The Lehi City Council is working to restructure the PARC tax grant application process to increase flexibility for park funding and streamline the review process, following a work session held on August 10, 2026. This effort follows a previous discussion on August 20, 2026, regarding how the city manages tax revenues for local parks and nonprofit organizations.
Flexibility in Tax Allocation
The current PARC tax revenue is split between city parks and recreational facilities and the PARC Community Grant Program, which supports arts and nonprofit organizations that benefit the community. While previous city councils established a fixed revenue split of 70 percent for parks and 30 percent for the grant program, council members are exploring ways to gain more flexibility in these allocations.
Addressing Unused Grant Funds
Council member Heather Newall suggested that having more flexibility could be beneficial for the city, noting that while the council could remain within the 70/30 split, there may be years when more funds should be directed toward parks. Council member James Harrison proposed articulating the policy as allowing "up to 30 percent" for grants. He noted that if a major park capital project arises, the city might only need to use 20 percent for grants in a given year.
Harrison expressed concern regarding funds sitting idle in the account when nonprofits are unable to fulfill their portion of an application. He stated he does not want to see money sit unused when it could be allocated to other projects. Council member Rachel Freeman supported the idea of a "up to 30 percent" limit, citing the high demand for parks and recreation within the Lehi population.
Evaluating the Grant Committee
The council is also evaluating the necessity of a dedicated PARC tax grant committee. The current committee, composed of city employees and community volunteers, is responsible for receiving grant requests, narrowing the applicant pool using a rubric, and presenting recommendations to the council for final approval.
Council member Freeman suggested that the current process might be redundant and proposed streamlining the process by holding presentations during council work sessions, similar to how other city funding is handled. However, council member Emily Lockhart expressed hesitation regarding moving away from the committee model. Lockhart argued that because the PARC tax is an opt-in tax, it is vital to maintain a committee of residents to ensure engagement throughout the process.
Nonprofit Eligibility and Funding
The debate also touched upon the role of nonprofits receiving these funds. Council member Lockhart raised concerns that some organizations may rely on the PARC tax as their primary source of income. She suggested changing the policy to specify that the tax should serve as a supplementary form of funding rather than a primary source.
Council member Michelle Stallings disagreed with this restriction, citing state law which states the intent is to provide predictable and substantial funding for these organizations. Additionally, the council discussed the need to clarify policy language regarding whether a nonprofit must be physically located within Lehi City to be eligible for grant funding.
Budgetary Context and Impact
The push for policy changes comes after the council's actions last year, where they listened to the PARC tax grant committee's recommendations but altered most of them. In that instance, the council shifted programs previously funded through the city's general fund over to the PARC tax budget.
This shift required the city to use all available PARC tax grant funding for nonprofit programs and utilize a reserve fund of PARC tax money. According to the Lehi Free Press, this maneuver helped balance the city budget and contributed to the city's ability to avoid a tax increase for Lehi residents during that period.
Next Steps for Policy Update
Matt Lee from the Lehi City administration department noted that while the current committee process is not a heavy workload for employees, it does require significant time from committee members. Lee suggested that if the committee is not providing a useful service to the council, the city should consider discontinuing it, but if they find value in it, they should continue.
Lee indicated that he will take the council's feedback to rework the PARC tax policy. The updated policy is expected to be presented to the council during a September meeting. Applications for the 2027 PARC tax grant program are scheduled to open in November.
