why does my iMac boot to OS X Utility

That means the hard drive has probably failed. You have failed to indicate what version of OS X is installed, so all I can suggest is booting from another drive, if you have one, or from the OS X installer DVD that originally came with the computer.

If you boot to a Utility Menu with four main options, then:

Reinstalling OS X Without Erasing the Drive

Boot to the Recovery HD: Restart the computer and after the chime press and hold down the COMMAND and R keys until the menu screen appears. Alternatively, restart the computer and after the chime press and hold down the OPTION key until the boot manager screen appears. Select the Recovery HD and click on the downward pointing arrow button.

Reinstalling OS X Without Erasing the Drive

Repair the Hard Drive and Permissions: Upon startup select Disk Utility from the main menu. Repair the Hard Drive and Permissions as follows.

When the recovery menu appears select Disk Utility and press the Continue button. After Disk Utility loads select the Macintosh HD entry from the the left side list. Click on the First Aid tab, then click on the Repair Disk button. If Disk Utility reports any errors that have been fixed, then re-run Repair Disk until no errors are reported. If no errors are reported click on the Repair Permissions button. Wait until the operation completes, then quit Disk Utility and return to the main menu.

Reinstall OS X: Select Reinstall OS X and click on the Continue button.

Note: You will need an active Internet connection. I suggest using Ethernet if possible because it is three times faster than wireless.

Also see:

Reinstall OS X Without Erasing the Drive

Choose the version you have installed now:

OS X Yosemite- Reinstall OS X

OS X Mavericks- Reinstall OS X

OS X Mountain Lion- Reinstall OS X

OS X Lion- Reinstall Mac OS X

Note: You will need an active Internet connection. I suggest using Ethernet

if possible because it is three times faster than wireless.

Your option is to replace the drive if it has failed. The computer is an old model, so you probably would do the job yourself, and I can't tell you how difficult that may be. You can try sites like OWC or iFixit to find disassembly tutorials.