S. Lake Tahoe budget flush with ‘extra’ money
By Kathryn Reed
South Lake Tahoe is in the unique position of having about $1.2 million to spend mid-year.
While the numbers are not astronomical, it is a change from the austerity and deficit modes the city has been faced with in recent years. The “extra” money is carry-over from the last fiscal year that ended Sept. 30. It takes time for fund balances to be known based on bills to be paid and money coming in so a dollar figure is not known when the current budget is passed. (This is essentially money that was budgeted but not spent or revenues that came in above what was projected.)
It was known when the current budget was approved last fall that there would be $349,473 in excess. That was immediately put toward the recreation master plan, a police vehicle, actuarial study, computer hardware, improvements at the city pool and few other things.
What was decided Jan. 14 was for $250,000 to be used for a one-time 2 percent salary adjustment for all permanent full-time employees. The city manager and city attorney have declined to be included. Most part-time and seasonal employees will receive $250.
Another $250,000 was allocated for the Harrison Avenue project. That bid will be awarded Feb. 18 and the project will break ground in the late spring.
The council approved this on a 5-0 vote without any discussion. However, all have been meeting with city staff individually. And Mayor Hal Cole and Councilwoman Brooke Laine are the fiscal sustainability committee members and therefore are most active in financial matters.
What isn’t determined yet is how another $534,122 will be spent. Of that amount, $334,122 is in the bank – also from year-end balance excesses. The remaining $200,000 is from anticipated sales tax increases based on what the state has told the city.
City Manager Nancy Kerry pointed out that if the council wants to eliminate the paid parking program, the $534,122 would almost cover the cost of doing so. Eliminating the controversial program mid-fiscal year would create a budget hole of about $600,000. Included in that is the $191,000 to pay off the kiosks.
There will be a public workshop on Feb. 10 at 8am at Lake Tahoe Airport at which time the council is expected to make a decision about where the money goes and to potentially create a policy about how to spend money when there are unanticipated revenues.
Cole said after the council meeting he hopes in February a policy will be set to guide this and future councils about how to allocate surpluses.
“I still think it’s infrastructure. I know that is broad, but without infrastructure improvements people get frustrated,” Cole told Lake Tahoe News.
Kerry suggested some of the money could be put aside to deal with the fluctuating state retirement system.
Much of Kerry’s presentation on Tuesday was about the historical financial situation of the city and how the city has achieved positive cash flow. She stressed the cyclical hiring in flush times, firing in lean times is not an effective way to run a city because is ruins lives and doesn’t help the public.
The turn around from 2010 when the city was facing systemic $3 million annual deficits in part is because one-third of the staff was laid off, employees are paying for some of their benefits, reserves were created in 2003, transient occupancy tax is being collected from vacation rentals and other changes were made to how the city does business.
“Now we have a city that is living within its means,” Kerry told the council. “We’ve fixed the fiscal problem now, but I’m still nervous.”
The local economy is still on shaky ground. While hotel tax numbers have been going up for the past two years, Councilman Tom Davis who is in the lodging business, said with no snow on the ground room nights could come to a screeching halt and cautioned his colleagues to be reserved with expectations.
Yesterday I commented this way : “As the economy improves, the city’s revenue should increase, and there may not be a need to increase revenue. Standing pat may be the right move now.” That was what I wrote yesterday.
Now, I see this news. While this is good news, the city council could still screw this up. We need to consider the paid parking a failure, and prepare to sell off the kiosks. As I said yesterday, the economy is improving and now improving revenue is what is showing up on the books. If you read yesterday’s comments the city residents favor spending money on city street improvements. This means, obviously , we don’t nearly have enough money to do what is needed. So city council should still budget tightly, and gradually allocate money for street repairs. To do this well, the city council will need to reject new spending proposals as the “self serving people” attempt to spend money that should go for street repairs. That’s my opinion.
It appears that Tom Davis and Nancy Kerry are the only ones worth keeping.
I agree, you should run for office!!
Without snow at this January 15th date this City’s winter season is effectively finished and we are economically ruined for this winter. Destination travelers with money to spend on pricey ski vacations who would leave their money behind in our community plan their vacations in advance and those who made reservations to come here and ski will be cancelling and going elsewhere where they can be sure there’s snow. Other destination travelers wanting to make reservations for ski holidays just won’t consider coming here since there is no assurance of snow. Even if it starts to snow now the economic damage is already done and with the exception of some drive-up visitors the majority of the anticipated winter business just won’t be here.
It’s nice that there was a revenue excess for the last fiscal year, but it’s highly unlikely we’ll experience excess revenues for fiscal year 2013-14. As long as our community’s economic and fiscal health is 100% tied to tourism we will always be on shaky ground economically. I’ve been saying for years and I still say that we need to diversify and bring in other types of businesses that can put people to work that aren’t solely tourism or retail related. If you keep doing the same thing you keep getting the same result. This town is always in an economic scramble at the mercy of the weather, the economy, and the tourists. This year no snow at the whim of Mother Nature equals minimal business, and minimal business equals little money.
I think the blatant decision to remove the kiosks is ridiculous. All over town people have been out working hard to get this item on the ballot stating, “Let it all have its outcome through the voters.” I personally did not sign it then, but it did resonate with me that voting is the best way for a final decision to be made. So why is this now NOT happening. If it is voted on, then those interested will show up to vote and a decision “with support” can come to pass.
This wishey washy talk regarding parking meters is irresponsible and childish. Every town in America has parking meters and even toll roads for that matter. Keep the meters! We’re not out of this recession yet. SLT needs this money Nancy.
How about we put that money into a “rainy day” (or more aptly snowy day) fund for situations like the winter of 2010-11 where the snow removal budget took a big hit?
I just returned from a visit to Bend, Ore. They do not have parking meters. I don’t have a strong opinion one way or another but perhaps the City should have considered the impact on low wage (takes three jobs to stay here) earning locals and provided some pass system for say a minimum of 2 hrs.
Bend has achieved a nice balance of recreation and business that reinforce my thoughts that Tahoe needs to diversify by attracting businesses to set up shop in the basin. Green tech, sports technology and companies like NEST Labs (even though they just sold to Google) would be ideal candidates that would bring jobs (better than minimum wage) and more discretionary income to the area.
Center of Innovation in Meyers?
Lisa Huard:
I 100% agree with you that this matter should go to a vote and I completely oppose the City Council arbitrarily eliminating the kiosks without this going on a ballot for all the registered voters of SLT to decide one way or the other. Due to EDC’s and the State of California’s ballot initiative regulations and laws this matter cannot be placed on a June special election ballot and would now need to go on the November ballot. Now the opponents to paid parking just want the Council to eliminate this prior to this summer, and my personal opinion is that they don’t want an entire year of paid parking revenues for a financial measurement analysis in judging the financial success or failure of this program. Last year’s numbers were only for a three-month portion of the year so having a full year will provide a more accurate analysis which the voters can then vote on in November. That to me seems fair.
As Bigger picture said, put the money in a rainy day fund, or at least part of it.
Keep the meters, but maybe get rid of ones near residential neighborhood, the ones that are causing the most controversy, sell them off.
Continue to work on long overdue projects of upgrading this town, to improve it for locals and tourists.
The “wishy washy” change of mind in fact has now put a black eye on the council, and I’m sure you folks know that. That’s just like bad parenting in my opinion. Here’s an idea…..if the council wants to know how “interested individuals” in our community really feel, why don’t they pay for an online survey service like SurveyMonkey to get public opinion on a multitude of issues like this. Unfortunately, people won’t sit through the meetings (I’m guilty of this!) but they do want to understand and they do want input. I’ve used this product for years with The Drug Store Project we do for our kids (like how I advertise that event!) and it works. It doesn’t require outside sources, a rocket scientist, or even a lot of time. Surveys can be announced and then posted on the city website. they can also have an open and close date that the survey is viable. It can be controlled to accept input from only one computer, even requiring a sign up system if you care to. And don’t go on about access! I’m wiling to sit at the Library for a couple of days and help people on their computers to take the survey if they don’t have one at home BUT every kid in our district has access to a netbook now. With this type of information collecting council could pose issues they are considering and get REAL information. Again, if people care, they will weigh in. If I were a council member, I’d want as much information when I’m voting for something as possible. Don’t you think everyone would be happier and more supportive?
bigger picture
Paid parking isn’t going away. The closest thing to eternal life on earth is a government program. Once in place, it’s near impossible to eliminate. This is the reality check for the paid parking opponents.
As for the budget surplus, maybe the good folks at city hall will act responsibly and put that money away for a rainy day. They’re going to need it.
TO ALL : A year ago when the city council approved the paid parking on our streets, the citizens spoke up against it. The disapproval rate far outweighed the citizens that approved of it. The result was that Tom Davis refused to vote in favor of the metered parking, citing that he would not go against the wishes of the citizens. The other city council members ignored the citizens and approved paid parking. That’s what happened. So, don’t come here with your false claims that we still need more information before we vote. That’s B. S. The citizens have already spoken and were ignored by multiple city council members. And further, the issue isn’t just revenue. There are other major issues, like the adverse impact on nearby properties, and like citations being the source of income, and the paid parking damaging tourism. Except for the delay, I have no problem having this voted on. A vote will blow you supporters out of the water.
The City has $1.2 million to try to figure out how to spend, yet is increasing taxes (city dispatch phone tax) at the same time. Government’s appetite for higher taxes is insatiable, relentless, and incurable.
4-Mer, should citation income be included? How do you justify writing tickets for my buddy who had a single tire touching the road while he was filling his BMPs with gravel?
Would you want to live in a neighborhood where that happens?
maybe the City should buy a truck load of Toilet Paper.
how much money is being generated for the month of January ? from the Parking Meter’s
not enough to cover the cost would be my bet
the ballot iniatitives could very well be thrown out in court. I understand that this has been tried in other cities and it has been thrown out in court because local iniatitives cant supercede state law mainly motor vehicle code.
I have read through this article several times now, looking for the “… blatant decision to remove the kiosks …” but can’t seem to see it. I do miss details sometimes, though. Any decisions by the city council regarding parking are a response to an organized effort by citizens, why would anyone try to characterize it differently? It seems to me that an easy solution would be to offer free or very low-cost yearly parking permits to locals should they decide to keep the parking.
Last summer, we visited Bend, Oregon too. What an incredibly beautiful city. Downtown, river walkways and parking. We spent an extra day because it was so nice. Raining, but it IS Oregon. I would love to see SLT look like that.
The extra money should go to replacing the snow removal fleet the city claims it needs so desperately. Much better than asking for a new tax to update the machinery.
Wow $534,000 to dismantel the parking program? It cost less to start it, how can it cost more to take it apart? Sell the kiosks, sell the 3 new vehicles including a 4-door F-150 4X4, get rid of the employees and department head. That’s the price for a bad program. If We the People can not vote to repeal an ordinance. Then its time to get rid of the decision makers. Chief I agree we need to stock up on TP. All employees got a raise so hold the gloom and doom CC.
I’m no big fan of paid parking except for the Stateline area but pretending that the dozen or so people who comment here on LTN and attend Council meetings to voice their opinions represent the entire “citizenry” of the City is ridiculous hubris. “The people have spoken!” Nonsense, it ain’t that easy.
Here’s a clue: It took several years of public debate, study and spending to implement the parking program and it might take just as long, and be just as expensive, to remove it. Perseverance will be required.
$1.2 million? Obviously it should go to a consulting firm to tell the city how to spend it after the firm takes their cut,(yuk, yuk). But seriously I would suggest it goes to road repair. The streets are looking bad and patches if not complete overlay are really needed. OLS,consultant on just about everything.
Moral Hazard:
Yes I think citation income should be included, and nowhere did I even reference your “buddy”. Since I don’t know all the circumstances of that situation I’m not in a position to make an informed judgment based on a hearsay comment. Was your friend with the vehicle when the citation was issued? Were there cones around the single tire that was touching the road? How wide was the roadway where the wheel was encroaching? How long was and how long had the vehicle been parked in that location? Did this person take photographs to make a case to fight what he believes is an injustice? There’s a lot more variables involved than just “my buddy got a ticket.”
4-Mer, your right, those details are missing. But I can say without a shadow of a doubt that none of that would have mattered out where I live. I built my home in 2010 and have been working on it since. I even had my truck in the road bit much and a cop stopped to ask me to back in a little more. I have never gotten a ticket.
Moral Hazard:
Part of the problem with SLT is that there isn’t enough parking anywhere. I remember a long time ago that Bill Crawford said a big problem with this City was that it had not been planned, and I think he was right. Initially there was Highway 50 and a long the side of that Highway businesses sprang up, then behind those businesses homes were built. Mr. Crawford said, and I agree with him that this lack of planning is something from which we still suffer today, and it forces us to try to work within tight constraints which usually isn’t easy to do.
4-Mer, paid parking exacerbates that problem by creating a disincentive for people to park near their destinations. People park in the already cramped residential areas and walk. The paid parking spots are unappealing for a majority of people. This is why the parking attendants have to be so aggressive in the communities. Its where the money is.
Wow not enough parking? I thought all we needed was more bus stops and bike racks.