City Council to look at tax increases to pay for roads, facilities, fleet and recreation

Submitted by paula on Fri, 04/29/2016 - 5:04pm

The South Lake Tahoe City Council will have item on their agenda May 3 that will not only affect local residents, but tourists as well. They are contemplating some tax initiatives that could appear on the November ballot, initiatives needed to pay for much needed city improvements including roads, facilities, replacing an aging fleet, a remodel of the recreation and swim complex and more.

Subcommittee recommendations could be voted on Tuesday. The City needs about $3 million a year to adequately meet maintenance obligations for streets and roadways, and about $25-30 million to create a new recreation experience for both locals and visitors. This could be funded through a bond which would need annual funding between $2 million and $3 million.

The City sent out surveys to residents they had email addresses for, asking for their opinion on what they wanted the City to spend money on. Just 18 percent replied, but gave city staff enough direction on what residents felt was important. The biggest response was for roads, followed by recreation.

While nobody likes taxes, they are the only thing that can help meet the needs of the community. There are three options the Council will look at Tuesday to fund everything: raise parcel taxes, raise sales tax and/or raise tourism taxes.

What is being proposed 1/2 cent sales tax increase which would bring in an estimated $2.5 million annually; and a 2% Transit Occupancy Tax (TOT) increase which would generate about $2 million more a year, enough to make recreation bond repayments.

To appear on the November 8, 2016 ballot, the City must submit a ballot measure no later than the June 21 Council meeting.

The Lodging Association is supporting the TOT tax increase as it would benefit those wanting to come to South Lake Tahoe to hold basketball, swimming, volleyball and other sporting tournaments that cannot be held currently due to a lack of facilities.

May 3rd's meeting starts at 9:00 a.m. in the Council Chambers at the Airport.