SOUTH LAKE TAHOE, Calif. — The South Lake Tahoe City Council will consider four ways to pay for its Vacation Home Rental Program during its regular meeting Tuesday.

Despite an increase in permit fees in September 2008, the program has only recovered, at best, 85 percent of its expenses since 2009.

The city uses tens of thousands of dollars from its general fund annually to subsidize the program, which is expected to cover 76 percent of its costs this fiscal year.

Increasing compliance in the program through contracting with an outside firm for enforcement, increasing permit fees and improving how vacation rental properties report occupancy are each considered in a staff report by Finance Director Christine Vuletich.

“The City Council may consider some or all of the above options to ensure that the (vacation home rentals) operating within the City limits are operating in compliance with the City Code and (Vacation Home Rental) Program, and to strengthen collection of TOT revenues,” Vuletich said in the report.

Vacation home rental permit fees would need to increase by 32.5 percent to cover the $56,750 needed from the city's general fund to cover the program's expenses this year.

Such an increase would result in a new vacation home rental permit costing $294 and an annual renewal costing $202.

“For comparative purposes, Douglas County charges $100 for a new permit, and $75 for a renewal,” Vuletich said. “Placer County charges $107 and $16, and El Dorado County charges $75 and $65 for a new permit and annual renewal respectively.”

The council meets starting at 9 a.m. Tuesday at Lake Tahoe Airport.