City to discuss legal action against the state |

City to discuss legal action against the state

Sara Thompson / Tahoe Daily Tribune

The South Lake Tahoe City Council might take legal action against California State at its Tuesday meeting.

The council will discuss if the city attorney should take legal action against the state for taking revenues from the city’s redevelopment funds, property tax and the highway users tax.

If the state takes the city’s allocated funds, the estimated fiscal impact to the city is a $4.2 million loss.

The city would join other organizations in this suit, such as the League of California Cities and the California Redevelopment Association in legal action.

“City government and (redevelopment) have much at stake with the illegal and inappropriate borrowing of the local funds by the state government,” City Manager Dave Jinkens stated in staff report to council members.

According to the report, the highway users tax allocation is more than $1 million, and is used for the city’s street maintenance and snow removal. The borrowed property tax amount is about $752,000 annually and more than $2.5 million would be borrowed from the city’s redevelopment agency for the next two years.

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– Council members will hear a presentation by South Tahoe Chamber of Commerce representative David Borges on an alternative traffic model for the Caltrans Echo Summit improvements scheduled for 2011.

Caltrans has presented its five different scenarios, but the full road closure is Caltrans’ preferred method because it minimizes costs and lasts 44 days.

So far the proposed project would begin May 2011. The road would open back up with flaggers directing traffic in June 2011. Construction would stop for the July 4, 2011, weekend, then begin again after the holiday.

– An update on the Tahoe Valley Community Plan will be presented before councilmembers, and possible direction or action could be taken regarding revisions and alternatives to that plan.

The council will meet at 9 a.m. Tuesday at the Lake Tahoe Airport, 1901 Airport Road. For more information, call (530) 542-6004.