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South Lake Tahoe council adopts $67.3 million fiscal year 2025–26 budget; sets aside $150,000 for transit JPA
Summary
The council adopted a balanced FY2025–26 municipal budget, maintained a 25% operating reserve and agreed to include $150,000 in next year’s budget as the city’s initial JPA contribution while urging the county to participate.
The South Lake Tahoe City Council on Aug. 27 adopted a $67.3 million general fund budget for fiscal year 2025–26 and included a $150,000 allocation in the budget to support the South Tahoe Transit Joint Powers Authority (JPA).
City Manager Mr. Irvin and Finance Director Tiko Marova presented the recommended municipal operating and capital plan, which totals roughly $246.7 million across all funds. The plan keeps the city’s 25% operating reserve intact — about $16.3 million — and funds a mix of infrastructure work, public safety positions and the new multi‑generational recreation center’s start‑up costs.
Marova said the general fund increase reflects stronger than projected revenues in the city’s three largest categories — property tax, transit occupancy tax and sales tax — and a conservative approach to projecting uncertain categories such as vacation home rental (VHR) revenue. She told the council the budget is balanced without using the city’s set‑aside reserves and conservatively projects an undesignated fund balance of $1.5–$1.6 million at year‑end.
The council spent more than an hour on transit funding and the newly formed South Tahoe Transit JPA after Hillilary Roverude, assistant city manager and the JPA’s executive director, said El Dorado County declined to contribute its one‑third share of startup funding. That left the JPA without an initial administrative budget and paused its RFP and private‑operator exploration. Roverude outlined three options: (1) the city fund all or part of the JPA startup, (2) let the JPA meet and adopt a 2025–26 administrative budget while asking the county for funds, or (3) terminate or put the JPA on hold.
Councillors pressed for a cautious, incremental approach. Council Member Jenkins moved that the budget be adopted as presented and that $150,000 be put into the FY2025–26 budget to allow the JPA to meet and retain minimal staff and outside counsel while the city seeks the county’s cooperation. Council Member Roberts seconded the motion. The motion passed unanimously.
Jenkins and others said the council intends the city appropriation to be a measured, interim step rather than a full commitment to run the JPA without a county partner. “We want the JPA to keep momentum, but we’re not funding an unlimited startup without partners,” Jenkins said. Roverude said staff will return with any appropriation details required by the city’s role as fiscal agent.
The budget also directs Measure S proceeds toward road rehabilitation, snow‑removal operations and public‑safety staffing. Council members debated the risks of projecting VHR revenue while litigation over VHR policy remains unresolved; finance staff said they used a conservative $700,000 VHR revenue assumption and will revisit the estimate at midyear. The council additionally reviewed capital projects including multiuse trail work and the recreation center construction program.
Next steps: staff will finalize appropriation language for the $150,000 JPA allocation and return any required documents for the city to transfer funds once the council confirms conditions; the budget resolution also authorizes staff to proceed with the operating and capital plan adopted tonight.
