City faces million-dollar shortfall | TahoeDailyTribune.com
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City faces million-dollar shortfall

The city of South Lake Tahoe is in better shape than it was last year, but it still faces a $1.1 million shortfall as it begins budget hearings Tuesday.

That has City Manager David Childs looking for new funding sources, two of which would require voter approval.

“We need to have a conversation about additional revenue,” he said. “We can’t balance the budget on one-time dollars forever.”



The City Council will look to bridge the gap between requests from city departments and available funds before adopting its 2002 fiscal budget in October. Working with a budget of about $20 million, the city has less of a gap than last year by about $1.25 million, according to Childs.

Childs has made some suggestions on how to increase revenues, which he said haven’t increased since the 1980s.



One includes an increase in the $20 parcel fee passed in 1989 for snow equipment. A voter-approved tax increase that would go directly to snow removal and fire trucks might have a “reasonable” chance of passage, he wrote, although it would take a two-thirds vote.

Childs has also proposed a 2 percent increase in hotel and motel tax for non-redevelopment properties, putting all lodging properties in the city at 12 percent and raising the city’s annual revenue by $1.35 million. Such a move would require a simple majority vote by city residents.

Childs reported strong sales tax revenues with an increase of 4.4 percent from last year. Hotel and motel taxes were as strong as, or equal to the previous year and property tax revenues increased, according to the report.

With suggested budget cuts already made, the city will be dealing with a $1.1 million gap. The city will also look at putting money aside for infrastructure, vehicle replacement and retiree employee medical benefits.

What: City budget workshop

When: Tuesday, 1:45 p.m.

Where: City Council chambers, 1900 Lake Tahoe Blvd.


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