Voters to see new tax measures for SLT Recreation Center and roads/equipment

Most people don't like taxes, or having any new ones, but South Lake Tahoe voters will have the choice in November to vote on two ballot measure that would bring about two tax rate hikes, one that only tourists will pay, and another that will be paid for by both locals and tourists.

If passed, the ballot measures will accomplish two things: replace the recreation complex and repair the City's roads and/or replace the aging fleet.

The recreation complex in South Lake Tahoe could become a mecca that attracts swim meets, basketball tournaments, and the visitor that seeks a fun and unique recreation experience on their vacation.

Increase in TOT Tax

During Tuesday's City Council meeting, the councilmembers voted unanimously to present to the voters a 2 percent hike in the Transient Occupancy Tax (TOT) which is tacked on to hotel, motel and vacation home rental stays in the city. Currently, the TOT is 10 percent in most of the city, and 12 percent in the redevelopment area.

A projected $2 million per year will be raised that will go to the creation of a new recreation complex. If approved, the City would seek a $30-$35 million bond to build the facility, then pay it off with the annual funds raised from the increase in TOT. Future monies would go to beach, park and complex maintenance and improvements.

The South Lake Tahoe Lodging Association is behind the move as they see it as a win-win for the community. The locals get to use something paid for by the tourist, and they project more visitors coming to use the expanded facilities in the form of tournaments, meets and other uses that draw crowds from out-of-town.

Williams + Paddon Architects and Planners out of Roseville have been working with the City of South Lake Tahoe in creating a recreation center based on input from the public. Two recent meetings and an on-line survey have gathered input from a few hundred locals who want something new and useful, and a complex that will meet the needs of the community for decades.

The Boys and Girls Club of Lake Tahoe plan to move into the new center that will have meeting spaces, food options, several basketball courts, possible indoor soccer field and climbing wall, indoor swimming pools, and other features that would draw people.

66 percent of the voters would have to vote for the TOT tax rate increase in order for it to pass and create the funds needed for recreation in South Lake Tahoe, something all recent surveys of the community have shown.

"The architects' plan is nothing short of brilliant," said Jerry Bindel of the Lodging Association and a proponent for the TOT tax hike. "It provides the bells and whistles and shows what's good for the locals is good for the visitor."

"This is a once in a lifetime opportunity," added Councilmember Tom Davis.

Sales Tax Increase

The other tax increase that voters will see on the November ballot is a 1/2 percent increase on non-food items. Voters will also get provide the City with an advisory of where they'd like to see the extra funds go to. Since they are going to ask for the advisory, only 50 percent plus one have to pass the measure.

Surveys had shown the Council that people were open to a tax rate hike if the money went to recreation, to fix roads and to replace snowplows and other equipment that have a few decades old and can no longer be repaired. The ballot measure advisory will have two or three options that voters can choose from so the money earned just doesn't end up in the General Fund. At a Council meeting before the election, the City Council will pass a resolution that prevents future City Councils from changing the will of the voters as to where the funds will go.

If the City didn't ask for the advisory, they'd have to get 66 percent of the voters to say "yes" in November.

After the budget presentation by City Manager Nancy Kerry earlier this year, it was evident additional revenue needed to come from somewhere to address the needs of the community. The three highest priorities being streets, roads and recreation. The City looked at other areas, including increasing property taxes, but the surveys said people wouldn't support another hike in that area.

An increase in the sales tax by 1/2 percent would generate an estimated $2.5 million per year.