The Lehi City Council is working to overhaul the Parks, Arts, Recreation, and Culture (PARC) tax policy to allow for greater flexibility in fund distribution, following a period of debate over the sustainability of using reserve funds to support local nonprofits. The move comes as the council evaluates whether to maintain the current 70-30 split between parks and grants or allow for more variable allocations to meet rising community demands.
Proposed Policy Shifts
During a work session on Aug. 10, 2026, Matt Lee of the Lehi City administration department presented potential updates to the PARC policy based on feedback from the previous year. Under the current system, the council splits PARC tax revenues between city parks and recreational facilities and the PARC Community Grant Program, which assists arts and nonprofit organizations.
Flexibility in Fund Allocation
Council members are considering whether to change the funding cap for grants from a fixed amount to an adjustable limit. Council member James Harrison suggested articulating that the grant portion could be "up to 30 percent," allowing the city to redirect funds toward park capital projects in years when grant demand is lower.
Council member Rachel Freeman expressed support for this flexibility, noting a "big appetite for parks and rec in Lehi" and the need to address growing population demands. Council member Heather Newall also suggested that having the ability to put more money toward parks in certain years could be beneficial.
Streamlining the Application Process
The council is also weighing the necessity of the PARC tax grant committee, a group of city employees and volunteers that reviews applications and presents recommendations to the council. While Matt Lee noted the committee process is not a "huge lift" for city staff, he acknowledged it requires significant time from volunteers.
Recent Funding Debates
The push for policy changes follows a contentious vote in May 2026, when the council approved over $860,000 in PARC tax revenue for local nonprofits in a 4-to-1 vote. This decision required drawing from a $570,000 PARC tax surplus to cover the shortfall between annual collections and the requested amount.
Sustainability Concerns
The May vote saw council members Rachel Freeman, James Harrison, Heather Newall, and Michelle Stallings in favor, while Emily Lockhart voted against the measures. Lockhart expressed concerns regarding the long-term viability of relying on reserve money to support organizations that may not be self-sufficient. She noted that one entity receives 35.9 percent of the PARC tax, while the next largest allocation is 18.7 percent.
Budgetary Impact
The shift in funding strategy was part of a broader effort to balance the city budget. Last year, the council moved funding for certain programs from the general fund to the PARC tax budget, a move that contributed to no tax increases for Lehi residents. This shift meant that several large nonprofits, including the Hutchings Museum and the Thanksgiving Point Institute, received support through the PARC tax rather than the general budget.
Historical Context of PARC Tax
The PARC tax was established following a vote on Nov. 2, 2021, in which Lehi City voters approved a 1/10th of 1% increase in the local sales and use tax. The tax, which went into effect April 1, 2022, is intended to fund recreational and cultural facilities and organizations through March 31, 2032.
