“American Fork is committing suicide,” read a headline on the front page of an American Fork Citizen in the 1930s. The article was warning of the consequences of not buying locally, as cities like American Fork increasingly relied on sales tax for their budgets, especially when property tax revenues plummeted — just like they have recently.

The city said it is expected to collect roughly $3.5 million in property tax this year, but over $5 million in sales tax, highlighting the tightrope walk that municipality budgeting can require, as consumer behaviors are often hard to predict.

But fresh data are stirring hope among city administration circles. City budget officer Cathy Jensen on Thursday told the City Council in a work session that sales tax revenues for the last two quarters are higher than expected. And at $452,203, December’s revenue is the highest in eight years, when comparing same months.

Revenues for December don’t reflect the holiday shopping made that month, as it takes a city about two months to receive the windfall from sales tax. Last year in February, the city received almost $600,000 from December sales.

Still, tracking those revenues is important because it offers a window into the vitality of a marketplace, and the steady increase in numbers has placed American Fork in the top spot to do business in Utah County: In December, for example, the city’s sales tax revenue was only topped by Provo’s, Orem’s and Lehi’s. But all have higher population counts. By population size, American Fork generated more sales revenue than all three cities.

To most in American Fork, including Heidi Rodeback, the City Finance Committee Chair, the reason why numbers have been so strong is unclear.

“Are retailers experiencing higher shopping volumes due to new employers, such as Adobe, locating in the surrounding region? Are American Fork’s residents committing themselves to shopping local?” Ms. Rodeback wrote in an email. “Whatever the reason, it is encouraging to see sales tax figures rebounding.”

While the fresh data are showing the local economy has decidedly gained momentum, it is still recovering from a steep fall since the fiscal year ending in June 2008. But the data from the last three years have showed a positive trend.

Meanwhile, the city is facing other challenges such as higher prices due to inflation and an increased cost in providing healthcare insurance for its employees.

“We’re not out of the woods yet. Receipts fell steadily for several consecutive years,” Ms. Rodeback said. “But we remain committed to serving the residents through careful planning and fiscal discipline.”

Danny Crivello can be reached at crivello@citizen.af, via text at 801-477-6397 or on Twitter.

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