Park City Schools tap $2.6 M reserve to fill budget gap amid falling enrollment

PARK CITY, Utah — Park City School District plans to transfer $2.6 million from its reserves next year, a move officials say will let the district maintain programs without raising any local tax rates set by the Board of Education.

Business Administrator Randy Upton presented the proposed 2025-26 budget at the board’s May 20 meeting. Superintendent Lyndsay Huntsman called the spending plan “a balanced financial roadmap” that protects classroom offerings while meeting the board’s no-tax-increase goal.

Why tap reserves?

Upton said the drawdown, more a shift between accounts than a deficit, allows the district to cover higher labor costs and a modest revenue shortfall without touching voters’ pocketbooks. Board-controlled levies (Voted Local, Board Local, and Capital Local) will stay at their certified rates; the debt-service levy is set strictly to meet general-obligation bond payments.

Upton stressed that the fund balance, projected at $41 million after the transfer, remains “well within auditor recommendations.”

By the numbers

• General-fund spending: $118 million, up 0.6 percent.

• General-fund revenue: $118.2 million, up $855,775.

• Reserve transfer: $2.6 million (from roughly $44 million to $41 million).

• Enrollment: Expected to dip 110 students to 4,007.

• Staffing: 32 full-time-equivalent positions eliminated or repurposed, saving $4.7 million.

• “Recapture” to state: $33 million in local property taxes.

• Weighted Pupil Unit: Up 4 percent to $4,674.

Salaries and benefits account for about 85 percent of the general fund. The share spent directly on instruction is set to rise to 57.3 percent.

Looking ahead

Huntsman said drawing on reserves every year would be unsustainable, but the district is “comfortable with this year’s transfer given the fund’s health.” District officials shared that staff continuously model future scenarios, such as enrollment changes or shifts in state funding, and stand ready to trim expenses, open enrollment, or seek additional revenue if needed.

Trustees also asked for an early-fall review of campus capacity, noting that long-range decisions must weigh many factors beyond enrollment alone.

A state-mandated public hearing and final vote on the budget are scheduled for June 17.