Park City has seen several years of revenue growth due to a strong tourism economy on the heels of the COVID-19 pandemic.
But now city staff are projecting one of the lowest revenue forecasts in decades, outside of recessionary periods.
“The sales tax revenues projections seem to be quite flat, and we could be a little off with that, but better to go conservative,” Park City Deputy Manager Sarah Pearce said.
In response, Park City’s proposed fiscal year 2026 budget aims to identify potential efficiencies amid rising expenses. That could mean changes to staffing, such as eliminating vacant positions and consolidating other roles. The city is also evaluating ways to test new technologies like artificial intelligence, Pearce said Wednesday on KPCW’s Local News Hour.
Also Wednesday, Federal Reserve officials downgraded their economic projection for U.S. GDP growth in 2025.
Economists at the UCLA Anderson School of Management also issued a “Recession Watch” earlier this month. Citing the Trump administration’s desire to transform the U.S. economy with new tariffs and federal cost-cutting, scholars say an economic downturn could occur over the next two years.
Analysts at the accounting firm PwC recently told Business Insider that American consumers are cutting back on travel spending due to economic uncertainty.
That could impact Park City’s revenue structure, which heavily relies on sales and other use taxes driven by the tourism economy.
On Thursday the Park City Council will review the proposed budget for the first time. State law requires the council to approve a tentative budget by May 1. The final budget approval with the city council is scheduled for June 12.
On Thursday the council will also review the child care scholarship program, which provides financial support to qualifying low-income households and local workers with young children. In 2023 the council allocated $1 million to the program, which has garnered national recognition. However, the funding is set to expire at the end of this year.
City staff plan to ask the council to add $300,000 to the program so it can continue into 2026.
Thursday’s meeting is scheduled to begin at City Hall at 3 p.m. The agenda and a link to attend virtually can be found here.
Park City Municipal is a financial supporter of KPCW.
