Coffee With the Mayor: Learn more about the City budget on Tuesday

SOUTH LAKE TAHOE, Calif. - Join South Lake Tahoe Mayor Cristi Creegan and the Director of Finance, Olga Tikhomirova, on Tuesday, September 19 at 9 a.m. for an overview of the City's 2023-2024 budget.

They will be at Cuppa Tahoe, located in the Crossing at Tahoe Valley, 2054 Lake Tahoe Blvd.

The South Lake Tahoe City Council approved a budget of just under $150 million during its August 22 meeting. Included in the budget is the primary General Fund budget of approximately $56.3 million and Measure S Sales Tax general fund budget of $6.3 million.

The FY 2024 budget continues to include targeted funding to address some of the City Council's top priorities. FY 2024 General Fund revenue estimates are approximately $1.9 million higher than the current FY 2023 total budget. The FY 2024 Recommended Budget is balanced without the usage of the City's undesignated General Fund reserves (conservatively projected at $2.0 million). These funds are set aside for future budget years to help address the potential budget deficit due to slow revenue growth and increasing personnel costs largely related to increasing pension costs.

Highlights of the budget:

• Approximately 66 percent of the General Fund Budget for the upcoming
budget year is personnel costs
• Assumes prepayment of UAL, savings of $75K
• Total pension costs budget is $9.0 million. Normal cost rates are
marginal increases and decreases. New Actuarial Reports include an additional $995K UAL increase (to be requested at mid-year)
• Health Plan costs - budgeted to increase 10% for 9mo of FY2024.
Actual increase based on new plans 6.5% (to be adjusted at midyear)
• Funding for major capital improvements cost provided by Measure S Sales Tax, grants, and other available funding sources
• FY 2024 budget addresses deferred maintenance needs
• Funding for several City Council Strategic Priorities is included
• 5.66 net increase in full-time equivalent positions for
expansion of services
• Inflation 3.2 percent in July 2023 (up from 3.0 percent in June); Fed interest rates 5.25-5.5 percent (the highest level in 22 years)
• City Code and City Financial Policy requires maintaining a 25 percent
operating reserve - equaling $13.7m for FY 2024