Public Works Department – 1740 D Street, South Lake Tahoe, CA 96150 Public Works Department
Tahoe Valley Stormwater & Greenbelt Improvement Project, Phase 1 PWC: 301-40030-48030
CONTRACT CHANGE ORDER
Date: April 22, 2025
Contract Change Order No.: 11 – Pavement Design
To: Herback General Engineering:
You are hereby directed to make the herein described changes to the plans, and specifications or do the following described work not included in the plans and specifications of the contract to construct the Tahoe Valley Stormwater & Greenbelt Improvement Project, Phase 1. All new work herein described shall be performed in accordance with the applicable provisions of the plans and specifications, except as specifically modified by this contract change order (CCO).
Note: This CCO is not effective until approved by the Owner, or until an authorized Field Directive is executed.
This CCO is requested by: Herback General Engineering
CONTRACT CHANGE ORDER AMOUNT: +$316,666.08
REASON FOR CHANGE: The City retained the services of Lumos and Associates to evaluate and recommend the pavement section for the proposed pavement rehabilitation of the roads in Phase 1 of the Tahoe Valley Stormwater and Greenbelt Improvement Project (D Street, F Street, and Bonanza Ave). Based on field and laboratory test data for this area, a pulverized asphalt, subgrade, and pavement methodology was proposed by Lumos and Associates. The pricing to change the methodology from mill and overlay (included in the original contract) to pulverized asphalt/subgrade/pave methodology will require an additional $316,666.08 in funding.
COST OF CHANGE: The lump sum bid price to replace the contract pavement mill & overlay design section with 8” pulverize and 4” asphalt section is $316,666.08.
CONTRACT TIME ADJUSTMENT: 6 days
412
Public Works Department – 1740 D Street, South Lake Tahoe, CA 96150 This contract change order constitutes full and complete compensation for all labor, equipment, materials, tools, jobsite and home office overhead, profit, all indirect costs and contract time adjustment to perform the above described change. All other costs are non-compensable.
RECOMMENDED BY: ACCEPTED BY:
________________________ ___________ ____________________ _________ Brianna Greenlaw, Date Peter Griffin, Date
Project Manager Contractor
________________________ ___________
Tamara Wallace, Date
Mayor
413
To: CITY OF SOUTH LAKE TAHOE Contact:
Project Name: SLT-2024-TAHOE VALLEY SD & GB PHASE 1-ASPHALT RFP Bid Number: 2207 SOUTH LAKE TAHOE, CA 96150 USA Fax:
Address: 1052 Tata Lane Phone: 530-542-6027
Project Location: US HWY 50, SOUTH LAKE TAHOE, CA Bid Date: 10/23/2024 Item # Item Description Estimated Quantity Unit Unit Price Total Price 1 8" FDR & GRADING 144,856.000 SF $2.10 $304,197.60
2 4" HMA TYPE A PG64-28 W/ 4% VOIDS 144,856.000 SF $5.08 $735,868.48 67 ASPHALT, MILL & OVERLAY 4" TYPE A PG64-28M, 3/4" -1,440.000 TON $255.00 ($367,200.00) 68 ASPHALT, MILL & OVERALY 3" TYPE A PG64-28M, 3/4" -1,370.000 TON $260.00 ($356,200.00) Total Bid Price: $316,666.08
Notes:
• PROPOSAL PRICING REPRESENTS THE ADDITIONAL EXPENSE TO REPLACE THE CONTRACT PAVEMENT MILL & OVERLAY DESIGN SECTION WITH AND 8" FDR AND 4" ASPHALT SECTION. PROPOSAL PRICING INCLUDES THE CURRENT COST OF MATERIALS, LABOR, EQUIPMENT & TRUCKING RELATIVE TO 2022 CONTRACT PRICING.
• PROPOSAL SCOPE TO BE PERFORMED IN CONJUNCTION WITH CONTRACT WORK IN PROGRESS; PROPOSAL IS VOID AS A STAND ALONE WORK SCOPE.
• AN ADDTIONAL 6 WORKING DAYS IS REQUIRED FOR THE 8" FDR/ 4" ASPHALT SECTION AS RELATED TO THE ORIGINAL CONTRACT PAVEMENT
SECTION SCOPE
• PROPOSAL PRICING INCLUDES USE OF PG64-28M ASPHALT OIL WITH PRICING VALID THROUGH JUNE 30, 2025. PROPOSAL PRICING HAS BEEN UPDATED TO INCORPORATE PAVING IN 2 LIFTS WITH TACK COAT BETWEEN LIFTS. PROPOSAL PRICING HAS BEEN UPDATED TO INCLUDE ASPHALT PLANT ENVIRONMENTAL FEES OF $ 20 PER LOAD.
ACCEPTED:
The above prices, specifications and conditions are satisfactory and are hereby accepted.
Buyer:
Signature:
Date of Acceptance:
CONFIRMED:
HERBACK GENERAL ENGINEERING, LLC
Authorized Signature:
Estimator: PETER GRIFFIN
775-267-6800 [email protected]
10/23/2024 2:50:59 PM Page 1 of 1
414
Resolution 2025-XXX April 22, 2025 Page 1 of 2
Resolution 2025-XXX
Adopted by City of South Lake Tahoe City Council
April 22, 2025
Transfer $303,000 in funds from the Road Rehabilitation Account to the Tahoe Valley Stormwater and Greenbelt Improvement Project, and Approve Construction Contingency up to 11% for the Phase 1 Construction Contract BACKGROUND:
A. The Project (EIP# 01.01.01.0033) is included on the priority list for watershed and water quality improvement projects within the Lake Tahoe basin.
B. On August 23, 2022, City Council awarded the Tahoe Valley Stormwater and Greenbelt Improvement Project, Phase 1 to Herback General Engineering ($6,688,511.36) and approved a 10% construction contingency ($688,852).
C. Supplementing the Tahoe Valley Stormwater and Greenbelt Improvement Project with road rehabilitation funds for paving the roads in Phase 1 was discussed and approved at the February 25, 2025 City Council meeting during the annual road rehabilitation and drainage replacement update. Supplementing the Tahoe Valley Project account (301-40030-48030) with $303,000 of local funds from the Road Rehabilitation account (301-50005-48030) will allow for execution of the proposed change order for Phase 1 paving of D Street, F Street, and Bonanza Avenue.
D. Approving an increased construction contingency up to 11% will allow all executed and proposed, not yet executed change orders to occur, including the proposed pavement change order that is being supplemented with road rehabilitation funds and any quantity overruns. Staff will return to City Council to reconcile the final change order total before closing the construction contract.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, BE IT RESOLVED, that the City Council of the City of South Lake Tahoe:
1. Authorizes and directs the Director of Finance to transfer $303,000 in local funding from the Road Rehabilitation Project account (301-50005-48030) to the Tahoe Valley Stormwater and Greenbelt Improvement Project account (301-40030-48030) as follows:
FROM:
301-50005-50014 Road Rehabilitation Project (-) $303,000 (CIP funding transfer out)
TO:
301-40030-36304 Tahoe Valley Stormwater and Greenbelt (+) $303,000 Improvement Project
(CIP funding transfer in)
415
Resolution 2025-XXX April 22, 2025 Page 2 of 2
2. Authorizes up to 11% construction contingency ($735,736.25) for the Phase 1 Construction Contract.
3. Authorizes and directs the Mayor to execute the pavement design change order (CCO#11).
Adopted by the City Council of the City of South Lake Tahoe on April 22, 2025 by the following vote:
Yes:
No:
Absent:
Abstain:
_______________________ Date: _______________
Tamara Wallace, Mayor
Attest:
_______________________________
Susan Blankenship, City Clerk
The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council
416
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417
Council Agenda Report April 22, 2025 Page 1 of 3
City of South Lake Tahoe
Report to City Council
Meeting Date: April, 22nd 2025
Title: Pioneer Trail and Glenwood Highway Safety Improvement Program (HSIP) Construction Contract Award to Globe Engineering Development.
Location: Pioneer Trail at Glenwood Way
Responsible Staff Member: Stephen Anderjack, Project Manager, 530-721-1102 Background: In June 2018, the City of South Lake Tahoe, in partnership with the Tahoe Regional Planning Agency (TRPA), conducted a Systematic Safety Analysis report using grant funding from the State of California. This study reviewed accident history at key intersections throughout the city and ranked each by severity. Rankings were determined by the number of crashes, the severity of each crash, and the amount of property damage caused. This ranking methodology is used by traffic engineers and for the Federal Highway Administration’s (FHWA) Highway Safety Improvement Program (HSIP). The safety analysis determined that the intersection of Pioneer Trail and Edna Street-Glenwood Way has one of the top three accident history rankings amongst city-maintained roads.
An informal Request for Proposal (RFP) was issued in June 2023, soliciting engineering and design services. After reviewing the three proposals delivered to Public Works, Lumos and Associates, Inc. is the most qualified consultant. On August 1, 2023, a Professional Service Agreement (PSA) was executed with Lumos & Associates (C-126-2023). The project scope includes widening lanes and shoulders, improving line striping, installing radar speed feedback signs, and improving drainage at the Glenwood Way and Pioneer Trail intersection. $147,753.02 of HSIP grant funding has been approved by Caltrans via CON E-76 for the construction portion of this contract.
The project has since been fully designed and put out for bid to contractors.
Issue and Discussion: The construction project was advertised on Planet Bids on January 23rd 2025 and bids were publicly opened and read aloud on February 25, 2025 at the City Public Works Building. There were 43 prospective bidders and the City received four bids. Globe Engineering Development was the apparent low bidder, with a Total Base Bid price of $507,531.00. The Engineer’s Estimate for the bid was $381,315.17.
Table 1 - Bid Results
Name of Contractor Total Base Bid
Globe Engineering Development $507,531.00
West Coast Paving $645,000.00
MKD Construction, Inc. $753,837.00
B&M Civil LLC $987,334.00
418
Council Agenda Report April 22, 2025 Page 2 of 3
Public Works Department is recommending the award to the apparent low bidder, Globe Engineering Development for this project.
Financial Implications: In addition to the bid amount submitted by the contractor, the City typically allocates 10% ($50,753.10) construction contingency for unforeseen costs associated with the Project.
The City also utilizes professional consultant services to oversee labor compliance and to provide materials testing services for additional quality control. It is estimated that approximately $8,000 will be needed for a labor compliance specialist and $10,000 will be needed for materials testing. Adding together the 10% construction contingency, labor compliance specialist, the materials testing consultant, full-time inspection cost, CDM Smith Amendment 6, and the bid from Globe Engineering Development brings the total funds needed to construct the Project to $576,284.10 for the Base Bid.
Table 2 - Project Need
Construction Costs Amount
Globe Engineering Development Construction Bid $507,531.00 Construction Contingency of 10% $50,753.10
Labor Compliance Specialist $8,000.00
Materials Testing $10,000.00
Total $576,284.10
The Public Works Department is proposing to fund the project as shown in the table below:
Table 3 – Funding Sources and Status of Funding
Funding Type Funding Status Amount
General Fund In Project Account $381,797.78
Highway Safety Improvement Project In Project Account $147,753.02 Measure S Undesignated Reserves Requesting Transfer to $47,000.00 Total $576,550.80
The HSIP Funding shown in Table 3 have been allocated by Caltrans and previously accepted by the City. The proposed internal transfers also cover the City’s required local match of $16,947.27 for the Federal Grants.
Recommended Action
Pass Resolution to award the construction contract to Globe Engineering Development. Accept and appropriate grant funding to the project account. Confirm and execute other internal balance transfers as shown in the Resolution.
Environmental Considerations: On June 15, 2021, the City Planning Manager filed a CEQA Notice of Exemption with the State Clearinghouse as a Class 4, 15304 (minor alteration to land) categorical exemption, State Clearinghouse Number 2021060316. This project is comprised of minor alterations to an existing street. No additional automobile lanes will be created, and no additional vehicular capacity is expected. Additionally, this project seeks to add safety devices for use in conjunction with existing facilities. Caltrans, the Project Lead for NEPA found the Project to be Categorically Exempt.
Policy Implications:
419
Council Agenda Report April 22, 2025 Page 3 of 3
This project is consistent with the City Council's priorities and will enhance public safety through improvements to the built environment.
420
Resolution 2025-XXX April 22, 2025 Page 1 of 2
Resolution 2025-XX
Adopted by the City of South Lake Tahoe
City Council
April 22, 2025
Pioneer Trail HSIP Construction Contract Award to Globe Engineering Development and Additional Budget Appropriations from Measure S Sales Tax General Fund of $47,000
BACKGROUND
A. The City of South Lake Tahoe has designated the Pioneer Trail Highway Safety Improvement Program (HSIP) project an essential, viable, and desired project.
B. The City has successfully applied for and has been awarded grant funding in the amount of $147,753.02 of Highway Safety Improvement Project (HSIP) funds from the State of California Department of Transportation to perform the construction portion of this project.
C. Bids for this project have been opened and Globe Engineering Development is the apparent low bidder with a Total Contract Price of $507,531.00. The Public Works Department recommends awarding the contract to Globe Engineering Development.
D. In order to fully fund the project and be able to award the contract, an additional amount of $47,000 is transferred from Measure S Sales Tax General Fund Undesignated Reserves.
BASED ON THE FACTS SET FORTH HEREIN, BE IT RESOLVED, that the City Council of the City of South Lake Tahoe:
1. Authorizes and directs the Mayor to execute the construction contract to Globe Engineering Development, for $507,531, plus allocated a 10% Construction Contingency of $50,753.10, which is attached hereto as Exhibit “A.”
2. Appropriates funding into the existing CIP project fund account as follows:
Transfer From Transfer To
Name Account Name Account Amount
Pioneer Trail HSIP -Design
301-50038-
48020
Pioneer Trail
HSIP -
Construction
301-50038-
48030 $164,689.00
Measure S Sales Tax Fund
Undesignated Reserves
102-01511-
50014
Pioneer Trail
HSIP -
Construction
301-50038-
48030 $47,000.00
Adopted by the City of South Lake Tahoe City Council on April 22, 2025, by the following vote:
Yes:
No:
421
Resolution 2025-XXX April 22, 2025 Page 2 of 2
Abstain:
Absent:
The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.
__________________ Date:_____________
Tamara Wallace, Mayor
Attest:
________________________
Susan Blankenship, City Clerk
The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.
422
00500
CITY OF SOUTH LAKE TAHOE
DEPARTMENT OF PUBLIC WORKS
AGREEMENT
Document 00500 - Agreement
City Of South Lake Tahoe
DEPARTMENT OF PUBLIC WORKS
Agreement
for
PIONEER TRAIL HSIP
PWC 30150038
CITY BID NO. BN-24-30150038-01
FEDERAL AID PROJECT NO. HSIPL-5398(016)
THIS AGREEMENT is made and entered into this ______ day of ___________, 20___, by and between the City of South Lake Tahoe, a political subdivision of the State of California, herein designated “City”, and ________________________________, herein designated as “Contractor.”
WITNESSETH, that the City and the Contractor, in consideration of the mutual covenants hereafter set forth, agree as follows:
ARTICLE 1 — THE WORK
Contractor agrees to furnish all labor, tools, equipment, facilities, materials, transportation and services necessary to perform and complete, in a good and workmanlike manner, the PIONEER TRAIL HISP PROJECT, as required pursuant to the Contract Documents.
ARTICLE 2 — COMMENCEMENT AND COMPLETION
The Work to be performed under this Agreement shall commence at the time as specified in the Notice to Proceed, and the Contractor shall diligently undertake the performance of the obligations as set forth in the Contract Documents to achieve Final Completion of the Work (as defined at Section 9.9 Special Provisions) within 182 calendar days after the date commencement 423
00500
of the Work is authorized as set forth in the Notice to Proceed (the “Contract Time”). No grading or excavation or other land disturbance will be allowed between October 15th and May 1st; all Work shall be performed after the issuance of the Notice to Proceed, and Final Completion achieved within the contract time as set forth in these Bid Documents.
The City and the Contractor recognize that time is of the essence of this Agreement and that the City will suffer financial loss if the Work is not completed within the time specified herein, plus any extensions thereof allowed in accordance with the Contract Documents. The City and Contractor also recognize the delays, expense, and difficulties involved in proving the actual loss suffered by the City if the Work is not completed within the Contract Time. Accordingly, instead of requiring any such proof, and pursuant to the Contract Documents, the City and the Contractor agree that as liquidated damages (but not as a penalty), the Contractor shall pay the City the sum of $2,000 for each calendar day beyond Substantial Completion and continuing until Bidder achieves Milestone #1, Substantial Completion (per Document 00100, Article 1.04.A.1), the Contractor shall pay the City the sum of $1,600 for each calendar day beyond that portion of the Contract Time within which the Bidder is required to achieve Milestone #2, Final Completion (per Document 00100, Article 1.04.A.2).
In accordance with the Contract Documents, including, without limitation Document 00400.4.2 (“Bid Proposal”), the daily amount that Contractor may charge to the City for all delay costs, direct and indirect (and inclusive of all expenses and damages, including, without limitation, jobsite and home office overhead costs and extended general conditions) applicable to the first sixty (60) calendar days of Compensable Delay, if any, is [INSERT FROM BID PROPOSAL], the amount set forth by Contractor in Document 00400.4.2 (“Bid Proposal”). This sum shall represent the exclusive and sole amount (i.e., payment in full for any and all direct and indirect delay costs) that Contractor, on behalf of itself and subcontractors and suppliers, of every tier, shall receive for any and all Compensable Delay(s) during the first sixty (60) calendar days of actual, Compensable Delay at the Project. Delay costs that may arise from Compensable Delay, if any, beyond the first sixty (60) calendar days of a Compensable Delay, if allowable, shall thereafter be governed by, and subject to, the applicable provisions of Sections 8 and 9 of the Standard Specifications, as modified by the Special Provisions, and the Contract Documents.
ARTICLE 3 — CONTRACT PRICE
The City agrees to pay, and the Contractor agrees to accept, in current funds for the performance of the Work pursuant to the Contract Documents, the Contract Sum for the completion of the Work in accordance with the Contract Documents as follows:
BASE BID SCHEDULE
Item
No. Description Unit
Quanti
ty Unit Price Total Price
1 Mobilization/Demobiliation LS 1
$
20,000.00 $ 20,000.00
2 Traffic Control LS 1
$
16,000.00 $ 16,000.00
424
00500
3 Temporary BMP's - Fiber Rolls LF 99
$
5.00 $ 495.00
4 Temporary BMP's - DI Protection EA 12
$
500.00 $ 6,000.00
5 Temporary BMP's - Construction
Fencing LF 300
$
8.00 $ 2,400.00
6 AC Pavement Sawcut and Removal SF 2358
$
12.00 $ 28,296.00
7 Riprap Removal SF 1028
$
10.00 $ 10,280.00
8 AC Dike Removal LF 200
$
8.00 $ 1,600.00
9 Curb and Gutter Removal LF 91
$
15.00 $ 1,365.00
10 Removal of CMP Pipe (18''-24'') LF 371
$
25.00 $ 9,275.00
11 Grading: Cut (F) LS 1
$
10,000.00 $ 10,000.00
12 Grading: Fill (F) LS 1
$
10,000.00 $ 10,000.00
13 4'' AC Over 6" AB SF 3251
$
20.00 $ 65,020.00
14 Install Curb and Gutter LF 119
$
150.00 $ 17,850.00
15 Install Valley Gutter LF 35
$
200.00 $ 7,000.00
16 AC Dike Install LF 200
$
25.00 $ 5,000.00
17 18'' HDPE Pipe LF 305
$
200.00 $ 61,000.00
18 24" HDPE Pipe LF 4
$
2,000.00 $ 8,000.00
19 Cement Clurry Backfill CY 62
$
250.00 $ 15,500.00
20 Tree Removal EA 1
$
4,000.00 $ 4,000.00
21 4" Double Yellow Striping LF 1041
$
25.00 $ 26,025.00
22 4" White Line Stripping LF 1115
$
15.00 $ 16,725.00
23 12" White Line Stripping LF 27
$
500.00 $ 13,500.00
24 Ground Strippnig Symbols (Arrows,
STOP, Bicycle) EA 8
$
2,300.00 $ 18,400.00
25 Signs EA 10
$
1,000.00 $ 10,000.00
425
00500
26 Radar Detection Sign EA 2
$
17,500.00 $ 35,000.00
27 Remove and Relocate Drainage
Features - DI EA 2
$
3,000.00 $ 6,000.00
28 Remove and Relocate Drainage
Features - Sediment Trap EA 2
$
3,000.00 $ 6,000.00
29 Remove and Relocate Drainage
Features - Interceptor W/ New Grate EA 1
$
3,000.00 $ 3,000.00
30 Remove and Relocate Drainage
Features - Manhole EA 1
$
3,000.00 $ 3,000.00
31 48" Stormdrain Manhole, Frame and
Cover EA 1
$
2,500.00 $ 2,500.00
32 Drain Inlet (Supply of Structure Only) EA 2
$
2,500.00 $ 5,000.00
33 Sediment Trap (Supply of Structure
Only) EA 2
$
2,500.00 $ 5,000.00
34 Interceptor (Supply of Structure
Only) EA 1
$
5,000.00 $ 5,000.00
35 Concrete Collar EA 18
$
500.00 $ 9,000.00
36 Drop Inlet - 24" X 36" EA 1
$
3,000.00 $ 3,000.00
37 Transverse Drain EA 1
$
2,500.00 $ 2,500.00
38 0-3' Timber Retaining Wall SF 129
$
200.00 $ 25,800.00
39 Potholing of Existing Utilities EA 5
$
2,000.00 $ 10,000.00
TOTAL CONTRACT SUM: $504,531.00
For the Total Contract Sum of five hundred and four thousand five hundred and thirty one dollars and zero cents.
The above Total Contract Sum includes all allowances, if any, provided for in the Contract Documents.
Compensation for Unit Price Items shall be based upon the unit prices stated in the above schedule multiplied by the actual quantities or units of work and materials performed or furnished.
Unit prices paid by the City may change depending on actual quantities or units of work completed in accordance with the Contract Documents.
ARTICLE 4 — PREVAILING WAGES
Pursuant to the provisions of California Labor Code, Sections 1770 to 1780, inclusive thereof, the Contractor, and any subcontractor, of any tier, shall pay not less than the prevailing rate of per diem wages as determined by the Director of the California Department of Industrial Relations.
426
00500
Attention is directed to the federal minimum wage rate requirements as predetermined by the United States Secretary of Labor. If there is a difference between the minimum wage rate predetermined by the Secretary of Labor and the prevailing wage rate determined by the Director of Industrial Relations for similar classifications of labor, the Contractor and Subcontractor(s) shall pay not less than the higher wage rate.
In compliance with Senate Bill 854 and the California Labor Code, this project is subject to compliance monitoring and enforcement by the Department of Industrial Relations. Contractors must submit their certified payroll records directly to the Division of Labor Standards Enforcement Compliance Monitoring Unit through the electronic certified payroll reporting (eCPR) system, as well as to the City.
Pursuant to the provisions of California Labor Code Section 1773.2, the Contractor is hereby advised that copies of the prevailing rate of per diem wages and a general prevailing rate for holidays, Saturdays and Sundays and overtime work in the locality in which the Work is to be performed for each craft, classification, or type of worker required to execute the Contract, are on file in the City's office. The Contractor agrees that not less than said prevailing rates shall be paid to workers employed on this public works contract as required by Labor Code Section 1774. These rate determinations are found on the State of California Department of Industrial Relations' website at: http://www.dir.ca.gov/dlsr/DPreWageDetermination.htm.
ARTICLE 5 — CONTRACT DOCUMENTS
The Agreement includes and incorporates by reference the Contract Documents for the Project, which consists of the following documents:
(a) Notice to Bidders (Document 00100);
(b) Instructions to Bidders (Document 00200);
(c) Bid Proposal (Document 00400);
(d) Bidder's Bond (Document 00410);
(e) Designation of Subcontractors (Document 00420);
(f) Verification of Contractor and Subcontractor DIR Registration (00423) (g) Self-Performance Declaration (Document 00425);
(h) Debarment and Suspension Certifications (Document 00430); (i) Non-Collusion Declaration (Document 00432);
(j) Worker's Compensation Certification (Document 00435); (k) Business and Professions Code Sections 7028.15 and 7031 Statement (Document 00440);
(l) Bidder's Statement of Financial Responsibility, Technical Ability and Experience (Document 00450);
(m) Equal Employment Opportunity Certification (Document 00460); (n) Non-Lobbying Certification (Document 00465);
427
00500
(o) Disclosure of Lobbying Activities (Document 00466); (p) Construction Contract DBE Commitment (Document 00471); (q) DBE Information – Good Faith Efforts (Document 00475); (r) Agreement (Document 00500);
(s) Payment Bond Form (Document 00610);
(t) Performance Bond Form (Document 00620);
(u) Sample Escrow Agreement for Security Deposits In Lieu of Retention (Document 00630);
(v) Warranty/Guaranty Form (Document 00635);
(w) Acknowledgment of City Code (Document 00640);
(x) Bid Document Certification (Document 00650);
(y) The Standard Specifications of the State of California, Department of Transportation, dated 2022; the Standard Plans of the State of California, Department of Transportation, dated 2022, and the South Lake Tahoe Public Improvement and Engineering Standards;
(z) Special Provisions (which incorporate by reference, and, as specified, modify the Standard Specifications of the State of California, Department of Transportation, dated 2022; the Standard Plans of the State of California, Department of Transportation, dated 2022, and the South Lake Tahoe Public Improvement and Engineering Standards) (Document 00700);
(aa) Supplemental Conditions (Document 00800), if any;
(bb) General Requirements, if any;
(cc) Construction Progress Documentation (Document 01300); (dd) Technical Specifications;
(ee) Contract Drawings;
(ff) Addenda (numbers ___ to____, inclusive; and
(gg) Permits from other agencies as may be required by law.
Exhibits to this Agreement are enumerated as follows:
• Accepted Contractor’s Bid attached hereto as Exhibit A; • Escrow Bid Document Certification attached hereto as Exhibit B; and • Insurance Certificates and Endorsements as Exhibit C.
ARTICLE 6 — WORKERS’ COMPENSATION
Contractor shall take out and maintain during the life of the Agreement, adequate and sufficient workers’ compensation insurance for all Contractor’s employees employed at the site of improvements, and, if any Work is sublet, Contractor shall require each subcontractor similarly to 428
00500
provide workers’ compensation insurance for all of the latter’s employees, unless such employees are covered by the protection afforded by Contractor. If any class of employees engaged in Work under this contract at the site of the Project is not protected under workers’ compensation law, Contractor shall provide, and shall cause each subcontractor to provide, adequate insurance for the protection of employees not otherwise protected. Contractor shall indemnify the City for any damage resulting to it from failure of either Contractor or any subcontractor to take out or maintain such insurance.
By its signature upon this Agreement, Contractor certifies that it has carefully reviewed and is aware of the provisions of Section 3700 of the Labor Code which requires every employer to be insured against liability for worker's compensation, or to undertake self-insurance in accordance with the provisions of the labor Code. Contractor, as a condition precedent to the commencement of its Work pursuant to the Agreement, shall comply with such provisions.
ARTICLE 7 — INDEMNITY AND INSURANCE
To the fullest extent permitted by law, and in strict accordance with the Contract Documents, Contractor shall defend, indemnify, and hold harmless the City, its officials, officers, City Council members, employees, agents, the, the Architect/Engineer, the Project Manager and the Project consultants, and their respective principals, officers and employees, and each of them, of and from any and all claims, demands, suits, causes of action, damages, costs, expenses, attorneys' fees, losses, or liability, in law or in equity, of every kind and nature whatsoever related to, arising out of, or in connection with, Contractor's operations to be performed under this Agreement, and as otherwise set forth in Contract Documents, including, without limitation, Section 7-1.05A of the Standard Specifications, as modified by Section 7.11 of the Special Provisions. The obligations of defense and indemnity set forth in this Article, and in the Contract Documents, shall not be limited by any insurance requirements or obligations pursuant to the Contract Documents. The obligations arising from this Article shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity (including all duties to defend), which would otherwise exist as to a party, or person described elsewhere in the Contract Documents.
Contractor shall maintain the insurance coverage described in Section 7-1.06 of the Standard Specifications, as modified by Section 7.12 of the Special Provisions, throughout the performance of the Agreement, including any maintenance, warranty and/or guaranty periods.
This Agreement shall not be operative until evidence of such insurance has been provided to, and approved by, the City as to form, amount, and carrier. Contractor shall not allow any subcontractor to commence Work at the Project until subcontractor provides evidence to Contractor and City that subcontractor has obtained insurance acceptable to the City.
ARTICLE 8 — NOTICES
Whenever any provision of the Contract Documents requires the giving of written notice, it shall be deemed to have been validly given if delivered in person to the individual for whom it is intended, or if delivered at or sent by registered or certified mail, postage prepaid, to the address listed below:
Notices required to be given to City: Notices required to be given to Contractor:
City Engineer
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City of South Lake Tahoe ______________________________________ 1740 D Street
South Lake Tahoe, CA 96150-6251 ______________________________________ Notices required to be given to any surety(ies):
ARTICLE 9 — MISCELLANEOUS
9.1 Terms. Terms used in this Agreement will have the meanings indicated in the Contract Documents.
9.2 Assignment. No assignment by a party hereto of any rights under or interests in the Agreement will be binding on another party hereto without the written consent of the party sought to be bound; and, specifically but without limitation, moneys that may become due and moneys that are due may not be assigned without such consent (except to the extent that the effect of this restriction may be limited by law), and unless specifically stated to the contrary in any written consent to an assignment, no assignment will release or discharge the assignor from any duty or responsibility under the Contract Documents.
9.3 Successors and Assigns. City and Contractor each binds itself, its partners, successors, assign, and legal representatives to the other party hereto, its partners, successors, assigns, and legal representatives in respect to all covenants, agreements, and obligations contained in the Contract Documents.
9.4 Severability. Any provision or part of the Contract Documents held to be void or unenforceable under any law or regulation shall be deemed stricken, and all remaining provisions shall continue to be valid and binding upon City and Contractor, who agree that the Contract Documents shall be reformed to replace such stricken provision or part thereof with a valid and enforceable provision that comes as close as possible to expressing the intention of the stricken provision.
9.5 South Lake Tahoe City Code. Contractor acknowledges that all pertinent provisions within the South Lake Tahoe City Code are incorporated by reference as though set forth in full herein, and, further, the failure of Contractor or any subcontractor, of any tier, to comply with any of its/their obligations under the Contract Documents, or the requirements of the South Lake Tahoe City Code, or any other applicable law, code, statute, or regulation, shall be deemed a material breach of the Agreement.
9.6 Third Party Beneficiary. Contractor expressly acknowledges the City's status as a third party beneficiary solely with respect to the performance to be rendered under each subcontract, of any tier, upon the Project, and, as a result, Contractor acknowledges that City possesses, inter alia, the rights enumerated within the South Lake Tahoe City Code as to the enforcement of obligations under subcontracts of any tier.
9.7 Regulatory Requirements. Contractor acknowledges that the Project is subject to requirements and regulations issued on behalf of various governmental and/or regulatory bodies, including, without limitation, the Lahontan Regional Water Quality Control Board and the Tahoe 430
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Regional Planning Agency, among others. Contractor agrees to fully and promptly comply with any and all requirements and regulations issued on behalf of such entities.
9.8 Governing Law. This Agreement and the Contract Documents shall be deemed to have been entered into in the County of El Dorado, State of California, and governed by California law. By entering into this Agreement, the Contractor consents and submits to the jurisdiction of Courts of the State of California, County of El Dorado, over any action of law, suit in equity, and/or other proceeding that may arise out of the Contract Documents.
IN WITNESS HEREOF, the said City of South Lake Tahoe, State of California, has caused this Agreement to be executed by its Mayor in its behalf, and the said Contractor has signed this Agreement the day and year first above written.
CITY OF SOUTH LAKE TAHOE Contractor: Globe Engineering
Development
By By Dawood Kavosh
Tamara Wallace, Mayor
Title President
Business License No.
ATTEST: APPROVED AS TO FORM:
By By
Susan Blankenship Heather Stroud
City of South Lake Tahoe City of South Lake Tahoe
END OF DOCUMENT 00500
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Exhibit A
FHWA 1273
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1 FHWA-1273 – Revised October 23, 2023
REQUIRED CONTRACT PROVISIONS
FEDERAL-AID CONSTRUCTION CONTRACTS
I. General
II. Nondiscrimination
III. Non-segregated Facilities
IV. Davis-Bacon and Related Act Provisions
V. Contract Work Hours and Safety Standards Act
Provisions
VI. Subletting or Assigning the Contract
VII. Safety: Accident Prevention
VIII. False Statements Concerning Highway Projects
IX. Implementation of Clean Air Act and Federal Water
Pollution Control Act
X. Certification Regarding Debarment, Suspension,
Ineligibility and Voluntary Exclusion
XI. Certification Regarding Use of Contract Funds for
Lobbying
XII. Use of United States-Flag Vessels:
ATTACHMENTS
A. Employment and Materials Preference for Appalachian
Development Highway System or Appalachian Local Access
Road Contracts (included in Appalachian contracts only) I. GENERAL
1. Form FHWA-1273 must be physically incorporated in each construction contract funded under title 23, United States Code, as required in 23 CFR 633.102(b) (excluding
emergency contracts solely intended for debris removal). The contractor (or subcontractor) must insert this form in each subcontract and further require its inclusion in all lower tier subcontracts (excluding purchase orders, rental agreements and other agreements for supplies or services). 23 CFR
633.102(e).
The applicable requirements of Form FHWA-1273 are
incorporated by reference for work done under any purchase order, rental agreement or agreement for other services. The prime contractor shall be responsible for compliance by any subcontractor, lower-tier subcontractor or service provider. 23 CFR 633.102(e).
Form FHWA-1273 must be included in all Federal-aid designbuild contracts, in all subcontracts and in lower tier subcontracts (excluding subcontracts for design services, purchase orders, rental agreements and other agreements for supplies or services) in accordance with 23 CFR 633.102. The design-builder shall be responsible for compliance by any subcontractor, lower-tier subcontractor or service provider.
Contracting agencies may reference Form FHWA-1273 in
solicitation-for-bids or request-for-proposals documents, however, the Form FHWA-1273 must be physically
incorporated (not referenced) in all contracts, subcontracts and lower-tier subcontracts (excluding purchase orders, rental agreements and other agreements for supplies or services related to a construction contract). 23 CFR 633.102(b).
2. Subject to the applicability criteria noted in the following sections, these contract provisions shall apply to all work performed on the contract by the contractor's own organization and with the assistance of workers under the contractor's immediate superintendence and to all work performed on the contract by piecework, station work, or by subcontract. 23 CFR 633.102(d).
3. A breach of any of the stipulations contained in these Required Contract Provisions may be sufficient grounds for withholding of progress payments, withholding of final
payment, termination of the contract, suspension / debarment or any other action determined to be appropriate by the contracting agency and FHWA.
4. Selection of Labor: During the performance of this contract, the contractor shall not use convict labor for any purpose within the limits of a construction project on a Federal-aid highway unless it is labor performed by convicts who are on parole, supervised release, or probation. 23 U.S.C. 114(b).
The term Federal-aid highway does not include roadways
functionally classified as local roads or rural minor collectors. 23 U.S.C. 101(a).
II. NONDISCRIMINATION (23 CFR 230.107(a); 23 CFR Part
230, Subpart A, Appendix A; EO 11246)
The provisions of this section related to 23 CFR Part 230, Subpart A, Appendix A are applicable to all Federal-aid construction contracts and to all related construction
subcontracts of $10,000 or more. The provisions of 23 CFR Part 230 are not applicable to material supply, engineering, or architectural service contracts.
In addition, the contractor and all subcontractors must comply with the following policies: Executive Order 11246, 41 CFR Part 60, 29 CFR Parts 1625-1627, 23 U.S.C. 140, Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. 794), Title VI of the Civil Rights Act of 1964, as amended (42 U.S.C. 2000d et seq.), and related regulations including 49 CFR Parts 21, 26, and 27; and 23 CFR Parts 200, 230, and 633.
The contractor and all subcontractors must comply with: the requirements of the Equal Opportunity Clause in 41 CFR 60-
1.4(b) and, for all construction contracts exceeding $10,000, the Standard Federal Equal Employment Opportunity
Construction Contract Specifications in 41 CFR 60-4.3.
Note: The U.S. Department of Labor has exclusive authority to determine compliance with Executive Order 11246 and the policies of the Secretary of Labor including 41 CFR Part 60, and 29 CFR Parts 1625-1627. The contracting agency and
the FHWA have the authority and the responsibility to ensure compliance with 23 U.S.C. 140, Section 504 of the
Rehabilitation Act of 1973, as amended (29 U.S.C. 794), and Title VI of the Civil Rights Act of 1964, as amended (42 U.S.C. 2000d et seq.), and related regulations including 49 CFR Parts 21, 26, and 27; and 23 CFR Parts 200, 230, and 633.
The following provision is adopted from 23 CFR Part 230, Subpart A, Appendix A, with appropriate revisions to conform to the U.S. Department of Labor (US DOL) and FHWA
requirements.
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2 1. Equal Employment Opportunity: Equal Employment
Opportunity (EEO) requirements not to discriminate and to take affirmative action to assure equal opportunity as set forth under laws, executive orders, rules, regulations (see 28 CFR Part 35, 29 CFR Part 1630, 29 CFR Parts 1625-1627, 41 CFR Part 60 and 49 CFR Part 27) and orders of the Secretary of Labor as modified by the provisions prescribed herein, and imposed pursuant to 23 U.S.C. 140, shall constitute the EEO and specific affirmative action standards for the contractor's project activities under this contract. The provisions of the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) set forth under 28 CFR Part 35 and 29 CFR Part 1630 are incorporated by reference in this contract. In the execution of this contract, the contractor agrees to comply with the following minimum specific requirement activities of EEO:
a. The contractor will work with the contracting agency and the Federal Government to ensure that it has made every good faith effort to provide equal opportunity with respect to all of its terms and conditions of employment and in their review of activities under the contract. 23 CFR 230.409 (g)(4) & (5). b. The contractor will accept as its operating policy the following statement:
"It is the policy of this Company to assure that applicants are employed, and that employees are treated during
employment, without regard to their race, religion, sex, sexual orientation, gender identity, color, national origin, age or disability. Such action shall include: employment,
upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including
apprenticeship, pre-apprenticeship, and/or on-the-job
training."
2. EEO Officer: The contractor will designate and make
known to the contracting officers an EEO Officer who will have the responsibility for and must be capable of effectively administering and promoting an active EEO program and who must be assigned adequate authority and responsibility to do so.
3. Dissemination of Policy: All members of the contractor's staff who are authorized to hire, supervise, promote, and discharge employees, or who recommend such action or are substantially involved in such action, will be made fully cognizant of and will implement the contractor's EEO policy and contractual responsibilities to provide EEO in each grade and classification of employment. To ensure that the above agreement will be met, the following actions will be taken as a minimum:
a. Periodic meetings of supervisory and personnel office employees will be conducted before the start of work and then not less often than once every six months, at which time the contractor's EEO policy and its implementation will be
reviewed and explained. The meetings will be conducted by the EEO Officer or other knowledgeable company official.
b. All new supervisory or personnel office employees will be given a thorough indoctrination by the EEO Officer, covering all major aspects of the contractor's EEO obligations within thirty days following their reporting for duty with the contractor. c. All personnel who are engaged in direct recruitment for the project will be instructed by the EEO Officer in the contractor's procedures for locating and hiring minorities and women.
d. Notices and posters setting forth the contractor's EEO policy will be placed in areas readily accessible to employees, applicants for employment and potential employees.
e. The contractor's EEO policy and the procedures to
implement such policy will be brought to the attention of employees by means of meetings, employee handbooks, or
other appropriate means.
4. Recruitment: When advertising for employees, the
contractor will include in all advertisements for employees the notation: "An Equal Opportunity Employer." All such
advertisements will be placed in publications having a large circulation among minorities and women in the area from which the project work force would normally be derived. a. The contractor will, unless precluded by a valid
bargaining agreement, conduct systematic and direct
recruitment through public and private employee referral sources likely to yield qualified minorities and women. To meet this requirement, the contractor will identify sources of potential minority group employees and establish with such identified sources procedures whereby minority and women applicants may be referred to the contractor for employment consideration.
b. In the event the contractor has a valid bargaining
agreement providing for exclusive hiring hall referrals, the contractor is expected to observe the provisions of that agreement to the extent that the system meets the contractor's compliance with EEO contract provisions. Where
implementation of such an agreement has the effect of
discriminating against minorities or women, or obligates the contractor to do the same, such implementation violates Federal nondiscrimination provisions.
c. The contractor will encourage its present employees to refer minorities and women as applicants for employment.
Information and procedures with regard to referring such applicants will be discussed with employees.
5. Personnel Actions: Wages, working conditions, and
employee benefits shall be established and administered, and personnel actions of every type, including hiring, upgrading, promotion, transfer, demotion, layoff, and termination, shall be taken without regard to race, color, religion, sex, sexual orientation, gender identity, national origin, age or disability.
The following procedures shall be followed:
a. The contractor will conduct periodic inspections of project sites to ensure that working conditions and employee facilities do not indicate discriminatory treatment of project site personnel.
b. The contractor will periodically evaluate the spread of wages paid within each classification to determine any
evidence of discriminatory wage practices.
c. The contractor will periodically review selected personnel actions in depth to determine whether there is evidence of discrimination. Where evidence is found, the contractor will promptly take corrective action. If the review indicates that the discrimination may extend beyond the actions reviewed, such corrective action shall include all affected persons.
d. The contractor will promptly investigate all complaints of alleged discrimination made to the contractor in connection with its obligations under this contract, will attempt to resolve such complaints, and will take appropriate corrective action 434
3 within a reasonable time. If the investigation indicates that the discrimination may affect persons other than the complainant, such corrective action shall include such other persons. Upon completion of each investigation, the contractor will inform every complainant of all of their avenues of appeal.
6. Training and Promotion:
a. The contractor will assist in locating, qualifying, and increasing the skills of minorities and women who are
applicants for employment or current employees. Such efforts should be aimed at developing full journey level status employees in the type of trade or job classification involved. b. Consistent with the contractor's work force requirements and as permissible under Federal and State regulations, the contractor shall make full use of training programs (i.e., apprenticeship and on-the-job training programs for the geographical area of contract performance). In the event a special provision for training is provided under this contract, this subparagraph will be superseded as indicated in the special provision. The contracting agency may reserve
training positions for persons who receive welfare assistance in accordance with 23 U.S.C. 140(a).
c. The contractor will advise employees and applicants for employment of available training programs and entrance
requirements for each.
d. The contractor will periodically review the training and promotion potential of employees who are minorities and women and will encourage eligible employees to apply for such training and promotion.
7. Unions: If the contractor relies in whole or in part upon unions as a source of employees, the contractor will use good faith efforts to obtain the cooperation of such unions to increase opportunities for minorities and women. 23 CFR 230.409. Actions by the contractor, either directly or through a contractor's association acting as agent, will include the procedures set forth below:
a. The contractor will use good faith efforts to develop, in cooperation with the unions, joint training programs aimed toward qualifying more minorities and women for membership in the unions and increasing the skills of minorities and women so that they may qualify for higher paying employment.
b. The contractor will use good faith efforts to incorporate an EEO clause into each union agreement to the end that such union will be contractually bound to refer applicants without regard to their race, color, religion, sex, sexual orientation, gender identity, national origin, age, or disability.
c. The contractor is to obtain information as to the referral practices and policies of the labor union except that to the extent such information is within the exclusive possession of the labor union and such labor union refuses to furnish such information to the contractor, the contractor shall so certify to the contracting agency and shall set forth what efforts have been made to obtain such information.
d. In the event the union is unable to provide the contractor with a reasonable flow of referrals within the time limit set forth in the collective bargaining agreement, the contractor will, through independent recruitment efforts, fill the employment vacancies without regard to race, color, religion, sex, sexual orientation, gender identity, national origin, age, or disability; making full efforts to obtain qualified and/or qualifiable minorities and women. The failure of a union to provide sufficient referrals (even though it is obligated to provide exclusive referrals under the terms of a collective bargaining agreement) does not relieve the contractor from the
requirements of this paragraph. In the event the union referral practice prevents the contractor from meeting the obligations pursuant to Executive Order 11246, as amended, and these special provisions, such contractor shall immediately notify the contracting agency.
8. Reasonable Accommodation for Applicants /
Employees with Disabilities: The contractor must be familiar with the requirements for and comply with the Americans with Disabilities Act and all rules and regulations established thereunder. Employers must provide reasonable
accommodation in all employment activities unless to do so would cause an undue hardship.
9. Selection of Subcontractors, Procurement of Materials and Leasing of Equipment: The contractor shall not
discriminate on the grounds of race, color, religion, sex, sexual orientation, gender identity, national origin, age, or disability in the selection and retention of subcontractors, including procurement of materials and leases of equipment. The
contractor shall take all necessary and reasonable steps to ensure nondiscrimination in the administration of this contract. a. The contractor shall notify all potential subcontractors, suppliers, and lessors of their EEO obligations under this contract.
b. The contractor will use good faith efforts to ensure subcontractor compliance with their EEO obligations.
10. Assurances Required:
a. The requirements of 49 CFR Part 26 and the State
DOT’s FHWA-approved Disadvantaged Business Enterprise
(DBE) program are incorporated by reference.
b. The contractor, subrecipient or subcontractor shall not discriminate on the basis of race, color, national origin, or sex in the performance of this contract. The contractor shall carry out applicable requirements of 49 CFR part 26 in the award and administration of DOT-assisted contracts. Failure by the contractor to carry out these requirements is a material breach of this contract, which may result in the termination of this contract or such other remedy as the recipient deems
appropriate, which may include, but is not limited to:
(1) Withholding monthly progress payments;
(2) Assessing sanctions;
(3) Liquidated damages; and/or
(4) Disqualifying the contractor from future bidding as nonresponsible. c. The Title VI and nondiscrimination provisions of U.S.
DOT Order 1050.2A at Appendixes A and E are incorporated by reference. 49 CFR Part 21.
11. Records and Reports: The contractor shall keep such records as necessary to document compliance with the EEO requirements. Such records shall be retained for a period of three years following the date of the final payment to the contractor for all contract work and shall be available at reasonable times and places for inspection by authorized representatives of the contracting agency and the FHWA. a. The records kept by the contractor shall document the following:
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4 (1) The number and work hours of minority and nonminority group members and women employed in each work classification on the project;
(2) The progress and efforts being made in cooperation
with unions, when applicable, to increase employment
opportunities for minorities and women; and
(3) The progress and efforts being made in locating, hiring, training, qualifying, and upgrading minorities and women. b. The contractors and subcontractors will submit an annual report to the contracting agency each July for the duration of the project indicating the number of minority, women, and nonminority group employees currently engaged in each work classification required by the contract work. This information is to be reported on Form FHWA-1391. The staffing data should represent the project work force on board in all or any part of the last payroll period preceding the end of July. If on-the-job training is being required by special provision, the contractor will be required to collect and report training data. The employment data should reflect the work force on board during all or any part of the last payroll period preceding the end of July.
III. NONSEGREGATED FACILITIES
This provision is applicable to all Federal-aid construction contracts and to all related construction subcontracts of more than $10,000. 41 CFR 60-1.5.
As prescribed by 41 CFR 60-1.8, the contractor must ensure that facilities provided for employees are provided in such a manner that segregation on the basis of race, color, religion, sex, sexual orientation, gender identity, or national origin cannot result. The contractor may neither require such
segregated use by written or oral policies nor tolerate such use by employee custom. The contractor's obligation extends further to ensure that its employees are not assigned to perform their services at any location under the contractor's control where the facilities are segregated. The term "facilities" includes waiting rooms, work areas, restaurants and other eating areas, time clocks, restrooms, washrooms, locker rooms and other storage or dressing areas, parking lots, drinking fountains, recreation or entertainment areas,
transportation, and housing provided for employees. The contractor shall provide separate or single-user restrooms and necessary dressing or sleeping areas to assure privacy
between sexes.
IV. DAVIS-BACON AND RELATED ACT PROVISIONS
This section is applicable to all Federal-aid construction projects exceeding $2,000 and to all related subcontracts and lower-tier subcontracts (regardless of subcontract size), in accordance with 29 CFR 5.5. The requirements apply to all projects located within the right-of-way of a roadway that is functionally classified as Federal-aid highway. 23 U.S.C. 113.
This excludes roadways functionally classified as local roads or rural minor collectors, which are exempt. 23 U.S.C. 101.
Where applicable law requires that projects be treated as a project on a Federal-aid highway, the provisions of this subpart will apply regardless of the location of the project. Examples include: Surface Transportation Block Grant Program projects funded under 23 U.S.C. 133 [excluding recreational trails projects], the Nationally Significant Freight and Highway Projects funded under 23 U.S.C. 117, and National Highway Freight Program projects funded under 23 U.S.C. 167.
The following provisions are from the U.S. Department of Labor regulations in 29 CFR 5.5 “Contract provisions and related matters” with minor revisions to conform to the FHWA1273 format and FHWA program requirements.
1. Minimum wages (29 CFR 5.5)
a. Wage rates and fringe benefits. All laborers and
mechanics employed or working upon the site of the work (or otherwise working in construction or development of the project under a development statute), will be paid
unconditionally and not less often than once a week, and without subsequent deduction or rebate on any account
(except such payroll deductions as are permitted by
regulations issued by the Secretary of Labor under the
Copeland Act (29 CFR part 3)), the full amount of basic hourly wages and bona fide fringe benefits (or cash equivalents thereof) due at time of payment computed at rates not less than those contained in the wage determination of the
Secretary of Labor which is attached hereto and made a part hereof, regardless of any contractual relationship which may be alleged to exist between the contractor and such laborers and mechanics. As provided in paragraphs (d) and (e) of 29 CFR 5.5, the appropriate wage determinations are effective by operation of law even if they have not been attached to the contract. Contributions made or costs reasonably anticipated for bona fide fringe benefits under the Davis-Bacon Act (40 U.S.C. 3141(2)(B)) on behalf of laborers or mechanics are considered wages paid to such laborers or mechanics, subject to the provisions of paragraph 1.e. of this section; also, regular contributions made or costs incurred for more than a weekly period (but not less often than quarterly) under plans, funds, or programs which cover the particular weekly period, are
deemed to be constructively made or incurred during such weekly period. Such laborers and mechanics must be paid the appropriate wage rate and fringe benefits on the wage
determination for the classification(s) of work actually performed, without regard to skill, except as provided in paragraph 4. of this section. Laborers or mechanics performing work in more than one classification may be compensated at the rate specified for each classification for the time actually worked therein: Provided, That the employer's payroll records accurately set forth the time spent in each classification in which work is performed. The wage determination (including any additional classifications and wage rates conformed under paragraph 1.c. of this section) and the Davis-Bacon poster (WH–1321) must be posted at all times by the contractor and its subcontractors at the site of the work in a prominent and accessible place where it can be easily seen by the workers. b. Frequently recurring classifications. (1) In addition to wage and fringe benefit rates that have been determined to be prevailing under the procedures set forth in 29 CFR part 1, a wage determination may contain, pursuant to § 1.3(f), wage and fringe benefit rates for classifications of laborers and mechanics for which conformance requests are regularly
submitted pursuant to paragraph 1.c. of this section, provided that:
(i) The work performed by the classification is not
performed by a classification in the wage determination for which a prevailing wage rate has been determined;
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5 (ii) The classification is used in the area by the
construction industry; and
(iii) The wage rate for the classification bears a reasonable relationship to the prevailing wage rates contained in the wage determination.
(2) The Administrator will establish wage rates for such classifications in accordance with paragraph 1.c.(1)(iii) of this section. Work performed in such a classification must be paid at no less than the wage and fringe benefit rate listed on the wage determination for such classification.
c. Conformance. (1) The contracting officer must require that any class of laborers or mechanics, including helpers, which is not listed in the wage determination and which is to be employed under the contract be classified in conformance with the wage determination. Conformance of an additional
classification and wage rate and fringe benefits is appropriate only when the following criteria have been met:
(i) The work to be performed by the classification
requested is not performed by a classification in the wage determination; and
(ii) The classification is used in the area by the
construction industry; and
(iii) The proposed wage rate, including any bona fide fringe benefits, bears a reasonable relationship to the wage rates contained in the wage determination.
(2) The conformance process may not be used to split,
subdivide, or otherwise avoid application of classifications listed in the wage determination.
(3) If the contractor and the laborers and mechanics to be employed in the classification (if known), or their
representatives, and the contracting officer agree on the classification and wage rate (including the amount designated for fringe benefits where appropriate), a report of the action taken will be sent by the contracting officer by email to [email protected]. The Administrator, or an
authorized representative, will approve, modify, or disapprove every additional classification action within 30 days of receipt and so advise the contracting officer or will notify the contracting officer within the 30–day period that additional time is necessary.
(4) In the event the contractor, the laborers or mechanics to be employed in the classification or their representatives, and the contracting officer do not agree on the proposed
classification and wage rate (including the amount designated for fringe benefits, where appropriate), the contracting officer will, by email to [email protected], refer the
questions, including the views of all interested parties and the recommendation of the contracting officer, to the Administrator for determination. The Administrator, or an authorized
representative, will issue a determination within 30 days of receipt and so advise the contracting officer or will notify the contracting officer within the 30–day period that additional time is necessary.
(5) The contracting officer must promptly notify the
contractor of the action taken by the Wage and Hour Division under paragraphs 1.c.(3) and (4) of this section. The contractor must furnish a written copy of such determination to each affected worker or it must be posted as a part of the wage determination. The wage rate (including fringe benefits where appropriate) determined pursuant to paragraph 1.c.(3) or (4) of this section must be paid to all workers performing work in the classification under this contract from the first day on which work is performed in the classification.
d. Fringe benefits not expressed as an hourly rate.
Whenever the minimum wage rate prescribed in the contract for a class of laborers or mechanics includes a fringe benefit which is not expressed as an hourly rate, the contractor may either pay the benefit as stated in the wage determination or may pay another bona fide fringe benefit or an hourly cash equivalent thereof.
e. Unfunded plans. If the contractor does not make
payments to a trustee or other third person, the contractor may consider as part of the wages of any laborer or mechanic the amount of any costs reasonably anticipated in providing bona fide fringe benefits under a plan or program, Provided, That the Secretary of Labor has found, upon the written request of the contractor, in accordance with the criteria set forth in § 5.28, that the applicable standards of the Davis-Bacon Act have been met. The Secretary of Labor may require the
contractor to set aside in a separate account assets for the meeting of obligations under the plan or program.
f. Interest. In the event of a failure to pay all or part of the wages required by the contract, the contractor will be required to pay interest on any underpayment of wages.
2. Withholding (29 CFR 5.5)
a. Withholding requirements. The contracting agency may, upon its own action, or must, upon written request of an authorized representative of the Department of Labor, withhold or cause to be withheld from the contractor so much of the accrued payments or advances as may be considered
necessary to satisfy the liabilities of the prime contractor or any subcontractor for the full amount of wages and monetary relief, including interest, required by the clauses set forth in this section for violations of this contract, or to satisfy any such liabilities required by any other Federal contract, or federally assisted contract subject to Davis-Bacon labor standards, that is held by the same prime contractor (as defined in § 5.2). The necessary funds may be withheld from the contractor under this contract, any other Federal contract with the same prime contractor, or any other federally assisted contract that is subject to Davis-Bacon labor standards requirements and is held by the same prime contractor, regardless of whether the other contract was awarded or assisted by the same agency, and such funds may be used to satisfy the contractor liability for which the funds were withheld. In the event of a
contractor's failure to pay any laborer or mechanic, including any apprentice or helper working on the site of the work all or part of the wages required by the contract, or upon the contractor's failure to submit the required records as discussed in paragraph 3.d. of this section, the contracting agency may on its own initiative and after written notice to the contractor, take such action as may be necessary to cause the
suspension of any further payment, advance, or guarantee of funds until such violations have ceased.
b. Priority to withheld funds. The Department has priority to funds withheld or to be withheld in accordance with paragraph 437
6 2.a. of this section or Section V, paragraph 3.a., or both, over claims to those funds by:
(1) A contractor's surety(ies), including without limitation performance bond sureties and payment bond sureties;
(2) A contracting agency for its reprocurement costs;
(3) A trustee(s) (either a court-appointed trustee or a U.S. trustee, or both) in bankruptcy of a contractor, or a contractor's bankruptcy estate;
(4) A contractor's assignee(s);
(5) A contractor's successor(s); or
(6) A claim asserted under the Prompt Payment Act, 31
U.S.C. 3901–3907.
3. Records and certified payrolls (29 CFR 5.5)
a. Basic record requirements (1) Length of record retention.
All regular payrolls and other basic records must be
maintained by the contractor and any subcontractor during the course of the work and preserved for all laborers and
mechanics working at the site of the work (or otherwise working in construction or development of the project under a development statute) for a period of at least 3 years after all the work on the prime contract is completed.
(2) Information required. Such records must contain the name; Social Security number; last known address, telephone number, and email address of each such worker; each
worker's correct classification(s) of work actually performed; hourly rates of wages paid (including rates of contributions or costs anticipated for bona fide fringe benefits or cash equivalents thereof of the types described in 40 U.S.C. 3141(2)(B) of the Davis-Bacon Act); daily and weekly number of hours actually worked in total and on each covered contract; deductions made; and actual wages paid.
(3) Additional records relating to fringe benefits. Whenever the Secretary of Labor has found under paragraph 1.e. of this section that the wages of any laborer or mechanic include the amount of any costs reasonably anticipated in providing benefits under a plan or program described in 40 U.S.C. 3141(2)(B) of the Davis-Bacon Act, the contractor must
maintain records which show that the commitment to provide such benefits is enforceable, that the plan or program is financially responsible, and that the plan or program has been communicated in writing to the laborers or mechanics affected, and records which show the costs anticipated or the actual cost incurred in providing such benefits.
(4) Additional records relating to apprenticeship. Contractors with apprentices working under approved programs must
maintain written evidence of the registration of apprenticeship programs, the registration of the apprentices, and the ratios and wage rates prescribed in the applicable programs.
b. Certified payroll requirements (1) Frequency and method of submission. The contractor or subcontractor must submit weekly, for each week in which any DBA- or Related Actscovered work is performed, certified payrolls to the contracting agency. The prime contractor is responsible for the submission of all certified payrolls by all subcontractors. A contracting agency or prime contractor may permit or require contractors to submit certified payrolls through an electronic system, as long as the electronic system requires a legally valid electronic signature; the system allows the contractor, the contracting agency, and the Department of Labor to access the certified payrolls upon request for at least 3 years after the work on the prime contract has been completed; and the contracting
agency or prime contractor permits other methods of
submission in situations where the contractor is unable or limited in its ability to use or access the electronic system. (2) Information required. The certified payrolls submitted must set out accurately and completely all of the information required to be maintained under paragraph 3.a.(2) of this section, except that full Social Security numbers and last known addresses, telephone numbers, and email addresses must not be included on weekly transmittals. Instead, the certified payrolls need only include an individually identifying number for each worker ( e.g., the last four digits of the worker's Social Security number). The required weekly
certified payroll information may be submitted using Optional Form WH–347 or in any other format desired. Optional Form WH–347 is available for this purpose from the Wage and Hour Division website at https://www.dol.gov/sites/dolgov/files/WHD/ legacy/files/wh347/.pdf or its successor website. It is not a violation of this section for a prime contractor to require a subcontractor to provide full Social Security numbers and last known addresses, telephone numbers, and email addresses to the prime contractor for its own records, without weekly submission by the subcontractor to the contracting agency. (3) Statement of Compliance. Each certified payroll
submitted must be accompanied by a “Statement of
Compliance,” signed by the contractor or subcontractor, or the contractor's or subcontractor's agent who pays or supervises the payment of the persons working on the contract, and must certify the following:
(i) That the certified payroll for the payroll period contains the information required to be provided under paragraph 3.b. of this section, the appropriate information and basic records are being maintained under paragraph 3.a. of this section, and such information and records are correct and complete; (ii) That each laborer or mechanic (including each helper and apprentice) working on the contract during the payroll period has been paid the full weekly wages earned, without rebate, either directly or indirectly, and that no deductions have been made either directly or indirectly from the full wages earned, other than permissible deductions as set
forth in 29 CFR part 3; and
(iii) That each laborer or mechanic has been paid not less than the applicable wage rates and fringe benefits or cash equivalents for the classification(s) of work actually
performed, as specified in the applicable wage determination incorporated into the contract.
(4) Use of Optional Form WH–347. The weekly submission
of a properly executed certification set forth on the reverse side of Optional Form WH–347 will satisfy the requirement for submission of the “Statement of Compliance” required by paragraph 3.b.(3) of this section.
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7 (5) Signature. The signature by the contractor,
subcontractor, or the contractor's or subcontractor's agent must be an original handwritten signature or a legally valid electronic signature.
(6) Falsification. The falsification of any of the above certifications may subject the contractor or subcontractor to civil or criminal prosecution under 18 U.S.C. 1001 and 31 U.S.C. 3729.
(7) Length of certified payroll retention. The contractor or subcontractor must preserve all certified payrolls during the course of the work and for a period of 3 years after all the work on the prime contract is completed.
c. Contracts, subcontracts, and related documents. The
contractor or subcontractor must maintain this contract or subcontract and related documents including, without
limitation, bids, proposals, amendments, modifications, and extensions. The contractor or subcontractor must preserve these contracts, subcontracts, and related documents during the course of the work and for a period of 3 years after all the work on the prime contract is completed.
d. Required disclosures and access (1) Required record
disclosures and access to workers. The contractor or
subcontractor must make the records required under
paragraphs 3.a. through 3.c. of this section, and any other documents that the contracting agency, the State DOT, the FHWA, or the Department of Labor deems necessary to
determine compliance with the labor standards provisions of any of the applicable statutes referenced by § 5.1, available for inspection, copying, or transcription by authorized
representatives of the contracting agency, the State DOT, the FHWA, or the Department of Labor, and must permit such
representatives to interview workers during working hours on the job.
(2) Sanctions for non-compliance with records and worker access requirements. If the contractor or subcontractor fails to submit the required records or to make them available, or refuses to permit worker interviews during working hours on the job, the Federal agency may, after written notice to the contractor, sponsor, applicant, owner, or other entity, as the case may be, that maintains such records or that employs such workers, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds. Furthermore, failure to submit the required records upon request or to make such records available, or to permit worker interviews during working hours on the job, may be grounds for debarment action pursuant to § 5.12. In addition, any contractor or other person that fails to submit the required records or make those records available to WHD within the time WHD requests that the records be produced will be
precluded from introducing as evidence in an administrative proceeding under 29 CFR part 6 any of the required records that were not provided or made available to WHD. WHD will take into consideration a reasonable request from the
contractor or person for an extension of the time for
submission of records. WHD will determine the
reasonableness of the request and may consider, among other things, the location of the records and the volume of
production.
(3) Required information disclosures. Contractors and
subcontractors must maintain the full Social Security number and last known address, telephone number, and email address of each covered worker, and must provide them upon request to the contracting agency, the State DOT, the FHWA, the contractor, or the Wage and Hour Division of the Department of Labor for purposes of an investigation or other compliance action.
4. Apprentices and equal employment opportunity (29 CFR
5.5)
a. Apprentices (1) Rate of pay. Apprentices will be permitted to work at less than the predetermined rate for the work they perform when they are employed pursuant to and individually registered in a bona fide apprenticeship program registered with the U.S. Department of Labor, Employment and Training Administration, Office of Apprenticeship (OA), or with a State Apprenticeship Agency recognized by the OA. A person who is not individually registered in the program, but who has been certified by the OA or a State Apprenticeship Agency (where appropriate) to be eligible for probationary employment as an apprentice, will be permitted to work at less than the
predetermined rate for the work they perform in the first 90 days of probationary employment as an apprentice in such a program. In the event the OA or a State Apprenticeship
Agency recognized by the OA withdraws approval of an
apprenticeship program, the contractor will no longer be permitted to use apprentices at less than the applicable predetermined rate for the work performed until an acceptable program is approved.
(2) Fringe benefits. Apprentices must be paid fringe benefits in accordance with the provisions of the apprenticeship program. If the apprenticeship program does not specify fringe benefits, apprentices must be paid the full amount of fringe benefits listed on the wage determination for the applicable classification. If the Administrator determines that a different practice prevails for the applicable apprentice classification, fringe benefits must be paid in accordance with that
determination.
(3) Apprenticeship ratio. The allowable ratio of apprentices to journeyworkers on the job site in any craft classification must not be greater than the ratio permitted to the contractor as to the entire work force under the registered program or the ratio applicable to the locality of the project pursuant to paragraph
4.a.(4) of this section. Any worker listed on a payroll at an apprentice wage rate, who is not registered or otherwise employed as stated in paragraph 4.a.(1) of this section, must be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed.
In addition, any apprentice performing work on the job site in excess of the ratio permitted under this section must be paid not less than the applicable wage rate on the wage
determination for the work actually performed.
(4) Reciprocity of ratios and wage rates. Where a contractor is performing construction on a project in a locality other than the locality in which its program is registered, the ratios and wage rates (expressed in percentages of the journeyworker's hourly rate) applicable within the locality in which the construction is being performed must be observed. If there is no applicable ratio or wage rate for the locality of the project, the ratio and wage rate specified in the contractor's registered program must be observed.
b. Equal employment opportunity. The use of apprentices and journeyworkers under this part must be in conformity with 439
8 the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR part 30.
c. Apprentices and Trainees (programs of the U.S. DOT).
Apprentices and trainees working under apprenticeship and skill training programs which have been certified by the Secretary of Transportation as promoting EEO in connection with Federal-aid highway construction programs are not
subject to the requirements of paragraph 4 of this Section IV. 23 CFR 230.111(e)(2). The straight time hourly wage rates for apprentices and trainees under such programs will be
established by the particular programs. The ratio of
apprentices and trainees to journeyworkers shall not be greater than permitted by the terms of the particular program.
5. Compliance with Copeland Act requirements. The
contractor shall comply with the requirements of 29 CFR part 3, which are incorporated by reference in this contract as provided in 29 CFR 5.5.
6. Subcontracts. The contractor or subcontractor must insert FHWA-1273 in any subcontracts, along with the applicable wage determination(s) and such other clauses or contract modifications as the contracting agency may by appropriate instructions require, and a clause requiring the subcontractors to include these clauses and wage determination(s) in any lower tier subcontracts. The prime contractor is responsible for the compliance by any subcontractor or lower tier
subcontractor with all the contract clauses in this section. In the event of any violations of these clauses, the prime contractor and any subcontractor(s) responsible will be liable for any unpaid wages and monetary relief, including interest from the date of the underpayment or loss, due to any workers of lower-tier subcontractors, and may be subject to debarment, as appropriate. 29 CFR 5.5.
7. Contract termination: debarment. A breach of the
contract clauses in 29 CFR 5.5 may be grounds for termination of the contract, and for debarment as a contractor and a subcontractor as provided in 29 CFR 5.12.
8. Compliance with Davis-Bacon and Related Act
requirements. All rulings and interpretations of the DavisBacon and Related Acts contained in 29 CFR parts 1, 3, and 5 are herein incorporated by reference in this contract as provided in 29 CFR 5.5.
9. Disputes concerning labor standards. As provided in 29 CFR 5.5, disputes arising out of the labor standards provisions of this contract shall not be subject to the general disputes clause of this contract. Such disputes shall be resolved in accordance with the procedures of the Department of Labor set forth in 29 CFR parts 5, 6, and 7. Disputes within the meaning of this clause include disputes between the contractor (or any of its subcontractors) and the contracting agency, the U.S. Department of Labor, or the employees or their
representatives.
10. Certification of eligibility. a. By entering into this contract, the contractor certifies that neither it nor any person or firm who has an interest in the contractor's firm is a person or firm ineligible to be awarded Government contracts by virtue of 40 U.S.C. 3144(b) or § 5.12(a).
b. No part of this contract shall be subcontracted to any person or firm ineligible for award of a Government contract by virtue of 40 U.S.C. 3144(b) or § 5.12(a).
c. The penalty for making false statements is prescribed in the U.S. Code, Title 18 Crimes and Criminal Procedure, 18 U.S.C. 1001.
11. Anti-retaliation. It is unlawful for any person to discharge, demote, intimidate, threaten, restrain, coerce, blacklist, harass, or in any other manner discriminate against, or to cause any person to discharge, demote, intimidate, threaten, restrain, coerce, blacklist, harass, or in any other manner discriminate against, any worker or job applicant for:
a. Notifying any contractor of any conduct which the worker reasonably believes constitutes a violation of the DBA, Related Acts, this part, or 29 CFR part 1 or 3;
b. Filing any complaint, initiating or causing to be initiated any proceeding, or otherwise asserting or seeking to assert on behalf of themselves or others any right or protection under the DBA, Related Acts, this part, or 29 CFR part 1 or 3;
c. Cooperating in any investigation or other compliance action, or testifying in any proceeding under the DBA, Related Acts, this part, or 29 CFR part 1 or 3; or
d. Informing any other person about their rights under the DBA, Related Acts, this part, or 29 CFR part 1 or 3.
V. CONTRACT WORK HOURS AND SAFETY STANDARDS
ACT
Pursuant to 29 CFR 5.5(b), the following clauses apply to any Federal-aid construction contract in an amount in excess of $100,000 and subject to the overtime provisions of the
Contract Work Hours and Safety Standards Act. These
clauses shall be inserted in addition to the clauses required by 29 CFR 5.5(a) or 29 CFR 4.6. As used in this paragraph, the terms laborers and mechanics include watchpersons and
guards.
1. Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any
workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensation at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 29 CFR
5.5. 2. Violation; liability for unpaid wages; liquidated damages. In the event of any violation of the clause set forth in paragraph 1. of this section the contractor and any
subcontractor responsible therefor shall be liable for the unpaid wages and interest from the date of the underpayment.
In addition, such contractor and subcontractor shall be liable to the United States (in the case of work done under contract for the District of Columbia or a territory, to such District or to such territory), for liquidated damages. Such liquidated damages shall be computed with respect to each individual laborer or 440
9 mechanic, including watchpersons and guards, employed in violation of the clause set forth in paragraph 1. of this section, in the sum currently provided in 29 CFR 5.5(b)(2)* for each calendar day on which such individual was required or
permitted to work in excess of the standard workweek of forty hours without payment of the overtime wages required by the clause set forth in paragraph 1. of this section.
* $31 as of January 15, 2023 (See 88 FR 88 FR 2210) as may be adjusted annually by the Department of Labor, pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990.
3. Withholding for unpaid wages and liquidated damages
a. Withholding process. The FHWA or the contracting
agency may, upon its own action, or must, upon written
request of an authorized representative of the Department of Labor, withhold or cause to be withheld from the contractor so much of the accrued payments or advances as may be
considered necessary to satisfy the liabilities of the prime contractor or any subcontractor for any unpaid wages;
monetary relief, including interest; and liquidated damages required by the clauses set forth in this section on this contract, any other Federal contract with the same prime contractor, or any other federally assisted contract subject to the Contract Work Hours and Safety Standards Act that is held by the same prime contractor (as defined in § 5.2). The necessary funds may be withheld from the contractor under this contract, any other Federal contract with the same prime contractor, or any other federally assisted contract that is subject to the Contract Work Hours and Safety Standards Act and is held by the same prime contractor, regardless of whether the other contract was awarded or assisted by the same agency, and such funds may be used to satisfy the
contractor liability for which the funds were withheld. b. Priority to withheld funds. The Department has priority to funds withheld or to be withheld in accordance with Section IV paragraph 2.a. or paragraph 3.a. of this section, or both, over claims to those funds by:
(1) A contractor's surety(ies), including without limitation performance bond sureties and payment bond sureties;
(2) A contracting agency for its reprocurement costs;
(3) A trustee(s) (either a court-appointed trustee or a U.S. trustee, or both) in bankruptcy of a contractor, or a contractor's bankruptcy estate;
(4) A contractor's assignee(s);
(5) A contractor's successor(s); or
(6) A claim asserted under the Prompt Payment Act, 31
U.S.C. 3901–3907.
4. Subcontracts. The contractor or subcontractor must insert in any subcontracts the clauses set forth in paragraphs 1. through 5. of this section and a clause requiring the
subcontractors to include these clauses in any lower tier subcontracts. The prime contractor is responsible for
compliance by any subcontractor or lower tier subcontractor with the clauses set forth in paragraphs 1. through 5. In the event of any violations of these clauses, the prime contractor and any subcontractor(s) responsible will be liable for any unpaid wages and monetary relief, including interest from the date of the underpayment or loss, due to any workers of lowertier subcontractors, and associated liquidated damages and may be subject to debarment, as appropriate.
5. Anti-retaliation. It is unlawful for any person to discharge, demote, intimidate, threaten, restrain, coerce, blacklist, harass, or in any other manner discriminate against, or to cause any person to discharge, demote, intimidate, threaten, restrain, coerce, blacklist, harass, or in any other manner discriminate against, any worker or job applicant for:
a. Notifying any contractor of any conduct which the worker reasonably believes constitutes a violation of the Contract Work Hours and Safety Standards Act (CWHSSA) or its
implementing regulations in this part;
b. Filing any complaint, initiating or causing to be initiated any proceeding, or otherwise asserting or seeking to assert on behalf of themselves or others any right or protection under CWHSSA or this part;
c. Cooperating in any investigation or other compliance action, or testifying in any proceeding under CWHSSA or this part; or
d. Informing any other person about their rights under
CWHSSA or this part.
VI. SUBLETTING OR ASSIGNING THE CONTRACT
This provision is applicable to all Federal-aid construction contracts on the National Highway System pursuant to 23 CFR 635.116.
1. The contractor shall perform with its own organization contract work amounting to not less than 30 percent (or a greater percentage if specified elsewhere in the contract) of the total original contract price, excluding any specialty items designated by the contracting agency. Specialty items may be performed by subcontract and the amount of any such
specialty items performed may be deducted from the total original contract price before computing the amount of work required to be performed by the contractor's own organization (23 CFR 635.116).
a. The term “perform work with its own organization” in paragraph 1 of Section VI refers to workers employed or leased by the prime contractor, and equipment owned or
rented by the prime contractor, with or without operators.
Such term does not include employees or equipment of a
subcontractor or lower tier subcontractor, agents of the prime contractor, or any other assignees. The term may include payments for the costs of hiring leased employees from an employee leasing firm meeting all relevant Federal and State regulatory requirements. Leased employees may only be
included in this term if the prime contractor meets all of the following conditions: (based on longstanding interpretation) (1) the prime contractor maintains control over the
supervision of the day-to-day activities of the leased
employees;
(2) the prime contractor remains responsible for the quality of the work of the leased employees;
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10 (3) the prime contractor retains all power to accept or exclude individual employees from work on the project; and (4) the prime contractor remains ultimately responsible for the payment of predetermined minimum wages, the
submission of payrolls, statements of compliance and all other Federal regulatory requirements.
b. "Specialty Items" shall be construed to be limited to work that requires highly specialized knowledge, abilities, or equipment not ordinarily available in the type of contracting organizations qualified and expected to bid or propose on the contract as a whole and in general are to be limited to minor components of the overall contract. 23 CFR 635.102.
2. Pursuant to 23 CFR 635.116(a), the contract amount upon which the requirements set forth in paragraph (1) of Section VI is computed includes the cost of material and manufactured products which are to be purchased or produced by the
contractor under the contract provisions.
3. Pursuant to 23 CFR 635.116(c), the contractor shall furnish (a) a competent superintendent or supervisor who is employed by the firm, has full authority to direct performance of the work in accordance with the contract requirements, and is in charge of all construction operations (regardless of who performs the work) and (b) such other of its own organizational resources (supervision, management, and engineering services) as the contracting officer determines is necessary to assure the performance of the contract.
4. No portion of the contract shall be sublet, assigned or otherwise disposed of except with the written consent of the contracting officer, or authorized representative, and such consent when given shall not be construed to relieve the contractor of any responsibility for the fulfillment of the contract. Written consent will be given only after the
contracting agency has assured that each subcontract is evidenced in writing and that it contains all pertinent provisions and requirements of the prime contract. (based on longstanding interpretation of 23 CFR 635.116).
5. The 30-percent self-performance requirement of paragraph (1) is not applicable to design-build contracts; however, contracting agencies may establish their own self-performance requirements. 23 CFR 635.116(d).
VII. SAFETY: ACCIDENT PREVENTION
This provision is applicable to all Federal-aid construction contracts and to all related subcontracts.
1. In the performance of this contract the contractor shall comply with all applicable Federal, State, and local laws governing safety, health, and sanitation (23 CFR Part 635).
The contractor shall provide all safeguards, safety devices and protective equipment and take any other needed actions as it determines, or as the contracting officer may determine, to be reasonably necessary to protect the life and health of
employees on the job and the safety of the public and to protect property in connection with the performance of the work covered by the contract. 23 CFR 635.108.
2. It is a condition of this contract, and shall be made a condition of each subcontract, which the contractor enters into pursuant to this contract, that the contractor and any
subcontractor shall not permit any employee, in performance of the contract, to work in surroundings or under conditions which are unsanitary, hazardous or dangerous to his/her health or safety, as determined under construction safety and health standards (29 CFR Part 1926) promulgated by the
Secretary of Labor, in accordance with Section 107 of the Contract Work Hours and Safety Standards Act (40 U.S.C. 3704). 29 CFR 1926.10.
3. Pursuant to 29 CFR 1926.3, it is a condition of this contract that the Secretary of Labor or authorized representative thereof, shall have right of entry to any site of contract performance to inspect or investigate the matter of compliance with the construction safety and health standards and to carry out the duties of the Secretary under Section 107 of the Contract Work Hours and Safety Standards Act (40 U.S.C. 3704).
VIII. FALSE STATEMENTS CONCERNING HIGHWAY
PROJECTS
This provision is applicable to all Federal-aid construction contracts and to all related subcontracts.
In order to assure high quality and durable construction in conformity with approved plans and specifications and a high degree of reliability on statements and representations made by engineers, contractors, suppliers, and workers on Federalaid highway projects, it is essential that all persons concerned with the project perform their functions as carefully, thoroughly, and honestly as possible. Willful falsification, distortion, or misrepresentation with respect to any facts related to the project is a violation of Federal law. To prevent any
misunderstanding regarding the seriousness of these and similar acts, Form FHWA-1022 shall be posted on each
Federal-aid highway project (23 CFR Part 635) in one or more places where it is readily available to all persons concerned with the project:
18 U.S.C. 1020 reads as follows:
"Whoever, being an officer, agent, or employee of the United States, or of any State or Territory, or whoever, whether a person, association, firm, or corporation, knowingly makes any false statement, false representation, or false report as to the character, quality, quantity, or cost of the material used or to be used, or the quantity or quality of the work performed or to be performed, or the cost thereof in connection with the submission of plans, maps, specifications, contracts, or costs of construction on any highway or related project submitted for approval to the Secretary of Transportation; or
Whoever knowingly makes any false statement, false
representation, false report or false claim with respect to the character, quality, quantity, or cost of any work performed or to be performed, or materials furnished or to be furnished, in connection with the construction of any highway or related project approved by the Secretary of Transportation; or Whoever knowingly makes any false statement or false
representation as to material fact in any statement, certificate, or report submitted pursuant to provisions of the Federal-aid Roads Act approved July 11, 1916, (39 Stat. 355), as
amended and supplemented;
Shall be fined under this title or imprisoned not more than 5 years or both."
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11 IX. IMPLEMENTATION OF CLEAN AIR ACT AND FEDERAL
WATER POLLUTION CONTROL ACT (42 U.S.C. 7606; 2
CFR 200.88; EO 11738)
This provision is applicable to all Federal-aid construction contracts in excess of $150,000 and to all related
subcontracts. 48 CFR 2.101; 2 CFR 200.327.
By submission of this bid/proposal or the execution of this contract or subcontract, as appropriate, the bidder, proposer, Federal-aid construction contractor, subcontractor, supplier, or vendor agrees to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. 7401-7671q) and the Federal Water Pollution Control Act, as amended (33 U.S.C. 1251-1387). Violations must be reported to the Federal Highway Administration and the Regional Office of the Environmental Protection Agency. 2 CFR Part 200, Appendix II.
The contractor agrees to include or cause to be included the requirements of this Section in every subcontract, and further agrees to take such action as the contracting agency may direct as a means of enforcing such requirements. 2 CFR 200.327.
X. CERTIFICATION REGARDING DEBARMENT,
SUSPENSION, INELIGIBILITY AND VOLUNTARY
EXCLUSION
This provision is applicable to all Federal-aid construction contracts, design-build contracts, subcontracts, lower-tier subcontracts, purchase orders, lease agreements, consultant contracts or any other covered transaction requiring FHWA approval or that is estimated to cost $25,000 or more – as defined in 2 CFR Parts 180 and 1200. 2 CFR 180.220 and
1200.220.
1. Instructions for Certification – First Tier Participants:
a. By signing and submitting this proposal, the prospective first tier participant is providing the certification set out below. b. The inability of a person to provide the certification set out below will not necessarily result in denial of participation in this covered transaction. The prospective first tier participant shall submit an explanation of why it cannot provide the certification set out below. The certification or explanation will be considered in connection with the department or agency's determination whether to enter into this transaction. However, failure of the prospective first tier participant to furnish a certification or an explanation shall disqualify such a person from participation in this transaction. 2 CFR 180.320.
c. The certification in this clause is a material representation of fact upon which reliance was placed when the contracting agency determined to enter into this transaction. If it is later determined that the prospective participant knowingly rendered an erroneous certification, in addition to other remedies available to the Federal Government, the contracting agency may terminate this transaction for cause of default. 2 CFR 180.325.
d. The prospective first tier participant shall provide immediate written notice to the contracting agency to whom this proposal is submitted if any time the prospective first tier participant learns that its certification was erroneous when submitted or has become erroneous by reason of changed
circumstances. 2 CFR 180.345 and 180.350.
e. The terms "covered transaction," "debarred,"
"suspended," "ineligible," "participant," "person," "principal," and "voluntarily excluded," as used in this clause, are defined in 2 CFR Parts 180, Subpart I, 180.900-180.1020, and 1200. “First Tier Covered Transactions” refers to any covered transaction between a recipient or subrecipient of Federal funds and a participant (such as the prime or general contract). “Lower Tier Covered Transactions” refers to any covered transaction under a First Tier Covered Transaction (such as subcontracts). “First Tier Participant” refers to the participant who has entered into a covered transaction with a recipient or subrecipient of Federal funds (such as the prime or general contractor). “Lower Tier Participant” refers any participant who has entered into a covered transaction with a First Tier Participant or other Lower Tier Participants (such as
subcontractors and suppliers).
f. The prospective first tier participant agrees by submitting this proposal that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is debarred,
suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the department or agency entering into this transaction. 2 CFR 180.330.
g. The prospective first tier participant further agrees by submitting this proposal that it will include the clause titled "Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion-Lower Tier Covered Transactions," provided by the department or contracting agency, entering into this covered transaction, without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions exceeding the $25,000 threshold. 2 CFR 180.220 and 180.300.
h. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that is not debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous. 2 CFR 180.300; 180.320, and 180.325. A participant is responsible for
ensuring that its principals are not suspended, debarred, or otherwise ineligible to participate in covered transactions. 2 CFR 180.335. To verify the eligibility of its principals, as well as the eligibility of any lower tier prospective participants, each participant may, but is not required to, check the System for Award Management website (https://www.sam.gov/). 2 CFR
180.300, 180.320, and 180.325.
i. Nothing contained in the foregoing shall be construed to require the establishment of a system of records in order to render in good faith the certification required by this clause.
The knowledge and information of the prospective participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings. j. Except for transactions authorized under paragraph (f) of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the department or agency may terminate this transaction for cause or default. 2 CFR 180.325.
* * * * *
443
12 2. Certification Regarding Debarment, Suspension,
Ineligibility and Voluntary Exclusion – First Tier
Participants:
a. The prospective first tier participant certifies to the best of its knowledge and belief, that it and its principals:
(1) Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participating in covered transactions by any Federal
department or agency, 2 CFR 180.335;.
(2) Have not within a three-year period preceding this
proposal been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, State, or local) transaction or contract under a public transaction; violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property, 2 CFR 180.800; (3) Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State or local) with commission of any of the offenses enumerated in paragraph (a)(2) of this certification, 2 CFR 180.700 and 180.800; and
(4) Have not within a three-year period preceding this
application/proposal had one or more public transactions (Federal, State or local) terminated for cause or default. 2 CFR 180.335(d).
(5) Are not a corporation that has been convicted of a felony violation under any Federal law within the two-year period preceding this proposal (USDOT Order 4200.6 implementing appropriations act requirements); and
(6) Are not a corporation with any unpaid Federal tax liability that has been assessed, for which all judicial and
administrative remedies have been exhausted, or have lapsed, and that is not being paid in a timely manner pursuant to an agreement with the authority responsible for collecting the tax liability (USDOT Order 4200.6 implementing appropriations act requirements).
b. Where the prospective participant is unable to certify to any of the statements in this certification, such prospective participant should attach an explanation to this proposal. 2 CFR 180.335 and 180.340.
* * * * *
3. Instructions for Certification - Lower Tier Participants:
(Applicable to all subcontracts, purchase orders, and other lower tier transactions requiring prior FHWA approval or estimated to cost $25,000 or more - 2 CFR Parts 180 and 1200). 2 CFR 180.220 and 1200.220.
a. By signing and submitting this proposal, the prospective lower tier participant is providing the certification set out below. b. The certification in this clause is a material representation of fact upon which reliance was placed when this transaction was entered into. If it is later determined that the prospective lower tier participant knowingly rendered an erroneous
certification, in addition to other remedies available to the Federal Government, the department, or agency with which this transaction originated may pursue available remedies, including suspension and/or debarment.
c. The prospective lower tier participant shall provide immediate written notice to the person to which this proposal is submitted if at any time the prospective lower tier participant learns that its certification was erroneous by reason of changed circumstances. 2 CFR 180.365.
d. The terms "covered transaction," "debarred,"
"suspended," "ineligible," "participant," "person," "principal," and "voluntarily excluded," as used in this clause, are defined in 2 CFR Parts 180, Subpart I, 180.900 – 180.1020, and 1200.
You may contact the person to which this proposal is
submitted for assistance in obtaining a copy of those
regulations. “First Tier Covered Transactions” refers to any covered transaction between a recipient or subrecipient of Federal funds and a participant (such as the prime or general contract). “Lower Tier Covered Transactions” refers to any covered transaction under a First Tier Covered Transaction (such as subcontracts). “First Tier Participant” refers to the participant who has entered into a covered transaction with a recipient or subrecipient of Federal funds (such as the prime or general contractor). “Lower Tier Participant” refers any participant who has entered into a covered transaction with a First Tier Participant or other Lower Tier Participants (such as subcontractors and suppliers).
e. The prospective lower tier participant agrees by
submitting this proposal that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the department or agency with which this
transaction originated. 2 CFR 1200.220 and 1200.332.
f. The prospective lower tier participant further agrees by submitting this proposal that it will include this clause titled "Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion-Lower Tier Covered Transaction," without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions exceeding the $25,000 threshold. 2 CFR 180.220 and 1200.220.
g. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that is not debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous. A participant is responsible for ensuring that its principals are not suspended, debarred, or otherwise ineligible to participate in covered transactions. To verify the eligibility of its principals, as well as the eligibility of any lower tier prospective participants, each participant may, but is not required to, check the System for Award Management website (https://www.sam.gov/), which is compiled by the General Services Administration. 2 CFR
180.300, 180.320, 180.330, and 180.335.
h. Nothing contained in the foregoing shall be construed to require establishment of a system of records in order to render in good faith the certification required by this clause. The knowledge and information of participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings.
i. Except for transactions authorized under paragraph e of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is suspended, debarred, ineligible, or voluntarily 444
13 excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the department or agency with which this transaction originated may pursue available remedies, including suspension and/or debarment. 2 CFR 180.325.
* * * * *
4. Certification Regarding Debarment, Suspension,
Ineligibility and Voluntary Exclusion--Lower Tier
Participants:
a. The prospective lower tier participant certifies, by submission of this proposal, that neither it nor its principals:
(1) is presently debarred, suspended, proposed for
debarment, declared ineligible, or voluntarily excluded from participating in covered transactions by any Federal
department or agency, 2 CFR 180.355;
(2) is a corporation that has been convicted of a felony violation under any Federal law within the two-year period preceding this proposal (USDOT Order 4200.6 implementing appropriations act requirements); and
(3) is a corporation with any unpaid Federal tax liability that has been assessed, for which all judicial and administrative remedies have been exhausted, or have lapsed, and that is not being paid in a timely manner pursuant to an agreement with the authority responsible for collecting the tax liability. (USDOT Order 4200.6 implementing appropriations act
requirements)
b. Where the prospective lower tier participant is unable to certify to any of the statements in this certification, such prospective participant should attach an explanation to this proposal.
* * * * *
XI. CERTIFICATION REGARDING USE OF CONTRACT
FUNDS FOR LOBBYING
This provision is applicable to all Federal-aid construction contracts and to all related subcontracts which exceed
$100,000. 49 CFR Part 20, App. A.
1. The prospective participant certifies, by signing and submitting this bid or proposal, to the best of his or her knowledge and belief, that:
a. No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any Federal agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of
Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or
cooperative agreement.
b. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any Federal agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in
connection with this Federal contract, grant, loan, or
cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, "Disclosure Form to Report
Lobbying," in accordance with its instructions.
2. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by 31 U.S.C. 1352. Any person who fails to file the required
certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.
3. The prospective participant also agrees by submitting its bid or proposal that the participant shall require that the language of this certification be included in all lower tier subcontracts, which exceed $100,000 and that all such
recipients shall certify and disclose accordingly.
XII. USE OF UNITED STATES-FLAG VESSELS:
This provision is applicable to all Federal-aid construction contracts, design-build contracts, subcontracts, lower-tier subcontracts, purchase orders, lease agreements, or any other covered transaction. 46 CFR Part 381.
This requirement applies to material or equipment that is acquired for a specific Federal-aid highway project. 46 CFR 381.7. It is not applicable to goods or materials that come into inventories independent of an FHWA funded-contract.
When oceanic shipments (or shipments across the Great
Lakes) are necessary for materials or equipment acquired for a specific Federal-aid construction project, the bidder, proposer, contractor, subcontractor, or vendor agrees:
1. To utilize privately owned United States-flag commercial vessels to ship at least 50 percent of the gross tonnage (computed separately for dry bulk carriers, dry cargo liners, and tankers) involved, whenever shipping any equipment, material, or commodities pursuant to this contract, to the extent such vessels are available at fair and reasonable rates for United States-flag commercial vessels. 46 CFR 381.7.
2. To furnish within 20 days following the date of loading for shipments originating within the United States or within 30 working days following the date of loading for shipments originating outside the United States, a legible copy of a rated, ‘on-board’ commercial ocean bill-of-lading in English for each shipment of cargo described in paragraph (b)(1) of this section to both the Contracting Officer (through the prime contractor in the case of subcontractor bills-of-lading) and to the Office of Cargo and Commercial Sealift (MAR-620), Maritime
Administration, Washington, DC 20590. (MARAD requires
copies of the ocean carrier's (master) bills of lading, certified onboard, dated, with rates and charges. These bills of lading may contain business sensitive information and therefore may be submitted directly to MARAD by the Ocean Transportation Intermediary on behalf of the contractor). 46 CFR 381.7. 445
14 ATTACHMENT A - EMPLOYMENT AND MATERIALS
PREFERENCE FOR APPALACHIAN DEVELOPMENT
HIGHWAY SYSTEM OR APPALACHIAN LOCAL ACCESS
ROAD CONTRACTS (23 CFR 633, Subpart B, Appendix B)
This provision is applicable to all Federal-aid projects funded under the Appalachian Regional Development Act of 1965.
1. During the performance of this contract, the contractor undertaking to do work which is, or reasonably may be, done as on-site work, shall give preference to qualified persons who regularly reside in the labor area as designated by the DOL wherein the contract work is situated, or the subregion, or the Appalachian counties of the State wherein the contract work is situated, except:
a. To the extent that qualified persons regularly residing in the area are not available.
b. For the reasonable needs of the contractor to employ supervisory or specially experienced personnel necessary to assure an efficient execution of the contract work.
c. For the obligation of the contractor to offer employment to present or former employees as the result of a lawful collective bargaining contract, provided that the number of nonresident persons employed under this subparagraph (1c) shall not exceed 20 percent of the total number of employees employed by the contractor on the contract work, except as provided in subparagraph (4) below.
2. The contractor shall place a job order with the State Employment Service indicating (a) the classifications of the laborers, mechanics and other employees required to perform the contract work, (b) the number of employees required in each classification, (c) the date on which the participant estimates such employees will be required, and (d) any other pertinent information required by the State Employment
Service to complete the job order form. The job order may be placed with the State Employment Service in writing or by telephone. If during the course of the contract work, the information submitted by the contractor in the original job order is substantially modified, the participant shall promptly notify the State Employment Service.
3. The contractor shall give full consideration to all qualified job applicants referred to him by the State Employment
Service. The contractor is not required to grant employment to any job applicants who, in his opinion, are not qualified to perform the classification of work required.
4. If, within one week following the placing of a job order by the contractor with the State Employment Service, the State Employment Service is unable to refer any qualified job applicants to the contractor, or less than the number
requested, the State Employment Service will forward a
certificate to the contractor indicating the unavailability of applicants. Such certificate shall be made a part of the contractor's permanent project records. Upon receipt of this certificate, the contractor may employ persons who do not normally reside in the labor area to fill positions covered by the certificate, notwithstanding the provisions of subparagraph (1c) above.
5. The provisions of 23 CFR 633.207(e) allow the
contracting agency to provide a contractual preference for the use of mineral resource materials native to the Appalachian region.
6. The contractor shall include the provisions of Sections 1 through 4 of this Attachment A in every subcontract for work which is, or reasonably may be, done as on-site work.
446
00500
Exhibit B
Federal Prevailing Wage Rates
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BCCDE911EFG>?@A1HF?IJKICILGMNFCM@N1O;3834888P13 04104492 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: April 22, 2025
Agenda Item #:13
Agenda Item: License Agreement with California Tahoe Conservancy to Use Motel 6 Property for Public Safety Training
Executive Summary: The Fire Department and City Attorney’s office have been working closely with the California Tahoe Conservancy (CTC) to develop a License Agreement to provide access onto the CTC property located at 2375 Lake Tahoe Boulevard (Motel 6), for the purpose of conducting emergency service personnel training operations at, on, or within existing structures and facilities. There has been extensive legal oversight to confirm that liability protections, risk management, and compliance with local regulations have all been addressed. The opportunity to train on search tactics, ventilation, ladder use, hose evolutions and access in a large structure with multiple agencies brings real value to all departments involved. This license agreement is consistent with the Memorandum of Understanding authorized by City Council at its meeting on September 24, 2024.
Requested Action / Suggested Motions: Pass a Motion authorizing and directing the Mayor to execute a Non-Destructive Training License Agreement with the California Tahoe Conservancy allowing South Lake Tahoe Fire Rescue, South Lake Tahoe Police Department and neighboring fire and law enforcement agencies to actively train at 2375 Lake Tahoe Boulevard (Motel 6) site prior to demolition of the structures.
Responsible Staff Member: Justin Keys, Battalion Chief, and Heather Stroud, City Attorney Reviewed and Approved By: Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney
Attachments:
01-Staff Report-Non-Destructive Training License Agreement.docx 02-Non-Destructive Training License Agreement
493
Council Agenda Report- April 22, 2025 Page 1 of 2
City of South Lake Tahoe
Report to City Council
Meeting Date: April 22, 2025
Title: California Tahoe Conservancy Non-Destructive Training License Agreement Location: 2375 Lake Tahoe Blvd. Motel 6/ Carrow’s
Responsible Staff Member: Justin Keys, Battalion Chief, and Heather Stroud, City Attorney Background: The Fire Department and City Attorney’s office has been working closely with the California Tahoe Conservancy (CTC) to develop a License Agreement to provide access onto El Dorado County Assessment Number 031-290-39, located at 2375 Lake Tahoe Boulevard, South Lake Tahoe, California (“License Area”) for the purpose of conducting nondestructive emergency service personnel training operations at, on, or within existing structures and facilities. The License Area is shown in Exhibit A to the agreement.
Issue and Discussion: The CTC acquired the property, which also includes 25 acres of mountain meadow and wetlands, a two-acre single-family homesite, and four acres of former floodplain. The CTC plans to demolish the old Motel 6 and Carrow’s restaurant structures and return the area to its natural state.
Batt. Chief Justin Keys contacted the CTC to see if there was opportunity to have the Fire Department train at this location prior to the structures being demolished. The CTC then started the License Agreement process with the City.
The opportunity for the Fire Department to conduct training exercises at this location is invaluable.
These structures provide a rare and realistic environment for firefighters to refine essential skills such as search and rescue, ventilation techniques, and incident command operations. Training in actual buildings, rather than simulated settings, enhances their preparedness for real-life emergencies, ultimately improving community safety.
The Fire Department’s training will be strictly non-destructive, ensuring that the integrity of the structures remains intact before demolition. Exercises will focus on essential tactical drills such as room clearing, hose advancements, ladder operations, and scenario-based training that does not involve live fire, structural compromise, or damage to the property. This approach allows personnel to gain hands on experience while preserving the site’s condition in accordance with the agreement.
Recognizing the significance of ensuring proper oversight, the City’s legal team has been actively engaged throughout the entirety of the License Agreement process. Their involvement has ensured that all necessary legal considerations—such as liability protections, risk management, and compliance with local regulations—are thoroughly addressed. This collaborative approach 494
Council Agenda Report- April 22, 2025 Page 2 of 2
has facilitated a structured agreement that safeguards both the City and the CTC while allowing the Fire Department to maximize the training opportunity before demolition occurs.
Financial Implications: There are no financial implications associated with this presentation.
Environmental Considerations: This is not a “project” subject to review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15378(b)(2) (continuing administrative or maintenance activities, such as purchases for supplies) Policy Implications: In line with City Strategic Plan priority #5 - Public Safety Ensure substantial investment in public safety by investing in police, fire and snow removal operations and equipment needs and develop engagement opportunities for residents to participate in meaningful dialogue with first responders to improve community trust. 5.1 495
LICENSE NUMBER 2025-0215-ST-313
SOUTH LAKE TAHOE FIRE RESCUE EMERGENCY SERVICES PERSONNEL TRAINING
LICENSE
El Dorado County AN: 031-290-39
THIS LICENSE AGREEMENT (“Agreement”) is entered into by and between the California Tahoe Conservancy (“Licensor”), an agency of the State of California, and City of South Lake Tahoe (“Licensee”), and is made effective on the date of final signature (“Effective Date”).
1. License Scope.
Subject to the provisions hereof, Licensor hereby grants a nonexclusive license to Licensee for:
Access onto El Dorado County Assessment Number 031-290-39, located at 2375 Lake Tahoe Boulevard, South Lake Tahoe, California (“License Area”) for the purpose of conducting nondestructive emergency service personnel training operations at, on, or within existing structures and facilities (“Facilities”). The License Area is shown in Exhibit A.
Licensee shall have the right to use the License Area for the staging and operation of equipment and fire apparatus; entry into rooms; the discharge of water from fire hydrants or fire apparatus to Facilities; access to roofs, decks, walkways, or other constructed Facilities; and general movement throughout the Facilities in the License Area to simulate emergency scenarios.
Licensee’s use of equipment and fire apparatus in the License Area shall be limited to existing constructed impervious surfaces. Licensee’s use of the License Area will not involve the use of fire or result in environmental impairment, modification to the Facilities, or damage to the License Area.
Licensee’s use of water in the License Area must not result in runoff entering storm drains.
Licensee may conduct snow removal operations from existing constructed impervious surfaces in the License Area to establish access.
All use of the License Area by the Licensee must be scheduled with the Licensor. The Licensee will notify the Licensor Contact Person of the specific days it requests access to the License Area.
Licensor reserves the right to deny use for any reason.
Licensee must notify Licensor Contact Person in writing no later than ten (10) days prior to any proposed use of the License Area. Licensee shall only proceed upon receipt of written acceptance by Licensor. Licensee notification to Licensor must include all required information presented in Exhibit B. Licensor reserves the right to request more information about any specific use and to document conditions in the License Area prior to any proposed use by Licensee.
Licensee shall post written notice of training operations during each period of use in a visible location to notify the public of training operations. Licensee must ensure the notice remains in the posted location through the duration of each training operation. 496
Public access to the License Area shall be prohibited during the term of this License. The Licensee Area is currently fenced and gated. The Licensee shall only access the Licensee Area through the gate during a time provided by the Licensor after proper notice is given.
Licensee has the right to authorize access by other public entities to jointly participate in training operations with Licensee under Licensee’s supervision. Licensee is solely responsible for authorizing such participation and ensuring that any Licensee-authorized participants, partners, or invitees, do not exceed the scope of activities authorized by this License. Licensee assumes all responsibility and liability related to the presence of any Licensee-authorized participants, partners, or invitees. Any other public entity jointly participating in training operations with the Licensee shall be an invitee of the Licensee.
Licensee has reviewed the Hazardous Materials Survey Report prepared by Geocon Consultants, Inc. on December 11, 2024. (“Hazardous Materials Survey”). Licensee agrees not to disturb or expose any hazardous materials in the license area. Licensee agrees not to create a condition where hazardous materials on the site are released into the air or water, either directly or indirectly.
Upon completion of each scheduled use and prior to the termination of this Agreement, Licensee must remove all vehicles, supplies, and equipment and restore the License Area and Facilities to the condition that existed at the time the scheduled use began. Licensor anticipates that conditions of the License Area and Facilities will change during the course of this Agreement. Licensee must return the License Area and Facilities to the condition that existed before each use.
Licensee’s right to use the License Area is nonexclusive notwithstanding any possible negative impacts to the Licensee’s ability to enter and use the License Area during the term of this Agreement. Licensor shall have the right to enter and use the License Area for any purpose. Licensor anticipates accessing the License Area during the term of this Agreement and having contractors and staff working on site.
2. Term.
The term of this Agreement is from the Effective Date through October 15, 2025 (“Term”). The Licensor anticipates the agreement to end before October 15, 2025, to allow for demolition of the Facilities, in which case the Licensor will cancel the license as provided in Section 11 of this agreement.
3. License Fee.
Licensor waives the fee for this license.
4. Expenses of Licensee.
Licensee shall bear the sole risk and pay all costs and expenses of whatever kind and nature which arise from Licensee’s use of the License Area, including, without limitation, expenses to reconstruct, repair, and restore the License Area.
If Licensor incurs any costs or expenses as provided in this Agreement, Licensor will provide Licensee 497
an invoice for such costs and Licensee shall reimburse Licensor within ten (10) days from the date of said invoice. Licensor shall have a lien on any Licensee-owned property on Licensor’s property as security for repayment of said amount.
5. Use of License Area.
Licensee shall neither use nor permit any use of the License Area for any purpose other than that set forth in Section 1 above. This Agreement does not confer upon Licensee any drilling rights, or any water or mineral rights, or the right to extract or remove any timber existing on the License Area. Unless authorized in writing by Licensor, Licensee shall not destroy, cut, or remove any timber, trees, or firewood standing or lying thereon, or permit others to commit any of said acts on the License Area.
Licensee shall not allow any act or thing which is or may be a nuisance to occur on the License Area.
Licensee shall not knowingly use or permit others to use the License Area for any unlawful purposes.
Licensor makes no representations or warranties concerning the condition of the License Area, including its suitability for Licensee’s intended use. This license is subject to all easements, leases, liens, conditions, restrictions, encumbrances, and claims of title which may affect the License Area. Licensee accepts the License Area (including, without limitation, Licensor-owned improvements, if any) in its present condition and without any representation or warranty by Licensor as to the condition of such License Area or improvements, and Licensor shall not be responsible for any defect or change of conditions in the License Area or such improvements, any damage occurring thereto or for the existence of any violation of any municipal, county, regional, state, bi-state or federal law, order, rule, regulation, or ordinance.
Licensee shall, at its expense and to the satisfaction of Licensor, keep and maintain the License Area in good order and repair and in a neat and safe condition. If Licensee fails to perform its obligations under this section, Licensor may take action so as to keep and maintain the License Area in good order and repair and in a neat and safe condition, and Licensee shall reimburse Licensor, in accordance with Section 4, for all costs associated with such action. In the event Licensor determines that Licensee’s use of the License Area is causing damage to the License Area, Licensee agrees to take corrective measures to eliminate further damage and to promptly repair or pay the full replacement value of such damaged property to the Licensor, at Licensor’s discretion.
6. Notices.
Any demands, notices, or statements herein requested or required to be given by one Party to the other shall be in writing. Delivery of such written notice, demand, or statement shall be conclusively taken as sufficient if and when delivered in person or deposited in the United States mail, registered or certified, postage fully prepaid, addressed, if to Licensor at 1061 Third Street, South Lake Tahoe, CA 96150, and, if to Licensee at 1901 Lisa Maloff Way, South Lake Tahoe, CA 96150. Communication with Licensor shall be directed to the Licensor Contact Person identified below. Either party hereto may by written notice change the address to which such notices, demands, or statements may be sent. All payments from Licensee to Licensor shall be made to Licensor at Licensor’s address for notices unless Licensor gives Licensee notice of another address for making payments. Licensor may change by written notice the address where payments to Licensor shall be made.
7. Signage and Public Notice.
498
The License Area shall not be used for displaying signs and notices other than those expressly authorized or required under this Agreement.
8. Permits.
Licensee, at its expense, shall obtain and comply with the terms and provisions of all licenses, permits, and approvals required by any local, regional, state, bi-state, or federal organization with authority to regulate the activities of Licensee under this Agreement. In the event Licensee has not obtained all permits necessary, this Agreement may be terminated by either party.
9. Indemnification.
A. General.
Licensee agrees to release, hold harmless, indemnify, and defend (with counsel approved by Licensor) Licensor and the State of California from and against all liability, cost, and expense (including, without limitation, attorney’s fees, in addition to costs of suit and judgment) for loss of or damage to any property or loss of the use thereof or for injury to or death of any person when arising or resulting from:
(a) the use of the License Area or adjacent property by Licensee, its agents, employees, invitees, volunteers, or any third party (other than an agent, employee or invitee of Licensor), (b) Licensee’s modifications to the License Area, or any improvements to the License Area made by the Licensee,
(c) Licensee’s breach of any provision of this Agreement, whether or not caused or contributed to by the negligence, active or passive or otherwise, of Licensor, its employees, agents, invitees, volunteers, or any other person, or
(d) any exposure to hazardous materials, as described in the Hazardous Materials Report or existing otherwise, by the Licensee, its agents, employees, invitees, volunteers, or any third party (other than an agent, employee or invitee of Licensor) during the use of the License Area by the Licensee.
B. Environmental Impairment.
Licensee, at its expense, shall comply with all applicable laws, regulations, rules and orders with respect to the use of the License Area, regardless of when they become or became effective, including, without limitation, those relating to health, safety, noise, environmental protection, waste disposal, and water and air quality, and furnish satisfactory evidence of such compliance upon request of Licensor.
Should any discharge, leakage, spillage, emission, or pollution of any type occur upon or from the License Area due to Licensee’s use and occupancy thereof, Licensee shall immediately notify Licensor.
Licensee, at its expense, shall be obligated to clean all the property affected thereby, whether owned or 499
controlled by Licensor or any third person, to the satisfaction of Licensor (insofar as the property owned or controlled by Licensor is concerned) and any governmental body having jurisdiction thereover.
Licensee shall indemnify, hold harmless and defend Licensor against all liability, cost and expense (including, without limitation, any fines, penalties, judgments, litigation costs and attorney’s fees) incurred by Licensor as a result of Licensee’s breach of this section, or as a result of any such discharge, leakage, spillage, emission or pollution, regardless of whether such liability, cost or expense arises during or after the term of this Agreement, unless such liability, cost or expense is proximately caused solely by the active negligence or Licensor.
Licensee shall pay all amounts due hereunder within thirty (30) days after any such amounts become due.
C. Mechanic’s or Materialmen’s Liens.
Licensor has the right to post notices of nonresponsibility upon the License Area, and to otherwise notify, actually or constructively, any entity or persons supplying services or materials to the License Area that Licensor is not responsible for the cost thereof. Licensee covenants and agrees to hold Licensor and the License Area harmless from any mechanic’s or materialmen’s liens claimed by any person, firm, or corporation employed by or on behalf of Licensee. In the event of the filing of any such lien, Licensee shall cause such lien to be released within ten (10) days after Licensor’s written notice to do so. Licensee shall indemnify and defend Licensor against all liability, cost, and expense (including attorney’s fees) incurred by Licensor as a result of any such lien.
10. Insurance.
Throughout the Term of this Agreement, Licensee shall provide and maintain comprehensive general/personal liability insurance, including but not limited to bodily injury, property damage, and automobile liability insurance, in the amount of $1,000,000 per occurrence for liability assumed by Licensee under this Agreement.
Such insurance shall be obtained from a company or companies authorized to transact business in the State of California. Licensee shall provide the Licensor with an endorsement or certificate with such policy or policies specifying that:
(a) the California Tahoe Conservancy, and its members, officers, agents, and employees, are included as additional insureds for any liability resulting from, growing out of, or in anyway connected with, or incident to this Agreement; and (b) the California Tahoe Conservancy and the State of California are not responsible for premiums and assessments on the insurance policy.
Prior to accessing the License Area, the Licensee shall furnish Licensor with a copy of said endorsement(s) or certificate(s).
500
If Licensee is self-insured, Licensee must provide proof of self-insurance and maintain its self insurance plan through the term of this License.
In the event that Licensee enters into an agreement or agreements with independent contractors or other third parties other than agencies of the State of California authorizing such parties to enter onto the License Area, such agreement(s) shall require that Licensee’s contractor(s) maintain general liability insurance in an amount of one million dollars ($1,000,000) or such other lesser amount as shall be reasonably approved by Licensor. In addition, Licensee shall make reasonable efforts to ensure that Licensor, and its officers, officials, employees, and volunteers, are included as additional insureds under the insurance required above and that a copy of the endorsements or certificate naming them as additional insureds is furnished to Licensor as soon as is practicable. In the event the contractor or third party is unable to name Licensor as an additional named insured, Licensee shall so notify Licensor.
Within ten (10) working days thereafter, Licensor shall notify Licensee whether Licensee may proceed with authorizing the contractor to enter upon the License Area.
Licensee hereby warrants that it or its contractor(s) will not cancel or reduce its insurance coverage without thirty (30) days prior written notice to Licensor, and that it will immediately notify Licensor in writing of any cancellation of coverage initiated by the insurer.
In addition, Licensee and all Licensee contractors shall pay any workers compensation to employees in accordance with the provisions of Section 3700 of the Labor Code. At the time of execution of this Agreement and prior to the commencement of work the Licensee shall provide Licensor with either a certificate of insurance issued by an insurance carrier licensed to write Workers Compensation Insurance in the State of California, including the name of the carrier and the date of expiration of the insurance, or a certificate of consent to self-insure issued by the Director of the Department of Industrial Relations.
11. Termination or Expiration.
A. General.
This Agreement may be terminated by Licensor at any time and for any reason upon delivery of written notice of termination to Licensee. Termination, revocation, or expiration of this Agreement shall not release either party from liability resulting from an event which occurred prior to such termination, revocation, or expiration.
B. Surrender of License Area.
Unless Licensor and Licensee enter into a new written agreement providing otherwise, Licensee shall, on or before the date of termination, revocation or expiration of this Agreement, discontinue their use and occupation of the License Area and remove all Licensee’s personal property from the License Area.
Licensee shall restore the License Area to the same or better condition it was in prior to its use by the Licensee. Property of Licensee not removed from the License Area upon termination, revocation, or expiration of this Agreement shall become the property of the Licensor. Licensee agrees to reimburse Licensor for any costs and expenses incurred by Licensor in disposing of any personal property left by Licensee on the License Area. In the event Licensee fails to restore the License Area as required, 501
Licensee agrees to reimburse Licensor for the costs and expenses Licensor incurs in restoring the License Area. If Licensee fails to vacate the License Area as specified herein, Licensor shall have the right, to the extent permitted by law, to re-enter the License Area and remove Licensee and any person or entity claiming through Licensee from the License Area. This Agreement does not establish a landlord-tenant relationship between Licensor and Licensee, and Licensee shall have no holdover rights to the License Area due to this Agreement or otherwise. At its discretion, Licensor may subsequently enter into a new agreement with Licensee to extend Licensee’s use and occupation of the License Area.
12. Default.
Licensee shall be in default under this Agreement if Licensee fails or refuses to provide any amount owed under this Agreement when due. Licensee shall be in default under this Agreement if Licensee fails or refuses to perform any covenant or condition of this Agreement.
If Licensee fails to cure a default within ten (10) days after notice from Licensor to do so, Licensor shall have the right, without further notice and in addition to any other remedies Licensor may have at law or equity, to terminate this Agreement forthwith and to retake possession of the License Area.
13. Nonwaiver.
Licensor’s failure to enforce or exercise its rights under any term, condition, or covenant of this Agreement shall not be construed as a waiver of such rights or such term, condition, or covenant.
14. Attorney’s Fees.
If either party takes any steps or brings an action to compel performance of or to recover for breach of any term of this Agreement, the losing party shall pay reasonable attorney’s fees of the prevailing party, in addition to the amount of judgment and costs.
15. Time is of the essence of this License.
Time is of the essence of this Agreement.
16. Entire Agreement.
The contents of this Agreement are the entire agreement between the parties, and supersede all written and oral communication between the parties prior to its execution, all understanding and negotiations regarding the same having been merged herein, it being their intention that this be an integrated agreement.
17. Modification.
This Agreement shall not be modified except by the written agreement of the parties.
18. Definitions.
502
The term “Licensor,” as used in this Agreement, includes Licensor, its member(s), officer(s), agent(s) or employee(s), and the successors and assigns of any of them. The term “Licensee,” as used in this Agreement, includes Licensee, its member(s), officer(s), agent(s), contractor(s), employee(s), and invitee(s).
19. No Third-Party Beneficiaries.
Nothing in this License is intended to create in the public or any member thereof rights as a third-party beneficiary hereunder.
20. Disclaimer of Coverage Rights and Other Entitlements.
This Agreement does not assign, convey, or confer upon Licensor any development rights, potential land coverage, commercial floor area, restoration credit or any other interests, entitlements, or rights attributable to Licensor’s real property by the Tahoe Regional Planning Agency or other regulatory or permitting agencies with jurisdiction over the property.
21. Survival.
Licensee’s obligations under Sections 4, 5, 9, and 11 shall survive the expiration or termination of this Agreement.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement in duplicate as of the Effective Date.
LICENSOR:
CALIFORNIA TAHOE CONSERVANCY
By: _________________________________
Date: ________________________________
Michael Steeves
General Counsel
1061 Third Street
South Lake Tahoe, CA 96150
(530) 542-5580
[email protected]
Licensor Contact Person:
LICENSEE:
CITY OF SOUTH LAKE TAHOE
By: __________________________________
Date: _________________________________
Tamara Walace
Mayor
1901 Lisa Maloff Way
South Lake Tahoe, CA 96150
(530) 542-6163
[email protected]
Licensee Contact Person:
503
Adam Henriques
Associate Environmental Planner
(530) 318-9816
[email protected]
Justin Keys
Battalion Chief
(530) 542-6164
[email protected]
504
License Area
Conservancy Lands
0 75 150 225
Feet
:
Upper Truckee
Marsh
£¤
50 Sources:
TRPA, CTC *Map for reference purposes
only.
January 2025
California
Tahoe Conservancy
LICENSE NUMBER 2025-0215-ST-313
EXHIBIT A
505
EXHIBIT B
Training Operation Notification
1. Date and time of proposed training operation:
2. Description of training operation, including specific location in the License Area and/or Facilities where training operation is planned, equipment and tools proposed for use, and nature of training operation:
3. Name of participating public entities, if any:
4. Contact information of the primary contact person at each participating public entity:
5. Anticipated number of people on the site.
506
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: April 22, 2025
Agenda Item #:14
Agenda Item: Declaring Fire Vehicle 6103 Surplus and Authorizing Donation to Lake Tahoe Community College
Executive Summary: Lake Tahoe Community College Fire Academy has expressed interest in accepting this vehicle as a donation (letter attached). Donating the vehicle allows the City to avoid the necessary expenses associated with stripping the vehicle of lights, sirens, and related wiring. The Fleet Manager estimates approximately 7-8 hours of labor at a shop rate of $83/hr or roughly a cost of $600-- $700. Estimated auction value for the vehicle is roughly $10,000. Per Phil Harwood, 6103 is a 22 year old HME fire truck that has passed its service life with over 10,000 hours of service plus cost of repairs to date has exceeded the original cost of the vehicle. The value of donating unit 6103 to the LTCC Fire Academy exceeds the small amount of money that the City would receive at auction considering it would be used here locally to help build the future workforce.
Requested Action / Suggested Motions: Pass a Resolution declaring Fire Vehicle 6103 surplus and authorizing donation to Lake Tahoe Community College Fire Academy.
Responsible Staff Member: Justin Keys, Battalion Chief, and Jim Drennan, Fire Chief Reviewed and Approved By: Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney
Attachments:
01-Staff Report-Fire Vehicle Surplus and Donation.docx
02-Resolution-Fire Vehicle Surplus and Donation.docx
03-LTCC Donation Letter.docx
507
Council Agenda Report April 22, 2025 Page 1 of 1
City of South Lake Tahoe
Report to City Council
Meeting Date: April 22, 2025
Title: Declaring Fire Vehicle 6103 Surplus and Authorization to Donate to Lake Tahoe Community College
Location: Citywide
Responsible Staff Member: Justin Keys, Battalion Chief
Background: Fire Vehicle 6103, 2003 Ferrara Type 1 Fire Engine has reached the end of useful service in City operations determined by Phil Harwood, Fleet Manager and Fire Chief Jim Drennan. In accordance with the written Finance policy Disposition of Surplus included in the Preserving Capital Investments, and Procurement Policy, approved by City Council in August 2024, surplus property shall be identified by the department and officially declared to the City Council. Upon approval, City Council may elect to donate, destroy or auction surplus assets.
Issue and Discussion: Lake Tahoe Community College Fire Academy has expressed interest in accepting this vehicle as a donation (letter attached). Donating the vehicle allows the City to avoid the necessary expenses associated with stripping the vehicle of lights, sirens, and related wiring. The Fleet Manager estimates approximately 7-8 hours of labor at a shop rate of $83/hr or roughly a cost of $600--$700. Estimated auction value for the vehicle is roughly $10,000.
Per Phil Harwood, 6103 is a 22 year old HME fire truck that has passed its service life with over 10,000 hours of service plus cost of repairs to date has exceeded the original cost of the vehicle.
Unit# Description VIN
6103 Ferrara Fire Engine 44KFT44882WZ20042
Financial Implications: The value of donating unit 6103 to the LTCC Fire Academy exceeds the small amount of money that the City would receive at auction considering it would be used here locally to help build the future workforce.
Environmental Considerations: The proposed action is not a “project” subject to review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15378(b)(4) (creation of government funding mechanisms or government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment).
Policy Implications: Plan “5.1 – Public Safety”. By donating unit 6103 to the LTCC Fire Academy the City would be providing a much-needed piece of equipment to help the college build the next generation of firefighters which has a direct and positive effect on public safety here in the Basin. 508
Resolution 2025-XXX April 22, 2025 Page 1 of 1
Resolution 2025-XXX
Adopted by the City of South Lake Tahoe City
Council
April 22, 2025
Declaring Fire Vehicle 6103 Surplus and Authorization to Donate Vehicle to Lake Tahoe Community College
BACKGROUND
A. Fire Vehicle 6103, 2003 Ferrara Type 1 Fire Engine has reached the end of useful service in City operations determine by Phil Harwood, Fleet Manager and Fire Chief Jim Drennan.
B. This vehicle has reached the end of its useful service life, with over 22 years in operation, more than 10,000 engine hours, and 180,000 miles. Due to age, wear, and increasing maintenance costs, it is no longer reliable for frontline service and is recommended for surplus.
C. Lake Tahoe Community College Fire Academy has expressed interest in accepting this vehicle as a donation.
D. Pursuant to Finance policy Disposition of Surplus included in the Preserving Capital Investments, and Procurement Policy, approved by City Council in August 2024, surplus property shall be identified by the department and officially declared to the City Council. Upon approval, City Council may elect to donate, destroy or auction surplus assets.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, BE IT RESOLVED, that the City Council of the City of South Lake Tahoe:
1. Declares this vehicle to be surplus and authorizes that it be donated to Lake Tahoe Community College Fire Academy in accordance with the adopted Disposition of Surplus policy.
Adopted by the City of South Lake Tahoe City Council on April 22, 2025, by the following vote:
Yes:
No:
Absent:
Abstain:
Date:
Tamara Wallace, Mayor
Attest:
Susan Blankenship, City Clerk
The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.
509
LAKE TAHOE COMMUNITY COLLEGE FIRE ACADEMY
April 1, 2025
Justin Keys
Battalion Chief
South Lake Tahoe Fire Department
2101 Lake Tahoe Boulevard
South Lake Tahoe, CA 96150
Dear Chief Keys,
I am writing to express my strong appreciation of the City’s intent to donate a fire engine to Lake Tahoe Community College and to highlight the significant benefits this contribution will provide to the students, the academy, and the broader firefighting community.
The direct interaction with fire service equipment ensures students enter the workforce with a higher level of preparedness, benefiting not only the academy’s graduates but also the fire departments that will employ them.
The donation of a fire engine demonstrates a commitment to fostering the next generation of firefighters.
These contributions strengthen the relationship between educational institutions and fire departments, encouraging collaboration and resource sharing.
On behalf of Lake Tahoe Community College, I commend the generosity and foresight of those involved in making this donation possible. The impact will be felt for years to come, as it directly contributes to the safety and effectiveness of future firefighters who will serve our communities.
Thank you for your dedication to firefighter education and training. Please do not hesitate to reach out if there is anything we can do to support South Lake Tahoe Fire Department and their mission to serve the community.
Sincerely,
Patrick Hughes
Fire Academy Director
Lake Tahoe Community College
510
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: April 22, 2025
Agenda Item #:15
Agenda Item: Electric Vehicle Parking Ordinance (Second Reading) Executive Summary: On March 25, 2025 City Council held a first reading of this Ordinance and referred second reading to this meeting for adoption. The proposed ordinance would establish a city code creating a citable offense for a vehicle owner parked in a designated electric vehicle parking space while not charging the vehicle nor incurring a parking fee.
Requested Action / Suggested Motions: 1) Pass an Ordinance adding Sections 4.25.435 (Electric Vehicle Charging Stations in Public Parking Areas) and 4.25.605 (Electric Vehicle Charging Stations) to Title 4 of the South Lake Tahoe City Code to Authorize Enforcement of Designated Electric Vehicle Parking at Charging Stations in Public Parking Areas; and, 2) Pass a Resolution designating publicly available Electric Vehicle Parking Locations and establishing a Parking Citation Fee.
Responsible Staff Member: Sara Letton, Sustainability Coordinator Reviewed and Approved By: Sue Blankenship, City Clerk Olga Tikhomirova, Finance Director Heather Stroud, City Attorney
Attachments:
01- Staff Report EV Parking Ord (Second Reading).docx
02-Ordinance EV Parking on Public Spaces.pdf
03 - Resolution-Electric Vehicle Parking Spaces on City Property.pdf 511
Council Agenda Report- April 22, 2025 Page 1 of 2
City of South Lake Tahoe
Report to City Council
Meeting Date: April 22, 2025
Title: Electric Vehicle Parking Ordinance (Second Reading) Location: Citywide
Responsible Staff Member: Sara Letton (530) 542-6175
Background: California Assembly Bill 1452 provides that by ordinance a local authority may designate parking spaces for the exclusive purpose of charging and parking a vehicle that is connected for electric charging purposes, codified as California Vehicle Code §22511.
The City of South Lake Tahoe owns and operates numerous parking facilities. Facilities targeted for hosting electric vehicle (EV) chargers have been identified in the EV Charger Siting Plan, adopted by council in 2022. The City’s Climate Action Plan and greenhouse gas emissions inventories report that the transportation sector accounts for roughly a third of total emissions.
Adoption of electric vehicles, and the supporting charging infrastructure, is a quantifiable impact on local emissions, with installation of nonresidential public EV charging infrastructure as the strategy metric in the Climate Action Plan.
Issue and Discussion: The City will soon be hosting 32 parking spaces with available electric vehicle charging: 12 spaces have been identified for EV charging at 3069 Harrison Avenue; 14 parking spaces will have chargers at 1 Bellamy Court; and six spaces will have chargers at 1100 Rufus Allen Blvd.
By adopting the Electric Vehicle Parking Ordinance, and by designating the spaces identified in this Resolution, the South Lake Tahoe Police Department will be empowered to cite those who are parked in a designated electric vehicle parking space while not charging the vehicle, nor incurring a Parking Fee (sometime referred to as an ‘overstay fee’), at the addresses designated.
High turnover is desirable in these spaces in order to provide good customer service.
A citable offense is easy for code enforcement to identify. A car parked in a space while the LEDs are green indicates the car is neither charging nor overstaying its charging session and thus is eligible for a citation. A car that is fully charged and is beyond the grace period while still parked will have solid blue LEDs indicating it is paying a per minute Parking Fee. A car with blinking blue LEDs is actively charging and paying a per kwh Charging Fee.
Financial Implications: City of South Lake Tahoe Police Department Code Enforcement will train parking enforcement staff on this new citable offense. The violation will be cited under
4.25.435 and a fee of $75, and amend the Master Fee Schedule to include this. 512
Council Agenda Report- April 22, 2025 Page 2 of 2
Environmental Considerations: This is not a project subject to review under the California Environmental Quality Act (CEQA) under CEQA guidelines section 15378A(b)(2) (continuing administrative or maintenance activities, such as purchase for supplies).
Policy Implications: The proposed ordinance supports the City’s Strategic Priorities:
1.4 Transportation via “electrification of the transportation system is a top priority.” 1.5 Carbon Neutrality to “pursue opportunities for electrification, including transitioning fleet vehicles to electric and building robust EV charging infrastructure by 2025.” The project advances the City’s Climate Action Plan:
EDT-1, Promote and incentivize EVs and EV chargers. The metric tracks the number of nonresidential EV charging stations installed.
The project supports community GHG emissions reductions, contributing to the science-based emissions reductions target established in Resolution No. 2022-088. 513
Ordinance 2025-XXX April 22, 2025 Page 1 of 3
Ordinance 2025-XXX
Adopted by the City of South Lake Tahoe
City Council
April 22, 2025
An Ordinance Adding Sections 4.25.435 (Electric Vehicle Charging Stations in Public Parking Areas) and 4.25.605 (Electric Vehicle Charging Stations) to Title 4 of the South Lake Tahoe City Code to Authorize Enforcement of Designated Electric Vehicle Parking at Charging Stations in Public Parking Areas
FINDINGS
A. On October 20, 2020, the City Council adopted the Climate Action Plan to create a roadmap for achieving the goals laid out in City Council Resolution No. 2017-26, setting a goal to reduce carbon emissions 50 percent below 2015 levels by 2030 and 80 percent below 2015 levels by 2040. The Climate Action Plan includes Action EV-1 (Promote and incentivize EVs and EV chargers), with a specific action item to provide charging stations throughout the City at public facilities, parks, beaches, campgrounds, and other high-use parking areas.
B. The City is planning to add electric vehicle charging stations in public parking areas.
C. California Vehicle Code section 22511(a)(1) authorizes local authorities to designate, by ordinance or resolution, stalls or spaces in an off-street parking facility owned or operated by the local authority for the exclusive purpose of charging and parking a vehicle that is connected for electric charging purposes.
D. California Vehicle Code section 22511(a)(2) authorizes local authorities to designate, by ordinance or resolution, stalls or spaces on a public street within its jurisdiction for the exclusive purpose of charging and parking a vehicle that is connected for electric charging purposes.
E. California Vehicle Code section 22511 authorizes local authorities to remove and store any vehicle that is found illegally parked in the parking stalls or spaces that have been designated for the exclusive purpose of charging and parking a vehicle that is connected for electric charging purposes, provided that the required signage has been posted.
F. California Vehicle Code section 22511.1(a) states that a vehicle shall not park or occupy a parking space designated under Section 22511 unless the vehicle is connected for electric vehicle charging purposes.
G. California Vehicle Code section 22511.1(b) states that a person shall not obstruct, block, or otherwise inhibit access to parking spaces designated under Section 22511.
Now, Therefore, the City Council of City of South Lake Tahoe does ordain as follows:
SECTION 1. Article V (Stopping, Standing, and Parking) of Chapter 4.25 (Motor Vehicles and Traffic) of Title 4 (Police/Code Enforcement) of the South Lake Tahoe City Code is amended to add Section 4.25.435 to read as follows:
4.25.435 Electric vehicle charging stations in public parking areas 514
Ordinance 2025-XXX April 22, 2025 Page 2 of 3
A. Definitions
For the purposes of this section, the following words and phrases shall be defined as follows:
“Actively charging” means the time during which the connector from the charger at a charging station is inserted into the inlet and electrical power is being transferred for the purpose of recharging an electric vehicle’s onboard battery, as indicated by the electric vehicle charging station monitor display. “Charger” means an electrical component assembly or cluster of component assemblies designed specifically to charge batteries or other energy storage devices within electric vehicles. “Connected” means the connector of an electric vehicle charging station is inserted into the inlet for an electric vehicle.
“Electric vehicle” means either a vehicle fueled entirely by electricity stored in the onboard battery or a plug-in hybrid vehicle fueled by a battery and another fuel source such as gasoline. “Electric vehicle charging station” means a parking stall or space, which is designated by resolution in accordance with California Vehicle Code section 22511, as may be amended, for the exclusive purpose of charging an electric vehicle, and is located on a public street or a municipally owned or operated off-street parking facility.
B. Restrictions.
1. It shall be unlawful for a person to park or leave standing any vehicle in an electric vehicle charging station unless the vehicle is an electric vehicle that is actively charging or overstaying while paying a Parking Fee.
2. It shall be unlawful for a person to obstruct, block, or otherwise bar access to an electric vehicle charging station, unless otherwise authorized by subsection (B)(1) of this section.
C. Enforcement. Subject to the signage requirements set forth in California Vehicle Code section 22511, as may be amended, a vehicle in violation of subsection (B) may be cited and/or removed by towing.
SECTION 2. Article VII (Parking Garage Facility Regulations) of Chapter 4.25 (Motor Vehicles and Traffic) of Title 4 (Police/Code Enforcement) of the South Lake Tahoe City Code is amended to add Section 4.25.605 to read as follows:
4.25.605 Electric vehicle charging stations. Electric vehicle charging stations within the parking garage facility are subject to section 4.25.435 of this code.
SECTION 3. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision will not affect the validity of the remaining portions of this Ordinance. The City Council declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional.
SECTION 4. The City Council finds that adoption of the proposed Ordinance is not a project requiring environmental review under the California Environmental Quality Act (CEQA) under CEQA Guidelines 515
Ordinance 2025-XXX April 22, 2025 Page 3 of 3
section 15378(b)(2) because the Ordinance is general policy and procedure making related to enforcement of parking regulations.
Adopted by the City of South Lake Tahoe City Council on April 22, 2025 by the following vote:
Yes:
No:
Abstain:
Absent:
________________________ Date:_________
Tamara Wallace, Mayor
Attest:
________________________
Susan Blankenship, City Clerk
First Reading:
Published:
Second Reading:
Effective:
The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.
516
Resolution 2025-XXX April 22, 2025 Page 1 of 2
Resolution 2025-XXX
Adopted by the City of South Lake Tahoe
City Council
April 22, 2025
City-owned Publicly Available Electric Vehicle Charging Locations and Establishment of $75 Parking Citation Fee under City Code Section 4.25.435
BACKGROUND
A. The City Council of the City of South Lake Tahoe (City) regulates parking within City limits and finds that designating parking spaces in public parking lots to allow for the charging of electric vehicles is in alignment with City Strategic Priorities 1.4 and 1.5.
B. The City of South Lake Tahoe has contracted for 10 dual port electric vehicle charging stations that will utilize 20 public parking spaces in City-owned parking facilities; and has agreed to lease to Tesla an additional 12 spaces to provide their superchargers.
C. The City of South Lake Tahoe has identified EV charging parking spaces within the following City-owned parking facilities: 3069 Harrison Avenue (12 spaces), 1 Bellamy Way (14 spaces), and 1100 Rufus Allen Blvd (6 spaces).
D. California Assembly Bill 1452, which provides that by ordinance a local authority may designate parking spaces for the exclusive purpose of charging and parking a vehicle that is connected for electric charging purposes, codified as California Vehicle Code §2251.
E. Public parking spaces with electric vehicle charging stations are intended to be used for the exclusive purpose of charging electric vehicles.
F. The City desires to prohibit the parking of any vehicle in spaces designated for electric vehicle charging unless that vehicle is connected for electric charging purposes.
G. The City desires to incentivize the turnover of electric vehicles so as to maximize the availability of City-provided EV charging stations in pursuit of providing excellent customer service.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, BE IT RESOLVED, that the City Council of the City of South Lake Tahoe:
1. Establishes the following as electric vehicle parking spaces upon installation of signage:
3069 Harrison Avenue (12 spaces), 1 Bellamy Way (14 spaces), and 1100 Rufus Allen Blvd (6 spaces).
2. Establishes a $75 parking violation fine under City Code section 4.25.435 for a citable offence for illegal parking in an electric vehicle charging space. 517
Resolution 2025-XXX April 22, 2025 Page 2 of 2
Adopted by the City of South Lake Tahoe City Council on April 22, 2025 by the following vote:
Yes:
No:
Absent:
Abstain:
________________________ Date:_________
Tamara Wallace, Mayor
Attest:
________________________
Susan Blankenship, City Clerk
The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.
518
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: April 22, 2025
Agenda Item #:16
Agenda Item: 2025 Cannabis Revenues Grant Program Process and Guidelines Executive Summary: The current Cannabis Revenue Policy, Grant Program Process and Guidelines specifies a grant program application window of April 15 to May 15. This update of the Process and Guidelines pushes back that window by two months to allow time for Council to adopt a new Strategic Plan. The grant program application questions will be based in part on asking applicants to help achieve those new strategic priorities via the projects they propose for funding under the Cannabis Revenues Grant Program.
Requested Action / Suggested Motions: Pass a Resolution adopting the updated Cannabis Revenues Grant Program Process and Guidelines.
Responsible Staff Member: Sara Letton, Sustainability Coordinator Reviewed and Approved By: Susan Blankenship, City Clerk Olga Tikhomirova, Finance Director Heather Stroud, City Attorney
Attachments:
01 - Staff Report 2025 Update to Cannabis Revenues Guidelines.docx 02 - Resolution Cannabis Revenues Grant Program Guidelines 2025.docx 03 - Cannabis Revenues Grant Program Guidelines 2025 (Exh. A to Reso).pdf 519
Council Agenda Report- April 22, 2025 Page 1 of 2
City of South Lake Tahoe
Report to City Council
Meeting Date: April 22, 2025
Title: 2025 Cannabis Revenues Grant Program Process and Guidelines Location: Citywide
Responsible Staff Member: Sara Letton (530) 542-6175
Background: On May 18, 2021 the City Council adopted the cannabis community benefit fee revenue allocation policy to create a community-wide benefit grant program. This program was created to provide funding opportunities to local schools, government agencies and non-profit organizations with programs or projects designed to mitigate potential impacts of the cannabis industry in South Lake Tahoe and which promote the priorities of the City Strategic Plan. The 2022 “Cannabis Revenue Grant Program” provided 14 awards to community organizations, totaling $399,650. The 2023 program provided 15 awards and $408,625. The 2024 program provided 14 awards and $411,861. Awardees are set to wrap up their grant projects by summer, with most closing out this spring.
Staff is bringing forward this item to update the cannabis revenue grant program process and guidelines for 2025, in alignment with the “Financial Policies for Granting Funds for Community Benefit and Enhancement Grant Program”.
Issue and Discussion: The community public benefit fee revenue collection was created for the purpose of the betterment of our community including public safety and financial support for community schools and non-profit organizations and has been successfully deployed for 3 cycles.
The project application asks proposers to align their projects to one or more of the City’s Strategic Priorities. The current council recently met to create a new Plan, and a new version of that document is being prepared for publication.
To assist the City Council having plenty of time to approve a biannual Strategic Plan, and also to deploy a grant program based on that final plan, the attached 2025 process and guidelines document (Attachment 03) has been updated to push the program back by two months. That is the only change to the document.
Financial Implications: All financial implications of the Cannabis Revenues Grant Program remain the same because the program deployment remains in the same fiscal year. Only the timeframe of applying for funding and awarding contracts is pushed back by two months with this council action.
Environmental Considerations: This action is not a “project” subject to review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15378(b)(4) 520
Council Agenda Report- April 22, 2025 Page 2 of 2
(creation of government funding mechanisms or other governmental fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment).
Policy Implications: The proposed process and guidelines are consistent with the established cannabis revenue allocation policy adopted on May 18, 2021. The program itself is created in part to help advance the Strategic Goals and Priorities set forth by Council. The Cannabis Revenues Grant program is in alignment with, and falls under the guidance of, the “Financial Policies for Granting Funds for Community Benefit and Enhancement Grant Program”. 521
Resolution 2025-XXX
Adopted by the City of South Lake Tahoe City
Council
April 22, 2025
Adopting the 2025 Cannabis Revenues Grant Program Process and Guidelines (Replaces Resolution 2023-016)
BACKGROUND
A. On May 18, 2021 the City Council adopted the cannabis community benefit fee revenue allocation policy to create a community-wide benefit grant program. This program will provide funding opportunities to local schools, government agencies and non-profit organizations with programs or projects designed to mitigate potential impacts of the cannabis industry in South Lake Tahoe and which promote the priorities of the City Strategic Plan.
B. Cannabis businesses pay a business license tax pursuant to Measure G, adopted by voters on November 8, 2022, equivalent to six (6) percent of Gross Receipts and $20/square foot of canopy for cultivation.
C. The proposed 2025 community-wide cannabis revenue grant program application process and guidelines (Exhibit A) to this Resolution have been developed to assist the City in an annual review of proposals for funding opportunities to local schools, government agencies and nonprofit organizations with programs or projects designed to mitigate potential negative impacts of the cannabis industry in South Lake Tahoe and which promote the priorities of the City Strategic Plan. The 2025 guidelines update the dates referenced, effectively pushing the program implementation back by two months.
D. The grant program has, to date, successfully managed 14 grant projects in the community in 2022, 15 in 2023, and 14 in 2024. 2024 Projects will close out in spring and summer 2025.
E. Only significant changes to this grant program guidelines and procedures will be brought to council for approval in the future. Dates for grant application period will be determined by staff based on workload and priorities without returning to council for approval.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, BE IT RESOLVED, that the City Council of the City of South Lake Tahoe:
1. Approves the 2025 Cannabis Revenues Grant Program Process and Guidelines attached hereto as Exhibit "A."
Adopted by the City of South Lake Tahoe City Council on April 22, 2025 by the following vote:
Yes:
No:
Absent:
Abstain:
________________________ Date:_________
Tamara Wallace, Mayor
Attest:
522
________________________
Susan Blankenship, City Clerk
The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.
523
CANNABIS REVENUES POLICY
GRANT PROGRAM
2025 Process & Guidelines
To assist the City Council in the evaluation of the community-wide cannabis revenue grant program, the following process and guidelines have been developed to assist the City in an annual review of proposals for funding opportunities to local public agencies and nonprofit organizations with programs or projects designed to mitigate potential negative impacts of the cannabis industry in South Lake Tahoe and which promote the priorities of the City Strategic Plan. The City’s Strategic Plan is available on the City website, City Manager page.
Please note that this is a grant program for project funding. It is not a donation or sponsorship program. Strong applications will directly address one or more Strategic Priorities while also addressing potential negative impacts of the cannabis industry.
GRANT DETAILS
• Grant amounts will range from $1,000 to $50,000.
• Funds must be expended within one year
• No more than a 10% de minimus indirect cost rate allowed; unless the organization can provide a separate approved federal cognizant agency indirect cost rate. • The City shall disburse 90% up front, and the final 10% shall be reimbursed upon successful completion of final reporting.
• Detailed documentation of eligible expenses is required.
WHEN CAN I APPLY?
The City grant program will open on June 15, and the submittal period will remain open until 11:59 p.m. on July 15.
ELIGIBILITY
• You must have a current City of South Lake Tahoe Business License at the time of application submittal.
• Your entity and proposal must be focused on efforts to mitigate potential impacts of the cannabis industry in South Lake Tahoe and promote the priorities of the City Strategic Plan.
• Your entity must be located within the city limits or serve the community of South Lake Tahoe, CA.
• One application per entity
• If you are a past year recipient you must be in compliance with the annual reporting requirement, which includes the submittal of a written report detailing how your previousaward was expensed to the City no later than May 31 following a previous year’s grant award.
• Must meet all requirements outlined in the city’s “Financial Policy for Granting Funds for Community Benefit and Enhancement”
524
APPLICATION REVIEW
• Please be sure your application is complete when you send it in. The City reserves the right to not consider incomplete applications.
• Applications will be reviewed by the grant committee, consisting of the Mayor, one City Council Finance Committee member, the City Manager and the City’s Finance Director.
• The grant committee will make recommendations to the City Council no later than August 30 annually for consideration and approval.
• To provide transparency, the City of South Lake Tahoe will post a list on the City’s website showing all grant recipients and the amount received. By signing and submitting a grant program application with the City of South Lake Tahoe, you agree to have your entity’s name along with the grant amount listed on the website. Please note that anything submitted to the City is considered public record and can be made available via a public records request.
SUBMITTING YOUR APPLICATION
You will be required to submit the following required documentation along with your signedapplication form:
1. A photo or copy of your current City of South Lake Tahoe Business License
2. A current IRS Form W-9 showing your Taxpayer ID
3. For nonprofits, attach your IRS letter with proof of tax-exempt status and a screenshot of Secretary of State Business Search website showing ACTIVE status of your nonprofit
4. For governmental agencies, attach federal TIN documentation
5. Federal tax return 990/990-PF or previous year audited financial statement OR a previous year audited financial statement
Please submit the application form and the supporting documentation via email to [email protected]
Or send to:
City of South Lake Tahoe City Hall
Attn: Grant Program
1901 Lisa Maloff Way, Suite 210
South Lake Tahoe, CA 96150
Or bring to the Finance drop box at the above address.
To be considered for the grant, your materials must be in by 11:59 p.m. on July 15.
Contact the City of South Lake Tahoe at [email protected] with questions. 525
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: April 22, 2025
Agenda Item #:17
Agenda Item: 2024 Annual Comprehensive Financial Report (ACFR) Executive Summary: The Annual Comprehensive Financial Report is published by the Finance Department and includes the Independent Auditor's Report on the Basic Financial Statements of the City of South Lake Tahoe. The Annual Report is designed to professionally and effectively communicate the City's financial position and is prepared in compliance with the financial reporting standards of the Government Finance Officers Association.
Requested Action / Suggested Motions: Receive and File.
Responsible Staff Member: Olga Tikhomirova, Director of Finance Reviewed and Approved By: Susan Blankenship, City Clerk Heather Stroud, City Attorney Attachments:
01-Staff Report - 2024 ACFR.docx
02-2024 City of South Lake Tahoe ACFR ecopy.pdf
03-City of South Lake Tahoe 2024 Final GANN Limit AUP Report.pdf 04-City of South Lake Tahoe 2024 Final Single Audit Report.pdf 526
Council Agenda Report April 22, 2025 Page 1 of 2
City of South Lake Tahoe
Report to City Council
Meeting Date: April 22, 2025
Title: 2024 Annual Comprehensive Financial Report (Annual Report), including the Independent Auditor's Report on the Basic Financial Statements of the City of South Lake Tahoe; Agreed Upon Procedures Report on Compliance with the Article XIII-B Appropriation Limit Calculations; and Federal Awards Report in Accordance with the Uniform Guidance.
Location: Citywide
Responsible Staff Member: Olga Tikhomirova, Director of Finance (530) 542-7431 Background: Annually, the City’s financial records are audited by an independent Certified Public Accounting firm. The Finance Department publishes the Annual Comprehensive Financial Report (ACFR), also known as the Annual Report, which includes the Independent Auditor’s Report on the Basic Financial Statements of the City of South Lake Tahoe. This year’s report covers the fiscal year ended September 30, 2024, and accurately reflects the fiscal position of the City and its component units for that period.
The Annual Report is designed to effectively and professionally communicate the City’s financial position. It is prepared in compliance with the financial reporting standards of the Government Finance Officers Association of the United States and Canada (GFOA) and includes three major sections:
• Introductory Section: This section includes the transmittal letter, which summarizes the auditor’s opinion, provides a City profile, discusses economic conditions, outlines strategic priorities, and details financial management.
• Financial Section: This section presents the City’s independently audited financial statements, along with Management’s Discussion and Analysis of the City’s financial position and results of operations for fiscal year 2024.
• Statistical Section: This section offers financial trends, revenue and debt capacity, as well as demographic, economic and operating information.
The Annual Report and financial statements must be submitted within 180 days of the close of the fiscal year. These documents are required to be distributed annually to the State Controller, the City’s bond trustees, banks, rating agencies, and other relevant external entities.
The City’s Annual Report is also submitted annually for review by the Government Finance Officers Association (GFOA) award program, which evaluates readability, organization, and comprehensive reporting. For 17 consecutive years, the City of South Lake Tahoe has received awards for excellence in financial reporting.
Issue and Discussion: Eide Bailly LLP has completed the independent audit using Generally Accepted Accounting Principles (GAAP) and Generally Accepted Auditing Standards (GAAS) and has issued the attached financial statements and reports for the year ended September 30, 527
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2024. The auditors have issued an unmodified opinion, stating that the financial statements present fairly, in all material respects, the financial position of the City as of that date. An unmodified opinion is the highest level of assurance an independent auditor can provide, and it is the opinion we expect to receive.
Financial Implications: The City’s financial statements report an unassigned general fund balance of $31,159,577 as of September 30, 2024. After reducing this amount by 25% of the 2024-25 operating budget expenses (committed reserve $14,769,729) and by the balances of funds included with the general fund for reporting purposes (building permit fees $2,160,930 and Measure S Sales Tax general fund $1,258,040), the remaining unassigned fund balance is $12,970,878.
Of this remaining balance, $3,404,374 is committed for various purposes, including:
• $2,000,000 is set-aside for projected future years’ budget deficit, • $1,000,000 is set-aside for an affordable housing project (as approved by the City Council based on the participatory budgeting community survey in the FY 2025 budget), • $304,374 is set-aside for approved grant matching requirements, • $100,000 is set-aside for ARPA funded project.
Additionally, $7,538,616 in budget appropriations, approved by the City Council in the first six months of the year, includes:
• $2,097,426 for the energy project with Willdan,
• $1,254,374 for carryforward encumbrances,
• $2,719,224 net for mid-year budget adjustments,
• Other allocations as described in the mid-year budget presentation.
This leaves $2,027,888 available for one-time projects and expenses, including future grant matching requirements.
Policy Implications: Compliance with City Financial Policies – Financial Reporting.
Environmental Considerations: The proposed action is not a “project” subject to review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15378(b)(4) (creation of government funding mechanisms or government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment). 528
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
FISCAL YEAR ENDED SEPTEMBER 30, 2024 529
(Back of the cover page. Intentionally left blank.)
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Annual Comprehensive
Financial Report __________________________________________________________________________________ For the fiscal year ended September 30, 2024
__________________________________________________________________________________ Prepared by
FINANCE DEPARTMENT
CITY OF SOUTH LAKE TAHOE
CALIFORNIA
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♦ Printing by Redwood Printing, South Lake Tahoe, California ♦ Printed on 50% post-consumer paper
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City of South Lake Tahoe, California
Table of Contents
September 30, 2024
(To view a particular section or document, simply click on the text below)
INTRODUCTORY SECTION
Letter of Transmittal ................................................................................................................................. 1 GFOA Certificate of Achievement for Excellence in Financial Reporting................................................ 11 Organizational Chart............................................................................................................................... 12 Principal Officials..................................................................................................................................... 13
FINANCIAL SECTION
Independent Auditor’s Report.................................................................................................................... 15 Management’s Discussion and Analysis..................................................................................................... 19 Basic Financial Statements
Government Wide Financial Statements
Statement of Net Position ...................................................................................................................... 33 Statement of Activities............................................................................................................................ 35 Government Fund Financial Statements
Balance Sheet – Governmental Funds.................................................................................................... 39 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position............... 40 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds........... 41 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities.............................................................................. 42 Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – General Fund........................................................................................................................................... 43 Statement of Revenues, Expenses, and Changes in Fund Balance – Budget and Actual – City Housing & Economic Development Fund ........................................................................................ 44 Statement of Revenues, Expenses, and Changes in Fund Balance – Budget and Actual – Measure P Recreation Fund.................................................................................................................... 45 Proprietary Fund Financial Statements
Statement of Net Position – Proprietary Funds...................................................................................... 48 Statement of Revenues, Expenses and Changes in Net Position – Proprietary Funds........................... 49 Statement of Cash Flows – Proprietary Funds........................................................................................ 50 Fiduciary Funds Financial Statements
Statement of Fiduciary Net Position....................................................................................................... 52 Statement of Changes in Fiduciary Net Position .................................................................................... 53 Notes to Financial Statements.................................................................................................................... 55 Required Supplementary Information
Schedule of Changes in Net Pension Liability and Related Ratios During the Measurement Period – Miscellaneous Plan ............................................................................................................................... 104 533
City of South Lake Tahoe, California
Table of Contents
September 30, 2024
Schedule of Contributions – Miscellaneous Plan.................................................................................. 105 Schedule of the City’s Proportionate Share of the Net Pension Liability – Safety Cost Sharing Plan... 106 Schedule of Contributions – Safety Cost Sharing Plan.......................................................................... 107 Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – City Capital Projects Fund ..................................................................................................................... 110 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – City Debt Service Fund.......................................................................................................................... 111 Non-Major Governmental Funds Combining Balance Sheet................................................................ 116 Non-Major Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances..................................................................................................................... 124 Budgeted Non-Major Funds Combining Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual ................................................................................... 132 Non-Major Enterprise Funds Combining Statement of Net Position ................................................... 154 Non-Major Enterprise Funds Combining Statement of Revenues, Expenses and Changes in Fund Net Position.................................................................................................................................. 155 Non-Major Enterprise Funds Combining Statement of Cash Flows ..................................................... 156 Internal Service Funds Combining Statement of Net Position ............................................................. 158 Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Fund Net Position........................................................................................................................................... 159 Internal Service Funds Combining Statement of Cash Flows ............................................................... 160 Custodial Funds Combining Statement of Fiduciary Net Position ........................................................ 162 Custodial Funds Combining Statement of Changes in Fiduciary Net Position...................................... 164
STATISTICAL SECTION
Net Position by Component.................................................................................................................. 169 Changes in Net Position ........................................................................................................................ 170 Fund Balances of Governmental Funds................................................................................................ 172 Changes in Fund Balances of Governmental Funds.............................................................................. 173 Assessed and Estimated Actual Value of Taxable Property.................................................................. 174 Property Tax Rates, All Overlapping Governments .............................................................................. 175 Principal Secured Property Tax Payers ................................................................................................. 176 Principal Transient Occupancy Tax (TOT) Payers.................................................................................. 177 Property Tax Levies and Collections ..................................................................................................... 178 Ratio of Outstanding Debt by Type....................................................................................................... 179 Computation of Direct and Overlapping Debt...................................................................................... 180 Computation of Legal Bonded Debt Margin......................................................................................... 181 Bonded Debt Pledged-Revenue Coverage............................................................................................ 182 Demographic and Economic Statistics.................................................................................................. 183 Principal Employers............................................................................................................................... 184 Full-Time Equivalent City Government Employees by Function........................................................... 185 Operating Indicators by Function/Program.......................................................................................... 186 Capital Asset Statistics by Function/Program....................................................................................... 187 534
March 28, 2025
To the Honorable Mayor and Members of the City Council, and Citizens of the City of South Lake Tahoe, California
We are pleased to submit to you the City of South Lake Tahoe Annual Comprehensive Financial Report (Annual Report) for the fiscal year ended September 30, 2024. This transmittal letter highlights the purpose and content of the Annual Report. I invite you to review this comprehensive financial report and hope you enjoy reading it.
Report Purpose
The purpose of this report is to comprehensively communicate the fiscal condition of the City of South Lake Tahoe. The report contains three major sections that present introductory, financial and statistical information about the City. Management assumes full responsibility for the completeness and reliability of the information provided in this report, including the accuracy of the data and fairness of presentation, including all footnotes and disclosures.
Audited Financial Statements
Each year the City’s financial records are audited by an independent Certified Public Accounting firm. The firm of Eide Bailly LLP has completed the independent audit using Generally Accepted Accounting Principles and Generally Accepted Auditing Standards. The Independent Auditor’s Report, including the audited financial statements, as of September 30, 2024, are included in the Financial Section of this report.
The Auditors have issued a clean opinion, stating that the basic financial statements present fairly, in all material respects, the financial position of the City of South Lake Tahoe as of September 30, 2024. An unmodified opinion is the highest level of assurance an independent auditor can give, and this is what we would expect to receive. The opinion pertains to the financial position of the governmental activities, business-type activities, each major fund, the aggregate remaining funds, the respective changes in the financial position and cash flows, where applicable, the related notes, and the respective budgetary comparisons listed as part of the basic financial statements for the year then ended, in conformity with accounting principles generally accepted in the United States of America.
Financial Information
The City’s overall financial position improved in 2024. Net position city-wide totaled $195.3 million at year end, an increase of $16.1 million over the prior year. Revenues before transfers totaled $104.9 million city-wide, a decrease of $2.0 million over the prior year, and expenses totaled $88.8 million, 1 535
an increase of $10.9 million over the prior year. The decrease in revenue is primarily attributable to decreases in operating grants and contributions and charges for services partially offset by increases in other revenue. The increase in expenditures is primarily due to increases in public safety and interest on long-term debt.
A more detailed discussion of city-wide financial information and operating results for the governmental activities, business-type activities and by major fund, including the General Fund, is provided in the Management’s Discussion and Analysis portion of the Financial Section of this report. Historical financial information is presented in the Statistical Section of this report. The Statistical Section does not contain information on general obligation debt as the City has not issued any general obligation debt within the last ten years.
City Profile
The City of South Lake Tahoe is a general law city and was incorporated on November 30, 1965, governed by a Council/Manager form of government made up of five council members elected to four-year, overlapping terms. The City provides a wide range of services, including: police and fire protection, snow removal, street maintenance, airport management, parks and recreation, planning, building and safety, public improvements, and general administration. Recreational facilities include the South Tahoe Ice Arena, Recreation and Swimming Pool Complex, Campground by the Lake, Regan Beach, El Dorado Beach, Bijou Golf Course, the Senior Citizens Center, and Lakeview Commons.
The City encompasses an area of approximately nine square miles with an average elevation of 6,200 feet above sea level. A year-round resort community, South Lake Tahoe had a permanent population of 20,790 in 2024. The City is located within the Lake Tahoe Basin, neighboring the State of Nevada, approximately 80 miles east of Sacramento, California, and 50 miles southwest of Reno, Nevada.
Most of the moisture received in the Tahoe Basin comes in the form of snow that generally falls from November through April and averages 125 inches of accumulated snowfall annually at lake level.
One of the largest and most popular ski areas in the western United States, Heavenly Mountain resort, is located adjacent to the City. Temperatures are generally moderate with winter averages ranging from 40 degrees to lows in the 20’s. Summer time highs average in the upper 70’s with lows in the 50’s.
The City works closely with various other local and regional governmental agencies, including El Dorado County, California, Douglas County, Nevada, the California Tahoe Conservancy, the Lahontan Regional Water Quality Control Board, the California Department of Forestry, the California Department of Transportation and the Tahoe Regional Planning Agency.
Economic Condition and Outlook
The information presented in the financial statements is best understood when it is considered from the broader perspective of the specific environment in which the City operates.
Local economy
Throughout the year, the City’s economy remained reasonably strong despite ongoing economic pressures from inflationary impacts, such as higher interest rates and prices. Many businesses in the City are stable or growing. However, there is still a significant need for workforce housing and improved transportation infrastructure, both within the City and the surrounding areas. These challenges require a coordinated regional approach to support economic resilience. 2 536
The tourism sector remains the backbone of the City’s economy. However, its seasonal characteristics and volatility – stemming from sensitivity to economic conditions and external factors like natural disasters or public health crises - underscore the importance of balancing tourism with leveraging the region’s reputation for health and wellness to attract new investment.
The labor market has remained relatively strong, both locally and nationally. However, unemployment rates showed a slight increase in the fiscal year ending September 2024, compared to the previous year. The unemployment rate in South Lake Tahoe was reported at 4.1%, a 0.7% increase, while the national unemployment rate rose to 3.9% from 3.6%. Meanwhile, California's unemployment rate remains higher than the national average, standing at 5.3%. These trends indicate ongoing challenges in the labor market, necessitating targeted efforts to support job creation and workforce development.
In 2024, the City’s largest revenue sources were transient occupancy taxes, sales taxes (including Measures Q and S), charges for services, and property taxes, which made up 21%, 19%, 19%, and 11% of total city-wide revenues, respectively. Property taxes grew by 6.2%, continuing an upward trajectory. However, transient occupancy taxes, sales taxes, and charges for services declined slightly, by 0.2%, 0.8% and 2.7% respectively. Charges for services program revenue category includes fees for parks and recreation programs, as well as user fees for non-general government services such as engineering, building, planning and permitting. Of this revenue, 84% was allocated to governmental activities, with the remaining 16% attributed to business-type activities, primarily in the parking garage and airport.
The decline in charges for services was primarily due to last year’s increased revenue from building, planning, and permit fees, driven by additional construction activity. This includes the completion of Phase 1A (68 units) and the commencement of Phase 2A (60 units) of the Sugar Pine Village project.
Phase 1 opened to the public in October 2024, with Phase 2 scheduled to open in Fall 2025. Upon full completion, this ambitious project, comprising a total of 248 units, will provide high-quality, sustainable, and affordable workforce housing to residents earning 30-60 percent of the Area Median Income (AMI), supporting the City Council’s 'Housing' goal.
Sales tax, including Measures Q and S, totaled $19.0 million. Sales and transactions tax combined is the City’s largest revenue source making up 28% of the total General Fund revenue in 2024. Despite a slight decrease from 2023 due to rising inflation and higher interest rates that led to a decrease in overall spending, the sales tax ended the year at $344K above the adopted budget of $18.7 million, with transactions tax contributing significantly to this positive outcome.
Property tax, the second largest revenue source for the City’s General Fund in 2024, grew by 7.0% from the prior fiscal year, amounting to $11.4 million and contributing $0.7 million to the General Fund’s $2.8 million revenue growth in 2024. The total assessed valuation of real property in the city for fiscal year 2023-24 grew by 8.0%, with an additional increase of 4.6% for 2024-25. Since March 2020, an influx of new homeowners, driven by low interest rates and the pandemic, has influenced property values. In 2024, the median selling price in South Lake Tahoe continued rising, reaching $745K in September, reflecting a 4.2% year-over-year increase.
City transient occupancy tax (TOT) was the third largest revenue source for the General Fund, comprising approximately 16% of the fund’s total revenue in 2024. This TOT revenue, including audits but excluding amounts collected within the former Redevelopment area, totaled $10.6 million, a 2.5% decrease from the prior year. However, TOT revenue from the former Redevelopment area increased by 3.4%, or $0.2 million, over 2023, amounting to $7.5 million in 2024. 3 537
Outlook
Property values continue their upward trend, partially attributed to several large-scale development projects currently underway. Despite challenges like high mortgage interest rates and dwindling housing inventory, the Lake Tahoe region remains a sought-after destination for remote workers and potential homebuyers. The outlook for future property tax revenue growth remains stable. As one of the General Fund’s largest revenue sources, a healthy property tax base is essential for continued sustainability.
South Lake Tahoe’s economy remains highly dependent on its number one industry – tourism - and the related TOT and sales tax revenues generated by visitors to the community. However, both of these revenue sources declined in Fiscal Year 2024. Hotel stays slowed, and shoppers became more cautious with their spending, focusing on value and cutting back on non-essential purchases. The outlook for room rates and occupancy in the coming year is positive. At the same time, uncertainties in the economy, including higher business operating costs, are putting upward pressure on prices.
This, in turn, is resulting in fewer sales transactions and reducing expectations for sales tax revenue in Fiscal Year 2024-25.
Passage of the American Rescue Plan Act (ARPA) in March 2021 provided the City with approximately $5.3 million in funding to offset the impacts of the pandemic. Through September 30, 2024, a total of $4,467,003 was expended on eligible projects, including the following:
Long Term Rental Incentive Pilot Program, $457,498
Services Center Deferred Maintenance/Repair, $54,397
Bijou Park Recreation Improvements to Skatepark, $77,275 Bike Trail Connections/Infrastructure, $11,999
Broadband Infrastructure Study and Deployment, $103,025 Solar Trash Compacting, $49,460
Bike Trail Network Improvements, $7,500
Small Business Sustainability Loan Forgiveness, $377,361 Climate Action Plan REACH Code Analysis, $50,000
Infrastructure Improvements-Fire Hydrant Installations, $300,000 Dennis Machida Memorial Bike Trail Engineering and Design, $89,396 Recreation Center Construction, $2,711,457
Bijou Park Creek Restoration, $177,635
All ARPA funds must be allocated by the end of 2024, and projects must be closed out and funds fully expended by the end of 2026. As of December 31, 2024, the City has appropriated the entire $5.3 million.
The City of South Lake Tahoe remains committed to its key priorities, including expanding access to housing and services, economic development, infrastructure improvements, hazardous fuel reduction, wildfire preparedness, commitment to the new recreation center construction, and public safety. The FY 2025 Municipal Budget aligns with the 2023-2028 Strategic Plan, ensuring effective resource allocation to meet these objectives. The new Recreation and Aquatics Center, currently under construction, and is set to be completed in January 2026. Once completed, it will serve as a vibrant hub for South Lake Tahoe community, offering a wide range of activities and resources for all ages.
While residents have rated the overall quality of life in South Lake Tahoe positively, the City remains committed to advancing its priorities and adapting to the needs of the community to further enhance the daily lives of all its citizens.
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Controlling expenditures and streamlining government continue to be critical components to maintaining a sound fiscal condition. While the City’s financial health is currently robust, it is essential to maintain a fiscally responsible approach due to ongoing external challenges. A healthy General Fund reserve is crucial to ensure adequate cash flow, address challenges arising from natural or financial emergencies, generate additional investment earnings, and enable the City to respond quickly to unexpected opportunities that will ultimately enhance the quality of life for residents and visitors.
Credit Rating
In August 2017, Standard & Poor's Ratings Services raised its long-term rating to ‘BBB’ from ‘BBB- ‘ on South Tahoe Joint Powers Financing Authority 2014 and 2015 tax allocation refunding bonds (TARBs) issued for the Successor Agency (SA) to the South Tahoe Redevelopment Agency (RDA) to refund SA’s outstanding 1999A, 2003A, 2004A and 2005A tax allocation bonds. At the same time, Standard & Poor’s assigned its ‘BBB‘ long-term rating to the 2017 Series A TARBs. The outlook on all ratings is stable.
In February 2018, Standard & Poor’s Global Ratings (formerly Standard & Poor’s Ratings Services) raised its rating from ‘AA-‘ to ‘AA’ on the South Tahoe Joint Powers Financing Authority 2014 pension obligation bonds (POBs) issued on behalf of the City. Subsequently, in September 2018, Standard & Poor’s Global Ratings upgraded its Local Currency Long-Term Rating on the 2014 bonds from ‘AA’ to ‘AA+’. At the same time, S&P Global Ratings raised its Local Currency LongTerm Rating on the authority’s 2012 certificates of participation (COP) and in addition its Underlying Rating on 2016 Series A lease revenue refunding bonds from ‘AA-‘ to ‘AA’ while affirming the stable outlook for all three issuances.
In July 2023, Standard & Poor’s Global Ratings assigned its 'AA' long-term rating to the South Tahoe Joint Powers Financing Authority’s anticipated $52.0 million series 2023A lease revenue bonds, issued on behalf of the City of South Lake Tahoe. At the same time, S&P Global Ratings affirmed its 'AA' and 'AA+' long-term and underlying rating on the city's outstanding appropriation debt and pension obligation bonds (POBs), respectively. The outlook on all ratings is stable.
Subsequently, the series 2023A lease revenue bonds were issued on August 16, 2023 in the principal amount of $51,300,000.
In July 2023, Standard & Poor’s Global Ratings also raised its long-term rating and underlying rating (SPUR) on the South Tahoe Joint Powers Financing Authority, Calif.'s outstanding 2014, 2015, and 2017 revenue refunding bonds issued for the Successor Agency (SA) to the South Tahoe Redevelopment Agency to 'BBB+' from 'BBB'. The outlook is stable. This rating action relates to the correction of an error in the application of S&P criteria. The outstanding bonds should have been analyzed under the "priority-lien tax revenue debt criteria" since it supplanted the special tax bonds criteria on Oct. 22, 2018. Lastly, the rating action also reflects assessment of key credit factors such as coverage, volatility, and economic fundamentals measured under priority-lien criteria.
Strategic Priorities and Goals
On March 2, 2021, City Council adopted the 2021-2026 Strategic Plan that included the following five Strategic Priorities: Built Environment, Recreation and Equitable Access, Community for All, Economic Development, and Continuous Improvement.
Long term strategic planning is not stagnant. It is important to evaluate plans on a regular basis and adapt as conditions change. The City Council evaluates its strategic priorities on an annual basis to determine how things are fitting together, relevance, whether or not progress is being made, current environment and opportunities for adjustment to keep moving in the right direction. 5 539
On March 29, 2022, the City Council held a Strategic Planning Advance with a focus on Economic Development core values, recruitment, and retention strategies. The City Council received updates from staff on current issues and trends facing the City and participated in a facilitated discussion on matters related to economic development and quality of life. The next review of the high priority goals of the City Council was held on January 31, 2023 during a Strategic Planning Retreat to discuss and validate the Strategic Plan Priorities, Goals and Action Items to be included in the 2023-2028 Strategic Plan.
The 2023-2028 Strategic Plan was designed in its second version form following the 2021-2026 Strategic Plan structure, format, and performance-reporting structure. Feedback from City staff included a change to Priority 5 from “Continuous Improvement” to “Core Services and High Performing Government.” The change emphasizes and memorializes the importance of the City prioritizing core services on which the City was founded.
The 2023-2028 Strategic Plan Priorities are:
1) Built Environment
2) Recreation and Equitable Access
3) Community for All
4) Economic Development
5) Core Services and High Performing Government
In August 2024, the City announced the new Strategic Plan Tracker website where City Council, staff, and members of the public can find updates to strategic priorities and action items in real time.
The Strategic Plan Tracker can be found on the City’s website at https://strategic-plan-trackercslt.hub.arcgis.com/ The 2023-2028 Strategic plan can be found on the City’s website at www.cityofslt.us/100/City-Manager . The next Strategic Plan update discussion is scheduled for March 2025.
Financial Management
The City’s comprehensive system of internal controls is designed to protect its assets and to sustain the integrity of its financial systems. Financial matters are conducted in compliance with the City Council’s adopted Comprehensive Financial Policies, summarized below. Managers at all levels are responsible for implementing City financial policies and controls, and for regularly monitoring their effectiveness. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met while recognizing that the cost of a control should not exceed the benefits likely to be derived.
Budget
The City Council legally adopts an annual budget. The City’s Budget Policy requires that the City maintain a structurally balanced budget with current revenues sufficient to support current expenditures. The City complies with the annual appropriations limit in accordance with Article XIIIB of the Constitution of the State of California and Government Code section 7900. Operating program appropriations not spent during the fiscal year do not automatically carry over into the next fiscal year but lapse at year-end. One-time revenues are appropriated for one-time expenditures only.
To determine the effect of current year decisions on the City’s future, a five-year General Fund financial forecast projecting revenues and expenditures is developed each year.
The City Council receives a quarterly budget and financial status report that includes an analysis of budgeted versus actual revenues and expenditures on a year-to-date basis. A mid-year budget analysis is presented to the Council for review. Budget amendments necessary for continued 6 540
operations through the end of the fiscal year may be presented to the City Council at mid-year but are not intended to provide additional avenues for departments to request funding for items not originally approved in the annual budget.
The City Council may make supplemental and emergency appropriations during the fiscal year; however, prior certification that revenues in excess of those currently budgeted are available is required. Appropriations may be reduced at any time during the fiscal year, if necessary. Only the City Council, by resolution, may transfer monies between funds and from un-appropriated balances or fund balances to any fund account.
Reserves
The Reserve Policy requires the City to maintain an Unassigned General Fund reserve of 25% of General Fund operating expenses. The reserve represents one-time revenues available to provide temporary financing for extraordinary cash needs such as costs related to a natural disaster, an economic recession, or an unexpected liability. Funds may be appropriated from this operating reserve upon demonstration to the City Council that the remaining balance is sufficient to offset potential downturns in revenue sources and to provide adequate cash for daily financial needs. Funds must be allocated each year in the budget process to replace any use of the reserve during the preceding fiscal year. To the extent that funds accumulate in excess of the required reserve, these one-time funds may be transferred to the Capital Projects Fund upon completion of the annual audit.
Capital Improvement Plan
The City Council adopts an annual Capital Improvement Plan (CIP). The CIP may include current year project budgets as well as planned future year projects where funding has not yet been secured or legally authorized. Funding allocations for future years of the CIP are therefore subject to change.
Every CIP project has a project manager who is responsible for preparing the project proposal and ensuring required phases are completed on schedule. The project manager monitors project revenues and expenditures and ensures that all regulations and laws are observed. Each approved CIP project is required to contain a statement of fiscal impact on the annual operating budget and the source of funding for this impact.
Preserving Capital Investments
The City invests in capital assets such as property, equipment, facilities and infrastructure. The City also plans and budgets for ongoing maintenance, long-term renovation and/or replacement of capital assets as necessary. Capital assets are defined as having an initial cost of more than $10,000 and an estimated life in excess of three years. Capital assets are depreciated using the straight-line method of depreciation.
Debt Management
The City’s Debt Management Policy provides operating guidelines for all major debt transactions of the City and South Tahoe Financing Authorities. The City manages its debt to ensure high credit quality, access to credit markets and financial flexibility. Debt is issued only in those cases where public policy, equity and economic efficiency favor debt over cash (pay-as-you-go) financing.
Whenever possible, the debt shall be self-supporting. Debt is used primarily to finance long-term capital projects, paying for facilities or equipment over their useful lives and concurrent with the stream of benefits from these facilities. The City maintains a central system for all debt-related records, adheres to all continuing disclosure requirements, and strives to maintain positive relationships with members of the investment community. 7 541
Strengthening Financial Position
The City takes proactive steps to strengthen and preserve its General Fund revenues. It seeks to promote a diversified economic base through commercial and industrial development and redevelopment opportunities. The City encourages the expansion of businesses that will provide opportunities for residents to work and live in the community.
Grants from federal, state or private organizations are a means of enhancing available revenues, but they rarely provide a long-term, stable economic base. Requests to the City Council for approval of a grant acceptance must include all associated financial impacts such as long-term maintenance responsibilities, required City matching funds, and additional staff resources. The City administers grants in compliance with laws, regulations and the requirements of the granting agency or donor.
The City Code requires reimbursement to the General Fund for the reasonable cost of administrative functions performed by City staff paid out of General Fund revenues (e.g. Legal, Finance, Human Resources) for departments funded by fees, rates or other revenues. These costs are allocated based on the value of time spent on such services for departments that generate adequate revenue and may be adjusted from time to time as necessary to respond to changes in the cost of service.
The City provides certain services and enterprise fund activities to residents and businesses that are funded in whole or in part by user fees intended to cover all or a portion of the cost of providing such services. To the extent such user fees do not cover the entire cost of providing such services, the General Fund subsidizes the additional expense. User fees are examined yearly and adjusted periodically to ensure the stability of the General Fund.
The City maintains a uniform revenue collection program, the costs of which are passed on to delinquent customers as a penalty in the collection process. Property liens, special assessments, withholding entitlements and collection agency proceedings are employed when necessary to collect delinquent revenues due to the City.
Cash Handling
The City’s cash handling policy provides guidelines for the establishment, use and safeguarding of petty cash funds, cashiering operations and for strengthening the City’s internal controls in these areas.
Investments
The City’s cash management system monitors and forecasts expenditures and revenues, enabling the City to invest funds to the fullest extent possible. The City attempts to obtain the highest investment yield only after an investment meets the criteria established for safety and liquidity. The City’s Investment Policy allows for investment in allowable securities in compliance with California Government Code Section 53601. It seeks to diversify its investment portfolio through a mix of various security types, issuers and maturities. Securities are purchased based on competitive bids from pre-authorized investment broker/dealers. Securities purchased are held in the City’s name by third party safekeeping trust departments.
Financial Reporting
Accurate and understandable financial reporting provides accountability over the City’s financial affairs and ensures compliance with applicable statutory and regulatory requirements. The City Council receives a Quarterly Investment Report as required under the California Government Code.
The Finance Director, or designee, submits a periodic Budget and Financial Status Report to the City 8 542
Council as required by City Code. Financial reports are available for public inspection and are posted on the City’s website.
Productivity
The City monitors and reviews its methods of service delivery to ensure that services are delivered in the most cost-effective manner possible. This review process encompasses a wide range of productivity considerations, including technology, contracting for services, customer service, and training and performance measurement.
Risk Management
To mitigate significant property losses and exposure to liability from third party injuries, the City has adopted a policy of professional and prudent management of risk exposures. Risk management objectives include providing adequate insurance, employee safety training and incentive program, third party indemnification and an Emergency Management Plan consistent with regional, state and federal requirements.
Meetings and Travel
The City’s policies regarding meetings and travel expense reimbursements are in compliance with Assembly Bill 1234, enacted by the California State Legislature in January 2006. While AB1234 applies primarily to elected officials and advisory body members, the City has extended the provisions of this law for travel, meeting and meal costs to all employees. Additionally, the City’s travel policies follow IRS Publication 15-B in order to ensure there are no tax consequences to reimbursements for allowable expenses.
Finance Department
The Finance department provides the following centralized services for the City:
Financial Services Division provides for financial policies, budget development and management, debt financing and management, financial analysis and reporting, general ledger accounting, financial audits, grant administration, payroll and accounts payable. Revenue Services Division is responsible for revenue and delinquency collection, business and professions taxes, cash management, daily bank deposits, and city-wide accounts receivable processing. In addition, the division provides revenue collection, disbursement and financial reporting for several business improvement districts.
Certificate of Achievement for Excellence in Financial Reporting The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of South Lake Tahoe, CA for its annual comprehensive financial report for the fiscal year ended September 30, 2023. This was the seventeenth consecutive year that the government has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized annual comprehensive financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current annual comprehensive financial report continues to meet the Certificate of Achievement Program’s requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate. 9 543
There are a number of benefits to the City in participating in these programs beyond simply receiving recognition for our efforts. In striving to meet certification program standards and goals, we are able to produce reports that better communicate complex financial information. As part of the review process, other municipal finance professionals review our reports from a “fresh” perspective and provide comments for improvement. We believe that this results in continuous improvements in reporting and communicating the City’s financial results to elected officials, the public, and other interested parties.
Acknowledgements
The dedicated efforts of the entire Finance Department made the development of this report possible.
Timely and efficient accounting practices and coordination with the City’s independent auditors were essential in producing this document. Thank you also to the City departments that contributed their statistical information for this report.
Special recognition goes to Andrew Black, Financial Services Supervisor, and Akemi Nishimura, Accountant I, for their outstanding work in the publication of this report.
In addition, I would like to thank our auditors, Eide Bailly LLP, for their assistance in the development and review of this document. Lastly, the vision and continued support of the City Council and our City Manager, Joseph Irvin in providing for the professional operation of the City’s Finance Department are extremely important to our success and to the financial sustainability of the City.
Respectfully submitted,
Olga Tikhomirova
Director of Finance
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of South Lake Tahoe
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
September 30, 2023
Executive Director/CEO
11 545
AIRPORT
CITY
CLERK
CITY
TREASURER
CITY COUNCIL
CITY MANAGER
CITY
ATTORNEY
RESIDENTS
POLICE
PUBLIC
SAFETY
FIRE
ECONOMIC
DEVELOPMENT
CIVIL
ENGINEERING
HOUSING
BUILDING
FINANCIAL AND
REVENUE SERVICES
RECREATION
STREETS
PARKS AND
RECREATION
SPECIAL
EVENTS
PARKING GARAGE
DEVELOPMENT
SERVICES
INTERNAL
SERVICES
CAPITAL
IMPROVEMENTS
PUBLIC
WORKS
PUBLIC AFFAIRS,
COMMUNICATIONS &
MARKETING
STORMWATER
CITY OF SOUTH LAKE TAHOE
ORGANIZATIONAL STRUCTURE
2023-2024
PLANNING
ENVIRONMENTAL
PROGRAMS
HUMAN
RESOURCES
INFORMATION
SYSTEMS
PARKS
FLEET
MAINTENANCE
OPERATIONS
SOLID WASTE
TRANSIT
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CITY OF SOUTH LAKE TAHOE
List of Principal Officials
September 30, 2024
CITY COUNCIL
Cody Bass, Mayor
Tamara Wallace, Mayor Pro-Tem
Cristi Creegan, Councilmember
Scott Robbins, Councilmember
Devin Middlebrook, Councilmember
EXECUTIVE MANAGEMENT
City Manager Joseph D. Irvin
City Clerk (Elected) Susan Blankenship
City Attorney Heather Stroud
City Treasurer (Elected) David Olivo
Director of Finance Olga Tikhomirova
Director of Development Services Zachary Thomas
Director of Public Works Anush Nejad
Chief of Police David Stevenson
Fire Chief Jim Drennan
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14 548
What inspires you, inspires us. | eidebailly.com
2151 River Plaza Dr., Ste. 308 | Sacramento, CA 95833-4133 | T 916.570.1880 | F 916.570.1875 | EOE Independent Auditor’s Report
To the Honorable Mayor and City Council
City of South Lake Tahoe, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of South Lake Tahoe, California (City) as of and for the year ended September 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of September 30, 2024, and the respective changes in financial position, and, where applicable, cash flows thereof and the respective budgetary comparison for the General Fund, City Housing & Economic Development Fund, and Measure P Recreation Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards).Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
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In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks.
Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
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Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, Schedule of Changes in Net Pension Liability and Related Ratios During the Measurement Period – Miscellaneous Plan, Schedule of Contributions – Miscellaneous Plan, Schedule of the City’s Proportionate Share of the Net Pension Liability – Safety Cost Sharing Plan, and Schedule of Contributions – Safety Cost Sharing Plan, be presented to supplement the basic financial statements.
Such information is the responsibility of management and although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund financial statements and budgetary schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the combining and individual nonmajor fund financial statements and budgetary schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory section and statistical section but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. 17 551
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 28, 2025, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters.
The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Sacramento, California
March 28, 2025
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City of South Lake Tahoe Management’s Discussion and Analysis MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED
SEPTEMBER 30, 2024
As management of the City of South Lake Tahoe, California, (City) we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for fiscal year ended September 30, 2024. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found in the introductory section of this report, and with the City’s financial statements, which follow this discussion.
Financial Highlights
Net Position: Total assets and deferred outflows of resources of the City exceeded its total liabilities and deferred inflows of resources at the close of the Fiscal Year (FY) 2023-24 by $195,326,252 (net position). Of this amount, $(17,808,479) is unrestricted, $69,194,129 is restricted for specific purpose, and $143,940,602 is net investment in capital assets. Change in Net Position: The City’s total net position increased $16,066,668, or 9.0 percent during the fiscal year, primarily as a result of Governmental Activities revenues exceeding expenses. Governmental Funds: As of September 30, 2024, the City’s governmental funds reported the combined ending fund balances of $131,375,906, a decrease of $17,604,379 from prior year.
Approximately 44 percent of the ending balance amount, or $57,290,016, is available for spending at the government’s discretion (committed, assigned, and unassigned fund balance). Long-Term Debt: The City’s total long-term debt decreased by $9,806,015. This decrease resulted primarily from an early and full redemption of the Parking Revenue Refunding Bonds 2013 Series A in addition to the regular annual repayment of debt service for the outstanding debt. Capital Assets: The City’s total Capital Assets (Net of depreciation) increased by $30,329,148 largely due to the addition of construction in progress for the new Recreation and Aquatic Center. General Fund: At September 30, 2024, unassigned fund balance of the General Fund was $31,159,577. This represents a decrease of $1,599,323, or 4.9 percent from prior year. Unassigned fund balance includes a 25 percent General Fund reserve as required per City’s financial policy.
At the end of the FY 2023-24 this amounted to $14,769,729.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements consist of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the basic financial statements. This report also contains other supplementary information in addition to the basic financial statements.
Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private sector business.
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City of South Lake Tahoe Management’s Discussion and Analysis The statement of net position presents information on all of the City’s assets, liabilities, and deferred inflows/outflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.
The statement of activities presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation and sick leave).
Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (businesstype activities). The governmental activities of the City include general government, public safety, public works, parks and recreation, streets, and interest on long-term debt.
The government-wide financial statements include not only the City of South Lake Tahoe, but also three component units: the South Tahoe Joint Powers Financing Authority, the South Tahoe Joint Powers Parking Financing Authority, and the Housing Authority of the City of South Lake Tahoe. Financial information for these component units is reported within the funds of the City.
The government-wide financial statements can be found on pages 33 - 35 of this report.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of South Lake Tahoe, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City of South Lake Tahoe can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements.
By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental funds balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The City maintains fifty-nine governmental funds, of which some were combined for financial statement presentation purposes. Information is presented separately in the governmental funds balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances for the General Fund, City Housing and Economic Development Fund, Measure P Recreation Fund, City Capital Projects Fund, and City Debt Service Fund, all of which are considered to be major funds. Data from the remaining governmental funds is combined into a single, aggregated presentation. Individual fund data for each of these other governmental funds is provided in the form of combining statements elsewhere in this report.
The City adopts an annual appropriated budget for all of its funds. Budgetary comparison schedules have 20 554
City of South Lake Tahoe Management’s Discussion and Analysis been provided for the General Fund, the City Housing and Economic Development Fund, and the Measure P Recreation Fund to demonstrate compliance with this budget in the Major Governmental Funds sub-section. Budgetary comparisons for other funds are provided elsewhere in this report.
The governmental funds financial statements can be found on pages 39 - 45 of this report.
Proprietary funds. The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its transit, airport, parking garage, and parking management operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City of South Lake Tahoe uses internal service funds to account for its medical insurance and workers’ compensation self-insurance operations. Because all of these services predominately benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary funds financial statements provide separate information for the airport and parking garage, and combined data for non-major enterprise funds, transit and parking management. The Internal Service funds are combined into a single, aggregated presentation in the proprietary funds financial statements. Individual fund data for non-major enterprise funds and internal service funds is provided in the form of combining statements elsewhere in this report.
The proprietary fund financial statements can be found on pages 48 - 50 of this report.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds.
The City maintains two different types of fiduciary funds. The trust fund is used to provide a funding mechanism for the accumulation of resources to be used for the retirement of long-term debt of the former Redevelopment Agency that are accounted for in the Redevelopment Obligation Retirement Private-Purpose Trust Fund. The Custodial funds report resources held by the City in a custodial capacity for private organizations and other governments.
The fiduciary fund financial statement can be found on pages 52 - 53 of this report.
Notes to the basic financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 55 - 101 of this report.
Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City’s pension plans.
Required supplementary information can be found on pages 104 - 107 of this report.
The combining statements referred to earlier in connection with other governmental funds and other enterprise and internal service funds are presented immediately following the required supplementary information. Combining and individual fund statements and budgetary comparison schedules can be found on pages 110- 160 of this report.
Government-wide Financial Analysis
The Statement of Net Position combines and consolidates the City’s governmental funds’ current financial resources (short-term spendable resources) with capital assets, long-term obligations, and other 21 555
City of South Lake Tahoe Management’s Discussion and Analysis long-term assets and liabilities. The Statement of Net Position also presents consolidated enterprise funds. As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City of South Lake Tahoe, assets exceeded liabilities by $195,326,252 at the close of the most recent fiscal year.
The largest portion of the City’s net position, $143,940,602 or 73.7 percent reflects its net investment in capital assets (i.e. land, buildings, machinery and equipment, streets, net of accumulated depreciation).
The City of South Lake Tahoe uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City of South Lake Tahoe’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities.
An additional portion of the City of South Lake Tahoe’s net position, $69,194,129 or 35.4 percent represents resources that are subject to external restrictions on how they may be used. The remaining balance of $(17,808,479) represents an unrestricted deficit net position.
The Statement of Net Position is presented below in a condensed form for purposes of this analysis.
At the end of FY 2023-24, the City of South Lake Tahoe reported positive balances in two out of three categories of net position for the government as a whole and for its governmental activities, and all positive balances for its business-type activities. At year-end, 93.0 percent of the City’s business-type activities’ net position was invested in capital assets, while for governmental activities this category amounted to 70.7 percent.
2024 2023 2024 2023 2024 2023
Assets
Current and other assets $ 202,586,821 $ 210,144,113 $ 4,392,448 $ 10,162,072 $ 206,979,269 $ 220,306,185 Capital assets 142,190,010 110,518,281 24,396,917 25,739,498 166,586,927 136,257,779 Total assets 344,776,831 320,662,394 28,789,365 35,901,570 373,566,196 356,563,964 Deferred Outflows of Resources
Deferred amount on refunding 31,332 68,931 - - 31,332 68,931 Deferred outflows related to pensions 19,278,419 26,935,791 111,876 238,471 19,390,295 27,174,262 Total deferred outflows 19,309,751 27,004,722 111,876 238,471 19,421,627 27,243,193 Liabilities
Long-term debt 71,608,294 75,850,073 30,332 5,594,568 71,638,626 81,444,641 Other liabilities 29,755,551 22,362,910 253,552 321,816 30,009,103 22,684,726 Net pension liability 91,211,747 94,065,493 2,418,206 2,100,420 93,629,953 96,165,913 Total liabilities 192,575,592 192,278,476 2,702,090 8,016,804 195,277,682 200,295,280 Deferred Inflows of Resources
Deferred inflows related to pensions 2,383,889 4,249,326 - 2,967 2,383,889 4,252,293 Net Position
Net investment in capital assets 119,574,017 99,349,106 24,366,585 20,144,930 143,940,602 119,494,036 Restricted 69,176,844 69,787,821 17,285 2,807,542 69,194,129 72,595,363 Unrestricted (19,623,760) (17,997,613) 1,815,281 5,167,798 (17,808,479) (12,829,815) Total net position $ 169,127,101 $ 151,139,314 $ 26,199,151 $ 28,120,270 $ 195,326,252 $ 179,259,584 September 30, 2024 and 2023
Governmental Activities Business-type Activities Total
City of South Lake Tahoe
Net Position
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City of South Lake Tahoe Management’s Discussion and Analysis The City’s overall net position increased $16,066,668, or 9.0 percent from prior fiscal year, as reflected below in the Changes in Net Position table. The reasons for this overall increase are discussed separately in the sections for governmental activities and business-type activities.
Governmental Activities. The City’s governmental activities rely on several sources of revenue to finance ongoing operations. Transient occupancy taxes, sales taxes, and charges for services were the largest revenue sources for the City followed by property taxes, other revenue, operating grants and contributions, and other taxes. Charges for services are revenues that arise from charges to customers or applicants who purchase, use, or directly benefit from the goods, services, or privileges provided.
Examples of the types of services that fall under this category include building licenses and permits, business license fees, impact fees, and park and recreation fees. Other revenue category includes special assessments, miscellaneous reimbursements, use of money and property, and all other miscellaneous revenue. The main components of Other taxes category are property tax in lieu of Motor Vehicle License Fee (MVLF) and tourism improvement district fees passed through to improvement districts.
At the end of FY 2023-24, total revenues for the governmental activities were $100,445,064, a decrease 2024 2023 2024 2023 2024 2023
REVENUES:
Program revenues:
Charges for services $ 16,551,866 $ 17,261,925 $ 3,178,430 $ 3,021,228 $ 19,730,296 $ 20,283,153 Operating grants and contributions 7,687,826 15,255,284 - - 7,687,826 15,255,284 Capital grants and contributions 3,136,149 3,322,534 921,050 378,043 4,057,199 3,700,577 General revenues:
Property taxes 11,846,421 11,158,434 - - 11,846,421 11,158,434 Sales taxes 20,093,107 20,274,021 8,991 - 20,102,098 20,274,021 Transient occupancy taxes 21,540,142 21,593,360 - 21,540,142 21,593,360 Franchise taxes 2,282,688 1,924,053 - - 2,282,688 1,924,053 Other taxes 6,968,598 6,627,271 - - 6,968,598 6,627,271 Other revenue 10,338,267 4,585,634 305,369 1,438,525 10,643,636 6,024,159 Total revenues 100,445,064 102,002,516 4,413,840 4,837,796 104,858,904 106,840,312 EXPENSES:
General government 20,525,822 19,993,362 - - 20,525,822 19,993,362 Public safety 30,040,700 23,432,803 - - 30,040,700 23,432,803 Public works 12,736,086 11,905,095 - - 12,736,086 11,905,095 Parks and recreation 8,680,644 8,081,204 - - 8,680,644 8,081,204 Streets 7,214,554 7,923,603 - - 7,214,554 7,923,603
Interest on long-term debt 3,344,471 1,025,252 - - 3,344,471 1,025,252 Transit - - 287,198 313,613 287,198 313,613
Airport - - 4,330,762 3,591,720 4,330,762 3,591,720
Parking garage - - 1,597,410 1,593,074 1,597,410 1,593,074 Parking managements - - 34,589 52,023 34,589 52,023
Total expenses 82,542,277 72,361,319 6,249,959 5,550,430 88,792,236 77,911,749 Increase (decrease) in net position
before special items and transfers 17,902,787 29,641,197 (1,836,119) (712,634) 16,066,668 28,928,563 Transfers 85,000 (1,953) (85,000) 1,953 - - Increase (decrease) in net position 17,987,787 29,639,244 (1,921,119) (710,681) 16,066,668 28,928,563 Net position - beginning 151,139,314 121,500,070 28,120,270 28,830,951 179,259,584 150,331,021 Net position - ending $ 169,127,101 $ 151,139,314 $ 26,199,151 $ 28,120,270 $ 195,326,252 $ 179,259,584 City of South Lake Tahoe
Changes in Net Position
Governmental Activities Business-type Activities Total
For the Fiscal Years Ended September 30, 2024 and 2023
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City of South Lake Tahoe Management’s Discussion and Analysis of approximately $1.6 million or 1.5 percent from the previous year. General revenues increased $6.9 million primarily due to an increase in Other revenue which consists of the Use of money and property and the Miscellaneous revenue categories. These revenues increased as a result of higher investment earnings and upward fair market value adjustments. The increase in General Revenues was offset by a decrease in Program revenues of $8.5 million from the previous year primarily due to the receipt of two $5.0 million Permanent Local Housing Allocation (PLHA) grants in the prior year that were loaned for the construction of the Sugar Pine Village Affordable Housing Project. This decrease is reflected in the Operating grants and contributions category.
Expenses totaled $82,542,277, an increase of $10.2 million or 14.1 percent from the prior year. An increase in public safety totaling $6.6 million accounted for the majority of the increase and was attributed to changes related to pensions per GASB Statement No. 68 and increases in payroll costs.
Interest on long term debt increased by $2.3 million, primarily due to commencing debt service payments on the Lease Revenue Bonds 2023 Series A.
The following chart presents a comparison of expenses by function and the associated program revenues for governmental activities.
Business-type Activities. The City has four business-type activities: Airport, Parking Garage, Parking Management Program, and Transit. The net position for business-type activities at the end of FY 2023- 24 was $26,199,151. Total program revenues were $4,099,480, an increase of $700,209 or 20.6 percent compared to the prior year. These program revenues consist primarily of airport and parking garage charges for services which grew 5.2 percent or $157,202. Capital grants and contributions revenue grew 143.6 percent or $543,007 due to an increase at the airport that received Federal Aviation Administration (FAA) funding for the Airport Master Plan Study and Pavement Maintenance Project. Total expenses were $6,249,959, of which approximately 94.9 percent was related to the airport and parking garage operations. Overall net position decreased by $1,921,119 within business-type activities primarily due to the Airport utilizing its available fund balance resources accumulated in prior fiscal years.
Financial Analysis of Governmental Funds
As noted earlier, the City of South Lake Tahoe uses fund accounting to ensure and demonstrate $
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City of South Lake Tahoe Management’s Discussion and Analysis compliance with finance-related legal requirements.
Governmental Funds. The focus of the City’s governmental funds is to provide information on nearterm inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.
In conformity with Governmental Accounting Standards Board (GASB) Statement 34, the City classifies governmental funds as major and non-major funds. Major funds are defined as funds that have either assets, liabilities, deferred outflows of resources, deferred inflows of resources, revenues or expenditures equal to ten percent of their fund-type total and five percent of the grand total. The General Fund is always a major fund. The City may also select other funds to be presented as major funds because of relevance to financial statement users.
There are five major funds in the Governmental Funds category in FY 2023-24. The table below presents a comparison of the fund balance for each of these five funds between 2022-23 and 2023-24, as well as a consolidated comparison for all non-major governmental funds for the same time period.
As of the end of FY 2023-24, the City’s governmental funds reported combined ending fund balances of $131,375,906, a decrease of $17,604,379, or 11.8 percent in comparison to the prior year. Reasons for this decrease are discussed below.
The General Fund is the chief operating fund of the City of South Lake Tahoe. At the end of the current fiscal year, unassigned fund balance of the General Fund was $31,159,577, while total fund balance decreased to $39,253,978. As a measure of the General Fund’s liquidity, it may be useful to compare only the unassigned fund balance to total fund expenditures (before transfers). Unassigned fund balance represents 61.8 percent of the total General Fund expenditures, mostly related to daily operations of the City.
The total fund balance of the City’s General Fund (including non-spendable and restricted balances) decreased by $317,926, or 0.8 percent. Total revenues increased by $2,805,031, or 4.3 percent due to increases in several categories. The largest increase was in the use of money and property category, which grew $1,411,168 or 114.5 percent primarily due to increases in interest income. Taxes and assessments category which primarily consists of transient occupancy tax, sales tax, and property tax, increased $928,550 or 1.8 percent. Property tax, the largest driver of this increase, grew 7.0 percent or $741,857 while transient occupancy tax in the redevelopment area increased 3.4 percent or $248,491.
Sales tax including Measure Q and City transient occupancy tax both decreased compared to the prior year by 1.6 percent or $184,819 and 2.5 percent or $277,789, respectively. Fines and penalties revenue increased by 24.8 percent or $246,648 primarily due to the enhanced code and parking enforcement program while other revenue, which consists primarily of reimbursements, increased by $522,880 or
83.9 percent, contributing to the overall revenue growth for the General Fund.
September 30, September 30, Increase (Decrease)
Governmental Fund Balances 2024 2023 From 2023
General Fund $ 39,253,978 $ 39,571,904 $ (317,926)
City Housing & ED Fund 3,179,112 7,100,127 (3,921,015)
Measure P Recreation 13,097,292 13,661,100 (563,808)
City Capital Projects Fund 21,144,804 16,816,708 4,328,096 City Debt Service 43,313,675 58,355,440 (15,041,765)
Other Governmental Funds 11,387,045 13,475,006 (2,087,961) Total Governmental Fund Balances $ 131,375,906 $ 148,980,285 $ (17,604,379) 25 559
City of South Lake Tahoe Management’s Discussion and Analysis General Fund expenditures increased $5,078,824 or 11.2 percent when compared to prior year. Part of this increase is attributed to increased salaries and benefit costs, while the remaining increase is due to higher utilities expense, technical and professional services, equipment purchases, and software implementation costs city-wide. Total General Fund revenues exceeded total expenditures by $17,339,171 at the end of FY 2023-24, before transfers. This excess allowed the City to finance several capital projects and make several capital purchases. The total transfer out of $18,603,545 for these and other purposes increased from the previous fiscal year by $3,434,576. Measure S sales tax which went into effect in April 2021 and is dedicated specifically to road rehabilitation, snow and street equipment replacement, fire prevention and emergency response projects, transferred out approximately $9.1 million for the related projects. The increases to expenditures and transfers out contributed to an approximate $1.6 million decrease in unassigned fund balance for the General Fund.
The City Housing and Economic Development Fund was established to account for restricted former redevelopment tax allocation set-asides for low and moderate income housing, CDBG, and HOME funds. Total revenue in this fund decreased by $9,466,552 compared to the prior fiscal year, which included two $5 million grants received towards the loans for the construction of the Sugar Pine Village Affordable Housing Project, as reflected in the Intergovernmental revenue category. Charges for current services increased by $341,894 while total expenditures decreased 1 percent compared to prior year. The total fund balance in this fund decreased by $3,921,015, ending FY 2023-24 at $3,179,112.
The Measure P Recreation fund was established in fiscal year 2016-17 to account for collection of an additional 2 percent Transient Occupancy Tax, a special tax, to be used for the purpose of construction, operation and maintenance of recreational facilities. Total taxes collected decreased $23,921, or 0.7 percent over the previous fiscal year while interest revenue increased $370,021 or 86.6 percent. Transfers out to the City Capital Project Fund are for the construction of the new Recreation Center and totaled $4,746,615 for fiscal year 2023-24, an increase of $3,375,573 compared to prior year. The total fund balance was $13,097,292 at the end of the fiscal year.
The ending fund balance in the City Capital Projects Fund was $21,144,804, an increase of $4,328,096 from prior year. Revenue and other financing sources in this fund consist of grant funds from various granting agencies as well as transfers in from the City’s Primary General Fund, Measure S Sales Tax general fund, and Measure P Recreation fund. Total transfers in for Street Overlay Program, Recreation Center construction and several other projects totaled $31.6 million, a $23.5 million increase compared to prior year. Expenditures totaled $34.9 million, an increase of $24.7 million primarily due to construction costs incurred for the new Recreation Center.
The City Debt Service Fund was established to account for financing and debt service activities within the City. The fund ended the year with a balance of $43,313,675, mostly in the restricted category. The $15,041,765 fund balance decrease from prior year occurred due to usage of proceeds from issuance of Lease Revenue Bonds 2023 Series A for construction of the new Recreation Center.
The fund balances of other governmental funds consist of 38 special revenue funds, some of which were combined for financial statement presentation purposes. The total fund balance of the City’s non-major governmental funds was $11,387,045, a decrease of $2,087,961. Within these special revenue funds, the balances of 18 funds increased over the course of the fiscal year, 11 funds experienced a drop, while 2 had no change in fund balance. The largest fund balance increase among other governmental funds, which amounted to a $239,076, was in the Vehicle Replacement fund while the largest decrease in the fund balance among these funds, $2,024,183, was in the Snow Removal fund which utilized the accumulated fund balance from prior year to pay for snow removal equipment purchases in the current fiscal year.
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City of South Lake Tahoe Management’s Discussion and Analysis Proprietary Funds. Proprietary funds are comprised of enterprise and internal service funds. The unrestricted net position of all enterprise funds at the end of the year amounted to $1,815,281 while the unrestricted net position of all internal service funds was $1,796,710 at the end of FY 2023-24. Net position for all proprietary funds decreased $1,204,205 compared to prior year. The following table summarizes changes in overall net position from prior fiscal year individually by enterprise fund and as a total for all internal service funds.
The total net position of enterprise funds decreased by $1,921,119 due to Airport and Transit funds utilizing their existing fund balances accumulated in prior fiscal years. These decreases were netted with an increase in the Parking Management net position primarily due to higher paid parking fees and an increase in the Parking Garage primarily due to lower interest expense.
The total net position of internal service funds increased by $716,914 during FY 2023-24. This increase is primarily attributed to investment income and charges for services revenues exceeding claims expense within the Workers’ Compensation Self Insurance fund.
General Fund Budgetary Highlights
Original budget compared to final budget. During the fiscal year, all four categories of the original budget – estimated revenues, budgeted appropriations, other financings sources and other financing uses, increased. The overall budgeted appropriations increased by $5,376,587. This increase included appropriations carryforward from the previous year for several projects and contracts that cross multiple fiscal years totaling $704,959, and mid-year budget review adjustments totaling $2,365,790 which included increases to CalPERS Unfunded Accrued Liability (UAL), various capital purchases, and increases to staffing. A $7,000,035 increase in other financing uses was primarily for transfers out to capital projects as well as to the streets and snow funds among other uses. Other financing sources increased $759,354 largely due to transfers in from and Measure S sales tax fund and defensible space and fuels reduction special revenue fund.
Final budget compared to actual results. The most significant differences between estimated revenues and actual revenues and budgeted appropriations and actual expenditures were as follows:
Use of money and property category positive budgetary performance is primarily due to higher than budgeted interest income.
Taxes and assessments category reflects positive budgetary performance primarily in Property Tax which ended the year $534,911 higher than budgeted. Measure S Sales Tax collections ended the year approximately $0.3 million higher than final budget and contributed to the overall taxes and assessments category budget variance. Franchise tax and property tax in lieu of Motor Vehicle License Fee (MVLF) also performed better than anticipated.
September 30, September 30, Increase (Decrease)
Proprietary Funds Net Position 2024 2023 From 2023
Airport $ 16,636,224 $ 18,599,502 $ (1,963,278)
Transit 3,311,056 3,388,372 (77,316)
Parking Garage 5,971,753 5,933,681 38,072
Parking Management 280,118 198,715 81,403
Total Enterprise Funds 26,199,151 28,120,270 (1,921,119) Internal Service Funds 1,796,710 1,079,796 716,914
Total Proprietary Funds Net Position $ 27,995,861 $ 29,200,066 $ (1,204,205) 27 561
City of South Lake Tahoe Management’s Discussion and Analysis The variance in Intergovernmental revenue is due to an approved grant that funds a project crossing multiple years.
Other revenue was higher than anticipated primarily as a result of fire overtime reimbursements. All general fund departments, with the exception of Parks and recreation, had expense savings that were attributed in part to salary savings as well as savings in other categories such as professional services, machinery and equipment, and supplies. The largest expense savings occurred in Capital Outlay primarily due to a $1.0 million land purchase that occurred during the fiscal year, which was reclassified to Land Held for Redevelopment, an asset item. The total general fund encumbered amount carried forward into FY 2024-25 amounted to $1,174,658.
Capital Asset and Debt Administration
Capital Assets. The City’s investment in capital assets for its governmental and business-type activities as of September 30, 2024, amounted to $166,586,927 (net of accumulated depreciation). This investment in capital assets includes land, intangibles, construction in progress, buildings, improvements, machinery Revenue source
Estimated
Revenues
Actual
Revenues
Taxes and assessments $ 50,466,562 $ 51,304,323 $ 837,761 Use of money and property $ 1,248,065 $ 2,643,542 $ 1,395,477 Intergovernmental revenue $ 4,085,529 $ 3,375,179 $ (710,350) Other revenue $ 458,777 $ 1,145,745 $ 686,968
Expenditures function
Budgeted
Appropriations
Actual
Expenditures
General government $ 14,467,162 $ 13,249,538 $ 1,217,624 Public Safety $ 26,300,332 $ 25,196,338 $ 1,103,994
Public Works $ 7,907,167 $ 6,938,083 $ 969,084
Parks and recreation $ 3,823,432 $ 4,136,360 $ (312,928) Capital outlay $ 2,198,191 $ 914,766 $ 1,283,425
Variance with
Final Budget
Variance with
Final Budget
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City of South Lake Tahoe Management’s Discussion and Analysis and equipment, bike paths, streets and streetscape, runways, and basin and stream environment zone (SEZ) construction.
Major capital asset events in governmental activities during the fiscal year included the addition of $31.8 million to construction in progress, primarily for the construction of the new Recreation Center as well as the capitalization of $4.5 million in furniture and equipment. Within business-type activities, the City capitalized $1.4 million from construction in progress to runways for taxilane replacements at the airport and a total of $193,930 in building improvements at the Parking Garage. The majority of other changes are due to a reduction for depreciation and disposal of replaced or old and unused assets. A condensed version of the City’s capital assets, net of depreciation, is presented in the following table:
Additional information on the City of South Lake Tahoe’s capital assets can be found in Note 6 to the basic financial statements.
Long-term debt. At the end of the current fiscal year, the City’s total long-term debt outstanding decreased by $9,806,015 or 12.0 percent from the prior year. This decrease largely resulted from early payoff of the Parking Revenue Refunding Bonds 2013 Series A within Business-type activities in addition to routine debt service payments. A condensed version of the City’s outstanding long-term debt is presented in the following table:
Additional information on the City of South Lake Tahoe’s long-term debt can be found in Note 8 to the basic financial statements.
2024 2023 2024 2023 2024 2023
Land $ 8,500,153 $ 8,342,653 $ 4,288,170 $ 4,288,170 $ 12,788,323 $ 12,630,823 Intangibles 824,258 824,258 - - 824,258 824,258
Construction in progress 45,418,338 13,575,746 100,236 1,250,046 45,518,574 14,825,792 Buildings 4,935,765 5,264,772 5,720,807 5,971,707 10,656,572 11,236,479 Vehicles and Equipment 10,060,986 7,096,871 594,886 772,606 10,655,872 7,869,477 Improvements other than buildings 1,218,027 1,150,956 - - 1,218,027 1,150,956 Bike Paths 8,757,164 9,444,776 - - 8,757,164 9,444,776
Streets 12,119,646 13,448,819 - - 12,119,646 13,448,819 Streetscape 3,854,911 4,152,092 - - 3,854,911 4,152,092 Sidewalks, curbs, gutters, lighting 5,834,223 6,114,705 - - 5,834,223 6,114,705 Runways - - 13,692,818 13,456,969 13,692,818 13,456,969 Basin and SEZ construction 40,217,156 41,102,633 - - 40,217,156 41,102,633 Right to use leased equipment 449,383 - - - 449,383 - Total $ 142,190,010 $ 110,518,281 $ 24,396,917 $ 25,739,498 $ 166,586,927 $ 136,257,779 Governmental Activities Business-type Activities Total
City of South Lake Tahoe
Capital Assets (Net of depreciation)
September 30, 2024 and 2023
2024 2023 2024 2023 2024 2023
Revenue bonds 59,110,962$ 60,651,488$ -$ 5,555,000$ 59,110,962$ 66,206,488$ Taxable Pension Obligation Bonds 4,455,000 5,745,000 - - 4,455,000 5,745,000 COPs 4,230,000 4,395,000 - - 4,230,000 4,395,000
Loans payable 115,706 171,015 30,332 39,568 146,038 210,583 Finance purchase obligations 3,696,626 4,887,570 - - 3,696,626 4,887,570 Total 71,608,294$ 75,850,073$ 30,332$ 5,594,568$ 71,638,626$ 81,444,641$ Governmental Activities Business-type Activities Total
City of South Lake Tahoe
Summary of Outstanding Long-term Debt
September 30, 2024 and 2023
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City of South Lake Tahoe Management’s Discussion and Analysis Credit Rating. In August 2017, Standard & Poor's Ratings Services raised its long-term rating to ‘BBB’ from ‘BBB-‘ on South Tahoe Joint Powers Financing Authority 2014 and 2015 tax allocation refunding bonds (TARBs) issued for the Successor Agency (SA) to the South Tahoe Redevelopment Agency (RDA) to refund SA’s outstanding 1999A, 2003A, 2004A and 2005A tax allocation bonds. At the same time, Standard & Poor’s assigned its ‘BBB‘ long-term rating to the 2017 Series A TARBs. The outlook on all ratings is stable.
In February 2018, Standard & Poor’s Global Ratings (formerly Standard & Poor’s Ratings Services) raised its rating from ‘AA-‘ to ‘AA’ on the South Tahoe Joint Powers Financing Authority 2014 pension obligation bonds (POBs) issued on behalf of the City. Subsequently, in September 2018, Standard & Poor’s Global Ratings upgraded its Local Currency Long-Term Rating on the 2014 bonds from ‘AA’ to ‘AA+’. At the same time, S&P Global Ratings raised its Local Currency Long-Term Rating on the authority’s 2012 certificates of participation (COP) and in addition its Underlying Rating on 2016 Series A lease revenue refunding bonds from ‘AA-‘ to ‘AA’ while affirming the stable outlook for all three issuances.
In July 2023, Standard & Poor’s Global Ratings assigned its 'AA' long-term rating to the South Tahoe Joint Powers Financing Authority’s anticipated $52.0 million series 2023A lease revenue bonds, issued on behalf of the City of South Lake Tahoe. At the same time, S&P Global Ratings affirmed its 'AA' and 'AA+' long-term and underlying rating on the city's outstanding appropriation debt and pension obligation bonds (POBs), respectively. The outlook on all ratings is stable. Subsequently, the series 2023A lease revenue bonds were issued on August 16, 2023, in the principal amount of $51,300,000.
In July 2023, Standard & Poor’s Global Ratings also raised its long-term rating and underlying rating (SPUR) on the South Tahoe Joint Powers Financing Authority, Calif.'s outstanding 2014, 2015, and 2017 revenue refunding bonds issued for the Successor Agency (SA) to the South Tahoe Redevelopment Agency to 'BBB+' from 'BBB'. The outlook is stable. This rating action relates to the correction of an error in the application of S&P criteria. The outstanding bonds should have been analyzed under the "priority-lien tax revenue debt criteria" since it supplanted the special tax bonds criteria on Oct. 22, 2018.
Lastly, the rating action also reflects assessment of key credit factors such as coverage, volatility, and economic fundamentals measured under priority-lien criteria.
Economic Factors and Next Year’s Budgets and Rates
The following economic factors currently affect the City of South Lake Tahoe and were considered in developing the 2024-25 fiscal year budget:
Several outside financial pressures continue to impact the City's fiscal health, including inflation, regulatory issues and policies, and the volatility of the insurance market. While the South Lake Tahoe economy is strong, economic growth is slow, and the City’s revenue growth is also expected to slow.
Given these ongoing external challenges, maintaining a fiscally responsible approach is essential.
Although inflation seems to be cooling with a 2.5% year-over-year increase as of August 2024, there are no expectations for a return to pre-pandemic levels in the near future. This sustained inflation directly affects the cost of goods and services the City procures, necessitating prudent management of growing expenditures to ensure financial stability. Unemployment rates, a key indicator of the labor market, have shown a slight increase for the fiscal year ending September 2024 compared to fiscal year ending September 2023. The national unemployment rate rose to 3.9%, up from 3.6%. In South Lake Tahoe, the unemployment rate was reported at 4.1%, representing a 0.7% increase.
Meanwhile, California's unemployment rate remains higher than the national average, standing at
5.3%. This trend indicates ongoing challenges in the labor market, necessitating targeted efforts to support job creation and workforce development.
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City of South Lake Tahoe Management’s Discussion and Analysis FY 2024-25 General Fund revenues (excluding Measure S Sales Tax) are projected to be $0.4 million higher than the 2023-24 total budget. The total budgeted General Fund revenues equal approximately $60.2 million. The top three revenue sources, Property Tax, Sales Tax (including Measure Q), and Transient Occupancy Tax (excluding Redevelopment TOT) comprise approximately 55 percent of the total primary General Fund revenues for the 2024-25 fiscal year. Measure S, a 1 percent local sales tax approved by voters in November 2020, is a revenue source exclusively used by the City and helps fund South Lake Tahoe fire protection, emergency response, snow equipment replacement, and city streets and roads repair. Measure S is expected to generate $7.8 million in fiscal year 2024-25, an increase of 3.0% over prior year. Property tax was the largest revenue stream for the City’s General Fund in 2023-24 and totaled approximately $11.4 million. This is an increase of 7.0% over the prior year and is 75% higher compared to actual revenue at its peak in 2008-09 prior to the Great Recession that began with the bursting of the housing bubble and resulted in housing prices to decline, reaching new lows in 2011- 2012. In September 2024, South Lake Tahoe home prices were up 4.2% compared to the prior year, selling for a median price of $745K. Property tax revenue represents 19% of primary General Fund revenues in fiscal year 2024-25 budget.
Sales tax, including Measure Q, was the second largest revenue stream for the City’s General Fund in 2023-24 totaling $11.1 million and was 1.6% lower compared to fiscal year 2022-23 actuals. In fiscal 2024-25, total sales tax is budgeted at $11.2 million, an increase of approximately 1% over the 2023-24 total budget. Sales tax revenue comprises 19% of the budgeted 2024-25 primary General Fund revenues.
Transient occupancy tax (TOT), the third largest revenue stream for the City’s General Fund in 2023- 24, totaled $10.6 million, a 2.5% decrease compared to fiscal year 2022-23 actuals. Despite the volatility, tourism continues to be a primary economic driver for the city. In fiscal year 2024-25 budget, City TOT was budgeted at $10.8 million (including audits), a 1.0% decrease compared to the 2023-24 amended budget and representing 18% of the total main General Fund revenues. Transient Occupancy Tax from the former Redevelopment Agency's Project Area #1 is budgeted at $7.6 million in fiscal year 2024-25 budget which is flat compared to the prior year's amended budget.
While City TOT (including audits) was down 2.5% compared to fiscal year 2022-23, TOT in the Redevelopment Area was up $248K, or 3.4%.
At the end of FY 2023-24, the unassigned fund balance in the general fund was $31,159,577. The 2024-25 fiscal year adopted budget was balanced using expected revenues and existing resources for one-time expense when necessary.
Requests for Information
This Annual Comprehensive Financial Report is designed to provide citizens, taxpayers, investors, and creditors with an assessment of the City’s financial position. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City of South Lake Tahoe Finance Department, at 1901 Lisa Maloff Way, Suite 210, South Lake Tahoe, CA 96150.
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See Notes to Financial Statements
City of South Lake Tahoe, California
Statement of Net Position
September 30, 2024
Governmental Business-Type
Activities Activities Total
Assets
Cash and investments (Note 3) 89,285,414 $ $ 4,111,140 $ 93,396,554 Restricted cash and investments (Note 3) 48,646,869 17,285 48,664,154 Accounts receivable 10,638,713 234,400 10,873,113
Interest receivable 496,261 - 496,261
Inventory 280,703 - 280,703
Prepaid items 265,156 29,623 294,779
Land held for resale 1,332,110 - 1,332,110
Advances to RDA Successor Agency 5,289,178 - 5,289,178
Loans receivable (Note 5) 46,352,417 - 46,352,417
Capital assets (Note 6)
Nondepreciable 54,742,749 4,388,406 59,131,155
Depreciable, net 86,997,878 20,008,511 107,006,389
Right to use lease assets, net 449,383 - 449,383
Total assets 344,776,831 28,789,365 373,566,196
Deferred Outflows of Resources
Deferred amount on refunding 31,332 - 31,332
Deferred outflows related to pensions 19,278,419 111,876 19,390,295 Total deferred outflows of resources 19,309,751 111,876 19,421,627 Liabilities
Accounts payable 9,991,731 151,224 10,142,955
Accrued expenses 1,613,526 - 1,613,526
Deposits 2,835,236 61,237 2,896,473
Due to developers 690,154 1,352 691,506
Unearned revenue 1,467,614 - 1,467,614
Accrued Interest 1,502,013 - 1,502,013
Compensated absences (Note 9)
Due within one year 3,350,978 39,739 3,390,717
Uninsured losses payable (Note 12)
Due within one year 2,219,719 - 2,219,719
Due in more than one year 4,989,586 - 4,989,586
Lease liability (Note 7)
Due within one year 31,863 - 31,863
Due in more than one year 312,547 - 312,547
Long-term liabilities due in more than one year
Net pension liability (Note 11) 91,211,747 2,418,206 93,629,953 Arbitrage liability 750,584 - 750,584
Long-term debt (Note 8)
Due within one year 4,855,384 9,660 4,865,044
Due in more than one year 66,752,910 20,672 66,773,582
Total liabilities 192,575,592 2,702,090 195,277,682
Deferred Inflows of Resources
Deferred inflows related to pensions 2,383,889 2,383,889 - Total deferred inflows of resources 2,383,889 2,383,889 - 33 567
See Notes to Financial Statements
City of South Lake Tahoe, California
Statement of Net Position
September 30, 2024
Governmental Business-Type
Activities Activities Total
Net Position (Note 10)
Net investment in capital assets $ 119,574,017 $ 24,366,585 $ 143,940,602 Restricted for
Debt service - 17,285 17,285
Public safety 1,225,384 1,225,384 -
Snow removal 1,736,679 1,736,679 -
Housing and economic development 48,252,511 48,252,511 - Community and tourism improvement 1,832,466 1,832,466 - Parks and recreation projects 13,097,292 13,097,292 -
Capital projects 358,480 - 358,480
Transportation 550,010 - 550,010
Solid waste 19,405 - 19,405
Vehicle replacement 1,664,577 1,664,577 -
PEG program 272,883 - 272,883
Erosion control 167,157 - 167,157
Total restricted net position 69,176,844 17,285 69,194,129 Unrestricted (19,623,760) 1,815,281 (17,808,479)
Total net position $ 169,127,101 $ 26,199,151 $ 195,326,252 34 568
See Notes to Financial Statements
City of South Lake Tahoe, California
Statement of Activities
Year Ended September 30, 2024
Operating Capital
Charges for Grants and Grants and Governmental Business-type Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Governmental Activities
General government 20,525,822 $ $ 7,947,854 $ 3,029,431 $ (9,548,537) - $ $ (9,548,537) - $ Public safety 30,040,700 3,931,450 788,792 58,580 (25,261,878) (25,261,878) - Public works 12,736,086 3,945,179 1,116,981 3,077,569 (4,596,357) (4,596,357) - Parks and recreation 8,680,644 578,361 152,236 (7,950,047) - (7,950,047) - Streets 7,214,554 149,022 2,600,386 (4,465,146) - (4,465,146) - Interest on long-term debt 3,344,471 - - (3,344,471) - (3,344,471) - Total governmental acƟviƟes 82,542,277 16,551,866 7,687,826 3,136,149 (55,166,436) - (55,166,436) Business-type Activities
Transit 287,198 179,233 - - (107,965) - (107,965)
Airport 4,330,762 1,655,518 591,050 - (2,084,194) - (2,084,194) Parking garage 1,597,410 1,156,010 330,000 - (111,400) - (111,400) Parking management 34,589 187,669 - - 153,080 - 153,080 Total business-type activities 6,249,959 3,178,430 921,050 - (2,150,479) - (2,150,479) Total $ 88,792,236 $ 19,730,296 $ 7,687,826 $ 4,057,199 (55,166,436) (2,150,479) (57,316,915) General Revenues
Taxes
Property taxes 11,846,421 11,846,421 -
Sales taxes 20,093,107 20,102,098 8,991
Transient occupancy taxes 21,540,142 21,540,142 -
Franchise taxes 2,282,688 2,282,688 -
Other taxes 6,968,598 6,968,598 -
Use of money and property 8,311,325 292,705 8,604,030
Miscellaneous 2,026,942 12,664 2,039,606
Total general revenues 73,069,223 314,360 73,383,583
Transfers (Note 4A) 85,000 (85,000) -
Change in Net Position 17,987,787 (1,921,119) 16,066,668 Net Position-Beginning 151,139,314 28,120,270 179,259,584 Net Position-Ending $ 169,127,101 $ 26,199,151 $ 195,326,252 Net (Expense) Revenue and
Program Revenues Changes in Net Position
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City of South Lake Tahoe, California
Major Governmental Funds
September 30, 2024
The funds described below were determined to be Major Funds by the City in fiscal year 2024. Individual non-major funds may be found in the Supplemental section.
General Fund – The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. The major revenue sources for this Fund are sales taxes, property taxes, unrestricted revenues from the State, fines and forfeitures and interest income.
Expenditures are incurred for public safety, public works, development services, parks and recreation, and general government.
City Housing & Economic Development Fund – Established to account for restricted Community Development Block Grant (CDBG), HOME Investment Partnership Program (HOME) and other funds obtained for the purpose of increasing or improving the City’s supply of low or moderate-income housing.
Measure P Recreation Fund – Established to account for the 2% Transient Occupancy Taxes collected for the purpose of construction, operation and maintenance of recreational facilities.
City Capital Projects Fund – Established to account for the construction and maintenance of the City’s projects.
Funding sources for the City Capital Projects Fund are the General Fund, other City funds, as well as grant funds from various granting agencies.
City Debt Service Fund – Established to account for the financing and debt service activities within the City. 37 571
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See Notes to Financial Statements
City of South Lake Tahoe, California
Balance Sheet – Governmental Funds
September 30, 2024
City Housing
& Economic City City Other Total
Development Measure P Capital Debt Governmental Governmental General Fund Fund Recreation Projects Fund Service Funds Funds Assets
Cash and investments (Note 3) 31,155,964 $ $ 3,250,680 $ 12,727,656 $ 21,565,192 $ 970,966 $ 11,701,585 $ 81,372,043 Restricted cash and investments (Note 3) - - - - 48,627,654 - 48,627,654 Accounts receivable 7,515,804 343,211 369,636 1,594,337 - 815,725 10,638,713 Interest receivable 496,261 - - - - - 496,261
Due from other funds (Note 4B) 208,638 - - 6,354,297 - - 6,562,935 Prepaid items 168,303 - - - 96,853 - 265,156
Inventory 280,703 - - - - - 280,703
Land held for resale 1,332,110 - - - - - 1,332,110
Loans receivable (Note 5) 1,279,018 45,073,399 - - - - 46,352,417 Advances to other funds (Note 4C) - - - 23,813 - - 23,813 Advances to RDA Successor Agency (Note 4C) 4,638,627 - - - - 317,809 4,956,436 Total assets 47,075,428 $ 48,667,290 $ 13,097,292 $ 29,537,639 $ 49,695,473 $ 12,835,119 $ 200,908,241 $ Liabilities
Accounts payable 1,618,484 $ $ 57,309 $ 7,692,346 - $ $ 3,688 $ 614,813 $ 9,986,640 Accrued expenditures 1,613,526 - - - - - 1,613,526
Due to other funds (Note 4B) - - - - 6,354,297 208,638 6,562,935 Deposits 2,520,268 314,968 - - - - 2,835,236
Due to developers 690,154 - - - - - 690,154
Unearned revenue 100,000 42,502 - 700,489 - 624,623 1,467,614 Advances from other funds (Note 4C) - - - - 23,813 - 23,813 Total liabilities 6,542,432 414,779 - 8,392,835 6,381,798 1,448,074 23,179,918 Deferred Inflows of Resources
Unavailable revenue - revolving loans 1,279,018 45,073,399 - - - - 46,352,417 Fund Balances (Note 10)
Nonspendable 6,419,743 - - - 96,853 - 6,516,596
Restricted - 3,179,112 13,097,292 - 43,216,822 8,076,068 67,569,294 Committed 500,000 - - 21,120,991 - 1,126,152 22,747,143 Assigned 1,174,658 - - 23,813 - 2,207,440 3,405,911
Unassigned 31,159,577 - - - (22,615) - 31,136,962
Total fund balances 39,253,978 3,179,112 13,097,292 21,144,804 43,313,675 11,387,045 131,375,906 Total liabilities, deferred inflows
of resources and fund balances $ 47,075,428 $ 48,667,290 $ 13,097,292 $ 29,537,639 $ 49,695,473 $ 12,835,119 $ 200,908,241 39 573
See Notes to Financial Statements
City of South Lake Tahoe, California
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position September 30, 2024
Total fund balances reported on the governmental funds balance sheet $ 131,375,906 Amounts reported for governmental activities in the statement of net position are different from those reported in the governmental funds above because of the following:
Capital assets
Capital assets used in governmental activities are not current assets or financial resources and therefore are not reported in the governmental funds. 142,190,010
Allocation of Internal Service Fund Net Position
Internal service funds are not governmental funds. However, they are used by management to charge the costs of certain activities, such as insurance to individual governmental funds. The net position of the Internal Service Funds are therefore included in Governmental Activities in the following line items in the Statement of Net Position.
Cash and investments 7,913,371 $
Restricted cash and investments 19,215
Advances to other funds 332,742
Accounts payable and accrued expenses (5,091)
Uninsured losses payable (6,463,527)
1,796,710
Accrual of Non-Current Resources
Revenue on the Governmental Fund Balance Sheet which
is not available is currently recognized in the
Statement of Net Position. 46,352,417
Deferred Outflows and Inflows of Resources
The deferred accounts below are related to the net pension liability and are not due and payable in the current period and therefore are not reported in the Funds.
Deferred inflows of resources - amounts related to pensions (2,383,889) Deferred outflows of resources - amounts related to pensions 19,278,419 The deferred amount on refunding of long-term debt used in governmental activities are not financial resources and therefore, are not reported in the governmental funds. 31,332
Long-Term Liabilities
The liabilities below are not due and payable in the current period and therefore are not reported in the Funds:
Long-term debt, net of bond premium (71,608,294)
Lease liability (344,410)
Accrued interest (1,502,013)
Uninsured losses payable (745,778)
Arbitrage liability (750,584)
Compensated absences (3,350,978)
Net pension liability (91,211,747)
Net position of governmental activities $ 169,127,101
40 574
See Notes to Financial Statements
City of South Lake Tahoe, California
Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds Year Ended September 30, 2024
City Housing
& Economic City City Other Total
Development Measure P Capital Debt Governmental Governmental General Fund Fund Recreation Projects Fund Service Funds Funds Revenues
Taxes and assessments 51,304,323 $ $ 3,385,402 - $ $ - $ 1,585,187 - $ $ 56,274,912 Licenses, permits and impact fees 2,634,731 - - - - 1,096,117 3,730,848 Fines and penalties 1,242,852 - - - - 94,045 1,336,897
Use of money and property 2,643,542 196,391 797,405 223,426 3,101,674 752,746 7,715,184 Intergovernmental revenue 3,375,179 430,367 - 7,289,559 - 3,293,780 14,388,885 Charges for current services 5,427,884 422,982 - - - 3,794,744 9,645,610 Other revenue 1,145,745 20,642 - 182,424 - 481,861 1,830,672 Total revenues 67,774,256 1,070,382 4,182,807 7,695,409 3,101,674 11,098,480 94,923,008 Expenditures
Current
General government 13,249,538 5,600,397 - - 29,063 255,024 19,134,022 Public safety 25,196,338 - - - - 1,386,698 26,583,036
Public works 6,938,083 - - - - 910,169 7,848,252
Parks and recreation 4,136,360 - - - - 3,468,751 7,605,111 Streets - - - - - 4,606,281 4,606,281
Capital outlay 914,766 - - 34,854,751 5,386,840 - 41,156,357 Debt service
Principal - - - 3,860,944 - 210,064 4,071,008
Interest and fiscal charges - - - 2,125,575 - 4,810 2,130,385 Total expenditures 50,435,085 5,600,397 34,854,751 - 6,015,582 16,228,637 113,134,452 Excess (Deficiency) of Revenues
over Expenditures 17,339,171 (4,530,015) 4,182,807 (27,159,342) (2,913,908) (5,130,157) (18,211,444) Other Financing Sources (Uses)
Transfers in (Note 4A) 946,448 609,000 31,588,523 - 8,114,774 5,112,945 46,371,690 Transfers out (Note 4A) (18,603,545) (4,746,615) - (101,085) (20,242,631) (2,569,914) (46,263,790) Lease - - - - 499,165 - 499,165
Total other financing sources (uses) (17,657,097) 609,000 (4,746,615) 31,487,438 (12,127,857) 3,042,196 607,065 Net Change in Fund Balances (317,926) (3,921,015) (563,808) 4,328,096 (15,041,765) (2,087,961) (17,604,379) Beginning Fund Balances 39,571,904 7,100,127 13,661,100 16,816,708 58,355,440 13,475,006 148,980,285 Ending Fund Balances $ 39,253,978 $ 3,179,112 $ 13,097,292 $ 21,144,804 $ 43,313,675 $ 11,387,045 $ 131,375,906 41 575
See Notes to Financial Statements
City of South Lake Tahoe, California
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities
Year Ended September 30, 2024
The schedule below reconciles the Net Change in Fund Balances reported on the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance, which measures only changes in current assets and current liabilities on the modified accrual basis, to the Change in Net Position of Governmental Activities reported in the Statement of Activities, which is prepared on the full accrual basis.
Net Change in Fund Balances - Total Governmental Funds $ (17,604,379) Amounts reported for governmental activities in the Statement of Activities are different because of the following:
Capital Assets Transactions
Governmental Funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is capitalized and allocated over their estimated useful lives and reported as depreciation expense.
Purchase of capital assets, net of retirements 40,774,301 Depreciation expense (7,330,353)
The net effect of various miscellanous transactions involving capital assets (i.e., disposals and transfers between governmental and business-type activities) resulting in an increase or (decrease) of net position.
Loss on disposal (1,772,219)
Long-Term Debt Issuance and Payments
Bond proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position.
Repayment of bond principal is an expenditure in the governmental funds, but in the Statement of Net Position the repayment reduces long-term liabilities.
Repayment of debt principal 4,071,008
Amortization of deferred amounts on refunding (37,526)
Amortization of bond premium 325,526
Accrued interest expense (1,502,086)
Lease issue (499,165)
Accrual of Non-Current Items
The amounts below included in the Statement of Activities do not provide or (require) the use of current financial resources and therefore are not reported as revenue or expenditures in governmental funds (net change):
Unavailable revenues 5,147,247
Compensated absences (611,369)
Uninsured losses payable (1,339)
Change in net pension liability (2,938,189)
Change in arbitrage liability (750,584)
Allocation of Internal Service Fund Activity
Internal Service Funds are used by management to charge the costs of certain activities, such as insurance to individual funds. The portion of the net revenue (expense) of these Internal Service Funds arising out of their transactions with governmental Funds is reported with governmental activities, because they service those activities.
Change in net position - all internal service funds 716,914 Change in net position of governmental activities $ 17,987,787 42 576
See Notes to Financial Statements
City of South Lake Tahoe, California
Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – General Fund
Year Ended September 30, 2024
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues
Taxes and assessments 50,316,562 $ $ 50,466,562 $ 51,304,323 $ 837,761 Licenses, permits, and impact fees 2,018,200 2,168,200 2,634,731 466,531 Fines and penalties 460,500 810,500 1,242,852 432,352
Use of money and property 448,065 1,248,065 2,643,542 1,395,477 Intergovernmental revenue 3,791,700 4,085,529 3,375,179 (710,350) Charges for current services 4,403,144 5,703,144 5,427,884 (275,260) Other revenue 476,938 458,777 1,145,745 686,968
Total revenues 61,915,109 64,940,777 67,774,256 2,833,479 Expenditures
Current
General government 13,236,388 14,467,162 13,249,538 1,217,624 Public safety 25,630,308 26,300,332 25,196,338 1,103,994 Public works 7,137,579 7,907,167 6,938,083 969,084
Parks and recreation 3,315,422 3,823,432 4,136,360 (312,928) Capital outlay - 2,198,191 914,766 1,283,425
Total expenditures 49,319,697 54,696,284 50,435,085 4,261,199 Excess of Revenues
over Expenditures 12,595,412 10,244,493 17,339,171 7,094,678 Other Financing Sources (Uses)
Transfers in 532,940 1,292,294 946,448 (345,846)
Transfers out (11,652,248) (18,652,283) (18,603,545) 48,738 Total other financing sources (uses) (11,119,308) (17,359,989) (17,657,097) (297,108) Net Change in Fund Balance 1,476,104 $ (7,115,496) $ (317,926) 6,797,570 $ Beginning Fund Balance 39,571,904
Ending Fund Balance 39,253,978 $
43 577
See Notes to Financial Statements
City of South Lake Tahoe, California
Statement of Revenues, Expenses, and Changes in Fund Balance – Budget and Actual – City Housing & Economic Development Fund
Year Ended September 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues
Use of money and property 800 $ $ 196,391 800 $ $ 195,591 Intergovernmental revenue 5,671,998 1,207,077 430,367 (776,710) Charges for services 145,000 145,000 422,982 277,982
Other revenue 70,000 70,000 20,642 (49,358)
Total revenues 5,887,798 1,422,877 1,070,382 (352,495)
Expenditures
Current
General government 6,063,812 7,130,787 5,600,397 1,530,390 Total expenditures 6,063,812 7,130,787 5,600,397 1,530,390 Excess (Deficiency) of Revenues
over Expenditures (176,014) (5,707,910) (4,530,015) 1,177,895 Other Financing Sources (Uses)
Transfers in 400,000 609,000 609,000 -
Net Change in Fund Balance $ 223,986 $ (5,098,910) (3,921,015) $ 1,177,895 Beginning Fund Balance 7,100,127
Ending Fund Balance $ 3,179,112
Budgeted Amounts
44 578
See Notes to Financial Statements
City of South Lake Tahoe, California
Statement of Revenues, Expenses, and Changes in Fund Balance – Budget and Actual – Measure P Recreation Fund
Year Ended September 30, 2024
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues
Taxes and assessments 3,400,000 $ $ 3,400,000 $ 3,385,402 $ (14,598) Use of money and property 75,000 75,000 797,405 722,405 Total revenues 3,475,000 3,475,000 4,182,807 707,807
Other Financing Sources (Uses)
Transfers out (Note 4A) (1,096,995) (16,461,139) (4,746,615) 11,714,524 Net Change in Fund Balance $ 2,378,005 $ (12,986,139) (563,808) $ 12,422,331 Beginning Fund Balance 13,661,100
Ending Fund Balance $ 13,097,292
45 579
46 580
City of South Lake Tahoe, California
Proprietary Funds
September 30, 2024
Proprietary funds account for City operations financed and operated in a manner similar to a private business enterprise. The intent of the City proprietary funds is that the cost of providing goods and services be financed primarily through user charges.
Airport Fund – Established for the operation, development, maintenance and capital improvements of the South Lake Tahoe Airport.
Parking Garage Fund – Established for all activities necessary to provide administration, operations, capital improvements, maintenance, financing and related debt service of parking garage.
Other Enterprise Funds – Includes the non-major enterprise funds of the City, including the Transit and Parking Management Funds.
Internal Service Funds – The City has internal service funds which provide services to other departments on a cost-reimbursement basis including Health, Vision and Dental Insurance, and Worker’s Compensation Self Insurance.
47 581
See Notes to Financial Statements
City of South Lake Tahoe, California
Statement of Net Position – Proprietary Funds
September 30, 2024
Governmental
ActivitiesParking Other Enterprise Internal Service
Airport Garage Funds Totals Funds
Assets
Current Assets
Cash and investments (Note 3) 1,756,055 $ $ 1,486,768 $ 868,317 $ 4,111,140 $ 7,913,371 Restricted cash and investments (Note 3) - 17,285 - 17,285 19,215 Accounts receivable - net 226,362 1,047 6,991 234,400 - Prepaid Items 29,623 - - 29,623 -
Total current assets 2,012,040 1,505,100 875,308 4,392,448 7,932,586 Non-Current Assets
Advances to RDA Successor Agency (Note 4C) - - - - 332,742 Capital assets (Note 6)
Nondepreciable 1,509,180 1,563,853 1,315,373 4,388,406 - Depreciable 14,780,198 3,825,894 1,402,419 20,008,511 - Total noncurrent assets 16,289,378 5,389,747 2,717,792 24,396,917 332,742 Total assets 18,301,418 6,894,847 3,593,100 28,789,365 8,265,328 Deferred Outflows of Resources
Deferred outflows related to pensions 67,495 44,381 - 111,876 - Liabilities
Current Liabilities
Accounts payable 141,116 8,182 1,926 151,224 5,091
Deposits 61,237 - - 61,237 -
Due to developers 1,352 - - 1,352 -
Current portion of
long-term debt (Note 7) 9,660 - - 9,660 -
Compensated absences (Note 9) 39,739 - 39,739 - -
Uninsured losses payable (Note 12) - - - 1,473,941 -
Total current liabilities 253,104 8,182 1,926 263,212 1,479,032 Long-Term Liabilities
Uninsured losses payable (Note 12) - - - 4,989,586 -
Net pension liability 1,458,913 959,293 2,418,206 - -
Long-term debt (Note 7) 20,672 - 20,672 - -
Total long-term liabilities 1,479,585 959,293 2,438,878 - 4,989,586 Total liabilities 1,732,689 967,475 1,926 2,702,090 6,468,618 Net Position (Note 10)
Net investment in capital assets 16,259,046 5,389,747 2,717,792 24,366,585 - Restricted for debt service 17,285 - 17,285 - -
Unrestricted 377,178 564,721 873,382 1,815,281 1,796,710 Total net position $ 16,636,224 $ 5,971,753 $ 3,591,174 $ 26,199,151 $ 1,796,710 Business-Type Activities - Enterprise Funds
48 582
See Notes to Financial Statements
City of South Lake Tahoe, California
Statement of Revenues, Expenses and Changes in Net Position – Proprietary Funds Year Ended September 30, 2024
Governmental
ActivitiesParking Other Enterprise Internal Service
Airport Garage Funds Totals Funds
Operating Revenues
Charges for current services 329,082 $ $ 1,146,962 $ 187,669 $ 1,663,713 $ 6,102,886 Rental and reimbursements 1,326,436 9,048 179,233 1,514,717 167,375 Other income 12,664 - - 12,664 -
Total operating revenues 1,668,182 1,156,010 366,902 3,191,094 6,270,261 Operating Expenses
Salaries and wages 502,928 231,306 - 734,234 56,064
Payroll expenses 468,564 367,776 - 836,340 -
Contracted services 946,128 530,960 - 1,477,088 149,737 Supplies 256,965 105,522 12,667 375,154 -
Communication 6,255 1,079 - 7,334 -
Repairs and maintenance 579,931 - - 579,931 -
Insurance 21,814 34,410 200,109 256,333 -
Claims - - - - 5,685,871
General expenses 43,467 2,932 11,602 58,001 13,584
Depreciation (Note 6) 1,448,357 196,257 81,580 1,726,194 - Total operating expenses 4,274,409 1,470,242 305,958 6,050,609 5,905,256 Operating income (loss) (2,606,227) (314,232) 60,944 (2,859,515) 365,005 Nonoperating Revenues (Expenses)
Interest expense (1,818) (127,168) (15,829) (144,815) - Investment earnings 99,261 149,472 43,972 292,705 374,809 Loss on sale of capital assets (54,535) - (54,535) - -
Taxes and assessments 8,991 - 8,991 - -
Total nonoperating revenues (expenses) 51,899 22,304 28,143 102,346 374,809 Income (Loss) Before Contributions and Transfers (2,554,328) (291,928) 89,087 (2,757,169) 739,814 Capital grants and contributions 591,050 330,000 921,050 - - Transfers in (Note 4A) - - - - 51,300
Transfers out (Note 4A) - (85,000) - (85,000) (74,200)
Total contributions and transfers 591,050 330,000 (85,000) 836,050 (22,900) Change in Net Position (1,963,278) 38,072 (1,921,119) 4,087 716,914 Beginning Net Position 18,599,502 5,933,681 3,587,087 28,120,270 1,079,796 Ending Net Position $ 16,636,224 $ 5,971,753 $ 3,591,174 $ 26,199,151 $ 1,796,710 Business-Type Activities - Enterprise Funds
49 583
See Notes to Financial Statements
City of South Lake Tahoe, California
Statement of Cash Flows – Proprietary Funds
Year Ended September 30, 2024
Governmental
ActivitiesParking Other Enterprise Internal Service
Airport Garage Funds Totals Funds
Operating Activities
Receipts from customers 1,555,463 $ $ 1,156,010 $ 363,441 $ 3,074,914 $ 6,270,878 Payments to suppliers (1,866,454) (681,214) (224,609) (2,772,277) (161,170) Payments to employees (790,352) (327,069) - (1,117,421) (56,064) Claims paid - - - - (5,142,240)
Net Cash Provided by (used for)
Operating Activities (1,101,343) 147,727 138,832 (814,784) 911,404 Noncapital Financing Activities
Transfers in - - - - 51,300
Transfers out - - (85,000) (85,000) (74,200)
Net Cash Provided by (used for) Noncapital
Financing Activities - - (85,000) (85,000) (22,900)
Capital and Related Financing Activities
Capital grants 600,041 - - 600,041 -
Capital asset purchases (143,951) (294,197) - (438,148) - Contributions - 330,000 - 330,000 -
Principal payments on debt (9,236) (5,555,000) - (5,564,236) - Interest paid (1,818) (219,710) (15,829) (237,357) -
Net Cash Provided by (Used For) Capital and
Related Financing Activities 445,036 (5,738,907) (15,829) (5,309,700) - Investing Activities
Investment earnings 99,261 149,472 43,972 292,705 374,809 Net Increase/(decrease) in Cash and Investments (557,046) (5,441,708) 81,975 (5,916,779) 1,263,313 Cash and Investments at Beginning of Period 2,313,101 6,945,761 786,342 10,045,204 6,669,273 Cash and Investments at End of Period $ 1,756,055 $ 1,504,053 $ 868,317 $ 4,128,425 $ 7,932,586 Reconciliation of Operating Income (Loss) to net cash
Provided by (used by) Operating Activities
Operating income (loss) $ (2,606,227) $ (314,232) $ 60,944 $ (2,859,515) $ 365,005 Adjustments to reconcile operating income (loss)
to cash flows from operating activities
Depreciation 1,448,357 196,257 81,580 1,726,194 -
Increase (decrease) in pension
related amounts 169,401 272,013 - 441,414 -
Change in assets and liabilities
Prepaid items (29,623) - - (29,623) -
Receivables, net (114,071) - (3,461) (117,532) 617
Accounts payable and other accrued expenses 30,820 (6,311) (231) 24,278 545,782 Net Cash Provided by (used for) Operating Activities (1,101,343) $ 147,727 $ 138,832 $ (814,784) $ 911,404 $ Business-Type Activities - Enterprise Funds
50 584
City of South Lake Tahoe, California
Fiduciary Funds
September 30, 2024
Fiduciary funds are presented separately from the Government-wide and Fund financial statements. The City had the following types of Fiduciary Funds in fiscal year 2024:
Redevelopment Obligation Retirement Private-Purpose Trust Fund This fund was established to account for the assets, liabilities, and activities of the Successor Agency to the South Tahoe Redevelopment Agency.
Custodial Funds
Custodial funds are used to account for assets held by the City as an agent for individuals, private organizations, and other governments. The financial activities of these funds are excluded from the City-wide financial statements but are presented in separate Fiduciary Fund financial statements. 51 585
See Notes to Financial Statements
City of South Lake Tahoe, California
Statement of Fiduciary Net Position
September 30, 2024
Redevelopment
Obligation
Retirement
Private-Purpose Custodial
Trust Fund Funds
Assets
Cash and investments (Note 3) 1,882,063 $ $ 1,997,458
Restricted cash and investments (Note 3) 9,454,606 1,115,594 Accounts receivable - 90,230
Capital assets (Note 16)
Land 6,784,744 -
Depreciable capital assets, net 1,486,313 -
Total assets 19,607,726 3,203,282
Deferred Outflows of Resources
Deferred amount on refunding 978,916 -
Liabilities
Accounts payable - 20,670
Deposits and other accruals - 8,905
Accrued Interest payable 1,106,902 -
Advances payable to City of South Lake Tahoe 5,289,178 - Long-term liabilities (Note 16)
Due in one year 2,955,000 -
Due in more than one year 54,208,373 -
Total liabilities 63,559,453 29,575
Net Position (Deficit)
Restricted for individuals, organizations,
and other governments (42,972,811) $ 3,173,707 $
52 586
See Notes to Financial Statements
City of South Lake Tahoe, California
Statement of Changes in Fiduciary Net Position
Year Ended September 30, 2024
Redevelopment
Obligation
Retirement
Private-Purpose Custodial
Trust Fund Funds
Additions
Taxes and assessments 5,228,760 $ $ 923,258
Interest income 436,923 159,082
Total additions 5,665,683 1,082,340
Deductions
General government 139,696 -
Program and administrative charges - 150,759
Debt service principal - 365,000
Distributions to other governments - 330,000
Interest and fiscal charges 3,295,191 139,635
Loss on sale of assets 72,587 -
Total deductions 3,507,474 985,394
Net Change in Net Position 2,158,209 96,946
Net Position (Deficit)
Beginning of Year (45,131,020) 3,076,761
End of Year (42,972,811) $ 3,173,707 $
53 587
54 588
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2024
Note 1 - Significant Accounting Policies
The City of South Lake Tahoe, California (City) is a year-round resort community with a permanent estimated population of 20,790. The City operates under the Council/Manager form of government and provides the following services: public safety (police and fire), highways and streets, airport management, transportation, recreation, planning and zoning, public improvements and general administration.
A. Reporting Entity
The City is governed by a five-member council elected by city residents. The City is legally separate and fiscally independent which means it can issue debt, set and modify budgets and fees and sue or be sued. These financial statements present the government and its component units, entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities, are, in substance, part of the government’s operations and so data from these units are combined with data of the primary government.
Primary Government
The financial statements of the City include the activities of the City and blended component units discussed below. While these component units are separate legal entities, their financial activities are integral to those of the City. Their financial activities have been aggregated and merged (termed “blending”) with those of the City in the accompanying financial statements.
Blended Component Units
The South Tahoe Joint Powers Financing Authority (STJPFA) was formed by the City and Former Redevelopment Agency (Successor Agency) to finance the acquisition of public improvements. The City Council sits as the Authority’s Board and the Authority’s debt service expenditures are financed by the City and the Successor Agency. The Authority therefore provides a financial benefit and burden to the City. Financial activities have been included in the City Debt Service Fund and the Private Purpose Trust Fund. On March 15, 2022, the STJPFA agreement was amended to add the newly formed Parking Authority of the City of South Lake Tahoe as a member of the Financing Authority and to withdraw and terminate the Successor Agency as a member of the Financing Authority. The amendment facilitated the continued existence of the Financing Authority beyond the termination of the Successor Agency which occurs upon repayment of all Successor Agency enforceable obligations according to AB 1484. See Note 16.
The South Tahoe Joint Powers Parking Financing Authority was formed by the City and Successor Agency to finance the acquisition of certain public capital improvements, including parking facilities to aid the Successor Agency’s redevelopment plan. The City Council sits as the Authority’s Board and the Authority’s debt service expenditures are financed by the City parking garage operations. The Authority therefore provides a financial benefit and burden to the City. Financial activities have been included in the Parking Enterprise Fund. 55 589
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2024
The Housing Authority of the City of South Lake Tahoe, California, was established to provide housing for the City's low and moderate-income residents. The City Council sits as the Authority’s Board and all accounting and administrative functions are performed by City staff. The Authority therefore provides a financial benefit and burden to the City. The financial activities of the Authority have been included in the City Housing & Economic Development Special Revenue Fund.
B. Basis of Presentation
The City’s Basic Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America. The Government Accounting Standards Board is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the U.S.A.
Government-wide Statements: The Statement of Net Position and the Statement of Activities display information about the primary government (City) and its component units. These statements include the financial activities of the overall City government, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities and any residual balance between Government Activities and Business Type Activities are reported as internal balances with the exception of interfund services provided and used. These interfund activities are not eliminated in the process of consolidation. These statements distinguish between the governmental and business-type activities of the City. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non-exchange transactions. Business-type activities are financed in whole or in part by fees charged to external parties.
The Statement of Activities presents a comparison between direct expenses and program revenues for each segment of the business-type activities of the City and for each function of the City’s governmental activities.
Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs, (b) grants and contributions that are restricted to meeting the operational needs of a particular program and (c) fees, grants and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.
Fund Financial Statements: The fund financial statements provide information about the City's funds, including fiduciary funds and blended component units. Separate statements for each fund category—governmental, proprietary, and fiduciary—are presented. The emphasis of fund financial statements is on major individual governmental and enterprise funds, each of which is displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as non-major funds.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Non-operating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities. 56 590
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2024
C. Major Funds
Major funds are defined as funds that have either assets, deferred outflows of resources, liabilities, deferred inflows of resources, revenues or expenditures/expenses equal to ten percent of their fund-type total and five percent of the grand total. The General Fund is always a major fund. The City may also select other funds it believes because of relevance to financial statement users to be presented as major funds.
The City reports the following major governmental funds in the accompanying financial statements:
General Fund - The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. The major revenue sources for this Fund are sales taxes, property taxes, transient occupancy taxes, unrestricted revenues from the State, fines and forfeitures and interest income. Expenditures are incurred for public safety, public works, development services, parks and recreation, and general government.
City Housing & Economic Development Special Revenue Fund - Established to account for restricted former redevelopment tax allocations set aside for low and moderate-income housing, CDBG, and HOME funds used for the purpose of increasing or improving the City’s supply of low or moderate–income housing.
Measure P Recreation Fund - Established to account for the 2% Transient Occupancy Taxes collected for the purpose of construction, operation and maintenance of recreational facilities.
City Capital Projects Fund - Established to account for the construction and maintenance of the City projects.
The funding sources for City Capital Projects are the General Fund and other funds, as well as grant funds from various granting agencies.
City Debt Service Fund - Established to account for the financing and debt service activities within the City.
The City reports the following enterprise funds as major funds in the accompanying financial statements:
Airport Fund - Established for the operation, development, maintenance and capital improvements of the Lake Tahoe Airport.
Parking Garage Fund - Established for all activities necessary to provide administration, operations, capital improvements, maintenance, financing and related debt service of parking garage.
The City also reports the following fund types:
Internal Service Funds - The Health, Vision, and Dental Insurance, and Workers’ Compensation Self Insurance; all of which provide services to other departments on a cost-reimbursement basis. 57 591
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2024
Fiduciary Funds - Fiduciary funds are used to account for assets held by the City as an agent for individuals, private organizations, and other governments. The financial activities of these funds are excluded from the Government-wide financial statements, but are presented in separate Fiduciary Fund financial statements and consist primarily of funds held as a custodian for various special assessment districts, other organizations, and the South Tahoe Basin Waste Management Authority, as well as the Redevelopment Obligation Retirement Private-Purpose Trust Fund, which accounts for the activities of the Successor Agency to the South Tahoe Redevelopment Agency.
D. Basis of Accounting
The government-wide, proprietary and fiduciary fund financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.
Agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations.
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The City considers property taxes revenues to be available if collected within sixty days after year-end. All other revenues reported in the governmental funds are considered to be available if the revenues are collected within three hundred sixty-five days after year-end. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and accumulated unpaid vacation, sick pay and other employee amounts, which are recognized as expenditures to the extent they have matured. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt and acquisitions under leases are reported as other financing sources.
Non-exchange transactions, in which the City gives or receives value without directly receiving or giving equal value in exchange, include property taxes, grants, entitlements, and donations. On the accrual basis, revenue from taxes is recognized in the fiscal year for which the taxes are levied or assessed. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
Other revenues susceptible to accrual are sales taxes and interest revenue. Forfeitures, licenses, permits and miscellaneous revenue are not susceptible to accrual because they are not measurable until received in cash.
Grant funding received before all eligibility requirements are met is accounted for as unearned revenue.
Grant revenues are recognized in the fiscal year in which all eligibility requirements are met. Under the terms of grant agreements, the City may fund certain programs with a combination of cost-reimbursement grants, categorical block grants, and general revenues. Thus, both restricted and unrestricted net position may be available to finance program expenditures. The City’s policy is to first apply restricted grant resources to such programs, followed by general revenues if necessary.
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City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2024
E. Inventory
Inventory consists of parts and fuel which are held for consumption and are valued at cost on a first-in, first-out basis (consumption method).
F. Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items. Prepaid items are reduced as the items are utilized or consumed.
G. Deferred Outflows/Inflows of Resources
Deferred outflows of resources represent a consumption of net assets that applies to future periods and will not be recognized as an outflow of resources (expense/expenditure) until then. The City reports deferred outflows related to pensions and deferred amounts on refunding.
Deferred inflows of resources represent an acquisition of net assets that applies to future periods and will not be recognized as an inflows or resources (revenue) until that time. The City has two items that qualify for reporting in this category. The first item, unavailable revenue, arises only under modified accrual basis of accounting and is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenue from principal and interest receivable on revolving loans. The amount is deferred and recognized as an inflow of resources in the period that the amount becomes available. At the government-wide statements, this item is eliminated and recognized as revenue since “availability” of resources is not a criteria used in the governmentwide statements. The City also reports deferred inflows related to pensions.
H. Capital Assets
All capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available.
Contributed capital assets are valued at their estimated acquisition value on the date contributed. The City’s policy is to capitalize all assets with costs exceeding certain minimum thresholds and with useful lives exceeding three years.
All capital assets with limited useful lives are depreciated over their estimated useful lives. The purpose of depreciation is to spread the cost of capital assets equitably among all users over the life of these assets. The amount charged to depreciation expense each year represents that year’s pro rata share of the cost of capital assets. Depreciation of all capital assets is charged as an expense against operations each year and the total amount of depreciation taken over the years, called accumulated depreciation, is reported on the statement of net position as a reduction in the book value of capital assets.
Right to use leased assets are recognized at the lease commencement date and represent the City’s right to use an underlying asset for the lease term. The City maintains a threshold level of $100,000 or more for capitalizing leases. Right to use leased assets are measured at the initial value of the lease liability plus any payments made to the lessor before commencement of the lease term, less any lease incentives received from the lessor at or before the commencement of the lease term, plus any initial direct costs necessary to place the lease asset into service. Right to use leased assets are amortized over the shorter of the lease term or useful life of the underlying asset using. The amortization period is 10 years. 59 593
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2024
Depreciation is provided using the straight-line method which means the cost of the asset is divided by its expected useful life in years and the result is charged to expense each year until the asset is fully depreciated.
The City has assigned the useful lives and capitalization thresholds listed below to capital assets:
Life (Years) Threshold
Buildings 30 - 40 50,000 $
Vehicles 3 - 6 10,000
Furniture, machinery, and equipment 3 - 10 10,000
Buses 10 10,000
Transit center buildings 30 - 40 50,000
Terminal buildings 30 - 40 50,000
Streets 30 - 40 200,000
Bike paths 20 200,000
Streetscape 30 - 40 200,000
Intangibles (including right-to-use assets) Based on legal 100,000 provisions
Major outlays for capital assets and improvements are capitalized as projects are constructed.
I. Property Tax
El Dorado County assesses properties and bills, collects, and distributes property taxes to the City. The City participates in the County “Teeter Plan” method of property tax distribution. Under the Teeter Plan, the County remits the entire amount levied and handles all delinquencies, retaining interest and penalties. Secured and unsecured property taxes are levied on January 1 of the preceding fiscal year.
Secured property tax is due in two installments, on November 1 and March 1, and becomes a lien on those dates. It becomes delinquent on December 10 and April 10, respectively. Unsecured property tax is due on July 1 and becomes delinquent on August 31.
The term "unsecured" refers to taxes on personal property other than real estate, land and buildings. These taxes are secured by liens on the property being taxed. Property tax revenues are recognized by the City in the fiscal year they are assessed provided they become available as defined above.
J. Compensated Absences
Compensated absences comprise unused vacation leave, vested sick pay and compensated time off, which are accrued as earned. The City’s liability for compensated absences is recorded in various Governmental funds or Proprietary funds as appropriate. For all governmental funds, amounts representing permanent liquidations are recorded as fund liabilities; the long-term portion is recorded in the Statement of Net Position. A roll-forward of the compensated absences balances is included in Note 9. 60 594
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2024
K. Lease Liabilities
Lease Liabilities represent the City’s obligation to make lease payments arising from the lease. Lease liabilities are recognized at the lease commencement date based on the present value of future lease payments expected to be made during the lease term. The present value of lease payments are discounted based on a borrowing rate determined by the City.
L. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures.
Accordingly, actual results could differ from those estimates.
M. Cash and Cash Equivalents
The City's cash and cash equivalents reported in the proprietary fund statements are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition.
N. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
O. Adopted New Accounting Pronouncements
The Governmental Accounting Standards Board (GASB) releases new accounting and financial reporting standards which may have a significant impact on the City’s financial reporting process. The City became subject to the following GASB Statements for the year ended September 30, 2024.
GASB Statement No. 99 – In April 2022, the GASB issued Statement No. 99, Omnibus 2022. The objectives of this Statement are to enhance comparability in accounting and reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. The requirements related to financial guarantees and the classification and reporting of derivative instruments within the scope of Statement No. 53 are effective for fiscal years beginning after June 15, 2023, and all reporting periods thereafter. The statement did not have a material effect on the financial statements.
GASB Statement No. 100 – In June 2022, the GASB issued Statement No. 100, Accounting Changes and Error Corrections—an amendment of GASB Statement No. 62. The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. The Statement did not have a material effect on the financial statements. 61 595
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2024
Note 2 - Budgets and Budgetary Accounting
A. Budgeting Procedures
The City follows these procedures in establishing the budgetary data on a modified accrual basis, reflected in the accompanying financial statements:
1. The department directors prepare a budget request based upon the previous year’s expenditures and current year estimates for the fiscal year commencing the following October 1;
2. The City Manager submits the proposed City budget during the month of August each year to the City Council, who make decisions regarding department budgets;
3. The budget is legally enacted through passage of an appropriation resolution prior to October 1;
4. The approved budget is placed in the City accounting system and monitored by the Finance Department;
5. Department directors are authorized to transfer budgeted amounts between accounts within departmental expenditure categories. Revisions that alter the category’s total or total expenditures of any department must be approved by the City Manager and Director of Finance; the legally adopted budget requires that expenditures not exceed total appropriations at the fund level, unless approved by resolution of the City Council;
6. Budgets for governmental funds are adopted on a GAAP basis. Budgeted amounts are as originally adopted and further amended by the City Council;
7. Capital project budgets are primarily “long-term” in nature; however, the budgets are established on a year-by-year basis; and
8. Appropriations lapse at the close of the fiscal year to the extent they have not been expended or encumbered.
Encumbrance accounting requires that purchase orders, contracts, and other commitments for the expenditures of monies be recorded in the books in order to reserve that portion of the applicable appropriation. The City’s encumbrance accounting is an extension of the formal budgetary process. It reports encumbrances outstanding at year end as a component of assigned, committed or restricted fund balance, since they are not expenditures.
Unencumbered appropriations lapse at year end.
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City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2024
B. Excess of Expenditures over Appropriations
The funds below incurred expenditures in excess of its budget as the result of unanticipated expenses. Sufficient resources were available within the funds to finance these excesses:
Amount
Non-major Governmental Funds
Ice Arena $ 65,304
Ski Run Business Improvement 5,141
Tourism Improvement District 18,716
EMS 398,446
Harrison Avenue CFD 53
Fund
Note 3 - Cash and Investments
The City pools cash from all sources and all funds except cash and investments with fiscal agents so that it can be invested at the maximum yield consistent with safety and liquidity, while individual funds can make expenditures at any time.
A. Policies
The City invests in individual investments and in investment pools. Individual investments are evidenced by specific identifiable securities instruments, or by an electronic entry registering the owner in the records of the institution issuing the security, called the book entry system. In order to increase security, the City employs the Trust Department of a bank as the custodian of certain City managed investments, regardless of their form.
The City’s investments are carried at fair value, as required by generally accepted accounting principles. The City adjusts the carrying value of its investments to reflect their fair value at each fiscal year end, and it includes the effects of these adjustments in income for that fiscal year.
B. Classification
Cash and investments are classified in the financial statements as shown below, based on whether or not their use is restricted under the terms of City debt instruments or other agreements.
Cash and investments comprised of the following at September 30, 2024:
Cash and investments $93,396,554
Restricted cash and investments 48,664,154
City cash and investments 142,060,708
Cash and investments in Fiduciary Funds 3,879,521
Restricted cash and investments in Fiduciary Funds 10,570,200 Total cash and investments $ 156,510,429
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City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2024
C. Investments Authorized by the California Government Codes and the City’s Investment Policy The City’s Investment Policy and the California Government Code allow the City to invest in the following, provided the credit ratings of the issuers are acceptable to the City; and approved percentages and maturities are not exceeded. The table below also identifies certain provisions of the California Government Code, or the City’s Investment Policy where the City’s Investment Policy is more restrictive.
Maximum
Maximum Minimum Percentage
Maturity Credit Quality Allowed
Certificates of Deposit 5 years No Limit 25%, not to exceed $250,000 per institution
Bankers' Acceptances 180 days No Limit 20% max/5% per issuer Securities of the U.S. Government or its agencies 5 years No Limit No limit Commercial Paper 270 days AAA 25% max /5% per issuer
Medium-Term Corporate Notes 5 years A 30% max and $2,000,000 per corporation
Local Agency Investment Fund (State Pool) No Limit No Limit $75 million Negotiable Certificates of Deposit 5 years No Limit Lesser of 30% max/5% per issuer or $1,000,000
Passbook Savings Account Demand Deposit 10 working days No Limit Under $100,000 Governmental Security Mutual Funds 5 years AAA 20% max /10% per issuer Money Market Mutual Funds No Limit No Limit 20% max per issuer Bonds or notes issued by California Local agencies 5 years A 20% max /5% per issuer U.S. Treasury Notes and Bonds 5 years A No limit
Supranationals 5 years AA 30% max
Authorized Investment Type
64 598
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2024
D. Investments Authorized by Debt Agreements
The City must maintain required amounts of cash and investments with trustees or fiscal agents under the terms of certain debt issues. These funds are unexpended bond proceeds or pledged reserves to be used if the City fails to meet its obligations under these debt issues. The California Government Code requires these funds to be invested in accordance with City resolutions, bond indentures or State statutes.
The table below identifies the investment types that are authorized for investments held by fiscal agents. The table also identifies certain provisions of these debt agreements:
Maximum
Maximum Minimum Percentage
Maturity Credit Quality Allowed
U.S. Treasury Bonds No Limit None No Limit
Government National Mortgage Bonds No Limit None No Limit Federal National Mortgage Bonds No Limit AA No Limit
Demand Deposits No Limit A-1 or better No Limit
Repurchase Agreements No Limit None No Limit
Bankers' Acceptances 180 days None No Limit
Commercial Paper 270 days A or higher 10%
Bonds, Warrants or Other Indebtedness No Limit A or higher No Limit Local Agency Investment Fund (State Pool) No Limit None No Limit Money Market Funds No Limit A or higher No Limit
Authorized Investment Type
E. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Normally, the longer the maturity of an investment, the greater the sensitivity of its fair value is to changes in market interest rates. The City generally manages its interest rate risk by holding investments to maturity.
Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity or earliest call date:
Twelve Months
Par Value or Less 1 to 5 Years Fair Value
U.S. Government Agencies $ 52,000,000 $ 39,080,576 $ 12,909,768 $ 51,990,344 Local Agency Investment Fund (State pool) 33,033,358 33,101,443 - 33,101,443 Retiree Health Savings Trust - Mutual Funds 55,056 55,056 55,056 Money Market Mutual Funds 69,174,395 69,670,313 - 69,670,313 Certificate of Deposits 1,250,000 247,862 1,000,997 1,248,859 Medium Term Notes 1,000,000 - 990,441 990,441
Total investments 156,512,809 $ 142,155,250 $ 14,901,206 $ 157,056,456 Cash with Trustee 19,215
Cash in Banks and on Hand (565,242)
Total cash and investments $ 156,510,429
Investment Type
65 599
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2024
The City is a participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City reports its investment in LAIF at the fair value amount provided by LAIF, which is the same as the value of the pool share.
The balance is available for withdrawal on demand and is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Included in LAIF’s investment portfolio are collateralized mortgage obligations, mortgage-backed securities, other asset-backed securities, loans to certain state funds, and floating rate securities issued by federal agencies, government-sponsored enterprises, United States Treasury Notes and Bills, and corporations. At September 30, 2024, these investments matured in an average of 231 days.
F. Credit Risk
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment.
This is measured by the assignment of a rating by a nationally recognized statistical rating organization.
Presented below is the actual rating as of September 30, 2024, for each investment type as provided by Standard and Poor’s.
AAA/AAAm AA+ A Total
Available for Operations
U.S. Government Agencies - $ 51,990,344 $ $ 51,990,344 - $ Money Market Mutual Funds 10,014,342 - - 10,014,342
Medium Term - - 990,441 990,441
Restricted
Money Market Mutual Funds 59,655,971 - - 59,655,971
Totals 69,670,313 $ 51,990,344 $ 990,441 $ 122,651,098
Not Rated
Retiree Health Savings Trust - Mutual Funds 55,056
Local Agency Investment Fund 33,101,443
Certificates of Deposit 1,248,859
Exempt from Credit Rating Disclosures
Cash with Trustee 19,215
Cash in Banks and on Hand (565,242)
Total cash and investments 156,510,429 $
Investment Type
G. Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government code requires California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City’s name.
All of the City’s investments in securities are held in the name of the City and held at the location of the City’s third-party custodian. Therefore, the City is not exposed to custodial credit risk. 66 600
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2024
H. Concentration of Credit Risk
The City’s investment policy has no limitation on the amount that can be invested in any one issuer beyond what is stipulated by the California Government Code. Investments in any one issuer (other than Money Market Mutual Funds, U.S. Treasury Securities, or external investment pools) that represent 5% or more of the total investments of the City are as follows:
Amount
U.S. Government Agencies
Federal Home Loan Bank 31,002,188 $
Fed. National Mtg Association 11,018,905
Investment Type
I. Fair Value Measurements
The City categorizes fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset.
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described as follows:
Level 1 — Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the City has the ability to access.
Level 2 — Inputs to the valuation methodology include:
Quoted prices for similar assets or liabilities in active markets; Quoted prices for identical or similar assets or liabilities in inactive markets; Inputs other than quoted prices that are observable for the asset or liability; and Inputs that are derived principally from or corroborated by observable market data by correlation or other means.
Level 3 — Inputs to the valuation methodology are unobservable and significant to the fair value measurement.
Unobservable inputs reflect the City’s own assumptions about the inputs market participants would use in pricing the asset or liability (including assumptions about risk). Unobservable inputs are developed based on the best information available in the circumstances and may include the City's own data.
The asset's level within the hierarchy is based on the lowest level of input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The determination of what constitutes observable requires judgment by the City's management. City management considers observable data to be that market data, which is readily available, regularly distributed or updated, reliable, and verifiable, not proprietary, and provided by multiple independent sources that are actively involved in the relevant market. The categorization of an investment within the hierarchy is based upon the relative observability of the inputs to its fair value measurement and does not necessarily correspond to City management's perceived risk of that investment. 67 601
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2024
In instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. The City’s assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset or liability.
Deposits and withdrawals in governmental investment pools, such as LAIF are made on the basis of $1 and not fair value. Accordingly, the City’s proportionate share in these types of investments is an uncategorized input not defined as a Level 1, Level 2, or Level 3 input.
The following is a description of the valuation methods and assumptions used by the City to estimate the fair value of its investments. There have been no changes in the methods and assumptions used at September 30, 2024. The methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. City management believes its valuation methods are appropriate and consistent with other market participants. The use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.
The City’s treasury pool asset market prices are derived from closing bid prices as of the last business day of the month as supplied by Interactive Data, Bloomberg or Telerate. Where prices are not available from generally recognized sources, the securities are priced using a yield-based matrix system to arrive at an estimated fair value. Prices that fall between data points are interpolated. Non-negotiable FDIC-insured bank certificates of deposit are priced at par.
When available, quoted prices are used to determine fair value. When quoted prices in active markets are available, investments are classified within Level 1 of the fair value hierarchy.
For investments classified within Level 2 of the fair value hierarchy, the City's custodians generally use a multi-dimensional relational model. Inputs to their pricing models are based on observable market inputs in active markets. The inputs to the pricing models are typically benchmark yields, reported trades, broker-dealer quotes, issuer spreads and benchmark securities, among others. The City does not have any investments that are measured using Level 3 inputs.
68 602
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2024
As of September 30, 2024, the City has the following recurring fair value measurements:
Fair Value Measurements on a Recurring Basis Using
Quoted Prices in Significant
Active Markets Other Significant
for Identical Observable Unobservable
Assets Inputs Inputs
Total (Level 1) (Level 2) (Level 3)
U. S. Government Agency Securities $ 51,990,344 $ 51,990,344 - $ $ - Money Market Mutual Funds 69,670,313 69,670,313 - -
Retiree Health Savings Trust - Mutual Funds 55,056 55,056 - - Medium Term Notes 990,441 - 990,441 -
69,725,369 122,706,154 $ 52,980,785 $ - $
Investments not measured at fair value or subject
Local Agency Investment Fund 33,101,443
Certificates of Deposits 1,248,859
Total fair value of investments 157,056,456
Cash with Trustee 19,215
Cash in Banks and on Hand (565,242)
Total cash and investments $ 156,510,429
Investments by fair value level
to fair value hierarchy
69 603
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2024
Note 4 - Interfund Transactions
A. Transfers between Funds
With Council approval, resources may be transferred from one City fund to another. The purpose of the majority of transfers are for the purpose of funding operations. Less often, a transfer may be made to open or close a fund.
Transfers between funds during the fiscal year ended September 30, 2024, were as follows:
Transfer Reason for
Fund Making Transfer Amount Transfer
General Fund Non-Major Governmental Funds $ 871,163 A, B, D Internal Service Fund 74,200 B
City Capital Projects Fund 1,085 B
Total General fund 946,448
City Housing & Economic Development Fund General Fund 409,000 A Non-Major Governmental Funds 200,000 B
Total City Housing & Economic Development Fund 609,000
City Capital Projects Fund General Fund 9,009,077 C
Measure P Recreation 1,351,815 C
Non-Major Governmental Funds 900,000 C
Enterprise Funds 85,000 C
City Debt Service Fund 20,242,631 C
Total City Capital Projects Fund 31,588,523
City Debt Service General Fund 4,694,974 A
Measure P Recreation 3,394,800 A
Non-Major Governmental Funds 25,000 A
Total City Debt Service 8,114,774
Non-Major Governmental Funds General Fund 4,439,194 A, C City Capital Projects Fund 100,000 D
Non-Major Governmental Funds 573,751 C
Total Gon-Major Governmental Funds 5,112,945
Internal Service Funds General Fund 51,300 A
Total Interfund Transfers $ 46,422,990
Net Transfers Between Governmental and Business-Type Activities $ 85,000 A To fund operations.
B To fund administrative expenses.
C To fund capital projects.
D To return unused funds
Fund Receiving Transfer
Reasons for transfers
70 604
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2024
B. Current Interfund Balances
Current interfund balances arise in the normal course of business and are expected to be repaid the next fiscal year. At September 30, 2024, the General Fund was owed by the following funds:
Amount
General Fund Other Governmental Funds
Disaster Relief/Preparedness $ 132,472
DUI/Traffic Safety Grant 10,779
Ice Arena 42,861
Boat Patrol Grant 22,526
Total Other Governmental Funds 208,638 $
Debt Service Fund City Capital Projects Fund $ 6,354,297 (Due from other Funds) (Due to other Funds)
Due to (from) Funds
Fund Making the Fund Receiving the
short-term loan short-term loan
C. Long-Term Interfund Balances
At September 30, 2024, the funds below had made advances which were not expected to be repaid within the next year.
Amount of Advance
City Debt Service Fund City Capital Project Fund 23,813 $ RDA Successor Agency Private Purpose Trust Fund General Fund 4,638,627 $ Vehicle Replacement Special Revenue Fund 317,809
Workers Compensation Internal Service Fund 332,742
Total $ 5,289,178
Fund Receiving Advance Fund Making Advance
The City pays for debt service related to certain State Revolving Loans which the City owes to the State. These loans were used to finance erosion control projects completed as part of Redevelopment activities. The balance of the advance was $23,813 at September 30, 2024 and is recorded in the City Debt Service Fund.
At September 30, 2024, the funds below had made advances to the Former Redevelopment Agency (Fiduciary Funds) which were not expected to be repaid within the next year.
A Loan Repayment Agreement was signed between the City and the Former Redevelopment Agency on March 16, 2004, under which the South Tahoe Redevelopment Agency agreed to reimburse the City for the costs and expenses related to the implementation of the South Tahoe Redevelopment Plan. As of September 30, 2024, the long-term portion of principal and accumulated interest was $4,535,370 and $753,808, respectively.
Also see Note 16.
71 605
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2024
D. Internal Balances
Internal balances are presented in the government-wide financial statements only. They represent the net interfund receivables and payables remaining after the elimination of all such balances within governmental and business-type activities. There were no internal balances at September 30, 2024.
Note 5 - Loans Receivable
The Housing Authority funded by the Former Redevelopment Agency engaged in programs designed to encourage business enterprises, construction or improvement in low-to-moderate income housing, or other projects. With the dissolution of the Redevelopment Agency as discussed in Note 16, the City agreed to become the successor to the Redevelopment Agency’s housing activities and as a result, the City assumed the loans receivable of the Redevelopment Agency’s Housing & Economic Development Special Revenue Fund as of February 1, 2012. Under these programs, grants or loans are provided with favorable terms to businesses, homeowners or developers who agree to spend these funds in accordance with the Former Agency’s terms.
The General Fund committed to a loan designed to encourage business enterprises, construction or improvement in low-to-moderate income housing, or other projects.
Although these notes are expected to be repaid in full, their balance has been offset in the fund financial statements by deferred inflows as they are not expected to be repaid during the subsequent fiscal year. These loans receivable comprised the following at September 30, 2024:
Balance at Balance at
September 30, Additions to Interest September 30,
2023 Principal Accrued Collections Write-offs 2024
City Housing & Economic Development Fund
Housing Rehabilitation Loans $ 517,607 $ - $ (51,512) - $ $ 466,095 - $ Interest on loans 42,788 - 3,506 (269) - 46,025
First-Time Homebuyer Loans 2,388,129 - - (60,000) - 2,328,129 Interest on loans 850,813 - 37,762 (32,400) (30,162) 826,013 Moderate Income Loans 385,000 - - - - 385,000
Interest on loans 116,388 - 7,721 - - 124,109
Projects Loans 28,352,498 4,809,955 - - - 33,162,453
Interest on loans 7,297,997 - 472,784 (36,706) - 7,734,075 Rental Assistance - 1,500 - - - 1,500
City Housing & Economic Development Fund total 39,951,220 4,811,455 521,773 (180,887) (30,162) 45,073,399 General Fund
Projects Loans 1,250,000 - - - - 1,250,000
Interest on loans 3,950 - 25,068 - - 29,018
General fund total 1,253,950 - 25,068 - - 1,279,018
Total governmental funds 41,205,170 $ 4,811,455 $ 546,841 $ (180,887) $ (30,162) $ 46,352,417 $ Fund/Loan Program
A. Housing Rehabilitation Loans
The Former Redevelopment Agency administered a housing rehabilitation loan program using State Housing Community Development funds and Redevelopment Low & Moderate-Income Housing funds. Under the Program, individuals with incomes below a certain level are eligible to receive low interest, thirty-year loans, secured by deeds of trust, for rehabilitation work on their homes. The loan repayments may be amortized over the life of the loans, deferred or a combination of both. 72 606
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2024
B. First Time Home-Buyer Loans
The Former Redevelopment Agency engaged in a first-time home-buyer program designed to encourage home ownership among low-income persons. This program was funded by Community Development Block Grant, HOME, and Redevelopment Low- & Moderate-Income Housing Funds and was designed to make homes affordable for first-time homebuyers by providing low-interest, deferred payment second mortgages to eligible low-income persons. The deferred loans bear interest at 2-3%, require no monthly payments, are not due until the property is sold, transferred or rented and are collateralized by second deeds of trust.
C. Moderate Income Loans
The Former Agency engaged in moderate income loan programs to make homes affordable to moderate income homebuyers by providing low-interest, deferred payment second loans to eligible individuals or households. This program was funded with South Tahoe Redevelopment Agency Housing Funds. The Agency would provide a second loan of up to $100,000. All loans are secured by second deeds of trust on the properties to be purchased.
D. Projects Loans
The Housing Authority provided loans funded by HOME, CDBG, Permanent Local Housing Allocation Program (PLHA), and Redevelopment Low-&-Moderate Housing Funds to assist recipients in the rehabilitation and operation of affordable housing in the City. These loans are collateralized by deeds of trust with interest rates up to 3%. As of September 30, 2024, the Authority had made fifteen loans to eleven organizations.
The General fund provided a loan for the development of an affordable housing project. The loan is collateralized by a deed of trust with an interest rate of 2%.
E. Rental Assistance Program Loans
The City of South Lake Tahoe’s Rental Assistance Program (RAP) provides a one-time assistance to individuals and families in need of security deposit assistance and moving to a permanent sustainable home. The City prioritizes assistance for individuals and families with the greatest need and who can sustainably remain in permanent housing. These are interest-free loans from the City, and if the lease is terminated, the deposit balance is to be returned to the City.
73 607
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2024
Note 6 - Capital Assets
A. Capital Asset Activity
Capital assets activity of the City’s Governmental Activities for the year ended September 30, 2024, comprises the following:
Balance at Balance at
September 30, September 30,
2023 Additions Retirements Transfers 2024
Governmental activities
Capital assets not being depreciated
Land $ 8,342,653 $ 157,500 $ - $ 8,500,153 - $
Intangible assets 824,258 - - - 824,258
Construction in progress 13,575,746 33,528,151 (46,896) (1,638,663) 45,418,338 Total capital assets not
being depreciated 22,742,657 33,685,651 (46,896) (1,638,663) 54,742,749 Capital assets being depreciated
Buildings 22,442,811 - - 22,442,811 -
Vehicles 6,889,143 438,709 (696,214) 6,631,638 -
Furniture and equipment 19,894,648 4,489,113 (1,642,768) 22,740,993 - Improvements other than buildings 8,118,366 296,064 - 8,414,430 - Bike paths 14,429,200 - - 14,429,200 -
Streets 39,165,349 - - 39,165,349 -
Streetscape 8,436,460 - - 8,436,460 -
Sidewalks, curbs, gutters, lighting 7,941,045 - - 7,941,045 - Basin and stream environment
zone construction 66,595,513 1,365,599 - 67,961,112 -
Total capital assets
being depreciated 193,912,535 6,589,485 (2,338,982) 198,163,038 - Less accumulated depreciation for
Buildings (17,178,039) (329,007) - (17,507,046) -
Vehicles (5,584,213) (462,025) 651,952 (5,394,286) -
Furniture and equipment (14,102,707) (1,415,022) 1,600,370 (13,917,359) - Improvements other than buildings (6,967,410) (228,993) - (7,196,403) - Bike paths (4,984,424) (687,612) - (5,672,036) -
Streets (25,716,530) (1,329,173) - (27,045,703) -
Streetscape (4,284,368) (297,181) - (4,581,549) -
Sidewalks, curbs, gutters, lighting (1,826,340) (280,482) - (2,106,822) - Basin and stream environment
zone construction (25,492,880) (2,251,076) - (27,743,956) - Total accumulated depreciation (106,136,911) (7,280,571) 2,252,322 (111,165,160) - Net capital assets being depreciated 87,775,624 (691,086) (86,660) 86,997,878 - Right to use lease assets being amortized
Right to use lease equipment 499,165 - - 499,165 -
Less accumulated amortization for
Right to use lease equipment (49,782) - - (49,782) -
Net right to use lease assets 449,383 - - 449,383 -
Governmental activities capital assets, net 110,518,281 $ $ 33,443,948 $ (133,556) $ (1,638,663) $ 142,190,010 74 608
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2024
Capital assets activity of the City’s Business-Type Activities for the year ended September 30, 2024 comprises the following:
Balance at Balance at
September 30, September 30,
2023 Additions Retirements Transfers 2024
Business-type activities
Capital assets not being depreciated
Land $ 4,288,170 $ - $ - $ 4,288,170 - $
Construction in progress 1,250,046 223,532 - (1,373,342) 100,236 Total capital assets not
being depreciated 5,538,216 223,532 - (1,373,342) 4,388,406 Capital assets, being depreciated
Transit center buildings 6,512,815 - - - 6,512,815
Terminal buildings 5,371,343 - - - 5,371,343
Runways 27,028,999 1,373,343 (2,159,303) - 26,243,039
Machinery and equipment 3,356,507 20,656 (466,482) - 2,910,681 Parking garage 7,891,224 193,960 (13,603) - 8,071,581
Total capital assets being
depreciated 50,160,888 1,587,959 (2,639,388) - 49,109,459 Less accumulated depreciation for
Transit center buildings (5,028,815) (81,580) - - (5,110,395) Terminal buildings (4,711,825) (167,023) - - (4,878,848) Runways (13,572,030) (1,137,494) 2,159,303 - (12,550,221) Machinery and equipment (2,583,901) (143,840) 411,946 - (2,315,795) Parking garage (4,063,035) (196,257) 13,603 - (4,245,689) Total accumulated depreciation (29,959,606) (1,726,194) 2,584,852 - (29,100,948) Total capital assets being
depreciated, net 20,201,282 (138,235) (54,536) - 20,008,511 Business-type activities capital assets, net 25,739,498 $ 85,297 $ (54,536) $ (1,373,342) $ 24,396,917 $ B. Depreciation Allocation
Depreciation expense is charged to functions and programs based on their usage of the related assets. The amounts allocated to each function or program is as follows:
Governmental Activities
General government $ 65,709
Public safety 773,710
Public works 2,923,486
Parks and recreation 1,083,634
Streets 2,483,814
Current year depreciation and amortization expense 7,330,353 $ Business-Type Activities
Transit 81,580 $
Airport 1,448,357
Parking garage 196,257
Current year depreciation expense 1,726,194 $
75 609
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2024
Note 7 - Leases
During the current year, the City entered into a lease agreement as lessee for the use of medical equipment. As of September 30, 2024, the value of the lease liability was $344,410. The City is required to make annual principal and interest payments of $47,369 through October 2032. The lease was valued using a discount rate of
4.4% based on the City’s estimated incremental borrowing rate.
Changes in the lease liability for the fiscal year ended September 30, 2024, are summarized as follows:
Balance at Balance at
September 30, September 30, Current
2023 Additions Retirements 2024 Portion
Lease Liability $ 499,165 - $ $ 154,755 $ 344,410 $ 31,863 Remaining obligations associated with these leases are as follows:
Principal Interest
2025 $ 31,863 $ 14,157
2026 33,337 12,666
34,833 11,108
36,397 9,506
38,005 7,780
2030-2033 169,975 12,533
$ 344,410 $ 67,750
2028
2029
For the Year
Ending September 30,
2027
76 610
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2024
Note 8 - Long-Term Debt
The City generally incurs long-term debt to finance projects or purchase assets which have useful lives equal to or greater than the related debt.
In governmental fund types, debt discounts and issuance costs are recognized in the current period. Debt discounts incurred by proprietary fund types and at the governmental activities level are amortized over the term of the debt using the bonds-outstanding method, which approximates the effective interest method.
A. Current Year Transactions and Balances
Balance at Balance at
September 30, September 30, Current
2023 Additions Retirements 2024 Portion
Governmental-type Activities
Revenue Bonds
Refunding Revenue Bonds, 2016 Series A,
2.00% - 4.00% due serially until 10/1/2025 3,700,000 $ $ 1,215,000 - $ $ 2,485,000 $ 1,260,000 Add: bond premium 292,811 - 146,406 146,405 -
2012 Certificates of Participation (COPs)
2.0% - 4.0%, due serially until 9/1/2042 4,395,000 - 165,000 4,230,000 170,000 2014 Taxable Pension Obligation Bonds
1.875% - 4.000% due serially until 6/1/2027 5,745,000 - 1,290,000 4,455,000 1,380,000 Lease Revenue Bonds, 2023 Series A,
5.00% -5.25% due serially until 10/1/2053 51,300,000 - - 51,300,000 765,000 Add: bond premium 5,358,677 - 179,120 5,179,557 -
Total revenue bonds 70,791,488 - 2,995,526 67,795,962 3,575,000 Notes from Direct Borrowings
2010 California Energy Commission Loan
3.0% due serially until 6/22/2026 171,015 - 55,309 115,706 56,992 Total notes from direct borrowings 171,015 - 55,309 115,706 56,992 Notes from Direct Placements
2014 Agreement for Road Improvements (Harrison Avenue)
3.990% due serially until 10/1/2029 1,096,000 - 151,000 945,000 157,000 Total notes from direct placements 1,096,000 - 151,000 945,000 157,000 Financed Purchases
Communications System 1.08% due 8/1/2025 1,091,570 - 542,853 548,717 548,717 Snow Removal Equipment 4.099% due 04/06/2028 2,700,000 - 497,091 2,202,909 517,675 Total financed purchase - 3,791,570 1,039,944 2,751,626 1,066,392 Total governmental activities long-term debt $ - 75,850,073 $ 4,241,779 $ 71,608,294 $ 4,855,384 $ Business-type Activities
Revenue Bonds
Parking Revenue Refunding Bonds, 2013 Series A
3.00% - 5.375% due serially until 12/1/2036 $ 5,555,000 $ 5,555,000 - $ $ - $ - Total revenue bonds 5,555,000 - 5,555,000 - -
Notes from Direct Borrowings
2010 State Department of Transportation Loan
4.594% due serially until 9/22/2027 39,568 - 9,236 30,332 9,660 Total notes from direct borrowings 39,568 - 9,236 30,332 9,660 Total business-type activities long-term debt 5,594,568 $ - $ 5,564,236 $ 30,332 $ 9,660 $ 77 611
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2024
B. Long-Term Debt Issues
Governmental Activities
Revenue Bonds:
Refunding Lease Revenue Bonds 2016 Series A
On July 28, 2016, the South Tahoe Joint Powers Financing Authority issued the Refunding Lease Revenue Bonds 2016 Series A, in the amount of $10,055,000, the proceeds of which were used to refund the Lease Revenue Bonds, 2006 Series A. Interest on the Refunding Lease Revenue Bonds Series A is payable semi-annually on April 1 and October 1 of each year until 2025. Principal matures annually on October 1.
The 2016 Series A bonds are secured and repayable from a pledge of lease rental payments from the General fund. The total principal remaining to be repaid on the bonds at September 30, 2024 was $2,485,000.
Unamortized deferred amounts on refunding were $31,332 at September 30, 2024. The agreement includes a provision that in the event of default, the Trustee may recover rent and other monetary charges as they become due under the Sublease without terminating the City’s right to possession of the Demised Properties. 2012 Certificates of Participation
On July 1, 2012, the City entered into an agreement with the South Tahoe Joint Powers Financing Authority for a lease amount of $5,765,000. Proceeds from the Certificates were used to finance street and other capital improvements within the City benefitting Parks and Recreation. The Certificates bear interest of 2% to 4%. Principal and interest payments are payable semi-annually on each March 1 and September 1 of each year until 2042, commencing September 1, 2012. The debt service is funded by transfers from the General Fund. The total principal remaining to be paid on the loan was $4,230,000 as of September 30, 2024. The agreement includes a provision that in the event of default, the Trustee may exercise any and all remedies available pursuant to law or grant pursuant to the lease agreement. 2014 Taxable Pension Obligation Bonds
On December 1, 2014, the City issued $11,905,000 in Taxable Pension Obligation Bonds, Series 2014 to refund the outstanding “side fund” obligations of the City to the California Public Employees’ Retirement System (PERS) with respect to the City’s Safety Plan. The City paid off its Safety Plan Side Fund balance (lump sum payment of $11,447,671 as of December 18, 2014) with proceeds of the bonds.
The bonds bear interest rates ranging from 1.875% to 4.000%, payable on June 1 and December 1 of each year, commencing June 1, 2018, until maturity year of 2027. The total principal remaining on the bonds as of September 30, 2024 is $4,455,000.
Payment of the principal and interest on the bonds is not limited to any special source of funds and is payable from any legally available moneys of funds of the City. The City is not empowered or obligated to levy or pledge taxes to make payments on the bonds or fund a reserve fund for the bonds. 78 612
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2024
Lease Revenue Bonds 2023 Series A
On August 30, 2023, the South Tahoe Joint Powers Financing Authority issued the Lease Revenue Bonds 2023 Series A, in the amount of $51,300,000, the proceeds of which are used to assist the City with financing the cost of construction of a new multigenerational recreation center. Interest on the Lease Revenue Bonds Series A is payable semi-annually on April 1 and October 1 of each year until 2053. Principal matures annually on October 1. The total principal remaining on the bonds as of September 30, 2024, is $51,300,000.
The 2023 Series A bonds are secured and repayable from a pledge of lease rental payments from the General fund. The agreement includes a provision that in the event of default, the Trustee may recover rent and other monetary charges as they become due under the Sublease without terminating the City’s right to possession of the Demised Properties.
Direct Borrowings:
2010 California Energy Commission Loan
During fiscal year 2011-12, the City entered into an agreement with the California State Department of Energy Resources Conservation and Development Commission for a loan amount of $657,461. Proceeds from the loan were used to upgrade the Ice Arena chiller, interior and exterior lighting and data center server cooling control.
The loan bears interest of 3%. Principal and interest payments are payable semiannually on December 22 and June 22 of each year until 2026, commencing December 22, 2012. The loan is repayable from savings made from energy costs and the City’s General Fund. The outstanding balance on the loan as of September 30, 2024 was $115,706. The agreement includes a provision that in the event of default or breach, the lender may declare the outstanding loan principal immediately.
Direct Placements:
2014 Agreement for Road Improvements
During the fiscal year 2013-14, the City entered into an agreement, accounted for as a financed purchase, with STJPFA for $2,110,000 for road improvements for the Harrison Avenue Streets Improvement Project. The agreement bears interest at 3.99%. Principal and interest payments are payable semiannually on April 1 and October 1 of each year until 2029, commencing October 1, 2014. The outstanding balance on the agreement at September 30, 2024 was $945,000. The agreement includes a provision that in the event of default, the lender may declare the outstanding loan principal and accrued interest due.
Financed Purchases:
On February 1, 2021, the City entered into an agreement in the amount of $2,700,000 with U.S. Bancorp Government Leasing and Finance, Inc., for a lease financing arrangement for the purchase of a Walker Telecomm Communications System. The agreement bears interest at 1.08%, and payments are due annually on August 1 for a fixed amount of $554,641. The outstanding balance on September 30, 2024 was $548,717. 79 613
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2024
On April 6, 2023, the City entered into an agreement in the amount of $2,700,000 with Banc of America Public Capital Corp for a lease financing arrangement for the purchase of a Snow Removal Equipment. The agreement bears interest at 4.099%, and payments are due bi-annually on April 6 and October 6 for a fixed amount of $301,361. The outstanding balance on September 30, 2024 was $2,202,909.
Business-Type Activities
Revenue Bonds:
Parking Revenue Bonds 2013
On November 20, 2013, the South Tahoe Joint Powers Parking Financing Authority issued $7,735,000 in Parking Revenue Refunding Bonds, Series 2013 with a term of 23 years and interest rates ranging from 3.0% to 5.375%.
The Series 2013 Bonds were issued to refund the Authority’s Parking Revenue Bonds, Series 2002 A in the outstanding amount of $7,270,000 and to pay the costs of issuance associated with the Series 2013 bonds.
Interest on the Parking Revenue Bonds is payable semiannually on each June 1 and December 1. Principal matures annually each December 1. Effective January 5, 2024, the City called for an early and full redemption of the Parking Revenue Refunding Bonds, 2013 Series A totaling $5,265,000 in the principal amount, plus accrued interest to the redemption date totaling $271,825.
Direct Borrowings:
2010 State Department of Transportation Loan
On September 3, 2009, the City entered into an agreement with the State Department of Transportation for a loan amount of $128,456. Proceeds from the loan were used for the reconstruction of the airport terminal aprons at the Lake Tahoe Airport. The loan bears interest of 4.594%. Principal and interest payments are payable annually on October 30 until 2027.
The City has pledged future airport gross revenues to repay the 2010 State Department of Transportation loan through 2027. The Airport Enterprise Fund’s total principal remaining to be paid on the loans was $30,332 as of September 30, 2024. The Airport Enterprise Fund’s total principal and interest paid for the current year and total customer revenues were $11,053 and $1,655,518 respectively. 80 614
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2024
C. Debt Service Requirements
Aggregate principal and interest payments on all outstanding long-term debt are as follows at September 30, 2024:
Principal Interest Principal Interest Principal Interest Principal Interest 2025 $ 3,575,000 $ 3,026,050 $ 56,992 $ 3,048 $ 157,000 $ 36,149 $ 1,066,391 $ 90,972 2026 3,690,000 2,876,375 58,714 1,326 163,000 29,825 539,112 63,609 2,745,538 2,615,000 - - 170,000 23,262 561,437 41,285
2,632,488 1,075,000 - - 176,000 16,419 584,686 18,035
2,579,925 1,130,000 - - 184,000 9,317 - -
2030-2034 6,500,000 12,016,813 - - 95,000 1,895 - -
2035-2039 8,230,000 10,251,600 - - - - - -
2040-2044 9,735,000 8,023,475 - - - - - -
2045-2049 11,310,000 5,380,463 - - - - - -
2050-2054 14,610,000 1,996,050 - - - - - -
Total 62,470,000 51,528,777 $ 115,706 $ 4,374 $ 945,000 $ 116,867 $ 2,751,626 $ 213,901 $ Add: Bond Premium 5,325,962
Total 67,795,962 $
Principal Interest
2025 9,660 $ $ 1,393
2026 10,104 950
485 10,568
Total 30,332 $ 2,828 $
For the Year Direct Borrowings
2029
Business-Type Activities
Notes from
Ending September 30
2027
Ending September 30
2027
2028
Governmental Activities
For the Year Revenue Bonds Notes from Direct Borrowings Notes from Direct Placements Financed Purchases Note 9 - Compensated Absences
The City accumulates compensated absences for vacation and sick leave that is payable upon termination from City employment. As of September 30, 2024, compensated absences balances are as follows:
Governmental Business-Type
Activities Activities Total
Beginning Balance 2,739,609 $ $ 28,000 $ 2,767,609
Additions 3,140,372 29,193 3,169,565
Payments (2,529,003) (17,454) (2,546,457)
Ending Balance $ 3,350,978 $ 39,739 $ 3,390,717
Current Portion $ 3,350,978 $ 39,739 $ 3,390,717
For proprietary funds compensated absences are liquidated by the fund that has recorded the liability. For governmental activities, compensated absences are liquidated by the General Fund. 81 615
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2024
Note 10 - Net Position and Fund Equity
A. Net Position
Net Position is the excess of all the City’s assets and deferred outflows over all its liabilities and deferred inflows.
Net Position is divided into three captions which is determined at the government-wide and proprietary fund levels, and are described below:
Net Investment in Capital Assets describes the portion of Net Position which is represented by the current net book value of the City’s capital assets, less the outstanding balance of any debt issued to finance these assets.
Restricted describes the portion of Net Position which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, enabling legislation or other restrictions which the City cannot unilaterally alter. These principally include developer fees and other assets received for use on capital projects, debt service requirements, and housing assets restricted to low and moderate-income purposes.
Unrestricted describes the portion of Net Position which is not restricted to use.
B. Governmental Fund Balance
The City’s fund balances are classified based on spending constraints imposed on the use of resources.
For governmental funds with multiple funding sources, the City’s policy is to spend restricted fund balance first, before spending unrestricted fund balance. The City’s policy is that committed and assigned fund balance is considered to be spent before unassigned balances, when expenditures are incurred for purposes in which any of those committed or assigned classifications could be used.
Each category in the following hierarchy is ranked according to the degree of spending constraint:
Non-spendable fund balances represent balances set aside to indicate items that do not represent available, spendable resources even though they are a component of assets. Fund balances required to be maintained intact, such as Permanent Funds, and assets not expected to be converted to cash, such as prepaids, notes receivable, and land held for resale are included. However, if proceeds realized from the sale or collection of non-spendable assets are restricted, committed or assigned, then non-spendable amounts are required to be presented as a component of the applicable category.
Restricted fund balances have external restrictions imposed by creditors, grantors, contributors, laws, regulations, or enabling legislation which requires the resources to be used only for a specific purpose.
Encumbrances and non-spendable amounts subject to restrictions are included along with restricted resources. 82 616
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2024
Committed fund balances include amounts that can only be used for a specific purpose and have formal constraints imposed by resolution of the City Council which may be altered only by resolution of the City Council. Encumbrance amounts subject to council commitments are included along with committed resources.
Assigned fund balances are amounts constrained by the City’s intent to be used for a specific purpose but are neither restricted nor committed. Intent is expressed by the City Council or City Manager and may be changed at the discretion of the City Council or City Manager. This category includes encumbrances, proceeds or collections for a specific purpose, and residual fund balances, if any, of Special Revenue, Capital Projects and Debt Service Funds which have not been restricted or committed.
Unassigned fund balance represents residual amounts that have not been restricted, committed, or assigned.
This includes the residual General Fund balance and residual fund deficits, if any, of other governmental funds.
Detailed classifications of the City’s Fund Balances, as of September 30, 2024, are below:
City Housing
& Economic City City Other
General Development Measure P Capital Debt Governmental Fund Fund Recreation Project Fund Service Funds Total
Nonspendable
Inventory $ 280,703 $ - $ - $ - $ - $ 280,703 - $
Prepaid items 168,303 - - - 96,853 - 265,156
Land held for resale - 1,332,110 - - - - 1,332,110
Long-term interfund receivables - 4,638,627 - - - - 4,638,627 Total nonspendable fund balances - 6,419,743 - - 96,853 - 6,516,596 Restricted for
Debt service - - - - 43,216,822 226,244 43,443,066
Housing and economic development 3,179,112 - - - - - 3,179,112 Gas tax - - - - 267,055 - 267,055
Public safety - - - - - 1,210,354 1,210,354
Snow removal - - - - 1,736,679 - 1,736,679
Solid waste - - - - - 19,405 19,405
Vehicle replacement - - - - - 1,664,577 1,664,577 Boat patrol - - - - - 15,030 15,030 Community improvement - - - - - 1,504,343 1,504,343
Erosion control - - - - 167,157 - 167,157
Tourism improvement - - - - - 350,906 350,906
Measure S - - - - 550,010 - 550,010
Transportation - - - - - 91,425 91,425 Measure P - - 13,097,292 - - - 13,097,292 PEG program - - - - - 272,883 272,883 Total restricted fund balances 3,179,112 - 13,097,292 - 43,216,822 8,076,068 67,569,294 ` Committed to
Capital projects - - - 21,120,991 - - 21,120,991
Community-wide benefit grant program - - - - - 1,126,152 1,126,152 General liability program - 500,000 - - - - 500,000
Total committed fund balances - 500,000 - 21,120,991 - 1,126,152 22,747,143 Assigned to
Contractual services 1,174,658 - - - - - 1,174,658
Long-term interfund receivables - - - 23,813 - 317,809 341,622 Pledged Transient Occupancy Tax - - - - - 1,889,631 1,889,631 Total assigned fund balances - 1,174,658 - 23,813 - 2,207,440 3,405,911 Unassigned
General fund 31,159,577 - - - - 31,159,577 -
Ice arena - - - - (22,615) - (22,615)
Total unassigned fund balances 31,159,577 - - - (22,615) - 31,136,962 Total fund balances $ 39,253,978 $ 3,179,112 $ 13,097,292 $ 21,144,804 $ 43,313,675 $ 11,387,045 $ 131,375,906 Fund Balance
Classifications
83 617
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2024
C. Contingency Arrangements and Reserve Policies
The City’s Reserve Policy requires the City to maintain an Unassigned General Fund reserve at a minimum of 25% of General Fund operating expenditures. Funds may be appropriated from the Unassigned Fund Balance upon demonstration to the City Council that the remaining balance is sufficient to offset potential downturns in revenue sources and to provide adequate cash for daily financial needs. Funds must be allocated each year in the budget process to replace any use of the 25% Unassigned Fund Balance during the preceding fiscal year. To the extent that funds accumulate in excess of the required 25% Unassigned General Fund Reserve; these onetime funds may be transferred to the Capital Projects Fund upon completion of the annual audit. As of September 30, 2024, the reserve balance was $14,769,729.
D. Fund Deficits
The Ice Arena Fund had a fund balance deficit in the amount of $22,615. The deficit is due to the fair value adjustment to investments recognized at year-end and short-term interfund balances owed by this fund at September 30, 2024. The City expects to eliminate this deficit with future fair value adjustments.
Note 11 - Pension Plans
As of September 30, 2024, the City reported total net pension liability, deferred outflows of resources, deferred inflows of resources, and pension expense for both Miscellaneous and Safety Plans as follows:
Net Pension Deferred Outflows Deferred Inflows Pension
Liability of Resources of Resources Expense
Miscellaneous Plan 40,103,169 $ $ 5,341,454 $ 5,168,210 - $ Safety Plan 53,526,784 14,048,841 2,383,889 2,882,833
Total 93,629,953 $ 19,390,295 $ 2,383,889 $ 8,051,043 $ CalPERS Safety and Miscellaneous Employees’ Plans
A. Miscellaneous Plan, an Agent Multiple-Employer Defined Benefit Pension Plan Plan Description - Substantially all full time City employees are eligible to participate in pension plans offered by California Public Employees Retirement System (CalPERS). The City’s employees participate in the separate Safety (police and fire) and Miscellaneous (all other) Employee Plans. CalPERS operates an agent multiple employer defined benefit pension plan for the City’s miscellaneous plans and operates a cost sharing multiple employer defined benefit plan for the City’s safety plans. CalPERS acts as a common investment and administrative agent for its participating member employers. CalPERS provides retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries.
84 618
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2024
Benefit provisions under both Plans are established by State statute and City resolution. Benefits are based on years of credited service, equal to one year of full-time employment. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS; the City must contribute these amounts.
Audited annual financial statements are available from CalPERS at P.O. Box 942709, Sacramento, California 94229-2709.
Benefits Provided
CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. All members are eligible for non-duty disability benefits after ten (10) years of service. The death benefit is one of the following: The basic death benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. Benefit provisions and all other requirements are established by State statute and may be amended by city contracts with employee bargaining groups.
The Miscellaneous Plan’s provisions and benefits in effect at September 30, 2024 are summarized as follows:
Classic PEPRA
Miscellaneous Miscellaneous
Benefit formula 2% @ 55 / 2.7% @ 55 2% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 55 62
Monthly benefits, as a % of salary 2.00% - 2.70% 2.00%
Required employee contribution rates
Oct 1, 2023 - June 30, 2024 7 - 8% 8.0%
July 1, 2024 - September 30, 2024 7 - 8% 8.0%
Required employer contribution rates
Oct 1, 2023 - June 30, 2024 11.00% 11.00%
July 1, 2024 - September 30, 2024 10.77% 10.77%
Contributions
Section 20814(c) of the California Public Employee's Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plan is determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the measurement period ended June 30, 2024, Miscellaneous Classic and PEPRA plans are required to contribute 7-8 % and 8% of their annual covered salary, respectively.
Total contributions made by the City to the Miscellaneous Plan during fiscal year 2024 were $4,623,290. 85 619
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2024
Employees Covered
At the June 30, 2023, valuation date, the following employees were covered by the benefit terms for the Miscellaneous Plan:
Active employees 119
Inactive employees receiving benefits 292
Inactive employees not receiving benefits 179
Total 590
Net Pension Liability
The City’s net pension liability for the Miscellaneous Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2024, using an annual actuarial valuation as of June 30, 2023, using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is illustrated below.
Actuarial Assumptions
The total pension liability was determined using the following actuarial assumptions:
Valuation Date June 30, 2023
Measurement Date June 30, 2024
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions
Discount Rate 6.90%
Inflation 2.30%
Project Salary Increase Varies by Entry Age and Service Investment Rate of Return 6.90% (1)
Mortality Based on CalPERS Experience Study
(1) Net of pension plan investment expenses, including inflation Miscellaneous Plan
The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 experience study report from November 2021 that can be found on the CalPERS website.
The long-term expected rate of return on pension plan investments was determined using a building- block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. 86 620
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2024
In determining the long-term expected rate of return, staff took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both shortterm and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.
The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation.
Assumed Real Return
Asset Years 1-10
Allocation (a, b)
Global Equity - Cap-weighted 30.0% 4.54%
Global Equity - Non-Cap-weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage-backed Securities 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage -5.00% -0.59%
Total 100.0%
(a) An expected inflation of 2.30% used for this period. (b) Figures are based on the 2021 Asset Liability Management study.
Asset Class (a)
Discount Rate - The discount rate used to measure the total pension liability was 6.90%. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 6.90% discount rate is adequate, and the use of the municipal bond rate calculation is not necessary. The long-term expected discount rate of 6.90% is applied to all plans in the Public Employees Retirement Fund. The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained at CalPERS’ website under the GASB 68 section.
87 621
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2024
Changes in the Net Pension Liability
The change in the Net Pension Liability for the Miscellaneous Plan, measured as of June 30, 2024, follows:
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
Balance at September 30, 2023 114,760,243 $ $ 72,749,548 $ 42,010,695 Changes in the year
Service Cost 1,834,941 - 1,834,941
Interest on the total pension liability 7,772,824 - 7,772,824 Changes of benefit terms - - -
Differences between actual and
expected experience 575,159 - 575,159
Contributions - employer 4,184,906 - (4,184,906)
Contributions - employee 1,002,328 - (1,002,328)
Net investment income 6,962,413 - (6,962,413)
Benefit payments, including
refunds of employee contributions (7,206,502) (7,206,502) - Administrative expense - (59,197) 59,197
Net changes 2,976,422 4,883,948 (1,907,526)
Balance at September 30, 2024 $ 117,736,665 $ 77,633,496 $ 40,103,169 Increase / (Decrease)
Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.
Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the City for Miscellaneous Plan, calculated using the discount rate for this Plan, as well as what the City's net pension liability would be if it were calculated using a discount rate that is 1- percentage point lower or 1 - percentage point higher than the current rate:
Current
1% Decrease Discount Rate 1% Increase
5.90% 6.90% 7.90%
Discount Rate
Net Pension Liability 54,130,445 $ 40,103,169 $ 28,413,327 $ 88 622
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2024
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions For the measurement period ended June 30, 2024, the City recognized pension expense of $5,168,210. At September 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $ 3,794,385 $ - Changes of Assumptions - -
Differences between expected and actual experiences 453,062 - Net differences between projected and actual
earnings on plan investments 1,094,007 -
Total 5,341,454 $ - $
Miscellaneous Plan
The amount of $3,794,385 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended September 30, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
2025 $ 286,188
2026 1,981,630
2027 (317,063)
2028 (403,686)
Total 1,547,069 $
Year ended September 30,
B. Safety Plan, a Cost-Sharing Multiple-Employer Defined Benefit Pension Plan Plan Description - Substantially all full time City employees are eligible to participate in pension plans offered by California Public Employees Retirement System (CalPERS). The City’s safety employees participate in the separate Safety (police and fire) Employee Plans. CalPERS operates a cost sharing multiple employer defined benefit safety plan. CalPERS acts as a common investment and administrative agent for its participating member employers. CalPERS provides retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries.
Benefit provisions under the Plan are established by State statute and City resolution. Benefits are based on years of credited service, equal to one year of full-time employment. Funding contributions for the Plan are determined annually on an actuarial basis as of June 30 by CalPERS; the City must contribute these amounts.
Audited annual financial statements are available from CalPERS at P.O. Box 942709, Sacramento, California 94229-2709.
89 623
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2024
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: The basic death benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. Benefit provisions and all other requirements are established by State statute and may be amended by city contracts with employee bargaining groups.
The Plan's provisions and benefits in effect at September 30, 2024, are summarized as follows:
Classic PEPRA
Safety Safety
Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life
Retirement age 50-55 57
Monthly benefits, as a % of salary 3.00% 2.70%
October 1, 2023 - July 1, 2024 -
June 30, 2024 September 30, 2024
Safety Safety
Required employee contribution rates
Classic 8.99% 8.99%
PEPRA 14.500% 14.500%
Required employer contribution rates:
Classic:
Police Tier 1 29.090% 29.300%
Police Tier 2 27.630% 27.840%
Police Tier 3 24.790% 24.960%
Fire Tier 1 29.090% 29.300%
Fire Tier 2 27.630% 27.840%
Fire Tier 3 24.790% 24.960%
PEPRA:
Safety Police 14.500% 14.720%
Safety Fire 14.500% 14.720%
90 624
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2024
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through the CalPERS’ annual actuarial valuation process. For public agency cost-sharing plans covered by either the Miscellaneous or Safety risk pools, the Plan’s actuarially determined rate is based on the estimated amount necessary to pay the Plan’s allocated share of the risk pool’s costs of benefits earned by employees during the year, and any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Total contributions made by the City to the Safety Plan during fiscal year 2024 were $6,045,497.
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions As of September 30, 2024, based on the measurement date of June 30, 2024, the City reported a net pension liability of $53,526,784 for its proportionate share of the net PERF C Cost Sharing Plan.
The City's net pension liability is measured as the proportionate share of net pension liability. The net pension liability is measured as of June 30, 2024, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2023. The City's proportion of the net pension liability based on a projection of the City's long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City's proportionate share of the net pension liability for the PERF C Cost Sharing Plan measured as of June 30, 2023 and 2024 was 0.5698% and 0.5589%, respectively.
For the year ended September 30, 2024, the City recognized pension expense of $2,882,833. At September 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $ 4,694,770 $ - Changes of assumptions 1,004,012 -
Differences between expected and actual experiences 3,325,616 108,130 Changes in proportions 3,054,742 2,275,759
Net differences between projected and actual
earnings on plan investments 1,969,701 -
Total 14,048,841 $ 2,383,889 $
Safety Plan
91 625
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2024
The amount of $4,694,770 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended September 30, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
2025 $ 2,560,285
2026 4,813,129
2027 154,891
2028 (558,123)
Total 6,970,182 $
Year ended September 30,
Actuarial Assumptions
The total pension liability was determined using the following actuarial assumptions:
Valuation Date June 30, 2023
Measurement Date June 30, 2024
Actuarial Cost Method
Actuarial Assumptions
Discount Rate 6.90%
Inflation 2.30%
Projected Salary Increase Varies by Entry Age and Service Investment Rate of Return 6.90% (1)
Mortality Based on CalPERS Experience Study
(1) Net of pension plan investment expenses, including inflation Safety Plan
The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the 2021 experience study report from November 2021 that can be found on the CalPERS website.
The long-term expected rate of return on pension plan investments was determined using a building- block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. 92 626
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2024
In determining the long-term expected rate of return, staff took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both shortterm and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.
The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation.
Assumed Real Return
Asset Years 1-10
Allocation (a, b)
Global Equity - Cap-weighted 30.0% 4.54%
Global Equity - Non-Cap-weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage-backed Securities 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage -5.00% -0.59%
Total 100.0%
(a) An expected inflation of 2.30% used for this period. (b) Figures are based on the 2021 Asset Liability Management study.
Asset Class (a)
Discount Rate - The discount rate used to measure the total pension liability was 6.90%. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 6.90% discount rate is adequate, and the use of the municipal bond rate calculation is not necessary. The long-term expected discount rate of 6.90% is applied to all plans in the Public Employees Retirement Fund. The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained at CalPERS’ website under the GASB 68 section.
93 627
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2024
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City's proportionate share of the net pension liability for the Safety Plan, calculated using the discount rate of 6.90%, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 - percentage point lower or 1 - percentage point higher than the current rate:
Current
1% Decrease Discount Rate 1% Increase
5.90% 6.90% 7.90%
City's proportionate of the
net pension liability 77,380,651 $ 53,526,784 $ 34,017,673 $ Pension Plan Fiduciary Net Position – Detailed information about each pension plan's fiduciary net position is available in the separately issued CalPERS financial reports.
For proprietary funds, pension liabilities are liquidated by the fund that has recorded the liability. For governmental activities, pension liabilities are liquidated by the General Fund.
Note 12 - Risk Management
A. Insurance Coverage
The City is a member of the California Intergovernmental Risk Authority (CIRA) (formerly Public Agency Risk Sharing Authority of California (PARSAC)), a joint powers authority which provides annual general liability coverage up to $35,000,000 in the aggregate. The City retains the risk for the first $250,000 in general liability claims.
The City is a member of Local Agency Workers’ Compensation Excess Joint Powers Authority (LAWCX), which provides workers’ compensation insurance coverage up to $45,000,000. The City retains the risk of the first $500,000 in losses for each accident and employee under this policy.
CIRA and LAWCX were established for the purpose of providing general liability and excess workers’ compensation protection for their members. Each entity is governed by a board consisting of representatives from member municipalities. The board controls the operations of each entity, including selection of management and approval of the annual budget.
Financial statements for the Authority may be obtained from CIRA, 1525 Response Road, Suite One, Sacramento, California 95815. Audited financial statements are available from LAWCX at 6371 Auburn Boulevard, Citrus Heights, California 95621.
GASB requires municipalities to record their liability for uninsured claims and to reflect the current portion of this liability as an expenditure in their financial statements. As discussed above, the City has coverage for such claims, but it has retained the risk for the deductible, or uninsured portion of these claims. 94 628
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2024
The City’s liability for uninsured claims is limited to worker’s compensation, general liability claims, as discussed above, and was estimated by management based on prior years’ claims experience as follows:
B. Liability for Uninsured Claims
Workers' General
Compensation Liability
Claims Claims Totals
Beginning Balance $ 5,919,896 $ 744,439 $ 6,664,335
Liability for current fiscal year claims and
claims incurred but not reported (IBNR) 1,674,990 46,413 1,721,403 Claims paid (1,131,359) (45,074) (1,176,433)
Ending Balance 6,463,527 $ 745,778 $ 7,209,305 $
Balance due within one year 1,473,941 $ 745,778 $ 2,219,719 $ Workers' General
Compensation Liability
Claims Claims Totals
Beginning Balance $ 5,917,000 $ 586,045 $ 6,503,045
Liability for current fiscal year claims and
claims incurred but not reported (IBNR) 1,834,064 651,263 2,485,327 Claims paid (1,831,168) (492,869) (2,324,037)
Ending Balance 5,919,896 $ 744,439 $ 6,664,335 $
Balance due within one year 1,603,642 $ 744,439 $ 2,348,081 $ 2024
2023
No settlement payments have exceeded insurance coverage in each of the past three fiscal years. 95 629
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2024
Note 13 - Jointly Governed Organizations
South Lake Tahoe Basin Waste Management Authority
The City, El Dorado County, California, and Douglas County, Nevada, formed the South Lake Tahoe Basin Waste Management Authority on February 17, 1994, to provide cost effective management of solid waste generated in the Southern Tahoe Basin.
The Authority is a separate legal entity and exercises full powers and authorities within the scope of the related Joint Powers Agreement including the preparation of annual budgets, accountability for all funds, the power to make and execute contracts and the right to sue and be sued. Obligations and liabilities of the Authority are not those of the City.
The Authority is governed by a board consisting of representatives from each member agency. The board controls the operations of the Authority, including selection of management and approval of operating budgets, independent of any influence by member agencies beyond their representation on the Board.
The City acts as the fiscal agent for the Authority. The Authority’s assets and liabilities are, therefore, included within the City’s Custodial Funds. The Authority is separately audited every 2 years and financial statements can be obtained by contacting the City of South Lake Tahoe at 1901 Lisa Maloff Way, South Lake Tahoe, California 96150.
Note 14 - Park Avenue Community Facilities District No. 2001-1 Bonds, Without City Commitment In prior years, the Former South Tahoe Redevelopment Agency sponsored the issuance of the Community Facilities District No. 2001-1, Special Tax Bonds which were used to finance certain improvements as part of the Park Avenue Project. In 2008 the Community Facilities District No. 2001-1 Bonds were refunded by issuing Series 2007 Special Tax Refunding Bonds. The Bonds were refunded again with the issuance of refunding bonds in 2015. The outstanding balance on Series 2015 Special Tax Refunding Bonds at September 30, 2024 was $3,480,000. The Bonds are repayable from special taxes to be assessed on properties in the District. These assessments are to be used to repay debt service on the Bonds and other expenditures of the District. The City acts solely as the collecting and paying agent for the District’s Bonds, but it has no direct or contingent liability or moral obligation for the payment of this debt, which is not included in the general debt of the City.
Note 15 - Commitments & Contingencies
A. Litigation
The City is subject to litigation arising in the normal course of business. Although the outcome of these claims and lawsuits is not presently determinable, in the opinion of the City’s management, on advice of legal counsel, it is unlikely that they will have a material adverse effect on the accompanying financial statements. 96 630
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2024
B. Federal and State Grants
The City participates in several federal and State grant programs. These programs are subject to audit by the City's independent auditors in accordance with the provisions of the Federal Single Audit Act amendments of 1996 and applicable State requirements. However, these programs are still subject to further examination by the grantors and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time. The City expects such amounts, if any, to be immaterial.
Note 16 - Former Redevelopment Agency Dissolution and Successor Agency Activities A. Redevelopment Dissolution
In an effort to balance its budget, the State of California adopted ABx1 26 on June 28, 2011, amended by AB 1484 on June 27, 2012, which suspended all new redevelopment activities except for limited specified activities as of that date and dissolved redevelopment agencies on February 1, 2012.
The suspension provisions prohibited all redevelopment agencies from a wide range of activities, including incurring new indebtedness or obligations, entering into or modifying agreements or contracts, acquiring or disposing of real property, taking actions to adopt or amend redevelopment plans and other similar actions, except actions required by law or to carry out existing enforceable obligations, as defined in ABx1 26.
Certain assets of the Redevelopment Agency were to be distributed to a Housing Successor and all remaining Redevelopment Agency assets and liabilities were to be distributed to a Successor Agency. The activities of the Housing Successor are reported in the City Housing & Economic Development Special Revenue Fund as the City has control of those assets, which may be used in accordance with the low and moderate-income housing provisions of California Redevelopment Law. The City also elected to become the Successor Agency. The Redevelopment Agency’s remaining assets were distributed to and liabilities were assumed by the Successor Agency and are recorded in the Redevelopment Obligation Retirement Private-Purpose Trust Fund.
ABx1 26 requires the establishment of an Oversight Board to oversee the activities of the Successor Agency and one was established on April 30, 2012. The activities of the Successor Agency are subject to review and approval of the Oversight Board, which is comprised of seven members, including one member of the City Council and one former Redevelopment Agency employee appointed by the Mayor.
B. Cash
Cash and investments of the Successor Agency as of September 30, 2024 are discussed in Note 3. Information presented in the following footnotes represents other assets and liabilities of the Successor Agency as of September 30, 2024.
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Notes to Financial Statements
September 30, 2024
C. Capital Assets
Capital assets recorded in the Successor Agency Private Purpose Trust Fund at September 30, 2024 comprise:
Balance at Balance at
September 30, September 30,
2023 Additions Retirements 2024
Successor Agency
Capital assets not being depreciated
Land 7,857,332 $ - $ (1,072,588) $ 6,784,744 $
Total capital assets not being depreciated 7,857,332 - (1,072,588) 6,784,744 Capital assets, being depreciated
Streets 3,287,695 - 3,287,695 -
Total capital assets being depreciated 3,287,695 - 3,287,695 - Less accumulated depreciation for
Streets (1,719,190) (82,192) (1,801,382) -
Total accumulated depreciation (1,719,190) (82,192) (1,801,382) - Total capital assets being
depreciated, net 1,568,505 (82,192) 1,486,313 -
Successor Agency capital assets, net $ 9,425,837 $ (82,192) $ (1,072,588) $ 8,271,057 D. Long-Term Debt
The Successor Agency assumed the long-term debt of the Former Redevelopment Agency as of February 1, 2012. Current year balances reported in the private purpose trust fund as of September 30, 2024 are as follows:
Balance at Balance at
September 30, September 30, Current
2023 Additions Retirements 2024 Portion
Successor Agency
Redevelopment Agency Obligations
Revenue Bonds
Refunding Revenue Bonds, 2014 Series A
2.0%-5.0%, due serially until 10/1/2034 24,035,000 $ $ 780,000 - $ $ 23,255,000 $ 810,000 Add: Premium 577,129 - 48,094 529,035 -
Refunding Revenue Bonds, 2015 Series A
2.0% - 5.0% due serially until 10/1/2035 17,720,000 - 1,670,000 16,050,000 Add: Premium 1,218,331 - 101,527 1,116,804 1,760,000
Refunding Revenue Bonds, 2017 Series A
2.0%-5.0%, due serially until 10/1/2037 16,215,000 - 365,000 15,850,000 385,000 Add: Premium 392,746 - 30,212 362,534 -
Total revenue bonds 60,158,206 - 2,994,833 57,163,373 2,955,000 Notes from Direct Borrowings
Advance due to the City 5,289,178 - - 5,289,178 -
$ - 65,447,384 $ 2,994,833 $ 62,452,551 $ 2,955,000 $
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Notes to Financial Statements
September 30, 2024
The annual debt service requirements to maturity for the outstanding Revenue Bonds at September 30, 2024, were as follows:
Principal Interest
2025 $ 2,955,000 $ 2,145,906
2026 3,090,000 2,009,306
1,868,106 3,230,000
1,735,606 3,375,000
- 3,490,000
2030-2034 19,990,000 6,269,588
2035-2038 19,025,000 2,060,503
Total 55,155,000 16,089,015 $
Add: Bond Premium 2,008,373
Advance due to City 5,289,178
Total 62,452,551 $
Private Purpose Trust Fund
For the Year Revenue Bonds
Ending September 30,
2027
2028
2029
Advances due from the RDA Successor Agency
As a result of obtaining the finding of completion from the State of California Department of Finance, the Oversight Board of the Redevelopment Agency reviewed certain advances between the City and the Former Redevelopment Agency which had become invalid and non-binding when the Former RDA was dissolved.
However, after dissolution, AB 1484 allowed for City loans to be re-established after a finding of completion is obtained and the Oversight Board finds the loans to be for legitimate redevelopment purposes. The Oversight Board concluded through Resolution 2014-6 that the City Loans were for legitimate redevelopment purposes and therefore these loans were re-established onto the financial statements. As of September 30, 2024, the total advance due to the City was $5,289,178.
Refunding Revenue Bonds 2014 Series A
On November 20, 2014, the South Tahoe Joint Powers Financing Authority, a joint powers authority between the City and the former South Tahoe Redevelopment Agency, issued Refunding Revenue Bonds 2014 Series A in the amount of $29,230,000, plus a premium of $1,009,974, for the South Tahoe Redevelopment Project Area No. 1. The Authority assisted the Successor Agency to the South Tahoe Redevelopment Agency (the Successor Agency) to achieve interest cost savings by refunding the Authority's remaining outstanding obligations of the 1999 Series A Bonds, 2003 Series A Bonds, and the 2004 Series A Bonds and to pay costs of issuance for the 2014 Bonds. Principal and Interest are payable on April 1 and October 1 of each year and interest rates range from 2% to 5% on the debt. The principal balance as of September 30, 2024 was $23,255,000.
A deferred amount on refunding of $812,990 was recognized with the issuance of the bonds. The unamortized balance at September 30, 2024 was $406,885.
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Notes to Financial Statements
September 30, 2024
Refunding Revenue Bonds 2015 Series A
On September 16, 2015, the South Tahoe Joint Powers Financing Authority, a joint powers authority between the City and the former South Lake Tahoe Redevelopment Agency, issued the 2015 Series A Refunding Revenue Bonds in the amount of $27,525,000 plus a premium of $2,030,547. The 2015 Bonds bear interest rates ranging from 2% to 5% and mature serially until 2035. The net proceeds of the 2015 Bonds are to be used to fund two loans to the Successor Agency to the South Tahoe Redevelopment Agency and will enable the Authority to refund prior loans made to the former Redevelopment Agency and in turn refund the Authority’s remaining outstanding 2005 Series A Bonds. The principal balance as of September 30, 2024 was $16,050,000.
A deferred amount on refunding of $399,748 was recognized with the issuance of the bonds. The unamortized balance at September 30, 2024 was $219,861.
Refunding Revenue Bonds 2017 Series A
On September 1, 2017, The South Tahoe Joint Powers Financing Authority, a joint powers authority between the City and the former South Lake Tahoe Redevelopment Agency, issued the 2017 Series A Refunding Revenue Bonds in the amount of $17,640,000 plus a premium of $604,230. Principal and interest are payable on April 1 and October 1 of each year. The 2017 Bonds bear interest rates ranging from 2% to 5% and mature serially until 2037. The net proceeds of the 2017 Bonds are to be used to refund the Authority’s remaining outstanding 2007 Series A Bonds. The principal balance as of September 30, 2024 was $15,850,000.
A deferred amount on refunding of $528,255 was recognized with the issuance of the bonds. The unamortized balance at September 30, 2024 was $352,170.
Pledged Revenue
Debt service on the 2014 Series A, the 2015 Series A, and the 2017 Series A Bonds are secured by and are repayable from a primary pledge of property tax increment received by the Agency. Transient occupancy tax (TOT) revenues levied by the Agency are pledged as a secondary revenue source, but only to the extent that property tax increment is insufficient to pay bond debt service, and only for bond debt service. Transient occupancy tax revenues which are not used for debt service on the Bonds remain with the City.
The Agency has pledged all future tax increment revenues for the repayment of the 2014, 2015 and 2017 Refunding Revenue Bonds. In FY2015, the 2014A Refunding Revenue Bonds refunded the 1999, 2003 and 2004 Bonds. In FY2015, the 2015A Refunding Revenue Bonds were issued to refund the 2005 Bonds. In FY2017, the Refunding Revenue Bonds 2017 Series A were issued to refund the 2007 Bonds. As a result, the debt issuances of the former South Tahoe Redevelopment Agency, to which the City provides non-exchange financial guarantees, consist of the 2014, 2015, and 2017 Refunding Revenue Bonds as of September 30, 2024. The pledge of all future tax increment revenues ends upon repayment of $71,638,626 remaining debt service on the Bonds, which is scheduled to occur in 2038. With the dissolution of the Redevelopment Agency discussed above, Tax Increment is no longer distributed, and instead the Successor Agency receives payments from the County’s Redevelopment Property Tax Trust Fund (RPTTF) that are to be used to pay debt service on the Bonds, with no distinction between housing and non-housing revenues. Total property tax distributions for the year ended September 30, 2024 from the County’s RPTTF totaled collections of $5,228,760, which represented coverage of 103% of the $5,097,356 of debt service.
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City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2024
E. Commitments and Contingencies
State Approval of Enforceable Obligations
The Successor Agency prepares a Recognized Obligation Payment Schedule (ROPS) annually that contains all proposed expenditures for the subsequent twelve-month period. The ROPS is subject to the review and approval of the Oversight Board as well as the State Department of Finance. Although the State Department of Finance may not question items included on the ROPS in one period, they may question the same items in a future period and disallow associated activities. The amount, if any, of current obligations that may be denied by the State Department of Finance cannot be determined at this time. The Successor Agency expects such amounts, if any, to be immaterial.
F. Supplemental Education Revenue Augmentation Fund
In March 2011, the Low-Moderate Income Housing Fund loaned $426,210 to the Redevelopment Agency for the purpose of financing the Supplemental Educational Revenue Augmentation Fund (SERAF) payment to the State of California. Upon the dissolution of the Redevelopment Agency on February 1, 2012, the loan was assumed by the Successor Agency. However, since the loan was originally denied by the California Department of Finance, and collectability was not certain, it was fully reserved. The Oversight Board has approved the repayment of the loan to the Low-Moderate Income housing Fund when sufficient property tax collections are available. As of September 30, 2024, no payments were made on the loan and the outstanding loan balance was $426,210.
Note 17 - Subsequent Events
On November 5, 2024, the City Council approved a financing agreement with Banc of America Public Capital Corp to finance the purchase and installation of energy efficiency improvements at various City facilities. The total principal amount of the financing is $7,973,000, with a 16-year term and a fixed interest rate of 4.055%.
The proceeds of the financing will be used to fund key energy-related capital projects, including solar installations and HVAC upgrades.
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Required Supplementary Information
September 30, 2024
City of South Lake Tahoe, California
103
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City of South Lake Tahoe, California
Schedule of Changes in Net Pension Liability and Related Ratios During the Measurement Period – Miscellaneous Plan
Last Ten Years
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Total pension liability
Service cost $ 1,834,941 $ 1,734,182 $ 1,734,439 $ 1,700,613 $ 1,731,444 $ 1,565,769 $ 1,634,361 $ 1,640,573 $ 1,298,374 $ 1,298,374 Interest on total pension liability 7,772,824 7,577,912 7,311,919 7,214,836 7,027,535 6,791,789 6,501,556 6,290,481 6,167,070 5,921,706 Change of benefit terms 197,405 - - - - - - - - -
Changes of assumptions - 3,019,702 - - - (541,838) - 4,933,223 (1,373,535) - Difference between expected and actual experience 575,159 1,532,731 (454,974) (233,289) 516,492 1,287,266 473,296 (436,341) 613,254 (675,672) Benefit payments, including refunds of employee
contributions (7,206,502) (7,019,181) (6,823,570) (6,044,528) (5,736,837) (5,582,622) (5,076,733) (4,737,930) (4,801,972) (4,441,507) Net change in total pension liability 2,976,422 4,023,049 4,787,516 2,637,632 3,538,634 4,062,202 2,990,642 7,690,006 3,276,726 720,906 Total pension liability - beginning 114,760,243 110,737,194 105,949,678 103,312,046 99,773,412 95,711,210 92,720,568 85,030,562 81,753,836 81,032,930 Total pension liability - ending (a) $ 117,736,665 $ 114,760,243 $ 110,737,194 $ 105,949,678 $ 103,312,046 $ 99,773,412 $ 95,711,210 $ 92,720,568 $ 85,030,562 $ 81,753,836 Plan fiduciary net position
Contributions - employer $ 4,184,906 $ 4,030,373 $ 3,754,044 $ 3,506,654 $ 3,266,237 $ 3,025,533 $ 2,690,016 $ 2,660,201 $ 2,330,646 $ 1,964,036 Contributions - employee 1,002,328 949,041 839,628 829,398 808,150 744,445 639,930 637,329 579,366 538,590 Net investment income 6,962,413 4,354,850 (5,885,446) 14,843,253 3,174,608 3,998,103 4,945,510 6,053,996 267,823 1,263,648 Plan to plan resource movements - - - - - - (235) 13,996 - - Benefit payments, including refunds of employee
contributions (7,206,502) (7,019,181) (6,823,570) (6,044,528) (5,736,837) (5,582,622) (5,076,733) (4,737,930) (4,801,972) (4,441,507) Administrative expense (59,197) (51,832) (48,995) (65,512) (90,449) (44,258) (92,073) (80,545) (34,250) (63,276) Other miscellaneous income/expense - - - - - 144 (174,849) - - - Net change in fiduciary net position 4,883,948 2,263,251 (8,164,339) 13,069,265 1,421,709 2,141,345 2,931,566 4,533,051 (1,644,391) (738,509) Plan fiduciary net position - beginning 72,749,548 70,486,297 78,650,636 65,581,371 64,159,662 62,018,317 59,086,751 54,553,700 56,198,091 56,936,600 Plan fiduciary net position - ending (b) $ 77,633,496 $ 72,749,548 $ 70,486,297 $ 78,650,636 $ 65,581,371 $ 64,159,662 $ 62,018,317 $ 59,086,751 $ 54,553,700 $ 56,198,091 Net pension liability - ending (a) - (b) $ 40,103,169 $ 42,010,695 $ 40,250,897 $ 27,299,042 $ 37,730,675 $ 35,613,750 $ 33,692,893 $ 33,633,817 $ 30,476,862 $ 25,555,745 Plan fiduciary net position as a percentage
of the total pension liability 65.94% 63.39% 63.65% 74.23% 63.48% 64.31% 64.80% 63.73% 64.16% 68.74% Covered payroll $ 10,794,283 $ 9,939,207 $ 9,360,535 $ 9,247,957 $ 9,968,860 $ 9,235,423 $ 8,387,476 $ 8,459,217 $ 7,567,926 $ 6,923,639 Net pension liability as a percentage of
covered payroll 371.52% 422.68% 430.01% 295.19% 378.49% 385.62% 401.70% 397.60% 402.71% 369.11% Measurement date June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Notes to Schedule
Changes in assumptions: In 2015, the discount rate was changed from 7.50 percent to 7.65 percent. In 2017, the discount rate was changed from 7.65 percent to 7.15 percent. In 2018, the demographic assumptions, and inflation rate changed from 2.75 percent to 2.5 percent. In 2022, the discount rate changed from 7.15 to 6.90. 104
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City of South Lake Tahoe, California
Schedule of Contributions – Miscellaneous Plan
Last Ten Years
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Actuarially determined contributions 4,623,290 $ $ 3,956,042 $ 4,010,750 $ 3,785,869 $ 3,491,578 $ 3,016,430 $ 2,688,342 $ 2,672,952 $ 2,424,596 $ 2,039,415 Contributions in relation to the actuarially
determined contribution (4,623,290) (3,956,042) (4,010,750) (3,785,869) (3,491,578) (3,016,430) (2,688,342) (2,672,952) (2,424,596) (2,039,415) Contribution deficiency (excess) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Covered payroll $ 11,171,807 $ 10,067,966 $ 9,483,432 $ 8,849,305 $ 9,195,878 $ 9,411,567 $ 8,467,344 $ 8,280,014 $ 7,818,112 $ 7,025,581 Contributions as a percentage of
covered payroll 41.38% 39.29% 42.29% 42.78% 37.97% 32.05% 31.75% 32.28% 31.01% 29.03% 105
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City of South Lake Tahoe, California
Schedule of the City’s Proportionate Share of the Net Pension Liability – Safety Cost Sharing Plan Last Ten Years
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
City's proportion of the net pension liability 0.5589% 0.5698% 0.5807% 0.5893% 0.6039% 0.6200% 0.3935% 0.3764% 0.3761% 0.3640% City's proportionate share of the net pension liability 53,526,784 $ $ 54,155,217 $ 50,633,357 $ 28,415,935 $ 43,775,772 $ 40,016,396 $ 37,917,732 $ 37,323,632 $ 32,546,803 $ 24,987,173 City's covered payroll 8,232,264 $ $ 8,685,404 $ 8,425,412 $ 8,211,376 $ 8,089,719 $ 6,759,736 $ 6,572,142 $ 6,460,385 $ 6,144,036 $ 6,149,004 City's proportionate share of the net pension liability as a percentage of covered payroll 650.21% 623.52% 600.96% 346.06% 541.13% 591.98% 576.95% 577.73% 529.73% 406.36% Plan fiduciary net position as a percentage of the
total pension liability 69.35% 68.05% 68.95% 81.60% 70.75% 72.47% 75.26% 73.31% 74.06% 78.40% Measurement Date June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Notes to Schedule:
Changes in assumptions: In 2015, the discount rate was changed from 7.50 percent to 7.65 percent. In 2017, the discount rate was changed from 7.65 percent to 7.15 percent. In 2018, the demographic assumptions, and inflation rate changed from 2.75 percent to 2.5 percent. In 2022, the discount rate changed from 7.15 to 6.90. 106
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City of South Lake Tahoe, California
Schedule of Contributions – Safety Cost Sharing Plan
Last Ten Years
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Actuarially determined contributions $ 6,045,497 $ 5,056,382 $ 5,074,060 $ 4,610,711 $ 4,044,515 $ 2,937,395 $ 2,762,331 $ 2,405,473 $ 1,978,077 $ 1,692,799 Contributions in relation to the actuarially
determined contribution (6,045,497) (5,056,382) (5,074,060) (4,610,711) (4,044,515) (2,937,395) (2,762,331) (2,405,473) (1,978,077) (13,140,470) Contribution deficiency (excess) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ (11,447,671) Covered payroll 8,578,695 $ $ 8,686,203 $ 8,505,325 $ 7,910,987 $ 7,702,295 $ 7,007,680 $ 6,615,298 $ 6,308,623 $ 6,170,675 $ 6,110,069 Contributions as a percentage of covered payroll 70.47% 58.21% 59.66% 58.28% 52.51% 41.92% 41.76% 38.13% 32.06% 215.06% 107
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108
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Supplementary Information
September 30, 2024
City of South Lake Tahoe, California
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City of South Lake Tahoe, California
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – City Capital Projects Fund
Year Ended September 30, 2024
Variance
Final Positive
Budget Actual (Negative)
Revenues
Use of money and property $ - $ 223,426 $ 223,426
Intergovernmental revenue 11,365,515 7,289,559 (4,075,956) Other revenue 181,382 182,424 1,042
Total revenues 11,546,897 7,695,409 (3,851,488)
Expenditures
Current
General government 25,719 - 25,719
Capital outlay 110,243,387 34,854,751 75,388,636
Total expenditures 110,269,106 34,854,751 75,414,355
Excess (Deficiency) of Revenues
over Expenditures (98,722,209) (27,159,342) 71,562,867
Other Financing Sources (Uses)
Transfers in 82,150,404 31,588,523 (50,561,881)
Transfers (out) (2,503,638) (101,085) 2,402,553
Total other financing sources (uses) 79,646,766 31,487,438 (48,159,328) Net Change in Fund Balances $ (19,075,443) 4,328,096 $ 23,403,539 Beginning Fund Balance 16,816,708
Ending Fund Balance $ 21,144,804
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City of South Lake Tahoe, California
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – City Debt Service Fund
Year Ended September 30, 2024
Variance
Final Positive
Budget Actual (Negative)
Revenues
Use of money and property 5,000 $ $ 3,101,674 $ 3,096,674 Expenditures
Current
General government 39,400 29,063 10,337
Debt service
Principal 4,625,944 3,860,944 765,000
Interest and fiscal charges 3,530,874 2,125,575 1,405,299 Payments to refunded bond escrow agent
Total expenditures 8,680,376 6,015,582 2,664,794
Excess (Deficiency) of Revenues
over Expenditures (8,675,376) (2,913,908) 5,761,468
Other Financing Sources (Uses)
Transfers in 8,114,774 8,114,774 -
Transfers out (56,166,967) (20,242,631) 35,924,336
Total other financing sources (uses) (48,052,193) (12,127,857) 35,924,336 Net Change in Fund Balances $ (56,727,569) (15,041,765) $ 41,685,804 Beginning Fund Balance 58,355,440
Ending Fund Balance $ 43,313,675
111
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112
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City of South Lake Tahoe, California
Non-Major Governmental Funds
September 30, 2024
The funds described below include the individual non-major funds of the City. This includes the City’s non-major special revenue and capital projects funds.
Special Revenue Funds
Gas Tax – Used to account for the Highway User’s Tax revenues received from the State of California under Sections 2105, 2106 and 2107 of the Streets and Highways Code.
TOT – To account for the collection of Transient Occupancy Taxes formerly associated with the Redevelopment Project areas to be utilized to backfill any shortfalls in tax increment revenue in the Redevelopment Successor Agency.
Snow Removal – Used to account for the Highway User’s Tax revenues received from the State of California under section 2107.5 of the Streets and Highways code restricted to snow removal operations, and for revenue and expenditures related to replacement of snow removal equipment.
Vehicle Replacement – Used to account for revenues and expenditures related to the replacement of city vehicles and safety vehicles.
Solid Waste – To account for fees from AB 939 to promote environmentally friendly practices to reduce solid waste by diversion of recycling materials.
Safety Sales Tax – Used to account for the Proposition 172 Safety Sales Tax revenues and expenditures.
AB3229 COPS – To account for COPS grant funds received and used to purchase equipment and pay officer overtime for projects associated with Community Oriented Policing.
Local Law Enforcement – To account for the receipt and expenditure of Local Law Enforcement Block Grants (LLEBG) received from State and Federal agencies.
Asset Forfeiture – To account for asset forfeiture funds received as a result of forfeiture of criminal assets to be used for contract services along with special police investigations.
Stormwater Management – To account for South Tahoe Refuse funds that pay for Street and Snow Sweeping and Stormwater projects and employees.
EMS – To account for the receipt of first responder fees for medical response that support the costs of operations of paramedic engines and squad.
Clean Community – To account for funds from South Tahoe Refuse to remove litter from highly visible locations along public roadways and neighborhoods, issue trash violations and provide education and special events.
Abatement – To account for vehicle abatement activities in accordance with City Code to coordinate with tow companies to remove abandoned vehicles and for nuisance abatement to process all complaints of nuisances as identified in City Code.
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City of South Lake Tahoe, California
Non-Major Governmental Funds
September 30, 2024
Ski Run Business Improvement – Used to account for the fees collected with business tax payments for the purpose of supporting landscaping and snow removal in the Ski Run Business Improvement District located on Ski Run Boulevard between Pioneer Trail and Lake Tahoe Boulevard.
Measure S Maintenance – To account for the Measure S assessments for the Community Facilities District Recreation Joint Powers Authority for maintenance of bike trails, athletic facilities, Paradise Park facilities, and the ice arena.
General Plan / Community Plan – Used to account for the fees collected and expenses incurred for the update of the general plan.
Boat Patrol – To account for Boat Patrol grants to provide law enforcement services in open waters and harbor areas of the City of South Lake Tahoe.
Domestic Violence Grant – To account for the grant supporting collaboration between SLTPD and Live Violence Free to use as an integrated community-oriented approach to address domestic violence.
DUI/Traffic Safety Grant – Used to account for the revenues and expenditures related to the Police Department DUI and Traffic Safety Grants received from State and Federal agencies.
Explore Tahoe Transit Center – To account for the revenues and expenditures related to Explore Tahoe at Heavenly Village to provide education and transportation for visitors to recreational and cultural activities.
Tourism Improvement District – Used to account for the collection and passing through of the nightly per room assessment for the purpose of tourism promotion in the South Lake Tahoe area.
Arts Program – Used to account for funds to be utilized for Public Art programs in the City of South Lake Tahoe.
Vacation Home Rental Program – To account for the Vacation Home Rental Program to improve the efficiency and enforcement of the City Vacation Home Rental Ordinance.
Ice Arena – To account for the Management and Operations Agreement with Tahoe Sports Entertainment to operate and maintain the Ice Arena.
Cannabis Program – To account for the collection of Measure G local six percent Cannabis Business and Professions tax on commercial cannabis activity within the City limits.
PEG Program – To account for the Public, Educational, Government (PEG) support fee to be paid by customers of Charter Communications to support the City’s PEG station, SLT-TV Channel 21.
Tobacco Law Enforcement Grant – Used to account for the revenues and expenditures related to the Tobacco Law Enforcement Grants.
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City of South Lake Tahoe, California
Non-Major Governmental Funds
September 30, 2024
Bijou Erosion Control Plan CFD – To account for special assessments collected to be used towards erosion control plan activities in the Community Facility District No. 2014-1 (Bijou Area ECP).
Harrison Avenue CFD – To account for special assessments collected to fund capital improvement activities on Harrison Avenue.
Disaster Preparedness – To account for the revenue and expenditures related to the City’s hazardous fuel reduction programs.
Opioid Settlement Program – To account for the revenues and expenditures related to the City’s participation in the National Opioid Litigation Settlement with opioid distributors and opioid manufacturers. 115
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City of South Lake Tahoe, California
Non-Major Governmental Funds
Combining Balance Sheet
September 30, 2024
Snow
Gas Tax TOT Removal
Assets
Cash and investments 274,191 $ $ 1,889,631 $ 1,740,426
Accounts receivable - net 62,552 - -
Advances to RDA Successor Agency - - -
Total assets 336,743 $ 1,889,631 $ 1,740,426 $
Liabilities
Accounts payable 69,688 $ $ - $ 3,747
Due to other funds - - -
Unearned revenue - - -
Total liabilities 69,688 - 3,747
Fund Balance
Restricted 267,055 - 1,736,679
Committed - - -
Assigned - 1,889,631 -
Unassigned - - -
Total fund balances 267,055 1,889,631 1,736,679
Total liabilities and fund balances $ 336,743 $ 1,889,631 $ 1,740,426 Special Revenue Funds
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Non-Major Governmental Funds
Combining Balance Sheet
September 30, 2024
Vehicle Solid Safety AB3229 Local Law Asset
Replacement Waste Sales Tax COPS Enforcement Forfeiture $ 1,637,172 $ 19,405 $ 702,191 $ 224,165 $ 1,994 $ 104,545 - 35,213 81,768 80,908 - -
- 317,809 - - - -
$ 19,405 1,990,194 $ 783,959 $ 305,073 $ 1,994 $ 104,545 $ $ 7,808 $ - $ - $ - $ - $ -
- - - - - -
- - - - - -
- 7,808 - - - -
19,405 1,664,577 783,959 305,073 1,994 104,545
- - - - - -
- 317,809 - - - -
- - - - - -
19,405 1,982,386 783,959 305,073 1,994 104,545
$ 1,990,194 $ 19,405 $ 783,959 $ 305,073 $ 1,994 $ 104,545 (Continued)
Special Revenue Funds
117
651
City of South Lake Tahoe, California
Non-Major Governmental Funds
Combining Balance Sheet
September 30, 2024
Assets
Cash and investments
Accounts receivable - net
Advances to RDA Successor Agency
Total assets
Liabilities
Accounts payable
Due to other funds
Unearned revenue
Total liabilities
Fund Balance
Restricted
Committed
Assigned
Unassigned