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Directors debate new cost-recovery approach for golf, winter park and boat ramps
Summary
Committee members and staff debated an alternative cost-recovery/reporting method that would treat some previously reported "property-tax allocation" as an "operating subsidy," with staff asked to show explicit property-tax impacts and add campground financials before the full board packet.
The Tahoe City Parks and Recreation committee spent its meeting debating how to measure and report the true cost of running business-oriented recreation operations such as the golf course, winter sports park and boat ramps.
Staff framed the discussion around an "alternative" methodology that would apply a department-wide overhead percentage plus a G&A allocation to direct expenses, instead of the existing allocations that many board members said overstate overhead for venues such as the golf course. "So the subsidy hasn't hasn't changed. It's it's all about where it's reported," staff said during the discussion.
Why it matters: the method used to allocate overhead affects cost-recovery percentages and can shape future pricing or program decisions. Committee members repeatedly asked that any alternative reporting must make property-tax support obvious to the public. "Somewhere in all of this, we can't lose sight of property tax," the Chair said, urging clearer labeling and a footnote in the board packet.
Staff (including Andrew, who described the three-layer allocation: district direct expense, parts overhead allocation, and parks admin overhead) showed examples where golf had a $368,000 parts allocation in 2024 that appeared inflated under the old method. Staff said the alternative reporting would rename that line as "property tax subsidy" and treat it as an operating subsidy that is still funded by property tax but reported differently.
Committee members pressed for concrete numbers and transparency: staff committed to adding a direct-expense-only cost-recovery column, renaming the line to "property tax subsidy" on alternative sheets, and producing campground financials before the item goes to the full board packet.
What happens next: staff will refine the tables and presentation for the April/May board packet and consider another check-in with the committee if directors request one.
