilmember Ernie John said cost-based rates are needed to comply with state law (HB 501). Rates will still be reviewed yearly in the fee schedule.
- Resolution No. 2026-06-27R
- Budget assumes about 12% culinary increase
- Consultant: Bowen Collins & Associates
Item 4 · Taxes and fees
Pressurized irrigation rates effective Jan. 1, 2027
Approved · 4-0-1
Council adopted the new metered pressurized irrigation rate structure: a continuous base rate tied to lot size plus four usage tiers. Councilmember John, president of the American Fork Irrigation Company, declared a conflict and abstained. Staff said revised shareholder agreements with the irrigation company would come back within a month or two.
- Resolution No. 2026-06-28R
- Conflict disclosed: Councilmember Ernie John is president of the American Fork Irrigation Company
Item 5 · Taxes and fees
Fiscal 2026-27 general fee schedule
Approved · 5-0
Fee schedule adopted with the $3.53 Block 2 non-residential water rate and with the proposed $50 annual irrigation mapping renewal fee replaced by a $75 fee charged only when a mapping change is requested.
- Resolution No. 2026-06-29R
- Storm drain fee up $2/month; city sewer fee down $2/month (budget message)
Item 6 · Zoning
American Fork Hotel zone change, 714 S. 600 East
Approved · 5-0
Rezone of 3.13 acres from PI-1 (planned industrial) to GC-2 (general commercial) to allow an anticipated hotel. Development Services Director Patrick O'Brien said industrial use was not the best use of the I-15 frontage and the land use map already supports the change.
- Ordinance No. 2026-06-11
- Acres: 3.13
- PI-1 → GC-2
Item 7-8 · Zoning
Dixie Well land use amendment and zone change, 943 S. 900 West
Approved · 5-0
Two actions on a 0.78-acre city well site: a land use map change from Residential Very-Low Density to Institutional Lands, Schools and Public Facilities, and a zone change from PR-3.0 to PF (public facilities).
- Resolution No. 2026-06-30R; Ordinance No. 2026-06-12
- Acres: 0.78
- PR-3.0 → PF
Item 9-10 · Zoning
Land use amendment and zone change, 375 S. 860 East (parcels 13:059:0130, 13:059:0131)
Approved · 5-0
Change of 1.96 acres from Planned Community to Design Commercial on the land use map, and from PC and GC-2 zoning to GC-1. Staff split these parcels from a larger pending State Street rezoning to avoid losing an economic development project by an applicant with a history of local businesses; an adjacent parcel was included to make a contiguous district. Councilmember Hunter said it would bring needed road improvements and remove blight.
- Resolution No. 2026-06-31R; Ordinance No. 2026-06-13
- Acres: 1.96
- PC/GC-2 → GC-1
Item 11 · Contract
Dixie Well drilling contract
Approved · 5-0
Award of the Dixie Well drilling project to Hydro Resources-Rocky Mountain Inc. for $2,327,733, plus a $200,000 city-held construction and engineering contingency. The FY2027 budget carries $7.12 million for Dixie Well construction.
- Contract$2.33 million to Hydro Resources-Rocky Mountain Inc.
- Budget$200,000
- Contract: $2,327,733
- Contingency: $200,000
- Bid tabulation is in the agenda packet (not reviewed)
Item 12 · Parks
DWR grant to replace American Fork Boat Harbor docks
Approved · 5-0
Cooperative agreement with the Utah Division of Wildlife Resources accepting $27,000 to replace docks at the Boat Harbor; old docks will be reused on the other side of the harbor for kayaks, paddleboards and swimming.
- Grant$27,000 to Utah Division of Wildlife Resources
- Resolution No. 2026-06-32R
- Grant: $27,000
Item 13 · Contract
Steel Days management agreement with American Fork Chamber of Commerce
Approved · 5-0
Agreement for the Chamber of Commerce to manage the Steel Days celebration for up to three years, with annual review. The council added that the Chamber must report on each year's event by the end of October and the agreement be considered for renewal by the first council meeting in December. Chamber chair Rod Martin endorsed recusal by elected officials with professional ties to the Chamber; the Chamber asked the mayor pro tem to sign because of the mayor's role in negotiations.
- Term: up to 3 years, reviewed annually
- Chamber report due by Oct. 31 each year
- Mayor Pro Tem to sign due to mayor's involvement in negotiations
- Connection: at an April 28, 2026 ethics training, legal counsel said Mayor Bradley Frost serves as president of the Chamber of Commerce and should not take part in city decisions on Chamber matters
What residents said
Pressurized irrigation rates based on lot sizeIrrigation shareholder base rateHOA irrigation meter mapping errorsPreserving Fitness Center gymnastics programProperty tax increasePolice conduct
Irrigation rate hearing: Royce Shelley supported the rates but asked that shareholders who assign 50% of their shares keep paying no base rate and that the shareholder agreement be finished first; Rob Shelton said lot-size base rates blunt conservation and asked for credit for hardscaped areas; Robert Nelson, vice president of the Temple Ridge Estates HOA, said meter and mapping errors were unresolved and estimated HOA costs up 27% in year one and 89% by 2030; Rick Moltry asked the city to slow implementation since state law allows until 2030. General comment: Rita Law, Lenna Law, Olivia Hunziker, Alison and Karin Tauali'i, Michelle Anderson, Whitney Wilkins and Kenadi Whitely urged the council to preserve the Fitness Center gymnasium and Twisters gymnastics program in any renovation. Rob Shelton questioned the tax increase, citing about $600,000 in new discretionary spending (economic development, sidewalks, Christmas decorations, part-time communications). Chamber chair Rod Martin backed the Steel Days partnership. Daniel Swenson cited alleged police misconduct cases and urged changes.