At a time of financial uncertainty in one of the state's richest districts, some community members have watched the concrete and steel go up with wonder: How can a district that's cutting money for supplies have enough cash for a beautiful, expensive renovation?

It all goes back to the law, according to Larry Newton, school finance director at the Utah State Office of Education. The tax homeowners pay for school construction and equipment can't be spent on books and teachers, so the high assessed value of Park City's homes reaps loads of cash for bricks and mortar.

"What it means is for very little effort, for very little tax rate, Park City yields a tremendous amount of dollars," Newton said.

In 2005-2006, Park City led the state in assessed property value per student at about $1.5 million. By contrast, Salt Lake City School District had an assessed value per student of $554,291. Jordan School District, the state's largest district, was at $267,370.

Even with the high value of those homes, the district faces the same ceiling as other districts on just how much it can tax homeowners through a combination of different levies. Nevertheless, Park City can pull in proportionally more than a district with less valuable homes - providing more to spend per pupil.

The amount of money it receives per pupil from the state is no different from any other district.

The fact that more of Park City's wealth can't be funneled into day-to-day operations frustrates some community members.

"You have a state saying, 'We don't care if the tax base goes up a billion dollars a year,' " said Roger Arsht, a Park City High School English teacher. "Yet the state says, 'We have to hold you to the same standard as the rest of the state.' "

Park City's current predicament springs in part from past school board decisions to keep spending millions in savings. That, along with accounting mistakes and an unexpected drop in enrollment, culminated in the current squeeze. Though technically not in debt, the district anticipates spending about $1.5 million more than it will bring in this school year.

Steps the district has taken this school year to curb spending include a $200,000 cut to the supply budget. Instead of spending the normal $2 million on principal requests at individual schools, this year the district spent less than $500,000.

Once the high school renovation is completed by August 2008, the high school's new capacity - at roughly 1,400 - will be slightly smaller than it was before, according to Von Hortin, the former Park City business administrator who is now an audit and finance specialist at the State Education Office. When the building was planned, administrators did not expect dramatic high school growth.

But the fact that Park City is spending nearly as much as some other districts have spent on a new high school has left some community members puzzled. The new high school for 1,600 students in the Tooele School District will cost $38 million for the building and athletic field improvements.

Part of the cost in Park City had to do with the demolition and temporary improvements as the new buildings were built, said Bob Burns, co-president of the teachers' union.

"They weren't starting with a blank field," he said.

The renovation will replace buildings constructed at different times and knit together over decades. The end result was massive heating and cooling problems and a lack of efficiency.

One renovation was so recent that when Donna Hall started teaching at the school in 1997 her basement classroom was brand new. Come today, when the first phase of the construction is unveiled, she will occupy an even newer space.

"So I'm expecting in another 10 years I should get another new classroom," the math teacher said jokingly.

The new Park City High School will not be like any high school you grew up with. Teachers will use a touch-pad screen to project computer and video images in a kind of home theater. Instructors will be able to access digital imagers to flash a student's paper on the screen.

For the soft-spoken, a "voice enhancer" will allow teachers to face the board and carry their voice through the room's speakers.

"I think it's moving us into the 21st century as far as technology is related," said Renee Pinkney, a social studies teacher.

The bright, spacious building will enhance the learning environment, teachers said, and the technology will give them the tools to reach students even better. As a "green" building, it is expected to be the first high school in Utah to attain Leadership in Energy and Environmental Design or LEED certification.

People will look at it and want to buy houses in the community, said Ed Mulick, a science teacher. "We're going to have a beautiful school," he said.

---

* JULIA LYON can be contacted at jlyon@sltrib.com or 801-257-8748.