South Lake Tahoe council approves FY2024‑25 midyear budget adjustments and five‑year financial update

The City Council approved midyear budget amendments for fiscal year 2024–25 after receiving a presentation from the Director of Finance detailing the city’s fiscal position and a five‑year financial plan update.

The finance director reported undesignated general fund reserves of about $19.1 million, adopted revenues of approximately $60.2 million and adopted expenditures of roughly $60.7 million. Since adoption, the council approved approximately $4.7 million in additional appropriations; staff proposed a net $2.7 million in midyear adjustments funded by revenue increases and transfers. Anticipated contributors to revenue increases included higher property tax receipts (~$475,000), interest earnings (~$800,000) and franchise and professional tax upticks.

Staff noted a projected FY25–26 general fund deficit near $3.1 million driven by personnel and operational cost increases. The presentation listed capital and programmatic allocations, such as $1.47M for furniture, fixtures and equipment for the new recreation center and ongoing Measure S uses for road rehabilitation and fire station debt service.

Council discussion touched on transit funding needs, the search for grant funds for undergrounding utilities, and the importance of maintaining core public‑safety services. After discussion, the council adopted the recommended midyear adjustments and amended the permanent positions listing as presented.

What happens next: Staff will implement approved midyear appropriations and monitor revenue/expenditure performance; quarterly finance updates will continue to come to the council.