Letter: Does South Lake Tahoe have a fiscal policy?
To the community,
Spending, borrowing, taxing. The fiscal policies and practices of the city are a jumble. The city has a large debt. It claims to have a large deficit. It has laid off several city employees to cut costs.
But the City Council is prepared to gamble thousands of dollars on parking meters. The council assumes meters are the answer for increasing city revenue. Where is the money for buying and installing the meters?
And the council will spend thousands on hiring headhunters to recruit candidates to fill city staff positions, which is another roll of the dice. Headhunters are not necessarily successful at providing good candidates for the city. Examples: I think of David Childs and Tony O’Rourke who were supposed to be the cat’s meow, topnotch city managers. Both resigned after two years. The city doesn’t have to send money for headhunters to recruit candidates.
And how much money has been spent on the contract for provide management of the city ice rink? Where is the accounting? Is the deal paying off for the city? A Bud anyone? The city’s working on it.
Fiscal policy. Spending, borrowing, taxing. That is the question. What is the answer?
Bill Crawford, South Lake Tahoe
Hey Hank, relax. Didn’t you watch Barry’s speech? Everything is going to be alright. The government will take away our guns, and that will save SLT a lot in police protection, because now the bad guys won’t be able to get a gun at all. PLUS, if a bad guy does happen to kill someone, that’s ok too, because it costs less to bury someone rather than fix em so its a win both ways. He’s going to invest in schools, so that will save us in training costs. Minimum wage will go up, which means more taxable revenue for the city. He’s also agreed to vote on immigration reform, couple that with Obamacare, and now everyone can get a job with health benefits which means less bad debt expense for Barton, so everyone’s health care costs will go down, including SLT’s! I see nothing but wins every way I look at this!
So relax, everything is going to be alright, no need to be terrified, the government is here to help you! There’s your answer!
If you’d had the answers Bill, maybe you would have been elected to Council recently. While the city is adding parking meters (which I support), why not add more advertising to bus stops as well. We can’t bury our heads in the sand. Most tourists come from the Bay area. There are meters everywhere. They expect them here as well. Hopefully they are placed in the most profitable areas.
Parking meters and how they will be effected by snow removal? They may look like a revenue source on paper, but practicality may be a horse of a different color.
Check out the City’s latest survey sent to locals if you want a real laugh. Sample question. “Do you feel less safe at night around stateline?” Other questions were just as hiliarious. Money well spent? Give me a break. But as Louis says, Obama will save us all so don’t worry.
I’m with you Louis! As our wonderful President makes clear, we don’t have a spending problem we have a revenue earning problem in this country and as the country goes so shall the city.
Sorry Bob – Bay Area visitors come to Tahoe to get away from ugly meters, advertising signs everywhere, visual pollution, etc. They come for the beauty of the mountains. Parking meters will be another detriment to locals spending locally! Try energizing local businesses and recruit more business and opportunity. Hold an economic summit and invite successful companies who can operate remotely, such as Google, Facebook, Biotech, etc. Look into opening up a Research Park (such as the one in Kihei, Maui — housing companies like Super Computer, Boeing, etc. (maybe using our airport office space, or building something on the HOLE.)
Parking meters will just irritate everyone, and cost money to buy, install, REPAIR and maintain.
Parking meters are a terrible idea. When is the City going to get with the program and realize that a happy local population base will fertilize the economy? Pay attention to the taxpayer base, the local businesses, and the people that live here FIRST if you want the City to ever get on its feet.
If one actually watches the February 5th City Council meeting they will hear City Manager Nancy Kerry report that the paid parking pilot program that was initiated on Bellamy Court which had managed that City asset and generated revenue for the City had actually generated enough excess revenues over the projected budgeted revenues for those monies to purchase the kiosks in the expanded areas of the parking management program.
How typically Bill Crawford to worry about what equates to rather small but legitimate expenses in a $27.3 million general fund budget while he simultaneously advocates spending what would likely be hundreds and hundreds of millions to build a City Hall when there are no funds for that. It would be absolutely necessary to finance and incur a huge amount of debt to construct a City Hall but I guess if the debt is derived from what Bill Crawford wants it’s OK.
Bill, first considering how often you and I speak, at least once a week if not more, on just about every topic regarding the City, and that you know full well the City’s fiscal policies that you and former City Councils have adopted, this posting of yours only serves to confirm what is often speculated by a majority of community members about this site that people use it to get attention for themselves, to encourage and engage debate for the pleasure they receive of stirring up false controversies or using anonymous monikers to incite those they know will take the bait and respond which the poster finds amusing.
I am responding to this posting of your on behalf of the City because your calling into question the City’s fiscal practices and polices is a serious claim and one that deserves addressing. However, since you are well aware of the current financial condition of the City, and you and I have discussed even recently the much good news on the horizon, as I’ll share below, I’m realize I’m not addressing this to you.
For the community, it so happens on the next City Council agenda, are several reports on the fiscal health of the City, amendments to the City’s financial policies (as we regularly do to keep the policies current) and a report on the much need good news of the City and community’s fiscal outlook, which I’ll give some background here. While I realize this is a long response, the financial policies of your City are important and considering the truth is quite different than has been posied in Mr. Crawford’s statement, I will take the opportunity to paint the whole picture.
We have just recently completed the year-end close out of Fiscal Year 2011/2012 and the audits have come and gone and for the first time in several years, there is good news, but first, let’s look back a bit.
You may recall all the cuts that have been done over the past few years. Each year the news was worse and worse as the recession deepened. During this time, the City lost about 1/3 of its staff. The highest priority of the City Council at the time as to close the $5 million ANNUAL shortfall; they made the tough call and tough decisions – that’s what was expected by those who elected them. I recall the debate about public employees at the time. But, let’s not forget those who lost their jobs – whether in the public or private sector “closing a shortfall,” “right-sizing,” “solving the budget problem” means people lose their jobs and the impact on their lives is significant and sometimes lasting.
But in this the Great Recession, we saw cuts across the board, at nearly every business and most government agencies. And yet some agencies that did not react fast enough, or refused to reduce benefits or had employees that refused to share in the solution, those cities are in bankruptcy today. Government doesn’t usually react quickly, and that typically a good thing since the services we provide are for the public’s safety and public services.
Our city, your city, not only reacted reasonably, they did better than that… they actually (Bill included) thought ahead. Back in 2000, there were NO RESERVES in the City. That’s right, zero. The City Council and former City Manager, David Jinkens, adopted a series of financial policies to turn that fact around. That’s when the Council adopted a policy setting aside 25% of General Fund Revenues for reserves.
I’ve said it before but it deserves repeating, if the Council and staff could have had a crystal ball at the time and foresaw the future, that’s exactly what they should have done to prepare for the recession. They also brought in new revenue, such as the 911-fees brought up through one of the Councilmembers. They also worked with CTC to bring in millions of outside dollars to build Lakeview Commons.
Within just a few short years, the City had met its’ 25% reserve policy and went further than that, resulting in the high point of having $14 million in reserves, at the perfect time, when the storm hit. Thank you each and every councilmember (Bill included) and staff member who kept that policy in place… those forward thinking policies really helped this city weather the storm. Those funds didn’t solve every problem, but without them, the City would have been in serious trouble.
In 2007 and 2008 when the storm was gaining momentum, the ‘excess’ reserves (those above 25%) were used to buffer the immediate and significant loses – as people quit traveling and vacationing, TOT and sales tax took huge hits (along with local hotels and businesses that suffered great loses). Throughout 2009, 2010, and 2011, we lost more than 30% of staff, cut back on everything that wasn’t core service. The City conducted community surveys to get community input, held workshops, created Neighborhood Service Teams, reached out in every way imaginable to get more community input and then using that, the Council adopted its first Business Plan with a focus on the core services in response to the community. The Council also took the bold risk of taking out a modest Certificate of Participation (basically a form of a bond) to investing in the local community and infrastructure as the community asked the Council to do (“improve the infrastructure”).
As for financial policies, those were sound, smart, focused and measured.
So how’d that work out?
Today, as will be shown in the staff report before Council on Tuesday, Fiscal Year 2011/2012 which closed out September 30, 2012, did not end up as projected with a negative cash flow. At the time the budget was adopted, it was projected we’d dip into the reserves by about $500,000. By mid-year 2011/12, the projections were adjusted to reflect improvements – at that time, it was anticipated we’d come in right on budget or worst-case depending on summer 2012, maybe $100,000 short. However, summer 2012 did better than 2011, a small bit of improvements were seen in TOT and sales tax, and expenses were held back. The year ended with a POSITIVE cash flow.
How’s 2012/2013 looking?
It’s early yet, but the trends of economic improvements are continuing. The City’s TOT collections through the end of January are up over last year by nearly 13%, that’s the first real significant measure of hope in a long time.
And this summer, the City’s Capital Improvement Program will be investing approximately $16 million dollars in capital projects in South Lake Tahoe. 90% of these funds come from outside the basin into our community. Lake Tahoe attracts a good amount of tax dollars from other communities, into our community because of the extraordinary beauty of Lake Tahoe. The federal government and state government provide many millions to local agencies each year to improve the infrastructure, install water quality improvements and improve local roads to protect the lake. As a whole, the entire Lake Tahoe community gets more than its share of federal and state tax dollars that are provided by others, brought into our community to improve our towns. City staff works closely with other agencies to apply for these funds, submit grant applications and request financial assistance, which is how we end up with such a large investment of taxes.
These $16M in capital improvement projects include the City Council’s decision to issue Certificate of Participation (COPs) and develop the Harrison Avenue Project which is a partnership with the local commercial and private property owners to improve that area, a growing hub of activity next to Lakeview Commons. In addition, the Linear Park along Tahoe Meadows will be reconstructed; Bijou Erosion Control Project will bring water quality improvements. Pioneer Trail will get some sidewalks and improvements and Caltrans will be continuing their work on Highway 50.
But we’re not the only ones investing. So too are commercial property owners. The City currently has pre-applications and applications from commercial properties that could invest nearly $25 million this summer. These potential projects include an application from the convention center site, and let’s hope they get this off the ground; on-going remodeling of a few hotels, the Aspens Affordable Housing Project (5 + years in the making), and other potential new businesses.
Keep in mind, it’s going to be a summer of construction which creates jobs, supports the local businesses – everything from coffee shops, restaurants to contractors and will help to raise property values. Local realtors report those signs show improvement as well with supply of housing for sale limited, houses are selling (the overall price remains flat below $300k or so, but we don’t want to see another bubble so that’s ok).
A lot of construction this summer, so plan accordingly – rather than complain, remember the jobs and economic boost the construction brings. Work around it, be patient. The results will be worth the effort. When people complain about it, remember the jobs being created, the investment that will have lasting improvements.
As for the City’s financial policies and decisions it’s made. Like anyone, there have been mistakes, that’ll never change because human beings make mistakes. But back in 2000 and 2001, when the policy was made to fill those reserves and plan for a catastrophe, that was one of the most prudent and wise polices made by any city; and many cities wish they had made the same decision. We’re not the only city though; there were others who weathered the storm well. And we’re a long way from being out of it. I recommended the Council hire a recruiter to help us find a couple of great staff members to join our really great team of City employees.
I am tired of people complaining about City and other public employees. How many businesses do you know where you can hurl insults at their staff and they still deliver service with a smile, and show respect when they are not shown the same? I can’t think of any. But public employees get this routinely and I don’t respect those who engage in such ridicule. Your peace officers put themselves in front of you when danger exists, as evidenced again this week when police officers in several communities lost their lives trying to protect those whom they do not know but answered the call to do so. When you call 911, you want a highly trained firefighter or police officer to show up and protect you, and that they do. Your snow plow drivers are out there in the middle of the night, doing their best to cut the snow and yet they sometimes get stones thrown at them for their efforts, but not many thanks. The maintenance crews who keep the facilities up and running finding every which way to do it with fewer and fewer funds; every employee is doing their best and people do better when they are appreciated.
Your elected officials are also doing their best – you know it’s basically a volunteer job. They put in a lot of hours. I was pleased to see so many offer to serve to fill in the recent vacancy. Don’t just complain about those who give their time to serve the public, get involved. They will make decisions you do and some you don’t agree with; so get involved, come to council meetings, offer ideas and solutions. Be part of defining the vision of the future of South Shore.
Lake Tahoe will always be a great place to vacation and live, work and play as they say. What do you want it to be? The month of March will be many community workshops, there will be some talking about vision (March 5 through Tahoe Chamber), March 12 at the City Council the TTD/loop road issue, March 14 City will be holding a workshop on Stateline Area for potential Area Plans. The CTC is hosting workshops asking for community input on the important Upper Truckee Marsh.
This community provides many meaningful ways to participate in making South Lake Tahoe what you want it to be. You, we, them, us, we’ve all working in our own ways to help.
Let’s work together, find solutions to the issues. Point out successes and learn from mistakes. We don’t have one leader in this community that is responsible to deliver all of the solutions; we have a pool of leaders of active and engaged leaders working more collaboratively and better than in years past. We are a County, a City, a bi-state area… but to be a community we must develop a shared and collective vision of where we are headed. What should your local community invest in? What do you want the South Shore to be, how will we meet the technological advances of the next generation? Are we ready? How will we remain a recreation destination and deliver what the residents and traveling public want and expect? There are many ways to shape the future; it will be shaped it will drive the financial and economic policies of the future. So , get involved. There is the City/County Parks, Trails and Recreation Master Planning process coming up or the Airport Master Planning process or Area Plans and so on.
We can learn from our mistakes, and learn we must. We can also learn from the decisions that were right, and the City Council and former City Manager made the right decision 13 years ago that helped this City be as prepared as it could be for the Recession – no City or agency escaped the fallout.
Today’s City Council and I believe our City staff, made the right decision to invest in Harrison Avenue, invest in community visioning, invest in your ideas, ask for your Collective Input, not just the input of a few, maintain the 25% reserve and at the same time focus on the future.
Get involved, you are after all, the community. You are the local government, you are the future of South Shore.
~Nancy Kerry, your City Manger but more importantly, just one of your team of local public servants
This city is so screwed up we need a total overhaul. Parking meters and anyone pushing for this scam should be removed from office by recall. Yes, Bill is right, the city laid off critical employees including administration in the police department. All this has led to unacceptable delays, poor work, upset taxpayers and work left undone thus allowing crime to thrive in South Lake Tahoe. Stupid parking meters will be the straw that breaks the camels back. Look for the crime scene banner in front of the city council!!!
Did the city settle that lawsuit related to the pre-school teacher that was tased/tasered by the South Lake Tahoe Police (“SLTPD”) last year? There goes 1.9 million dollars for reckless incompetence and thug behavior by our city employees. We demand – full transparency and full accountability.
Wow, in the time Nancy Kerry, City Manager wrote her 2351 word manifesto – the SLTPD could have finished the bound hunter police report for Ty Robben. If you all can’t stand the hyperbole – get out of the kitchen.
Raising taxes and fees so the City can boast it has the highest in the region, proposing to pay a consultant thousands of dollars to tell airport officials what kind of snowblower to buy (not to forget the immense, unproductive subsidy the airport requires to operate), spending tens of thousands on parking meters and kiosks that will result in unwanted parking in adjoining residential neighborhoods, then borrowing money for basic road repairs, to me is not prudent fiscal management. I agree with Crawford, the fiscal practices and policies of the City are a jumble.
Firebreaker – what do you do to make this community better?
JoAnn, I’m going to offer you a bit of advice that has most probably been offered to you by others:
Don’t let yourself get sucked into the kind of comment/argument, on this or any other public forum, that you just engaged in above. It’s a bit unbecoming of a sitting council member.
Restraint is an important virtue when participating in public office.
By no means am I trying to diss you, just offering a friendly reminder.
I’m not buying into the rhetoric that it’s the tourists to our community that will be so offended by paid parking but rather some of the cheap locals who think they’re living in a world of comps, are entitled to everything for free, and think everyone else should pick up the tab for the cost of running the business of the City which provides the services those locals will be the first to scream for and then ***** about.
Living in the real world is not like being taken out on a date.
Nancy Kerry,
Let me start off by saying I think you are doing a good job as city manager. You seem well informed about our local economy along with current and future projects that the city has a hand in.
I’m not in favor of everything the city proposes, like parking meters as one example, but I do think the city employees do a GREAT job. Even though the number of city workers were cut by a large amount, those remaining have done their best to fill in the void.
So hang in there and keep up the good work and please don’t be to harsh on Mr.Crawford. He was my English teacher a million years ago and is a pretty good guy. Old Long Skiis
I also think its silly to pay for so many headhunters and consultants if things are so tight – especially when the results have been so unimpressive.
“Rather than complain, remember the jobs and economic boost . .” why is Tahoe one of the last places in the country to realize that road construction performed AT NIGHT alleviates the chaos – you can’t tell me visitors don’t say “Well we’re not coming here again while this is going on.” Does the city have no leverage with Caltrans?
JoAnn – Congratulations you’re fitting right in.
Ms. Kerry is probably the best city manager that we have had in decades. That being said, “… use it to get attention for themselves…”. Indeed.
OK – I’ll give Ms. Kerry a break and chill out and see what see does. People in the “Know” are telling me she’s good… Brian Uhler on the other hand needs to step it up or step out.
My question was not intended to be a put down. My favorite saying is: “If you change the way you look at things, the things you look at change.”
There is a lot of energy and power in this community, but it seems like a lot of people don’t think they can do anything to make a positive difference. It was an attempt to change a way of thinking: you can do what you set your mind to do.
A lot of people are starting to step up, and do little things that collectively could make a positive difference. Whether it is giving $5 to Christmas Cheer, donating stuff to the Attic or the American Legion quarterly rummage sale, buying Girl Scout cookies or Cub Scout popcorn, volunteering in a service club, to coach a team, clean up a beach for an hour a year, help the Cancer League, tell a worker somewhere thank you-good job (encourage better customer service), serve on a commission, committee, or board,offer ideas and solutions, ask yourself: how can I do something to make this community better? Some of you may view that as a challenge, and maybe it is, but it is what collectively could make the biggest difference in this community.
“But back in 2000 and 2001, when the policy was made to fill those reserves and plan for a catastrophe, that was one of the most prudent and wise polices made by any city;”
I couldn’t agree more — but I must correct the record. Dave Childs was our City Manager then, not David Jinkens. Mr. Childs made numerous recommendations to align the City’s finances with the reality that reserves were needed.
I believe in giving credit where it is due.
Let me say this, I’ve known Mr. Crawford for 23 years. I’ve had 345 hours of instruction from him. I’ve listened to his personal philosophy. I may not always agree with him, but I have a reasonable idea where he is coming from.
I’ve never known him in his political opinion to be an “idea man.” (if you are Hank and I’ve never noticed I apologize) That’s fine we are not all visionaries. What he does do is this, he sees something he doesn’t like and calls it out. Some people might call this attitude “obstructionist” or trying to negotiate with him another may say he doesn’t “compromise.” That’s ok, he’s got the shoulders to take it.
Did you know he is an astronomer? Did you know he was a successful college quarter back? He’s a man of high intelligence and some good old fashioned get out and take action spirit. He is older and wiser than I, sees through a lot of nonsense that I miss and most people wouldn’t even consider is there.
In general you’ll never get him to agree or think a government project or spending is a good thing. Because in his mind its not. Thus you’ll almost never make a persuasive argument as a result because no matter what you say he’s against the very idea from the start.
He’s a complex man, and knowing him as I do he’s probably half scoffing at me, and half wanting to argue. That fine, I get it, that’s your nature. But sir, respectfully, sometimes government needs to do a few things to get the private sector moving. Often I disagree with tactics used, as well as waste, and yes government is made up of people whom are flawed and often have their own motives.
But in the end it makes no sense criticizing individuals who are doing their best to do the job they’ve been told to do. What does make sense is to address the whole and say, hey this isn’t right, this is a problem. That’s what Mr. Crawford does best. Oh he may be wrong, only time will tell. Just keep that in mind when you think of him.
I would offer him one challenge right now. Mr. Crawford, I challenge you to take one step out of your comfort zone, try to find someone in government and publicly praise them for doing one thing right.
Reserves? The reserves were built by neglecting the streets for a decade and a half. Not to mention unfunded liabilities for retiree’s insurance and pension commitments.
Now after squandering millions they want us to pay to have our streets maintained at triple the cost because of differed maintenance.
They claim the budget is balanced so a line should be drawn and the majority of additional revenue generated by the parking meters, increasing sales tax and tot should go to street maintenance and employee commitments.
I presume it would be hard to make a budget in South Lake Tahoe when the city is busy paying criminal police officers on paid leave for over a year and that is just one that is caught. Not to mention how over paid they are to begin with. Over $62,000.00 starting pay when we only pay our soldiers below $30,000.00 a year to go to war.
I would like to ask the city manager why our roads are not kept up with the maintainence like the Nevada side is.
Also, city manager, if there was a positive cash flow, then why were there layoffs. I was not personally affected by this, but am curious if this was just an easier way to fire people that asked too many questions.
~Nancy Kerry, your City Manger but more importantly, just one of your team of local public servants
Yada,yada,yada
Please hire an editor… Surely you can afford that.
Oh, not to mention a local public servant that makes $175,000.00 per year with a 3 year contract.
Question: Is the city going to go out for bid on the parking meters again this year?
I never go near the Heavenly Village because of the paid parking so I don’t know what the kiosks look like.
Will they stand up to the local gang bangers vandalism?
The city couldn’t protect the lights in the linear park. What chance will the kiosks stand at the beach at night?
Bill Crawford is part of the problem, not part of the solution. When Bill was on the City Council, I sat in on a council meeting where he succinctly stated that laying off City employees was out of the question.
Bill, you have a lot of nerve criticizing the current City management. Your tenure on the council left the city in the condition it is in today.
Personally, I empathize with the City Manager and present members of the City Council. They’re left cleaning up your mess.