South Lake Tahoe City Council
April 21, 2026

City Council
Cody Bass, Mayor
Keith Roberts, Mayor Pro Tem
Scott Robbins, Councilmember
David Jinkens, Councilmember
Heather Horgan, Councilmember
Mission of the City Council
We provide responsive and effective local
government by maintaining a safe, livable, and
well-managed city through smart investment,
reliable services, and thoughtful planning.

City of South Lake Tahoe
City Council
Meeting Agenda
Tuesday, April 21, 2026 at 5:30 pm
City Hall - Council Chambers - 1901 Lisa Maloff Way, South Lake Tahoe ------------------------------------------------------------------------------------------------------ Councilmember Robbins will be participating via teleconference from the following location: El Soldado, Baja California, Mexico, https://maps.app.goo.gl/qnF8QW2rzj8TPykh6?g_st=ic, a location accessible to the public.

Public Participation
City Council meetings are held in person at the time and location listed on this agenda. A public agenda packet is available for review at City Hall, 1901 Lisa Maloff Way, on the City’s Website at www.cityofslt.us, or by contacting the City Clerk's Office, (530) 542-6005 or [email protected] Providing Public Comment:

Remote Public Participation: If you would like to participate remotely, please join the ZOOM meeting by using this link: https://us02web.zoom.us/j/81280535357 If you would like to make a comment, wait for the agenda item to begin, then press the "raise hand" button. Meetings are also live-streamed (for viewing only) on Channel 21, the City website at www.cityofslt.us, and YouTube at https://www.youtube.com/channel/UC3LYne8Ih-kTPLnnuyJW9SQ/live Note: The Mayor reserves the right to conduct the meeting with in-person public participation only, if there is a technology malfunction that precludes the use of remote public participation.

In Person: Every agenda for regular meetings provides an opportunity for members of the public to directly address the legislative body (City Council), on any item of public interest which is within the jurisdiction of the City Council during Public Communications. For items on the agenda or in connection with any item which the City Council will consider, the public is given the opportunity to comment before or during the City Council's consideration of the item [Government Code Section 54954.3(a)].

In Writing: Written comments received by 3 p.m. the day before the meeting will be distributed to City Council prior to the meeting. Written public comment regarding any item on this agenda may be sent to [email protected]. When emailing comments, identify the agenda item number in the subject 1 1. Proclamation Recognizing April 2026 as "Sexual Assault Awareness" Month

2. Proclamation Recognizing April 2026 as "National Child Abuse Prevention" Month

3. Presentation by Lions International
line to which your comments relate. Any such comment that is a public record and is emailed to [email protected] or otherwise provided to a majority of the City Council before the meeting will be made available for public inspection during normal business hours at the City Clerk's Office located at City Hall, 1901 Lisa Maloff Way, South Lake Tahoe [Government Code Section 54957.5(b)]. Written comments will not be read out loud during the meeting.

The City Council Chambers meeting facility is accessible to people with disabilities. Every reasonable effort will be made to accommodate any person needing special assistance to attend this meeting.

Contact the City Clerk at (530) 542-6005 at least 48 hours in advance of the meeting for assistance [28 CFR 35.102.35.104 ADA Title II and Brown Act Government Code Sections 54953.2, 54954.1, 54954.2, and 54957.5].

Spanish Interpretations: The public may access Spanish interpretation using the ZOOM link listed on the front of the Agenda from an internet device (smartphone, laptop, tablet, home computer) with audio capabilities and selecting the Spanish language option. Persons without an internet device may attend the meeting in -person and a device will be provided while supplies last. Requests for interpreter services to offer public comment may be made by contacting the City Clerk.

Land Acknowledgement
Land Acknowledgement - The City of South Lake Tahoe acknowledges the lands we occupy today are the lands and home of the Wašíšiw, the people from here known today as the Washoe Tribe of Nevada and California, a sovereign nation. Since the beginning of time and for thousands of years before the arrival of any other people, the Washoe lived here and cared for this place, with values and intention that we can all learn from. On behalf of the City Council, I would like to acknowledge, thank, and honor the Indigenous Washoe Tribal Communities that are the past, present, and future stewards of the Lake Tahoe Basin.

Call to Order/Pledge of Allegiance
Roll Call
Closed Session Report
Proclamations
Requested Action / Suggested Motions: Issue a Proclamation to Vista Rise Collective recognizing April 2026 as "Sexual Assault Awareness" Month.

Item 1- Executive Summary.pdf
Proclamation - April 2025 Sexual Assault Awareness Month.docx Requested Action / Suggested Motions: Issue a Proclamation to the El Dorado County Child Abuse Prevention Council recognizing April 2026 as "National Child Abuse prevention" month.

Item 2- Executive Summary.pdf
Proclamation - April 2026 National Child Abuse Prevention Month Presentations
Requested Action / Suggested Motions: Receive presentation by Terry Rubald, First Vice District Governor, District 46, Lions International.

Responsible Staff Member(s): Susan Blankenship, City Clerk Item 3- Executive Summary.pdf
01-Lions International Presentation
Public Communications
This is the public's opportunity to speak on any topic NOT LISTED on this agenda. Comments shall be 2 4. City Council Meeting Minutes

5. 2025 Annual Comprehensive Financial Report (ACFR)

6. Acceptance of Funds from California State Boating and Enforcement Aid Program for Police Boat Safety and Enforcement Program

7. Grant Application to California Division of Boating and Waterways for Boating Safety and Enforcement Equipment
limited to four (4) minutes. In accordance with the Brown Act, the City Council cannot deliberate or vote on any matter raised under public communications, but may briefly respond to statements made or questions posed. (Government Code Sections 54954.2)
City Commission Reports
Consent Agenda
Public Comment - This is the public's opportunity to speak on any topic listed on the Consent Agenda.

Comments shall be limited to three (3) minutes per item and six (6) minutes total per speaker.

The consent agenda consists of items of a repeating or routine nature considered under a single action.

Any Councilmember may have an item on the consent agenda removed and considered separately upon request.

Pass a Motion to adopt the Consent Agenda in one motion except as indicated at each item.

Requested Action / Suggested Motions: Pass a Motion approving the minutes from the March 24, 2026, City Council meeting.

Responsible Staff Member(s): Michelle Davis, Assistant City Clerk, and Susan Blankenship, City Clerk
Item 4- Executive Summary.pdf
03 24 2026 City Council Meeting Minutes.pdf
Requested Action / Suggested Motions: Receive and File.

Responsible Staff Member(s): Olga Tikhomirova, Director of Finance Item 5- Executive Summary.pdf
01-Staff Report - 2025 ACFR.docx
03-2025 GANN Limit AUP Report.pdf
04-2025 Single Audit Report.pdf
02-2025 City of South Lake Tahoe ACFR.pdf
Requested Action / Suggested Motions: Pass a Resolution: 1) authorizing acceptance of an amount up to $39,953.66 from the California State Boating and Enforcement Aid Program; 2) authorizing and directing the Mayor, or the Chief of Police to execute the Program Agreement and each reimbursement claim; (3) accepting El Dorado County vessel property taxes in the amount up to $59,508.00 for a total program amount up to $99,461.66; and 4) authorizing budget of that amount into the current City’s budget into account #237 02110 effective July 1, 2026.

Responsible Staff Member(s): Lieutenant Russell Liles
Item 6- Executive Summary.pdf
01 - Staff Report - Police Boat Financial Aid.docx
02- Resolution - Police Boat Financial Aid.docx
03-Boating Safety and Enforcement Financial Aid Program Agreement.doc 04-Form 801.4 SLT2026-27 signed.pdf
Requested Action / Suggested Motions: Pass a Resolution authorizing Police Department staff to apply for grant funding through the Division of Boating and Waterway Boating Safety and Enforcement Equipment Grant in an amount up to $100,000 to purchase, replace and/or upgrade boating safety and law enforcement equipment.

Responsible Staff Member(s): Lieutenant Russell Liles
Item 7- Executive Summary.pdf
3 8. Amendment to Agreement with Stantec Consulting Services, Inc. for Construction Support Services for the Tahoe Valley Stormwater and Greenbelt Improvement Project (Phase 2)

9. Award Bid Alternate C to Herback General Engineering's Construction Contract and Accept Funds from Tahoe Fund for the Tahoe Valley Stormwater and Greenbelt Improvement Project, Phase 2

10. Affordable Housing and Sustainable Communities (AHSC) Program Application for the Sugar Pine Village Phase 2B Affordable Housing Project
01 - Staff Report - Police Boating Safety and Enforcement Equipment Grant Application Authorization.docx
02-Resolution-Police Boating Safety and Enforcement Equipment Grant.docx Requested Action / Suggested Motions: Pass a Motion authorizing and directing the Mayor to execute Amendment No.12 to the Professional Services Agreement with Stantec Consulting Services, Inc. for a not-to-exceed amount of $9,700 for a total not-to-exceed contract amount of $796,300.

CEQA Determination: The Planning Commission adopted a Mitigated Negative Declaration on May 9, 2019, SCH# 20190292152.

Responsible Staff Member(s): Brianna Greenlaw, Senior Civil Engineer Item 8- Executive Summary.pdf
01 - Staff Report - Stantec PSA Amendment 12.docx
02 - Project Area Map.pdf
03 - Stantec PSA Amendment 12.doc
04 - Exhibit A to Amendment 12 - Scope of Services.pdf
05 - Cardno Contract C-007-2020.pdf
06 - Amendments 1-11.pdf
Requested Action / Suggested Motions: 1) Pass a Motion awarding Bid Alternate C to Herback General Engineering's Construction Contract for Phase 2 of the Tahoe Valley Stormwater and Greenbelt Improvement Project, contingent on the SWRCB Prop 1 Grant extension; and 2) Pass a Resolution authorizing and directing the Director of Public Works or designee to accept the Tahoe Fund grant terms, and authorizing and directing the Director of Finance to appropriate the funds received from Tahoe Fund to the Tahoe Valley Stormwater and Greenbelt Improvement Project.

CEQA Determination: The Planning Commission adopted a Mitigated Negative Declaration on May 9, 2019, SCH# 20190292152. Addendum No. 1 adding the basin and associated improvements at the corner of 4th Street and Barton Avenue was adopted by the Planning Commission on February 20, 2025.

Responsible Staff Member(s): Brianna Greenlaw, Senior Civil Engineer Item 9- Executive Summary.pdf
01-Staff Report - Award Bid Alt C and Tahoe Fund.docx
02-Project Area Map.pdf
03-Resolution - Accept Funds.doc
04-Grant Letter.pdf
Requested Action / Suggested Motions: Pass a Resolution authorizing staff to submit a joint application with Related Companies of California LLC under the AHSC Program for an amount not to exceed $30,000,000 of which an amount not to exceed $20,000,000 will be provided as a loan for the affordable housing construction and an amount not to exceed $10,000,000 will be provided as a reimbursable grant for Housing Related Infrastructure (HRI), Sustainable Transportation Infrastructure (STI), Transit Related Infrastructure (TRA) or Program activities as defined in the AHSC Program Guidelines.

CEQA Determination: This project is exempt from review under Senate Bill 35 and CEQA Guidelines section 15301 (existing facilities).

Responsible Staff Member(s): Jessica Wackenhut Lomeli, Housing Manager Item 10- Executive Summary.pdf
4 11. Affordable Housing and Sustainable Communities (AHSC) Program Application for the Affordable Housing Project at 3900/3908 Lake Tahoe Boulevard

12. Amendment to Agreement with CDM Smith, Inc. for Surveying and Easement Acquisition Services for the Dennis T. Machida Memorial Greenway Phase 1C

13. Purchase of HPE Alletra 5010 Storage Array and Five-Year Support Contract

14. Tentative Subdivision Map for Zalanta II Resort at the Village 01-Staff Report - AHSC SPV 2B.docx
02-Resolution - AHSC Round 9 App.docx
Requested Action / Suggested Motions: Pass a Resolution authorizing staff to submit a joint application with NDC Lake Tahoe LP under the AHSC Program for an amount not to exceed $30,000,000 of which an amount not to exceed $20,000,000 will be provided as a loan for the affordable housing construction and an amount not to exceed $10,000,000 will be provided as a reimbursable grant for Housing Related Infrastructure (HRI), Sustainable Transportation Infrastructure (STI), Transit Related Infrastructure (TRA) or Program activities as defined in the AHSC Program Guidelines.

CEQA Determination: This project is exempt from review under Senate Bill 35 and CEQA Guidelines section 15301 (existing facilities).

Responsible Staff Member(s): Jessica Wackenhut Lomeli, Housing Manager Item 11- Executive Summary.pdf
01-Staff Report - AHSC 3900 LTB.docx
02-Resolution - AHSC Round 10 App.docx
Requested Action / Suggested Motions: Pass a Motion authorizing and directing the Mayor to execute Amendment No. 1 to the Professional Services Agreement with CDM Smith, Inc. to allow an additional eighteen months to complete the Scope of Work. This Amendment extends the term to October 23, 2027.

CEQA Determination: The CEQA Initial Study/Mitigated Negative Declaration was approved by the California Tahoe Conservancy as the lead agency on September 16, 2011 (SCH# 2006112070).

Responsible Staff Member(s): Emily Dougherty, Associate Transportation Planner Item 12- Executive Summary.pdf
01 - Staff Report - CDM Smith PSA Amendment 1.docx
02-Amendment 1 to Agreement with CDM Smith, Inc.doc
03-C-267-2024 CDM Smith.pdf
Requested Action / Suggested Motions: Pass a Motion: 1) Approving the purchase of an HPE Alletra 5010 storage array with five years of manufacturer support under the NASPO ValuePoint cooperative purchasing agreement in the amount of $139,700.45; and 2) Authorizing the Interim City Manager to execute the necessary purchase documents to complete the acquisition.

Responsible Staff Member(s): Gabriel Raab, Senior IT Analyst Item 13- Executive Summary.pdf
01 - Staff Report - Storage Array and Five-Year Support.docx 02 - Airport Storage Refresh.pdf
03 - Cadence - California NASPO ValuePoint DataCom AR3228 Letter of Authorization.docx.pdf Public Hearing
Requested Action / Suggested Motions: Pass a Resolution: 1) finding the Tentative Subdivision Map is consistent with the City General Plan, the Tourist Core Area Plan, and the City-Wide Design Standards, and meets the findings required by the California Subdivision Map Act; 2) finding the Tentative Subdivision Map will not have a significant effect on the environment as disclosed in the EIR/EIS for Redevelopment Project 3 and the subsequent 2007 Second Addendum; and 3) approving the Tentative Subdivision Map (File #TSM25-002).

CEQA Determination: The Zalanta II Resort at the Village Project ("Project") was previously approved by the Planning Commission on November 10, 2016. At that time, the Planning 5 15. 2025-2026 Master Fee Schedule

16. Liberty Utilities Presentation

17. Collaborative Bear Process and Protocol
Commission passed a motion and made the following findings: 1. Found the Project to be consistent with the original 2007 project approval, as analyzed in the EIR/EIS for Redevelopment Project #3 and the subsequent 2007 Second Addendum, and thus, additional environmental analysis is not required. 2. Found the Project was substantially consistent with the 2007 and 2013 approved projects and conditions of the approval and approved Major Design Review Permit #16- 177.

Responsible Staff Member(s): John Hitchcock, Planning Manager Item 14- Executive Summary.pdf
01-Staff Report.docx
02-Plan Set.pdf
03-Location Map.pdf
04-Resolution 2026-006_Zalanta II Resort at the Village Tentative Map.pdf 05-Zalanta II - Tentative Map for Condominium Purposes.pdf 06-Resolution.docx
07-TDT Proof of Publication v2 20260406.pdf
Requested Action / Suggested Motions: Pass a Resolution adopting the Annual Master Schedule of Fees and Charges for City Services as presented; or provide direction to staff to modify the schedule and return at a subsequent meeting with a revised resolution for adoption.

Responsible Staff Member(s): Akemi Nishimura, Accountant I Item 15- Executive Summary.pdf
01-Staff_Report_2526_Master_Fee_Schedule.docx
02-Master Fee Schedule 25_26 (Red-Lined).pdf
03-Strengthening Financial Position Feb 2013.pdf
04-Notice of Public Hearing-Master Fee Schedule_04.03.26.pdf 05-Resolution - Master Fee Schedule 25-26.docx
06-Master Fee Schedule 2526 (Exh. A to Reso.).pdf
07-SLT User Fee Report FINAL.pdf
Regular-Unfinished Business
Requested Action / Suggested Motions: (1) Receive presentation; and (2) Pass a Motion providing direction on submittal of comment letter to the California Public Utility Commission.

Responsible Staff Member(s): Hilary Roverud, Interim City Manager Item 16- Executive Summary.pdf
01-Staff Report
02-Liberty Utilities Letter from the Mayor.pdf
03-Liberty AL 287-E Liberty Energy Supply RFP Public Version.pdf 04-Protest Letters.pdf
05-Liberty's Reply to Protests
06-Liberty Energy Supply Q & A
07-GRC Decision
08-Liberty Advanced Meters
09-Draft Letter to CPUC April 2026
Requested Action / Suggested Motions: Pass a Motion providing direction regarding Collaborative Bear Process and Protocol on: (1) increasing fines for violations related to trash management and providing wildlife access to food; (2) designating the City as a Bear Sanctuary City or Bear Wise Community; (3) establishment and funding of a City Bear Liaison position; (4) formal written correspondence from City Council to CDFW and/or Bear League requesting specific actions; (5) amending the Vacation Home Rental Ordinance to explicitly require property owners/managers to provide Bear Aware education materials to renters; (6) providing pilot program funding to partner 6 18. Ordinance Amending Shared Mobility Device Regulations (First Reading)

19. Agenda Planning Calendar
with South Tahoe Refuse to provide container cleaning service; and (7) continuation of City facilitation of discussions between CDFW, Bear League and community partners regarding management of habituated bears.

Responsible Staff Member(s): Jeff Roberson, Chief of Police Item 17- Executive Summary.pdf
01-Staff Report-Collaborative Bear Process
02-Staff Report - Bears 12.9.25.pdf
03-Bear Meeting report to Council.pdf
04-Annual 2025 bear calls.pdf
05-bear map 2025.pdf
06-2026 Bear Response Flow Chart.pdf
07-2022 Black Bear Policy with 2024 Addendum 1.pdf
08-Black Bear Conservation and Management Plan for California_April 2025.pdf 09-CDFW presentation for SLT City Council Meeting Dec 2025.pdf 10-Bear League Sterilization letter.pdf
11-black bear management practices 50 states_federal.pdf Requested Action / Suggested Motions: Pass a Motion to hold a first reading (by title only) of an Ordinance amending Chapter 4.185 of the South Lake Tahoe City Code (Shared Mobility Devices) to increase the City’s liability protections from shared mobility device accidents, add safety measures for shared mobility device operations, and revise operator insurance requirements, and refer second reading and adoption to May 5, 2026.

Responsible Staff Member(s): Jeff Roberson, Chief of Police; Dan Bardzell, Assistant City Attorney Item 18- Shared Mobility ORD.pdf
01-Staff Report
02-Ordinance SMD Amendments
03-Amended SMD Code Section (Redline)
Agenda Planning Calendar
Requested Action / Suggested Motions: Identify, with consent of at least two Council Members, any desired future agenda items, and/or modify the Agenda Planning Calendar as desired.

Responsible Staff Member(s): Susan Blankenship, City Clerk, and Hilary Roverud, Interim City Manager
Item 19- Executive Summary.pdf
APC 04 16 2026.pdf
Updates and Announcements (City Attorney, City Clerk, City Manager) Councilmember Reports and Comments - Assignments to Boards, Committees, and Commissions
Adjournment
I, Susan Blankenship, City Clerk for the City of South Lake Tahoe, declare that the foregoing agenda for the Tuesday April 21, 2026, City Council meeting was posted and available for review on Thursday, April 16, 2026, at City Hall, 1901 Lisa Maloff Way, South Lake Tahoe, CA 96150. The agenda was also available on the city's website at https://www.cityofslt.us.

Signed April 16, 2026
\\sb\\ Susan Blankenship, Elected City Clerk
7 City of South Lake Tahoe
Agenda Item Executive Summary
Hilary Roverud, Interim City Manager
__________________________________
Meeting Date: April 21, 2026
Agenda Item #:1
Agenda Item: Proclamation Recognizing April 2026 as "Sexual Assault Awareness" Month Requested Action / Suggested Motions: Issue a Proclamation to Vista Rise Collective recognizing April 2026 as "Sexual Assault Awareness" Month.

Attachments:

Proclamation - April 2025 Sexual Assault Awareness Month.docx 8 City of South Lake Tahoe
Proclamation
Recognizing April 2026 as
“Sexual Assault Awareness Month”
Whereas, Whereas, sexual assault is a pervasive issue that affects the health, safety, and well-being of the residents of South Lake Tahoe; and
Whereas, According to a survey completed in March 2022, for respondents who lacked money for food or other basic needs in the past year compared to those who did not report this deprivation, sexual violence was 2x more likely; and
Whereas, When a member of South Lake Tahoe’s workforce is a survivor, it impacts our local economy through lost wages and decreased productivity; meaning that prevention of sexual violence is an investment in the stability of South Lake Tahoe’s workforce; and Whereas, Prevention programs would lead to substantial cost savings: nationwide, every prevented rape of an adult could save up to $163,800, and every prevented rape or sexual assault of a child could save up to $227,700; and
Whereas, Vista Rise Collective (formerly Live Violence Free) provides a low-barrier and survivor-led array of services including: 24/7 crisis line, a Confidential Safe House and additional housing options, crisis support and services including accompaniment and resource connection, and traumainformed therapy at no cost to local survivors. Vista Rise Collective provided services to more than 50 local survivors of sexual violence in 2025; and
Whereas, As recent national news stories have shown, survivors sometimes wait decades to speak out to 'protect' the image of a cause, town, or person. South Lake Tahoe needs to be a place where survivors don't have to wait 60 years to be heard; and
Whereas, Research proves that when a survivor is met with a supportive response, they are significantly more likely to access medical care, participate in the legal process, and begin their path to healing and empowerment; and
Now therefore, be it resolved, that the City of South Lake Tahoe City Council endorses the “Start by Believing” campaign and hereby proclaims the month of April 2026 as “Sexual Assault Awareness Month”.
_____________________ __________________________
Cody Bass, Mayor Susan Blankenship, City Clerk
9 City of South Lake Tahoe
Agenda Item Executive Summary
Hilary Roverud, Interim City Manager
__________________________________
Meeting Date: April 21, 2026
Agenda Item #:2
Agenda Item: Proclamation Recognizing April 2026 as "National Child Abuse Prevention" Month Requested Action / Suggested Motions: Issue a Proclamation to the El Dorado County Child Abuse Prevention Council recognizing April 2026 as "National Child Abuse prevention" month.

Attachments:

Proclamation - April 2026 National Child Abuse Prevention Month 10 City of South Lake Tahoe
Proclamation
Recognizing April 2026 as
“National Child Abuse Prevention Month”
Whereas, children are our nation’s most vulnerable members as well as our nation’s most valuable resources, helping to shape the future of our country; and Whereas, positive childhood experiences (PCES), like loving caregivers and safe, stable, and nurturing relationships—can help mitigate trauma and the negative impact of adverse childhood experiences (ACES) to promote the social, emotional, and developmental well-being of children; and Whereas, childhood trauma can have long-term psychological, emotional, and physical effects throughout an individual’s lifetime and impact future generations of their family; and Whereas, childhood trauma, including abuse and neglect, is a serious problem affecting every community in the U.S., and finding solutions requires input and action from everyone; and Whereas, children who live in families with access to concrete economic and social support are less likely to experience abuse and neglect; and
Whereas, prevention is possible because of the partnerships created between families, prevention advocates, child welfare professionals, education, health, community, and faith-based organizations, businesses, law enforcement agencies, and local, state, and national governments; and Whereas, we acknowledge that to solve the public health issue of abuse and neglect we must work together to change hearts and mindsets through storytelling and sharing, center the needs of families, break down bias and barriers, and inspire action from expected and unexpected partners in prevention; and
Whereas, we are committed to advancing equitable, responsive, and effective systems that ensure all children and families are healthy and thriving; and Whereas, we recognize the need to prioritize kids and invest in more prevention initiatives like home visiting and family-strengthening policies, economic support, and community-based child abuse prevention programs at the national, state, and local levels.

Therefore, the City Council of the City of South Lake Tahoe hereby proclaim April 2026 as “National Child Abuse Prevention Month” in South Lake Tahoe and urge all citizens to recognize this month by building a narrative of hope for children and families through collaboration and the creation of an ecosystem of primary prevention that does not currently exist in this country. _____________________ __________________________
Cody Bass, Mayor Susan Blankenship, City Clerk
11 City of South Lake Tahoe
Agenda Item Executive Summary
Hilary Roverud, Interim City Manager
__________________________________
Meeting Date: April 21, 2026
Agenda Item #:3
Agenda Item: Presentation by Lions International
Executive Summary: At their February 24, 2026, meeting, Council provided consensus, granting a request from Terry Rubald with Lions International, to make a presentation.

Requested Action / Suggested Motions: Receive presentation by Terry Rubald, First Vice District Governor, District 46, Lions International.

Responsible Staff Member: Susan Blankenship, City Clerk Reviewed and Approved By: Susan Blankenship, City Clerk Attachments:
01-Lions International Presentation
12 Lions International
A global force for good.
1 13
Our Motto

1.4 million Lions are serving in
more than 200 countries and
geographic areas around the
world, bringing unprecedented
compassion and reach to our
service.

We Serve
2 14
We’re making a
world of difference.

Lions are changing the world one
community at a time, by addressing
needs at home and around the world.

We are 1.4 million men and women
who believe that kindness matters.

And when we work together, we can
achieve bigger goals.
. 3
15 Our Mission
Our Vision
Mission:

To empower Lions clubs, volunteers, and partners to improve health and well-being, strengthen communities, and support those in need through humanitarian services and grants that impact lives globally, and encourage peace and international understanding.

Vision:

To be the global leader in community and humanitarian service. 4 16
Lions International History
1917: The Beginning of Lions International founded by Melvin Jones 1920: Establishment of first "international club" in Canada 1925: Helen Keller challenges Lions to be "Knights of Blind" leading the charge in sight 1945: Help to establish the NGO section of the United Nations 1957: Leos Clubs are formed
1968: Lions Clubs International Foundation begins
1990: Launch of 'Sight First" to help restore sight and prevent blindness on a global scale 2017: LCI Turn 100. Celebrates 100 years of humanitarian 5 17
We prepare the next
generation of
volunteers.

Young people are the future of service, and
the future is now.
• Leos are young volunteers ages 12–30.
• 175,000 Leos in more than 7,000 clubs champion
causes that matter.
• Leo clubs have been serving for over 60 years.
6 18
Our Association
The Association is composed of autonomous clubs. The
purpose of Lions International is to form clubs comprised of members that will serve their local communities. Clubs are solely responsible for managing their operations, finances, service projects and other issues related to membership and club life. The role of Lions International is to support our clubs and members, not manage them.
7 19
Our Foundation
Lions International Foundation is the official charitable organization of Lions International. The Foundation supports Lions’ service by providing grant funding for their local and global humanitarian efforts.
8 20
South Lake Tahoe/Stateline Lions Club
Sponsored by Carson City Host Lions Club
9 21
Our club
The original Lions Club in South Lake Tahoe was called the Lake Tahoe South Shore Lions Club. That club served South Lake Tahoe for decades but unfortunately closed in 2014.

We know it had many wonderful projects that helped this community. Among them, the club constructed a park dedicated to the Lake Tahoe Unified School District in 1969. The monument memorializing the park is still there.

About the former Lake Tahoe South Shore Lions Club
10 22
Our service
Where there’s a need, there’s a Lion.
11 23
Vision Preservation Hunger
Relief
Environment
24 Youth Services
25 Disaster Relief
Caldor Fire, 2021
26 Caldor Fire, 2021
27 Kahle Community Center Health Fair, March, 2026
28 29
Our
community
Working to find our “Niche” in the community
 Continue to survey the needs and
activities of other non-profits in South
Lake Tahoe; how can we help them do
what they do?
 Continue to meet with business people
and community leaders: what are the
needs?
 Continue to ask citizens about how we can
help the people who live here
18 30
Our
community
• Informational Meeting, April 4, El Dorado County
Library, South Lake Tahoe
We Empower Volunteers
19 31
Our
community
• Organizational Meeting, May 9, 12-2,
Rubicon Room, Kahle Community
Center
What’s Next
20 32
Our service
How can we help your community?
21 33
Q & A
22 34
23 Thank You
© 2022 Lions International Updated 4-13-2026
35 City of South Lake Tahoe
Agenda Item Executive Summary
Hilary Roverud, Interim City Manager
__________________________________
Meeting Date: April 21, 2026
Agenda Item #:4
Agenda Item: Meeting Minutes
Requested Action / Suggested Motions: Pass a Motion approving the minutes from the March 24, 2026, City Council meeting.

Responsible Staff Member: Michelle Davis, Assistant City Clerk, and Susan Blankenship, City Clerk Attachments:
03 24 2026 City Council Meeting Minutes.pdf
36 City of South Lake Tahoe
City Council
Meeting Minutes
Tuesday, March 24, 2026 at 5:30 pm
City Hall - Council Chambers - 1901 Lisa Maloff Way, South Lake Tahoe NOTE: The Meeting Minutes represent actions taken during the meeting of the City Council. Complete Council member discussions on Regular Session meeting items can be viewed in archived video recordings on the City’s website at http://www.cityofslt.us Public submittals on items are retained in the administrative record and can be viewed in the City Clerk’s repository at http://www.cityofslt.us Land Acknowledgement
Mayor Pro Tem Roberts read the land acknowledgement.

Call to Order/Pledge of Allegiance
Mayor Bass called the meeting to order at 5:39 p.m., and then led the pledge of allegiance.

Roll Call
Present were Mayor Pro Tem Roberts, and Councilmembers Robbins, Jinkens, and Horgan.

Mayor Bass was absent.

Also present were City Clerk Blankenship, City Attorney Stroud, and Interim City Manager Roverud Closed Session Report
Closed Session Report of March 24, 2026

1. Conference with Legal Counsel – Existing Litigation - Government Code section 54956.9(d)(1) Case: People of State of California and City of South Lake Tahoe v.

Fragranice Inc., El Dorado County Superior Court Case No. 24CV2330 Action: No reportable action.

2. Conference with Labor Negotiator - Government Code section 54957.6(a) Designated representatives.

Action: No reportable action.

Closed Session Report from December 9, 2025

1. Conference with Legal Counsel – Existing Litigation – Government Code section 54956.9(d)(1)
Case: Leslie Asbury v. City of South Lake Tahoe, Workers Compensation Appeals Board Case No. ADJ18872105.

Action: Settled by compromise and release in the amount of $48,455.16.

Public Communications
General public comments were heard from the following people:

1. Danielle Hughes, Tahoe SPARK- Liberty Utilities

2. John Messina- Liberty Utilities SMART meter installation

3. Melissa Soderston- Thank you to City Clerk Blankenship and City Attorney Stroud for donations towards school play, Liberty Utilities SMART meters and contracting

4. Larry Pedigo- City Clerk hall monitoring, VHR regulations 37

5. Lou Perini- Liberty Utilities rates, possible public utility

6. Scott Loberg- PT Revolution contract, County office in Bijou Center

7. Ann Bryant, Bear League- bear sterilization vaccine *provided written comments

8. Erick Asbury- Liberty Utilities SMART meters, possible public utility Note: Interim City Manager Roverud announced Liberty Utilities president will be speaking at the April 21 City Council meeting.

City Commission and Student Advisor Reports
Student Advisors Sebastian Guerrero and Myra Donahue provided a verbal report.

Consent Agenda
Action: Moved/Seconded: Robbins/Jinkens
Yes: Roberts/Robbins/Jinkens/Horgan

Absent: Bass
Action: Passed the Consent Agenda with direction to bring back a full presentation on the Annual Housing Progress Report (Item 2), presentation on Vista Rise Collective services (item 3), and recording Councilmember Robbins “No” vote on Item 11.

1. City Council Meeting Minutes
Action: Passed Motion 2026-041 approving the minutes from the March 10, 2026, City Council meetings.

2. 2025 General Plan and Housing Element Annual Progress Reports Action: Passed Resolution 2026-030 accepting the 2025 General Plan and Housing Element Annual Progress Reports and directing staff to submit the collective Reports to the Governor’s Office of Land Use and Climate Innovation and the California Department of Housing and Community Development by April 1, 2026.

3. Acceptance and Execution of Grant from California Office of Emergency Services for Domestic Violence Programs
Action: Passed Resolution 2026-031 authorizing the Chief of Police to execute grant subaward agreement with Vista Rise Collective (formerly Live Violence Free), and authorizing receipt of grant funds awarded from the California Office of Emergency Services (CalOES) through the Law Enforcement Specialized Unit Grant for calendar year 2026 in an amount up to $203,142.

Public comment was heard from the following people:

1. Dan May

2. Larry Pedigo

3. Melissa Soderston

4. Ratification of Participating Agreement with USDA Forest Service for Construction of the SEZ Enhancement Project, as part of the Upper Bijou Park Creek Watershed Restoration Project
Action: Passed Motion 2026-042 ratifying the execution of the Participating Agreement between the City and the USDA Forest Service Lake Tahoe Basin Management Unit for the SEZ Enhancements Project (part of the Upper Bijou Park Creek Watershed Restoration Project).

5. Amendment No. 8 to Agreement with Jviation (Woolpert) for Engineering Services and Construction Management for Runway 18/36 Pavement Preservation Project Action: Passed Resolution 2026-032: (1) authorizing and directing the Mayor to execute Amendment No. 8 to Master Professional Services Agreement with Jviation (Woolpert) in an amount not to exceed $128,583.00 00; and (2) appropriating from Airport funds $128,583.00 with an additional 10% contingency of $12,858.30 for engineering services and construction management for Runway 18/36 Pavement Preservation Project. 38 6. Amendment to Agreement with Stantec Consulting Services, Inc. for El Dorado Beach Revetment and Improvements Project
Action: Passed Motion 2026-043 authorizing and directing the Mayor to execute Amendment No. 1 to the Professional Services Agreement with Stantec Consulting Services, Inc. for Phase B services for the El Dorado Beach Revetment and Improvements Project for an additional $332,057.50, for an amended total not-to-exceed amount of $482,028.50 (contingent on approval of funds).

7. Amendments to Agreements with JK Architecture Engineering and SierraCon Inc. for Services on Multigenerational Recreation & Aquatics Center Action: Passed Motion 2026-044 authorizing and directing the Mayor to: 1) Execute Amendment No. 9 to the Professional Services Agreement with JK Architecture Engineering for an additional $99,902 to cover extended Construction Administration support requested by the City for a total not-to-exceed amount of $5,210,205; and 2) Execute Amendment No. 5 to the Professional Services Agreement with SierraCon Inc. for an additional $150,405 to cover extended Construction Administration support requested by the City for a total not-to-exceed amount of $2,903,577.80.

Public comment was heard from the following person:

1. Scott Loberg

8. Ratification of Amendment No.1 to Agreement with NOVA Geotechnical and Inspection Services, LLC, dba Universal Engineering Sciences (UES) for Special Inspection Services at the Multigenerational Recreation & Aquatics Center Action: Passed Motion 2026-045 authorizing and directing the Mayor to execute Ratification of Amendment No. 1 to Agreement with NOVA Geotechnical and Inspection Services, LLC, dba Universal Engineering Sciences (UES) for an additional $70,026.26 to cover additional special inspection services at the Multigenerational Recreation & Aquatics Center for a total not-to-exceed amount of $400,465.75.

Public comment was heard from the following person:

1. Scott Loberg

9. Amendment to Agreement with BPR for Inspection, Plan Review, and Permit Technician Services and Amendments to Agreements with TRB and Associates and 4Leaf Inc. for Inspection, Plan Review, and Permit Technician Services Action: Passed Motion 2026-046 authorizing and directing the Mayor to:
(1) execute Amendment No. 2 to Agreement with BPR for Inspection, Plan Review, and Permit Technician Services for a new not-to-exceed amount of $950,000; and 2) execute Amendment No. 1 to Agreement with TRB and Associates for Inspection, Plan Review, and Permit Technician Services for a new not-to-exceed amount of $350,000; and 3) execute Amendment No. 1 to Agreement with 4Leaf Inc. for Inspection, Plan Review, and Permit Technician Services for a new not-to-exceed amount of $350,000.

10. Purchase Authorization - Rubrik Licensing and Support Action: Passed Motion 2026-047: (1) Approving the purchase of Rubrik subscription licensing and support from Cadence under the State of California CMAS cooperative purchasing agreement in the amount of $67,484.12; and (2) Authorizing the Interim an/or City Manager to execute a Purchase Order for this and subsequent renewal agreements for Rubrik licensing and support, and other substantially similar data protection/backup IT subscription services, procured through valid cooperative purchasing contracts, provided that renewal terms are substantially the same as the current agreements; adequate funding is appropriated in the approved budget; and the authority remains in effect unless modified or rescinded by City Council. 39 11. Ordinance Amending Vacation Home Rental (VHR) Regulations to Remove 150-Foot Buffer, Establish a Cap of 900 VHRs in Residential Areas, and Make Other Changes (Second Reading)
Note: Councilmember Robbins voted “No” on this item.

Action: Passed Ordinance 2026-1203 Amending Article V (Vacation Home Rentals) of Chapter

3.50 (Transient Lodging) and Table 2.35.070 (Appealable Actions and Matters) of the South Lake Tahoe City Code.

Public comment was heard from the following people:

1. Dan May

2. Larry Pedigo

3. Ed Mosur

4. John Messina

5. Scott Loberg

6. John Stevens

7. Melissa Soderston

8. Ellen Lavoy

9. Thomas Debrovaldi

10. Ally Giovardo, Tahoe Elevated Properties *provided written comments

11. Caleb Fry *provided written comments

12. Robin Hockey

13. Erick Asbury

14. Jaimie Wages

15. Jacqueline Todak

16. Davy Chang

17. Lou Perini
Written public comment was received from the following people:

1. Mary Ann Abejuro

2. Matt Bettencourt

3. Marc Korody

4. Dustin Allen and Allyson Woods, South Tahoe Association of Realtors

5. Andy Pscic
Regular- New Business

12. Fiscal Year 2025-2026 Mid-Year Budget Review, Amendments to the Allocated Permanent Position Listing, and Five-Year Financial Plan Update
Action: Jinkens/Horgan
Yes: Roberts, Robbins, Jinkens, Horgan

Absent: Bass
Action: Passed Resolution 2026-033 approving FY 2025-2026 Mid-Year Budget Adjustments, Amendments to the Allocated Permanent Positions Listing for Changes Made during Mid-Year and Corresponding Salary Tables.

Public comment was heard from the following person:

1. Scott Loberg
40 Regular-Unfinished Business

13. Continued Discussion of Comprehensive User Fee Study Report and Policy Direction on Cost Recovery
Action: Robbins/Jinkens
Yes: Roberts, Robbins, Jinkens, Horgan

Absent: Bass
Action: Passed Motion 2026-048 providing direction regarding User Fees Study and Target Cost Recovery Levels on: reconfirming the City's approach to EMS under-recovery; selection of a refundable appeal fee if the appellant prevails, with otherwise full cost recovery for appeals; reduction of live-scan fees to $49; and returning to Council with a cost-recovery structure for user fee services, and a fee-reduction discount approach that is funded by general funds for building permits for small homes, small businesses, multi-family rental housing, and deed restricted housing
The following person addressed the Council:

1. Jake Wakefield, JCP Consultant
Public comment was heard from the following people:

1. Scott Loberg

2. Melissa Soderston

3. John Messina

4. Erick Asbury
Regular-New Business (Continued)

14. Possible Re-Use of Recreation and Swim Complex
Action: Robbins/Jinkens
Yes: Roberts, Robbins, Jinkens, Horgan

Absent: Bass
Action: Passed Motion 2026-049 directing staff to explore feasibility and cost of keeping existing Recreation and Swim Complex open, to include inquiring whether any community groups want to rent space in the existing Recreation and Swim Center at full cost recovery, including the rental of just the Recreation Center and no Swim Complex, and discussing permit requirements and mitigation fee costs with the Tahoe Regional Planning Agency.

Public comment was heard from the following people:

1. Scott Loberg

2. Ed Mosur

3. Melissa Soderston

4. Peter Fink, Parks and Recreation Commission

5. John Messina

6. Erick Asbury

7. David Hamilton

8. Gabrielle Haug, Boys and Girls Club
Note: Action: Moved/Seconded: Robbins/Horgan
Yes: Roberts, Robbins, Jinkens, Horgan

Absent: Bass
Action: Passed Motion 2026-050 extending the meeting past 10:00 p.m. 41 15. Resolution Reaffirming the City’s Commitment to the Rights, Dignity, and Safety of all Residents
Action: Moved/Seconded: Robbins/Horgan
Yes: Robbins, Horgan
No: Roberts, Jinkens

Absent: Bass
Action: Failed Motion 2026-051 passing the Resolution reaffirming the City’s commitment to the rights, dignity, and safety of all residents, regardless of immigration status, and opposing unconstitutional Federal enforcement actions and overreach.

Action: Moved/Seconded: Horgan/Jinkens
Yes: Roberts, Robbins, Jinkens, Horgan

Absent: Bass
Action: Passed Motion 2026-052 to bring back the Resolution reaffirming the City’s commitment to the rights, dignity, and safety of all residents, regardless of immigration status, and opposing unconstitutional Federal enforcement actions and overreach to a future City Council meeting, with changes to section three; removing references to “sanctuary” and ensuring the Police Chief is supportive of the language in the Resolution.

Public comment was heard from the following people:

1. Colleen Bye, drafter of the proposed Resolution

2. Melissa Soderston

3. Robin Lowe

4. John Messina *provided written comments

5. Scott Loberg

6. Erick Asbury

7. Sue Norman

8. Angie Reagan
Written public comment was received from the following person:

1. Robyn Johnson

16. Recreation Joint Powers Authority Amendment #3 to Agreement & Joint Community Facilities Amendment #3 to Agreement
Action: Moved/Seconded: Robbins/Horgan
Yes: Roberts, Robbins, Jinkens, Horgan

Absent: Bass
Action: Passed Motion 2026-052 authorizing and directing the Mayor to execute the Third Amendment to the Joint Powers Agreement creating the South Lake Tahoe Recreation Facilities Joint Powers Authority with El Dorado County and Tahoe Paradise Recreation Park District and execute the Third Amendment to the Amended Joint Community Facilities Agreement (agreements do not go into effect until approved by the voters on the June election), and direction to bring back a Resolution supporting Measure G.

Public comment was heard from the following people:

1. Scott Loberg

2. Peter Fink, Bicycle Advisory Committee

3. John Messina

4. Nick Speal
Agenda Planning Calendar

17. Agenda Planning Calendar
Action: Received and filed.

Updates and Announcements (City Attorney, City Clerk, City Manager) City Clerk Blankenship

1. Proclamation request from Angie Reagan for May 18 as Mental Health Awareness Month (Council provided consensus)
42 Councilmember Reports and Comments - Assignments to Boards, Committees, and Commissions
Councilmember Jinkens

1. Upcoming Local Agency Formation Commission meeting.

Councilmember Horgan

1. Shoulder season is here- spend money locally
Adjournment
Mayor Pro Tem Roberts adjourned the meeting at 11:17 p.m. 43 City of South Lake Tahoe
Agenda Item Executive Summary
Hilary Roverud, Interim City Manager
__________________________________
Meeting Date: April 21, 2026
Agenda Item #:5
Agenda Item: 2025 Annual Comprehensive Financial Report (ACFR) Executive Summary: The Annual Comprehensive Financial Report (ACFR) 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 clearly and professionally communicate the City's financial position and is prepared in compliance with the financial reporting standards established by the Government Finance Officers Association (GFOA).

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 - 2025 ACFR.docx
02-2025 City of South Lake Tahoe ACFR.pdf
03-2025 GANN Limit AUP Report.pdf
04-2025 Single Audit Report.pdf
44 Council Agenda Report April 21, 2026 Page 1 of 2
City of South Lake Tahoe
Report to City Council
Meeting Date: April 21, 2026
Title: 2025 Annual Comprehensive Financial Report (ACFR), including the Independent Auditor's Report on the City of South Lake Tahoe’s Basic Financial Statements; AgreedUpon Procedures Report on Compliance with Article XIII-B Appropriation Limit Calculations; and Federal Awards Report in Accordance with Uniform Guidance.

Location: Citywide
Responsible Staff Member: Olga Tikhomirova, Director of Finance 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 City’s basic financial statements.

The current report covers the fiscal year ended September 30, 2025, and accurately reflects the fiscal position of the City and its component units for that period.

The Annual Report is designed to clearly and professionally communicate the City’s financial position. It is prepared in compliance with the financial reporting standards established by the Government Finance Officers Association of the United States and Canada (GFOA) and includes three major sections:
 Introductory 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 practices.
 Financial Section: Presents the independently audited financial statements, along with Management’s Discussion and Analysis (MD&A) of the City’s financial position and results of operations for fiscal year 2025.
 Statistical Section: Provides information on financial trends, revenue and debt capacity, as well as demographic, economic, and operational data.

The Annual Report and financial statements must be submitted within 180 days following the close of the fiscal year. These documents are distributed annually to the State Controller, bond trustees, financial institutions, rating agencies, and other relevant external entities.

The City also submits its Annual Report to the GFOA’s Certificate of Achievement for Excellence in Financial Reporting Program, which evaluates readability, organization, and comprehensiveness. The City of South Lake Tahoe has received this award for 18 consecutive years.

Issue and Discussion: Eide Bailly LLP has completed the independent audit in accordance with Generally Accepted Accounting Principles (GAAP) and Generally Accepted Auditing Standards (GAAS) and has issued the attached financial statements and reports for the fiscal year ended September 30, 2025.
45 Council Agenda Report April 21, 2026 Page 2 of 2
The auditors issued an unmodified opinion, indicating that the financial statements present fairly, in all material respects, the financial position of the City as of that date. An unmodified opinion represents the highest level of assurance that an independent auditor can provide, and it is the opinion we expect to receive.

Financial Implications: As of September 30, 2025, the City’s financial statements report an unassigned general fund balance of $29,209,183. After reducing this amount by a committed reserve equal to 25% of FY 2025-2026 operating expenditures ($16,267,568) and by the balances of funds included with the general fund for reporting purposes (building permit fees $2,543,917 and Measure S Sales Tax general fund $466,737), the remaining unassigned fund balance is $9,930,961.

Of this amount, $3,309,690 is committed for specific purposes, including:
 $2,000,000 is set-aside for anticipated future budget deficits,  $1,000,000 is set-aside for an affordable housing project (approved by City Council based on the participatory budgeting community survey with the FY 2024 budget adoption),  $309,690 is set-aside for approved grant matching requirements, Additionally, $5,165,745 has been appropriated through City Council actions during the first six months of the fiscal year, including:
 $969,466 for carryforward encumbrances,
 $4,062,393 net for mid-year budget adjustments,
 Additional allocations as described in the mid-year budget report.

The amount of $683,494 is reserved to support an increase in the committed reserve for FY 2026-2027. This results in a remaining balance of $772,032, which is available for one-time projects and expenditures, 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). 46 eidebailly.com
2150 River Plaza Dr., Ste. 150 • Sacramento, CA 95833-4131 • 916.570.1880 • F 916.570.1875 • EOE 1 Independent Accountant’s Report Applying Agreed-Upon Procedures Related to the Article XIII-B Appropriations Limit Calculation To the City Council
City of South Lake Tahoe, California
We have performed the procedures enumerated below, on the Appropriations Limit Calculation of the City of South Lake Tahoe, California (City) prepared in accordance with Article XIII-B of the California Constitution for the year ended September 30, 2025. The City’s management is responsible for the Appropriations Limit Calculation.

The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of evaluating the Appropriations Limit Calculation and we will report on findings based on procedures performed. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

1. We obtained the completed worksheets setting forth the calculations necessary to establish the City's 2024-2025 appropriations limit calculation and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the population and inflation options included in the aforementioned worksheets to those that were selected by a recorded vote of the City Council.

Finding: No exceptions were found as a result of this procedure.

2. We added last year's limit to the annual adjustment amount and compared the resulting amount to the 2024-2025 appropriations limit.

Finding: No exceptions were found as a result of this procedure.

3. We compared the current year information to the worksheets described in Procedure 1 above to information provided by the California State Department of Finance.

Finding: No exceptions were found as a result of this procedure.

4. We agreed the prior year appropriations limit to the prior year appropriations limit adopted by the City Council.

Finding: No exceptions were found as a result of this procedure. 47 2
We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on the Appropriations Limit Calculation. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

No procedures have been performed with respect to the determination of the appropriation limit for the base year, as defined by Article XIII-B of the California Constitution.

This report is intended solely for the information and use of the City council and management of the City and is not intended to be and should not be used by anyone other than these specified parties.

Sacramento, California
March 24, 2026
48 eidebailly.com
Federal Awards Reports in Accordance
with the Uniform Guidance
Fiscal Year Ended September 30, 2025
City of South Lake Tahoe, California
49 City of South Lake Tahoe, California
Table of Contents
Fiscal Year Ended September 30, 2025
Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ................................................................................................................................ 1 Independent Auditor’s Report on Compliance for the Major Federal Program; Report on Internal Control Over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance ...................................................................................................................................................... 3 Schedule of Expenditures of Federal Awards ............................................................................................................ 6 Notes to Schedule of Expenditures of Federal Awards ............................................................................................. 7 Schedule of Findings and Questioned Costs
Section I - Summary Schedule of Auditor’s Results ............................................................................................... 8 Section II - Financial Statement Findings ............................................................................................................... 9 Section III - Federal Award Findings and Questioned Costs ................................................................................ 10 Summary Schedule of Prior Audit Findings .............................................................................................................. 11 50 1
Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
To the Honorable Mayor and City Council
City of South Lake Tahoe, California
We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, 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, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements and have issued our report thereon dated March 24, 2026.

Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control.

Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that have not been identified. eidebailly.com
2150 River Plaza Dr., Ste. 150 • Sacramento, CA 95833-4131 • 916.570.1880 • F 916.570.1875 • EOE 51 2 Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Sacramento, California
March 24, 2026
52 eidebailly.com
2150 River Plaza Dr., Ste. 150 • Sacramento, CA 95833-4131 • 916.570.1880 • F 916.570.1875 • EOE 3 Independent Auditor’s Report on Compliance for Each Major Federal Program; Report on Internal Control Over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance
To the Mayor and City Council
City of South Lake Tahoe, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of South Lake Tahoe, California’s (City) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on the City’s major federal programs for the year ended September 30, 2025. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended September 30, 2025.

Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards); and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with 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 opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the City’s federal programs.
53 4
Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. 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, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major federal program as a whole.

In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material noncompliance, 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 City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.
 Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
54 5
Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance 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 as of and for the year ended September 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon dated March 24, 2026, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is 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 auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

Sacramento, California
March 24, 2026
55 See Notes to the Schedule of Expenditure of Federal Awards 6 City of South Lake Tahoe, California
Schedule of Expenditures of Federal Awards
Fiscal Year Ended September 30, 2025
Federal Financial Direct or
Assistance Pass-Through Entity
Listing Identifying Number Expenditures
U.S. Department of Housing and Urban Development
Direct:

Community Development Block Grants Cluster Entitlements/Special Purpose COVID-19 Community Development Block Grants/Entitlement Grants - CV 2-3 Bears Denn Inn Rehabilitation 14.218 20-CDBG-CV2-3-0074 4 $ 17,497 Total Community Development Block Grants Cluster EnƟtlements/Special Purpose 417,497 Total U.S. Department of Housing and Urban Development 417,497 U.S. Department of Interior
Direct:

Southern Nevada Public Land Management - Hazardous Fuel Reduction 15.235 L23AC00023 31,317 Passed through Tahoe Resource Conservation District:

Southern Nevada Public Land Management - Defensible Space 15.235 L23AC00025 154,402 Total U.S. Department of Interior 185,719
U.S. Department of Justice
Passed through California Office of Traffic Safety:

Minimum Penalties for Repeat Offenders for Driving While Intoxicated - Selective Traffic Enforcement Program PT24199 20.608 164 AL-23 10,297 State and Community Highway Safety - Selective Traffic Enforcement Program PT24199 20.600 402PT-23 10,635 Passed through California Office of Emergency Services (CalOES):

Violence Against Women Formula Grants 16.588 LE 23067994 45,067 Violence Against Women Formula Grants 16.588 LE 22067994 175,347 Total Violence Against Women Formula Grants Program 220,414 Total U.S. Department of Justice 241,346
U.S. Department of Transportation
Direct:

Airport Improvement Program - Pavement Maintenance Program 20.106 3-06-0249-47 19,180 Airport Improvement Program - Airport Master Plan Phase 1 20.106 3-06-0249-49 6,750 Airport Improvement Program - Airport Master Plan Phase 2 20.106 3-06-0249-48 42,877 Airport Improvement Program - Airport Pavement Maintenance 20.106 3-06-0249-50 188,438 Airport Improvement Program - Airport Crack Seal Coat Parking Apron 20.106 3-06-0249-51 181,313 Airport Improvement Program - Airport Pavement Maintenance 20.106 3-06-0249-52 108,000 Total Airport Improvement Program 546,558
Safe Streets and Roads for All - Vision Zero Action Plan 20.939 693JJ32340116 104,571 Passed through California Department of Transportation:

Highway Planning and Construction - Pioneer Trail Pedestrian Upgrades 20.205 STPL-5398 (014) 843,575 Highway Planning and Construction - Pioneer Trail- Edna Street Safety Improvement 20.205 HSIPL-5398 (016) 107,753 Total Highway Planning and Construction 951,328
Total U.S. Department of Transportation 1,602,457
U.S. Department of the Treasury
Direct:

COVID-19 - Coronavirus State and Local Fiscal Recovery Funds 21.027 N/A 840,322 Total U.S. Department of the Treasury 840,322
U.S. Department of Homeland Security
Passed through California Office of Emergency Services (CalOES):

COVID-19 Disaster Grants - Public Assistance - COVID Emergency Protective Measures 97.036 FEMA-4482-DR-CA 874 Disaster Grants - Public Assistance - Caldor Fire Emergency Work Donated Resources 97.036 FEMA-4619-DR-CA 8,834 Total U.S. Department of Homeland Security 9,708
Total Federal Financial Assistance $ 3,297,049
Grantor/Program or Cluster Title
Federal Grantor/Pass-Through
56 7
City of South Lake Tahoe, California
Notes to Schedule of Expenditures of Federal Awards
Fiscal Year End September 30, 2025
Note 1 - Basis of Presentation
The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of the City of South Lake Tahoe, California (City) under programs of the federal government for the year ended September 30, 2025. The information in this Schedule is presented in accordance with the requirements of Title 2 Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City.

Note 2 - Summary of Significant Accounting Policies
Expenditures reported on the Schedule are reported on the modified accrual basis of accounting, except for the expenditures of the Airport Improvement Program, which are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. No federal financial assistance has been provided to a subrecipient.

Note 3 - Direct and Indirect (Pass-Through) Federal Awards Federal awards may be granted directly to the City by a federal granting agency or may be granted to other government agencies which pass-through federal awards to the City. The Schedule includes both of these types of Federal award programs when they occur.

Note 4 - Indirect Cost Rate
The City has not elected to use the de minimis indirect cost rate allowed under the Uniform Guidance. 57 8
City of South Lake Tahoe, California
Schedule of Findings and Questioned Costs
Fiscal Year Ended September 30, 2025
Section I – Summary of Auditor’s Results

FINANCIAL STATEMENTS
Type of auditor's report issued Unmodified
Internal control over financial reporting:

Material weaknesses identified No
Significant deficiencies identified not considered
to be material weaknesses None Reported
Noncompliance material to financial statements noted? No

FEDERAL AWARDS
Internal control over major program:

Material weaknesses identified No
Significant deficiencies identified not considered
to be material weaknesses None Reported
Type of auditor's report issued on compliance
for major programs: Unmodified
Any audit findings disclosed that are required to be reported in accordance with Uniform Guidance 2 CFR 200.516 (a): No
Identification of major programs:

Name of Federal Program Federal Financial Assistance Listing COVID-19 Coronavirus State and Local Fiscal Recovery Funds 21.027 Highway Planning and Construction 20.205
Dollar threshold used to distinguish between type A
and type B programs: $1,000,000
Auditee qualified as low-risk auditee? No
58 9
City of South Lake Tahoe, California
Schedule of Findings and Questioned Costs
Fiscal Year Ended September 30, 2025
Section II – Financial Statement Findings
None reported.
59 10
City of South Lake Tahoe, California
Schedule of Findings and Questioned Costs
Fiscal Year Ended September 30, 2025
Section III – Federal Award Findings and Questioned Costs None reported.
60 11
City of South Lake Tahoe, California
Summary Schedule of Prior Audit Findings
Fiscal Year Ended September 30, 2025
None reported.
61 ANNUAL COMPREHENSIVE

FINANCIAL REPORT
FOR THE YEAR ENDED SEPTEMBER 30, 2025
62 (Back of the cover page. Intentionally left blank.)
63 Annual Comprehensive
Financial Report __________________________________________________________________________________ For the fiscal year ended September 30, 2025
__________________________________________________________________________________ Prepared by

FINANCE DEPARTMENT

CITY OF SOUTH LAKE TAHOE

CALIFORNIA
64 ♦ Printing by Redwood Printing, South Lake Tahoe, California ♦ Printed on 50% post-consumer paper
65 City of South Lake Tahoe, California
Table of Contents
September 30, 2025
(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.................................................... 12 Organizational Chart................................................................................................................................... 13 Principal Officials......................................................................................................................................... 14

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 Governmental Funds 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 Proprietary Fund Financial Statements
Statement of Net Position – Proprietary Funds...................................................................................... 44 Statement of Revenues, Expenses and Changes in Net Position – Proprietary Funds........................... 45 Statement of Cash Flows – Proprietary Funds........................................................................................ 46 Fiduciary Funds Financial Statements
Statement of Fiduciary Net Position....................................................................................................... 48 Statement of Changes in Fiduciary Net Position .................................................................................... 49 Notes to Financial Statements.................................................................................................................... 51 Required Supplementary Information
Schedule of Changes in Net Pension Liability and Related Ratios During the Measurement Period – Miscellaneous Plan ............................................................................................................................... 100 Schedule of Contributions – Miscellaneous Plan.................................................................................. 101 Schedule of the City’s Proportionate Share of the Net Pension Liability – Safety Cost Sharing Plan... 102 Schedule of Contributions – Safety Cost Sharing Plan.......................................................................... 103 Budgetary Comparison Schedule - Budget and Actual – General Fund................................................ 104 Budgetary Comparison Schedule - Budget and Actual –
City Housing & Economic Development Fund ...................................................................................... 105 66 City of South Lake Tahoe, California
Table of Contents
September 30, 2025
Budgetary Comparison Schedule - Budget and Actual – Measure P Recreation Fund......................... 106 Note to Required Supplementary Information..................................................................................... 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..................................................................................................................... 122 Budgeted Non-Major Funds Combining Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual ................................................................................... 128 Non-Major Enterprise Funds Combining Statement of Net Position ................................................... 150 Non-Major Enterprise Funds Combining Statement of Revenues, Expenses and Changes in Fund Net Position.................................................................................................................................. 151 Non-Major Enterprise Funds Combining Statement of Cash Flows ..................................................... 152 Internal Service Funds Combining Statement of Net Position ............................................................. 154 Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Fund Net Position........................................................................................................................................... 155 Internal Service Funds Combining Statement of Cash Flows ............................................................... 156 Custodial Funds Combining Statement of Fiduciary Net Position ........................................................ 158 Custodial Funds Combining Statement of Changes in Fiduciary Net Position...................................... 160

STATISTICAL SECTION
Net Position by Component...................................................................................................................... 165 Changes in Net Position ............................................................................................................................ 166 Fund Balances of Governmental Funds.................................................................................................... 168 Changes in Fund Balances of Governmental Funds.................................................................................. 169 Assessed and Estimated Actual Value of Taxable Property...................................................................... 170 Property Tax Rates, All Overlapping Governments .................................................................................. 171 Principal Secured Property Tax Payers ..................................................................................................... 172 Principal Transient Occupancy Tax (TOT) Payers...................................................................................... 173 Property Tax Levies and Collections ......................................................................................................... 174 Ratio of Outstanding Debt by Type........................................................................................................... 175 Computation of Direct and Overlapping Debt.......................................................................................... 176 Computation of Legal Bonded Debt Margin............................................................................................. 177 Bonded Debt Pledged-Revenue Coverage................................................................................................ 178 Demographic and Economic Statistics...................................................................................................... 179 Principal Employers................................................................................................................................... 180 Full-Time Equivalent City Government Employees by Function............................................................... 181 Operating Indicators by Function/Program.............................................................................................. 182 Capital Asset Statistics by Function/Program........................................................................................... 183 67 March 24, 2026
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 (City) Annual Comprehensive Financial Report (ACFR) for the fiscal year ended September 30, 2025. This transmittal letter is intended to provide an overview of the report’s contents and to highlight key financial and economic information relevant to the City’s operations. We invite you to review this comprehensive report, which reflects the City’s ongoing commitment to transparency, accountability, and sound financial management.

Report Purpose
The purpose of this report is to communicate clearly and comprehensively the fiscal condition of the City of South Lake Tahoe. The ACFR is organized into three major sections: Introductory, Financial, and Statistical, each providing important context and detailed information regarding the City’s finances. 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
The City’s financial statements are audited annually 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 and audited financial statements, as of September 30, 2025, are included in the Financial Section of this report.

The Auditors have issued an unmodified (“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, 2025. An unmodified opinion is the highest level of assurance an independent auditor can provide. The opinion pertains to the financial position of the governmental activities, businesstype activities, each major fund, the aggregate remaining funds, the respective changes in the financial position and cash flows, where applicable, and the related notes 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 during fiscal year (FY) 2025. Net position city-wide totaled $214.5 million at year end, an increase of $19.2 million over the prior year. Revenues before 1 68
transfers totaled $107.4 million city-wide, an increase of $2.6 million over the prior year, and expenses totaled $88.2 million, a decrease of $0.5 million over the prior year. The increase in revenue is primarily attributable to increases in capital grants and contributions, transient occupancy tax, and sales tax, partially offset by decreases in charges for services and other revenue. The decrease in expenditures is primarily due to a decrease in the general government category.

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 (MD&A) 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 21,022 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 (TRPA).

Strategic Priorities and Goals
The City of South Lake Tahoe remains committed to its key priorities, including expanding access to housing and services, economic development, infrastructure and transportation improvements, hazardous fuel reduction, wildfire preparedness, commitment to the new recreation center construction, and public safety. The FY 2026 Municipal Budget aligns with the 2025-2030 Strategic Plan described below, ensuring effective resource allocation to meet these objectives.

The City maintains a Strategic Plan to guide policy direction, resource allocation, and organizational performance. Building upon the foundation established in the 2021–2026 Strategic Plan, the City Council adopted the 2025–2030 Strategic Plan on May 6, 2025, reaffirming its commitment to longterm planning and fiscal sustainability. 2 69
The 2025–2030 Strategic Plan identifies seven priorities that will guide City operations and investment over the next five years:
• Ability for Everyone Who Works Here to Live Here
• Efficient Government
• Ensure Public Safety
• Grow and Diversify the Economy
• Improve Transportation
• Protect the Natural Environment
• Recreation and Equitable Access for All
Specific action items are incorporated within the Strategic Plan to support measurable implementation and accountability.

New to the 2025–2030 Strategic Plan are Cross-Cutting Concepts, which serve as strategic lenses applied across all initiatives and decision-making processes, including budgeting and program evaluation. The Cross-Cutting Concepts are:
• High-Performing Government
• Organizational Development
• Quality of Life
In August 2024, the City launched its Strategic Plan Tracker, providing City Council, staff, and the public with real-time updates on strategic priorities and action items. The Strategic Plan Tracker and the adopted 2025–2030 Strategic Plan are available on the City’s website at:
https://www.cityofslt.gov/2433/City-Strategic-Plan.

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
The City of South Lake Tahoe continues to navigate a shifting economic landscape. While inflationary pressures have stabilized compared to previous years, interest rates remain a primary factor influencing the local housing market and consumer spending behavior.

The City’s economy reflects many of the broader challenges facing the Tahoe Basin as a whole.

These economic conditions are shaped by a complex set of interrelated constraints, including workforce availability, wildfire risk, and housing supply. Housing affordability and availability remain significant factors affecting workforce retention, business viability, and overall community stability. Although housing challenges are national and bi-state in nature, they are particularly pronounced in the Tahoe Basin due to limited developable land, high construction and material costs, environmental regulations, and a high proportion of second-home ownership. These challenges require a coordinated regional approach to support economic resilience.

The City of South Lake Tahoe continues to serve as the primary population and commercial center for the South Shore of Lake Tahoe. In FY 2025, the local economy remained heavily influenced by tourism, though it has seen stabilization in the housing market and continued progress in workforce housing development.

The labor market is also heavily driven by tourism, featuring high seasonal demand in hospitality, retail, and outdoor recreation. Unemployment rates showed a slight increase in the fiscal year ending September 2025, compared to the previous year. The unemployment rate in South Lake Tahoe was 3 70
reported at 5.2%, a 0.6% increase, while the national unemployment rate rose to 4.5% from 3.9%.

Meanwhile, California's unemployment rate remains higher than the national average, standing at

5.6%. These trends indicate ongoing challenges in the labor market, necessitating targeted efforts to support job creation and workforce development.

In FY 2025, the City’s largest revenue sources were transient occupancy taxes, sales taxes (including Measures Q and S), charges for services, and property taxes, comprising 22%, 20%, 14%, and 11% of total city-wide revenues, respectively. Transient occupancy tax and sales tax revenues performed strongly, increasing 7.9% and 5.0%, respectively. Property taxes grew by 3.0%, reflecting continued, though moderating, growth in assessed valuations. Charges for services declined by 23.6%. This 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. The decline in charges for services is primarily due to the recognition in the prior fiscal year of $4.8 million in unavailable revenues related to housing project loans issued in FY 2024 using grant funding received in FY 2023. The decline is also attributable to a return to more typical levels following significant increases in building, planning, and permitting activity in previous years driven by elevated construction activity. Of total charges for services revenue, 79% is attributed to governmental activities, with the remaining 21% generated by business-type activities, primarily in the parking garage and airport operations.

Sales tax, including voter-approved Measures Q and S, totaled $20.0 million. Combined sales and transactions tax represent the City’s largest revenue source, accounting for 28% of total General Fund revenue in FY 2025. This revenue category increased 5.3% over the prior fiscal year and finished $1.0 million above the adopted budget of $19.0 million, with transactions tax revenues contributing significantly to the favorable results. Overall, this growth contributed approximately $1.0 million to the General Fund’s total revenue increase of $2.7 million in FY 2025.

Property tax, the City’s second-largest General Fund revenue source, totaled $11.8 million in FY 2025, representing a 3.2% increase over the prior year. Growth in assessed property valuation slowed in fiscal year 2024-25, increasing 4.5% compared to stronger growth of 8.0% and more in the previous two years. Assessed values for 2025-26 increased 4.4%, indicating relative stabilization in the local housing market following the surge in demand that began in 2020. That surge, driven by historically low interest rates and pandemic-related migration, significantly influenced property values. In September 2025, the median home sale price in South Lake Tahoe was approximately $692K, down from the peak of approximately $745K in late 2024.

Transient occupancy tax (TOT) was the City’s third-largest General Fund revenue source, comprising approximately 16% of Total General Fund revenues in FY 2025. TOT revenues, including audit collections but excluding amounts collected within the former Redevelopment area, totaled $11.3 million, a 6.4% increase from the prior year. TOT revenues generated within the former Redevelopment area experienced even stronger growth, increasing by 10.0% to $8.3 million in FY 2025.

Outlook
The City continues to focus on long-term economic development strategies aimed at strengthening business stability, diversifying the local economy beyond its traditional reliance on tourism, as well as initiatives towards protection of natural environment. As part of the Business Retention and Expansions program, the City has launched a Business Visitation program that included outreach to individual businesses and business organizations to discuss current conditions, challenges, and the types of businesses they view as complementary to their own. Input gathered through these discussions will be used to inform recommendations on the “second economies” the City should target to help diversify the local economy. In pursuit of regulatory streamlining, City staff continue to 4 71
advocate for revisions to the TRPA mobility mitigation fee as this fee has been identified as a hindrance to certain types of redevelopment. As a result, the TRPA Governing Board has added a review of this fee to their work plan. It has been communicated to staff that they will be reviewing this fee and associated impacts in the coming months. These and several other initiatives, such as development commodity incentives that support property investment in the community, as well as events coordination with partner entities are expected to continue making positive impact on local economy and businesses. The anticipated opening of the new Multi-Generational Aquatics and Recreation Center in April 2026 will provide additional opportunities for events.

The return of Vacation Home Rentals (VHRs) to South Lake Tahoe in 2025-26, following the court decision overturning Measure T, has reinstated a regulated short-term rental market. Updated regulations, including a 900-unit cap and enhanced safety and noise compliance requirements, are intended to balance tourism-related economic benefits with neighborhood livability. While the reinstatement of VHRs is expected to support local businesses and increase Transient Occupancy Tax (TOT) revenues, it continues to generate community discussion regarding housing availability and neighborhood impacts.

Property values in the City have continued to trend upward, supported in part by several large-scale development projects completed or currently underway. Despite challenges such as elevated mortgage interest rates and dwindling housing inventory, the Lake Tahoe region remains a desirable market for potential homebuyers. The outlook for property tax revenue growth remains stable. As one of the General Fund’s largest revenue sources, a strong property tax base remains critical to the City’s long-term fiscal sustainability.

The South Lake Tahoe housing market is showing signs of stabilization following several years of volatility. While certain indicators reflect modest year-over-year softening in late 2025 and early 2026, other data points suggest resilience in home values, particularly in higher-demand neighborhoods. Overall, the market appears to be normalizing after the significant fluctuations experienced during and immediately following the pandemic period.

To address housing affordability challenges, the City is pursuing a range of initiatives, including rental deposit assistance programs, as well as programs designed to incentivize the conversion of short-term rentals into long-term housing units. The City is also proactively working with affordable housing developers and partner agencies to implement the Sugar Pine Village project. Phase 1A (68 units) and Phase 2A (60 units) have been completed. Phase 1 opened to residents in late 2024, and Phase 2A reached completion in July 2025. The final Phases (1B and 2B) are currently in the development and financing stages, with a projected completion date for the full 248-unit development expected by late 2026. Once finalized, this project will provide high-quality, sustainable housing for residents earning 30-60 percent of the Area Median Income (AMI), advancing the City Council’s strategic goal for Housing.

The City’s economy remains highly dependent on its number one industry - tourism - and the associated TOT and sales tax revenues generated by visitors. Both revenue sources increased in FY 2025, with hotel occupancy among the strongest levels in recent years. However, the outlook for FY 2026 is more cautious. An unusual warm winter season and broader economic uncertainties, including higher operating costs for businesses, have contributed to softer occupancy projections and moderated consumer spending. Early FY 2026 trends indicate fewer room nights and variable sales activity, suggesting slower growth in these revenue categories in the coming year.

Passage of the American Rescue Plan Act (ARPA) in March 2021 provided the City with approximately $5.3 million in one-time funding to offset the impacts of the pandemic. As of December 31, 2024, the City has appropriated the entire $5.3 million. In accordance with ARPA requirements, all projects must be closed out and funds fully expended by the end of 2026. Through 5 72
September 30, 2025, a total of $5,307,324 was expended on eligible projects, including the following:
• Long Term Rental Incentive Pilot Program, $500,000
• Services Center Deferred Maintenance/Repair, $79,233
• Bijou Park Recreation Improvements to Skatepark, $250,000 • Bike Trail Connections/Infrastructure, $33,695
• Broadband Infrastructure Study and Deployment, $103,025 • Solar Trash Compacting, $49,460
• Bike Trail Network Improvements, $14,403
• 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, $82,492 • New Recreation Center Construction, $2,711,457
• Bijou Park Creek Restoration, $656,198
• Public Art Program, $100,000
Controlling expenditures and streamlining government remain critical to maintaining a sound fiscal condition. Although the City’s financial position is currently strong, a fiscally disciplined approach is necessary given ongoing external challenges. Maintaining a healthy General Fund reserve supports adequate cash flow, strengthens the City’s ability to respond to natural or financial emergencies, enhances investment earnings, and preserves flexibility to act on unanticipated opportunities that improve the quality of life for residents and visitors.

Credit Rating
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.

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, 6 73
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 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 downturn 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.
7 74
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.

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.
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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 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.
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Procurement
The Procurement policy establishes the guidelines and procedures governing the acquisition of goods and services in accordance with the City Ordinance adopted and approved by the City Council on April 15, 2014. This policy provides a comprehensive framework to ensure that all purchases, contracts, and services are obtained in a cost-effective manner, uphold fiscal integrity, and promote fair and open competition in the use of public funds. Additionally, the policy ensures compliance with all applicable federal and state laws and regulations.

Grant Funding and Compliance
This policy establishes a comprehensive framework to ensure the City properly manages the grant application and acceptance process, as well as complies with all associated state and federal requirements. The City has been awarded grants from the federal government under the American Recovery and Reinvestment Act and other funding programs. These grants impose additional compliance requirements in both project management and financial administration, including enhanced requirements for review, reporting, documentation, and auditing.

Fraud, Waste and Abuse
The City has adopted a Fraud, Waste, and Abuse Policy to safeguard public resources and ensure the integrity of City operations. The policy establishes clear expectations for ethical conduct, defines improper governmental activities in accordance with California law, and outlines procedures for reporting, investigating, and addressing suspected misconduct.

The policy applies to all City employees, officials, contractors, and other parties conducting business with the City. It provides confidential reporting mechanisms, including an anonymous hotline, and strictly prohibits retaliation against individuals who report concerns in good faith. The City is committed to promptly investigating allegations and pursuing appropriate corrective, administrative, civil, or criminal remedies when warranted.

Finance Department
The Finance Department is responsible for safeguarding the City’s fiscal health and providing centralized financial services that support effective decision-making and accountability. • The Financial Services Division oversees budget development and management, financial analysis and reporting, general ledger accounting, audit coordination, grant administration, payroll and accounts payable, and debt financing and administration. The division ensures accurate accounting, compliance with financial policies, and transparent reporting to the City Council and stakeholders.
• The Revenue Services Division manages the collection and reporting of major City revenues, including Transient Occupancy Tax and Business and Professions Tax, and handles accounts receivable, cash management, daily bank deposits, investment transactions, and delinquency enforcement. The division also 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, 2024. This 10 77
was the eighteenth 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.

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, former City Manager Joseph Irvin, and current Interim City Manager Hilary Roverud, in ensuring the professional operation of the City’s Finance Department, are essential to our success and the long-term 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, 2024
Executive Director/CEO
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CITY OF SOUTH LAKE TAHOE
List of Principal Officials
September 30, 2025

CITY COUNCIL
Tamara Wallace, Mayor
Cody Bass, Mayor Pro-Tem
David Jinkens, Councilmember
Scott Robbins, Councilmember
Keith Roberts, 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
Interim Director of Public Works John Dickinson
Chief of Police Jeff Roberson
Fire Chief Jim Drennan
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eidebailly.com
2150 River Plaza Dr., Ste. 150 • Sacramento, CA 95833-4131 • 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, 2025, 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, 2025, and the respective changes in financial position, and, where applicable, cash flows thereof 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, Schedule of Contributions – Safety Cost Sharing Plan, Budgetary Comparison Schedule - Budget and Actual – General Fund, Budgetary Comparison Schedule - Budget and Actual – City Housing & Economic Development Fund, and Budgetary Comparison Schedule - Budget and Actual – Measure P Fund 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, and 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 84
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 24, 2026, 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 24, 2026
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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, 2025
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, 2025. 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 exceeded total liabilities and deferred inflows of resources at the close of the Fiscal Year (FY) 2024-25 by $214,498,749 (net position). Of this amount, $(19,151,061) is unrestricted, $72,160,578 is restricted for specific purpose, and $161,489,232 is net investment in capital assets.  Change in Net Position: The City’s total net position increased by $19,172,497, or 9.8 percent, during the fiscal year, primarily as a result of Governmental Activities revenues exceeding expenses.
 Governmental Funds: As of September 30, 2025, the City’s governmental funds reported combined ending fund balances of $108,224,730, a decrease of $23,151,176 from the prior year.

Approximately 60 percent of the ending balance amount, or $64,491,934, is available for spending at the government’s discretion (committed, assigned, and unassigned fund balance).  Capital Assets: The City’s total capital assets (net of accumulated depreciation and amortization) increased by $46,595,558, primarily due to construction in progress for the new Recreation and Aquatic Center, additions to machinery and equipment, and the recognition of a right‑to‑use subscription asset.
 Long-Term Debt: The City’s total long-term debt increased by $2,782,431, primarily due to an approved financing agreement for the purchase and installation of energy efficiency improvements at various City facilities, partially offset by scheduled principal repayments on outstanding debt.
 General Fund: At September 30, 2025, unassigned fund balance of the General Fund was $29,209,183. This represents a decrease of $1,950,394, or 6.3 percent, from the prior year.

Unassigned fund balance includes a 25 percent General Fund reserve as required by the City’s financial policy. At the end of FY 2024-25, this reserve amounted to $16,267,568.

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. 19 86
City of South Lake Tahoe Management’s Discussion and Analysis 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.

The statement of net position presents information on all 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, California.

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-eight 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 20 87
City of South Lake Tahoe Management’s Discussion and Analysis 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 governmental funds financial statements can be found on pages 39 - 42 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 44 - 46 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 48 - 49 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 51 - 98 of this report.

Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information (RSI) related to the City’s pension plans and budgetary comparison schedules for the City’s major governmental funds. Required supplementary information can be found on pages 100 - 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 - 156 of this report.

Government-wide Financial Analysis
The Statement of Net Position combines and consolidates the City’s governmental funds’ current 21 88
City of South Lake Tahoe Management’s Discussion and Analysis financial resources (short-term spendable resources) with capital assets, long-term obligations, and other 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 and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $214,498,749 at the close of the most recent fiscal year.

The largest portion of the City’s net position, $161,489,232 or 75.3 percent, reflects its net investment in capital assets (i.e. land, buildings, machinery and equipment, streets, net of accumulated depreciation and amortization). The City uses these capital assets to provide services to residents; consequently, these assets are not available for future spending. Although the City’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’s net position, $72,160,578 or 33.6 percent, represents resources that are subject to external restrictions on how they may be used. The remaining balance of $(19,151,061) 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 2024-25, 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 positive balances in all three categories for its business-type activities. At year-end, 93.5 percent of the City’s business-type activities’ net position was invested in capital assets, while for governmental activities this category amounted to 72.9 percent.

The City’s overall net position increased $19,172,497, or 9.8 percent from prior fiscal year, as reflected below in the Changes in Net Position table. The reasons for this overall increase are discussed separately 2025 2024 2025 2024 2025 2024
Assets
Current and other assets $ 184,628,899 $ 202,586,821 $ 4,290,626 $ 4,392,448 $ 188,919,525 $ 206,979,269 Capital assets 189,980,091 142,190,010 23,202,394 24,396,917 213,182,485 166,586,927 Total assets 374,608,990 344,776,831 27,493,020 28,789,365 402,102,010 373,566,196 Deferred Outflows of Resources
Deferred amount on refunding - 31,332 - - - 31,332
Deferred outflows related to pensions 16,072,074 19,278,419 99,657 111,876 16,171,731 19,390,295 Total deferred outflows 16,072,074 19,309,751 99,657 111,876 16,171,731 19,421,627 Liabilities
Long-term liabilities 170,626,704 174,475,318 2,290,163 2,488,277 172,916,867 176,963,595 Other Liabilities 22,934,374 18,100,274 383,438 213,813 23,317,812 18,314,087 Total liabilities 193,561,078 192,575,592 2,673,601 2,702,090 196,234,679 195,277,682 Deferred Inflows of Resources
Deferred inflows related to pensions 7,412,593 2,383,889 127,720 - 7,540,313 2,383,889 Net Position
Net investment in capital assets 138,307,510 119,574,017 23,181,722 24,366,585 161,489,232 143,940,602 Restricted 72,143,293 69,176,844 17,285 17,285 72,160,578 69,194,129 Unrestricted (20,743,410) (19,623,760) 1,592,349 1,815,281 (19,151,061) (17,808,479) Total net position $ 189,707,393 $ 169,127,101 $ 24,791,356 $ 26,199,151 $ 214,498,749 $ 195,326,252 September 30, 2025 and 2024
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 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 property taxes were the largest revenue sources for the City, followed by charges for services, other revenue, capital grants and contributions, other taxes, and operating grants and contributions. 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.

Total revenues for governmental activities were $103,069,509 in FY 2024‑25, an increase of approximately $2.6 million, or 2.6 percent, over the prior year. General revenues increased $2.4 million, mainly due to higher transient occupancy taxes ($1.7 million) and sales taxes ($1.0 million), while 2025 2024 2025 2024 2025 2024
REVENUES:

Program revenues:

Charges for services $ 11,898,515 $ 16,551,866 $ 3,179,481 $ 3,178,430 $ 15,077,996 $ 19,730,296 Operating grants and contributions 7,172,753 7,687,826 - - 7,172,753 7,687,826 Capital grants and contributions 8,548,696 3,136,149 985,275 921,050 9,533,971 4,057,199 General revenues:

Property taxes 12,197,225 11,846,421 - - 12,197,225 11,846,421 Sales taxes 21,095,111 20,093,107 8,384 8,991 21,103,495 20,102,098 Transient occupancy taxes 23,244,704 21,540,142 23,244,704 21,540,142 Franchise taxes 2,292,404 2,282,688 - - 2,292,404 2,282,688 Other taxes 7,280,891 6,968,598 - - 7,280,891 6,968,598 Other revenue 9,339,210 10,338,267 176,412 305,369 9,515,622 10,643,636 Total revenues 103,069,509 100,445,064 4,349,552 4,413,840 107,419,061 104,858,904 EXPENSES:

General government 16,309,273 20,525,822 - - 16,309,273 20,525,822 Public safety 29,669,072 30,040,700 - - 29,669,072 30,040,700 Public works 14,333,889 12,736,086 - - 14,333,889 12,736,086 Parks and recreation 9,795,380 8,680,644 - - 9,795,380 8,680,644 Streets 9,201,228 7,214,554 - - 9,201,228 7,214,554
Interest on long-term debt 3,250,375 3,344,471 - - 3,250,375 3,344,471 Transit - - 266,810 287,198 266,810 287,198
Airport - - 4,248,196 4,330,762 4,248,196 4,330,762
Parking garage - - 1,123,860 1,597,410 1,123,860 1,597,410 Parking managements - - 48,481 34,589 48,481 34,589
Total expenses 82,559,217 82,542,277 5,687,347 6,249,959 88,246,564 88,792,236 Increase (decrease) in net position
before special items and transfers 20,510,292 17,902,787 (1,337,795) (1,836,119) 19,172,497 16,066,668 Transfers 70,000 85,000 (70,000) (85,000) - -
Increase (decrease) in net position 20,580,292 17,987,787 (1,407,795) (1,921,119) 19,172,497 16,066,668 Net position - beginning 169,127,101 151,139,314 26,199,151 28,120,270 195,326,252 179,259,584 Net position - ending $ 189,707,393 $ 169,127,101 $ 24,791,356 $ 26,199,151 $ 214,498,749 $ 195,326,252 City of South Lake Tahoe
Changes in Net Position
Governmental Activities Business-type Activities Total
For the Fiscal Years Ended September 30, 2025 and 2024
23 90
City of South Lake Tahoe Management’s Discussion and Analysis property taxes grew by $0.4 million. Within program revenues, capital grants and contributions increased by $5.4 million due to higher Capital Improvement Program revenues, including federal funding (such as CMAQ and USFS) and local funding from TRPA. This increase was partially offset by a $4.7 million decrease in charges for services, primarily due to $4.8 million of Permanent Local Housing Allocation (PLHA) grant recognized in the prior year. Total program revenues remained relatively stable.

Expenses totaled $82,559,217, essentially unchanged from the prior year. General Government expenses decreased $4.2 million, primarily due to $4.8 million PLHA grant funds loaned in the prior year for the Sugar Pine Village Affordable Housing Project. Public Works and Streets expenses increased $1.6 million and $2.0 million, respectively, mainly due to higher operational needs. Parks and Recreation expenses increased $1.1 million, reflecting higher costs partially associated with preparations for the opening of the new Recreation Center in April 2026.

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 2024- 25 was $24,791,356. Total program revenues were $4,164,756, an increase of $65,276, or 1.6 percent, compared to the prior year. These program revenues consist primarily of airport and parking garage charges for services which remained relatively stable at $3.2 million. Capital grants and contributions revenue grew by $64,225, or 7.0 percent, due to continued Federal Aviation Administration (FAA) and USFS funding for airport projects. Total expenses were $5,687,347, of which approximately 94.5 percent was related to the airport and parking garage operations. Overall net position decreased by $1,407,795 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 compliance with finance-related legal requirements.

Governmental Funds. The focus of the City’s governmental funds is to provide information on near- $
24 91
City of South Lake Tahoe Management’s Discussion and Analysis term 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 No. 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 2024-25. The table below presents a comparison of the fund balance for each of these five funds between 2023-24 and 2024-25, as well as a consolidated comparison for all non-major governmental funds for the same time period.

As of the end of FY 2024-25, the City’s governmental funds reported combined ending fund balances of $108,224,730, a decrease of $23,151,176, or 17.6 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 $29,209,183, while total fund balance decreased to $37,048,821. 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 51.7 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 $2,205,157, or 5.6 percent. Total revenues increased by $2,740,725, or 4.0 percent, primarily due to an increase in the taxes and assessments category, which grew $2,792,465, or 5.4 percent. This increase was primarily driven by transient occupancy tax, which increased by $1,436,569, or 7.9 percent. Property tax grew $367,479, or 3.2 percent, while sales tax, including voter-approved Measure Q and Measure S, increased by $1,015,387, or 5.3 percent. Use of money and property increased by $465,509, or 17.6 percent, primarily due to higher investment earnings. These and other increases were offset by decreases in fines and penalties and other revenue.

General Fund expenditures increased by $6,102,495, or 12.1 percent, compared to the prior year. This increase reflects higher operating costs across multiple departments: General Government increased $1,184,512, or 8.9 percent; Public safety increased $2,290,316, or 9.1 percent; Parks and recreation increased $1,027,153, or 24.8 percent, and Capital outlay increased $1,190,499, or 130.0 percent.

Departmental increases were primarily attributable to higher personnel and other operating costs, while capital outlay increased due to various equipment and infrastructure purchases, including the recognition September 30, September 30, Increase (Decrease)
Governmental Fund Balances 2025 2024 From 2024
General Fund $ 37,048,821 $ 39,253,978 $ (2,205,157)
City Housing & ED Fund 3,711,225 3,179,112 532,113
Measure P Recreation 12,694,949 13,097,292 (402,343)
City Capital Projects Fund 30,142,817 21,144,804 8,998,013 City Debt Service 12,152,846 43,313,675 (31,160,829)
Other Governmental Funds 12,474,072 11,387,045 1,087,027 Total Governmental Fund Balances $ 108,224,730 $ 131,375,906 $ (23,151,176) 25 92
City of South Lake Tahoe Management’s Discussion and Analysis of a right-to-use subscription asset.

Total General Fund revenues exceeded total expenditures by $13,977,401 for FY 2024-25, before transfers. Total transfers out of $18,595,770 for capital projects and other purposes were comparable to the prior fiscal year's $18,603,545. Measure S sales tax which is dedicated specifically to road rehabilitation, snow and street equipment replacement, fire prevention and emergency response projects, transferred approximately $7.3 million to other funds for related projects. The higher expenditures, combined with continued transfers to support capital projects, contributed to the $2.2 million decrease in total General Fund balance.

The City’s Housing and Economic Development Fund was established to account for restricted resources, including former redevelopment tax allocation set-asides for low- and moderate-income housing, as well as CDBG and HOME funds. Total revenue in this fund increased by $956,179 compared to the prior fiscal year. Total expenditures decreased 68.5 percent, from $5.6 million to $1.8 million, primarily due to the nonrecurrence of $4.8 million of PLHA grant funds loaned in the prior year for the construction of Sugar Pine Village Affordable Housing Project. As a result, the total fund balance in this fund increased by $532,113, ending FY 2024-25 at $3,711,225.

The Measure P Recreation fund was established in fiscal year 2016-17 to account for the collection of an additional 2 percent Transient Occupancy Tax, a special tax, to be used for the construction, operation, and maintenance of recreational facilities. Total taxes collected increased by $267,987, or 7.9 percent, over the previous fiscal year, while interest revenue decreased by $221,851 or 27.8 percent. Transfers out to the City’s Capital Project Fund for construction and related debt service of the new Recreation Center totaled $4,631,286 for FY 2024-25, a decrease of $115,329 compared to the prior year. The total fund balance was $12,694,949 at fiscal year-end.

The ending fund balance in the City’s Capital Projects Fund was $30,142,817, an increase of $8,998,013 or 42.6 percent, from the prior year. Revenue and other financing sources in this fund consist primarily of grant revenues from various agencies as well as transfers in from the City’s Primary General Fund, Measure S Sales Tax General Fund, Measure P Recreation Fund, and City Debt service fund. Total transfers in for the Street Overlay Program, Recreation Center construction, and several other projects totaled $44.5 million, a $13.0 million increase compared to the prior year. Expenditures totaled $54.2 million, an increase of $19.3 million primarily due to construction costs incurred for the new Recreation Center.

The City Debt Service Fund was established to account for the City’s financing and debt service activities. The fund ended the year with a fund balance of $12,152,846, with most of the balance reported as restricted. The fund balance decreased by $31,160,829 from the prior year due to the usage of proceeds from the issuance of Lease Revenue Bonds, 2023 Series A, to finance construction of the new Recreation Center.

The fund balances of the City’s other governmental funds consist of 37 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 $12,474,072, an increase of $1,087,027, or 10.0 percent. Within these special revenue funds, the balances of 15 funds increased over the course of the fiscal year, while 15 funds experienced a drop. The largest fund balance increase among other governmental funds was in the Vacation Home Rental Program Fund ($451,073). The largest decrease was in the Snow Removal fund ($613,906), which utilized accumulated fund balance from the prior year to pay for snow removal equipment purchases in the current fiscal year.

Proprietary Funds. Proprietary funds are comprised of enterprise and internal service funds. At the end of FY 2024-25, the unrestricted net position of all enterprise funds amounted to $1,592,349, while the 26 93
City of South Lake Tahoe Management’s Discussion and Analysis unrestricted net position of all internal service funds was $2,119,514. Total net position for all proprietary funds decreased by $1,084,991 compared to the prior year. The following table summarizes changes in overall net position from the prior fiscal year by individual enterprise fund and in total for the internal service funds.

Total net position of the enterprise funds decreased by $1,407,795, primarily due to the Airport and Transit funds utilizing their net positions accumulated in prior fiscal years. These decreases were partially offset by an increase in Parking Management net position of $244,006, primarily due to higher paid parking fees, and an increase in the Parking Garage net position of $169,594, primarily due to streamlined operations and lower interest expense.

Total net position of the internal service funds increased by $322,804 during FY 2024-25. This increase was primarily attributable to investment income and charges for services exceeding claim expense in 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. Total budgeted appropriations and transfers out increased by $10,582,169. This increase included appropriations carried forward from the prior year for several multiyear projects and contracts totaling $1,174,658, and mid-year budget review adjustmentstotaling $4,786,710, including $1.5 million transfer to the Recreation Center CIP account for furniture, fixtures, and equipment. Estimated revenues and other financing sources increased $2,087,675, largely due to increases in budgeted property tax, interest revenue, and franchise fees.

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:
 Taxes and assessments category reflected positive budgetary performance, with actual revenues of $54,096,788 compared to a budget of $51,971,562, resulting in a favorable variance of $2,125,226. Sales tax (including Measure Q and Measure S) and transient occupancy tax (including Redevelopment Area) performed better than anticipated, while property tax ended the year slightly under budget.
 Use of money and property reflected positive budgetary performance primarily due to higher than budgeted interest income, with actual revenues of $3,109,051 compared to a budget of $2,407,765, resulting in a favorable variance of $701,286.  Intergovernmental revenues were $685,574 below budget due to the timing of grant reimbursements for projects that span multiple fiscal years.

September 30, September 30, Increase (Decrease)
Proprietary Funds Net Position 2025 2024 From 2024
Airport $ 14,882,251 $ 16,636,224 $ (1,753,973)
Transit 3,243,634 3,311,056 (67,422)
Parking Garage 6,141,347 5,971,753 169,594
Parking Management 524,124 280,118 244,006
Total Enterprise Funds 24,791,356 26,199,151 (1,407,795) Internal Service Funds 2,119,514 1,796,710 322,804
Total Proprietary Funds Net Position $ 26,910,870 $ 27,995,861 $ (1,084,991) 27 94
City of South Lake Tahoe Management’s Discussion and Analysis  All expenditure functions, with the exception of Parks and Recreation and Capital Outlay, reported expenditure savings attributable to factors such as salary savings, the timing of grantfunded expenditures that span multiple fiscal years, and other cost savings across various categories. General Government reported a favorable variance of $1,582,914, Public Safety had a favorable variance of $1,230,004, and Public Works had a favorable variance of $1,384,072.

Parks and Recreation expenditures exceeded budget by $261,538 due to increased program activity. Capital outlay exceeded budget by $1,230,901, primarily due to the recognition of expenditures related to Subscription-Based Information Technology Arrangements (SBITAs) as required by GASB Statement No. 96.

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, 2025, amounted to $213,182,485 (net of accumulated depreciation and amortization). This investment includes land, intangible assets, construction in progress, buildings, improvements, machinery and equipment, bike paths, streets and streetscape, runways, and basin and stream environment zone (SEZ) construction.

Major capital asset activity in governmental activities included net additions of $45.3 million to Revenue source
Estimated
Revenues
Actual
Revenues
Taxes and assessments $ 51,971,562 $ 54,096,788 $ 2,125,226 Licneses, permits, and impact fees $ 2,455,200 $ 2,600,687 $ 145,487 Use of money and property $ 2,407,765 $ 3,109,051 $ 701,286 Intergovernmental revenue $ 4,070,186 $ 3,384,612 $ (685,574) Expenditures function
Budgeted
Appropriations
Actual
Expenditures
General government $ 16,016,964 $ 14,434,050 $ 1,582,914 Public Safety $ 28,716,658 $ 27,486,654 $ 1,230,004
Public Works $ 8,428,699 $ 7,044,627 $ 1,384,072
Parks and recreation $ 4,901,975 $ 5,163,513 $ (261,538) Capital outlay $ 874,364 $ 2,105,265 $ (1,230,901)
Variance with
Final Budget
Variance with
Final Budget
28 95
City of South Lake Tahoe Management’s Discussion and Analysis construction in progress, primarily for the new Recreation Center, along with purchases of various vehicles and equipment. Within business-type activities, the City capitalized $0.7 million in building improvements at the Parking Garage. The majority of other changes were attributable to depreciation expense and the disposal of replaced, obsolete, or 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 5 to the basic financial statements.

Long-term debt. At the end of the current fiscal year, the City’s total long-term debt outstanding increased by $2,782,431, or 3.9 percent, from the prior year. This increase was primarily due to a new financing agreement for energy efficiency improvements at various City facilities, partially offset by routine debt service payments during the year. 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.
2025 2024 2025 2024 2025 2024
Land $ 8,500,153 $ 8,500,153 $ 4,288,170 $ 4,288,170 $ 12,788,323 $ 12,788,323 Intangibles 824,258 824,258 - - 824,258 824,258
Construction in progress 90,769,725 45,418,338 - 100,236 90,769,725 45,518,574 Buildings 4,748,086 4,935,765 5,872,531 5,720,807 10,620,617 10,656,572 Vehicles and Equipment 11,174,346 10,060,986 520,703 594,886 11,695,049 10,655,872 Improvements other than buildings 1,447,755 1,218,027 - - 1,447,755 1,218,027 Bike Paths 8,096,030 8,757,164 - - 8,096,030 8,757,164
Streets 15,331,022 12,119,646 - - 15,331,022 12,119,646 Streetscape 3,557,730 3,854,911 - - 3,557,730 3,854,911 Sidewalks, curbs, gutters, lighting 5,553,741 5,834,223 - - 5,553,741 5,834,223 Runways - - 12,520,990 13,692,818 12,520,990 13,692,818 Basin and SEZ construction 37,943,320 40,217,156 - - 37,943,320 40,217,156 Right to use leased equipment 399,466 449,383 - - 399,466 449,383 Right to use subscription asset 1,634,459 - - - 1,634,459 - Total $ 189,980,091 $ 142,190,010 $ 23,202,394 $ 24,396,917 $ 213,182,485 $ 166,586,927 Governmental Activities Business-type Activities Total
City of South Lake Tahoe
Capital Assets (Net of depreciation)
September 30, 2025 and 2024
2025 2024 2025 2024 2025 2024
Revenue bonds $ 56,760,437 $ 59,110,962 $ - $ - $ 56,760,437 $ 59,110,962 Taxable Pension Obligation Bonds 3,075,000 4,455,000 - - 3,075,000 4,455,000 COPs 4,060,000 4,230,000 - - 4,060,000 4,230,000
Loans payable 58,714 115,706 20,672 30,332 79,386 146,038 Finance purchase obligations 10,446,234 3,696,626 - - 10,446,234 3,696,626 Total $ 74,400,385 $ 71,608,294 $ 20,672 $ 30,332 $ 74,421,057 $ 71,638,626 Governmental Activities Business-type Activities Total
City of South Lake Tahoe
Summary of Outstanding Long-term Debt
September 30, 2025 and 2024
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City of South Lake Tahoe Management’s Discussion and Analysis Credit Rating. 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 2025-26 fiscal year budget:
• The City continues to operate in an environment of global economic uncertainty, even as inflation rates are indicating a return towards historical stability, with a 2.4 percent year-over-year increase in the Consumer Price Index for All Urban Consumers (CPI-U) as of January 2026. Tourism remains the primary driver of the local economy, and visitation trends have remained stable, with consistent seasonal demand, particularly during the summer and winter peak months. However, residents continue to express concern about the community’s long-term economic health, and housing affordability remains a critical issue. Taken together, these factors underscore the need for targeted efforts to support job creation and workforce development. • While many communities are currently facing significant deficits, the City’s conservative approach to budgeting practices and proactive fiscal management in recent years have placed the City in a stronger fiscal position than many municipalities. This disciplined approach has supported a resilient local economy, with City revenues showing modest but consistent growth. This financial stability has enabled staff to prepare a fiscally sound 2025-26 budget that addresses operational needs while making strategic investments in critical infrastructure and core services. • FY 2025-26 primary General Fund revenues (excluding Measure S Sales Tax) are projected to be approximately $5.0 million higher than the FY 2024-25 total budget. Total budgeted General Fund revenues are approximately $67.3 million. The City’s three largest revenue sources, Property Tax, Sales Tax (including Measure Q), and Transient Occupancy Tax (excluding Redevelopment TOT) are expected to comprise approximately 53.5 percent of the total primary General Fund revenues in FY 2025-26.
• Property tax was the largest revenue stream for the City's primary General Fund in FY 2024-25, totaling approximately $11.8 million, an increase of 3.2 percent over the prior year. Property tax revenue represents approximately 18 percent of primary General Fund revenues in the FY 2025-26 budget.
• Sales tax, including Measure Q, was the second largest revenue stream for the City's General Fund in FY 2024-25, totaling $11.7 million, an increase of 5.9 percent compared to FY 2023-24 actuals. 30 97
City of South Lake Tahoe Management’s Discussion and Analysis In FY 2025-26, total sales tax is budgeted at $11.9 million, representing approximately 18 percent of budgeted primary General Fund revenues.
• Transient occupancy tax (TOT) was the third largest revenue stream for the City's General Fund in FY 2024-25, totaling $11.3 million (excluding Redevelopment TOT). Despite some volatility, tourism continues to be a primary economic driver for the City. In FY 2025-26 budget, City TOT is budgeted at $11.8 million (including audits), a 9.5 percent increase compared to the FY 2024-25 amended budget and represents approximately 18 percent of total primary General Fund revenues. • Transient Occupancy Tax from the former Redevelopment Agency's Project Area #1 is budgeted at $7.9 million in FY 2025-26, which is 4.6 percent higher than the prior year's amended budget.

Compared to FY 2023-24, Redevelopment Area TOT increased $751,000, or 10.0 percent. • Measure S, a 1 percent local sales tax approved by voters in November 2020, is a revenue source received exclusively by the City and used to fund fire protection, emergency response, snow equipment replacement, and streets and roads repair. Measure S generated $8.3 million in FY 2024-25, an increase of 4.5 percent over the prior year, and is budgeted at $8.4 million for FY 2025-26.
• At the end of FY 2024-25, unassigned General Fund fund balance was $29,209,183. The FY 2025- 26 adopted budget was balanced using expected revenues and existing resources, including the use of resources for one-time expenditures 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.
31 98
32 99
See Notes to Financial Statements
City of South Lake Tahoe, California
Statement of Net Position
September 30, 2025
Governmental Business-Type
Activities Activities Total
Assets
Cash and investments (Note 2) 96,241,777 $ $ 4,049,456 $ 100,291,233 Restricted cash and investments (Note 2) 17,374,631 17,285 17,391,916 Accounts receivable 15,854,576 223,885 16,078,461
Interest receivable 657,345 - 657,345
Inventory 255,376 - 255,376
Prepaid items 558,477 - 558,477
Land held for resale 1,294,610 - 1,294,610
Advances to RDA Successor Agency (Note 3C) 5,289,178 - 5,289,178 Loans receivable (Note 4) 47,102,929 - 47,102,929
Capital assets (Note 5)
Nondepreciable 100,094,136 4,288,170 104,382,306
Depreciable, net 87,852,030 18,914,224 106,766,254
Right to use subscription assets, net 1,634,459 - 1,634,459 Right to use lease assets, net 399,466 - 399,466
Total assets 374,608,990 27,493,020 402,102,010
Deferred Outflows of Resources
Deferred outflows related to pensions 16,072,074 99,657 16,171,731 Total deferred outflows of resources 16,072,074 99,657 16,171,731 Liabilities
Accounts payable 15,080,929 280,687 15,361,616
Accrued expenses 1,578,903 - 1,578,903
Deposits 2,898,231 64,987 2,963,218
Due to developers 780,339 1,352 781,691
Unearned revenue 805,246 36,412 841,658
Accrued Interest 1,790,726 - 1,790,726
Compensated absences (Note 9)
Due within one year 1,013,746 20,925 1,034,671
Due in more than one year 2,898,275 48,172 2,946,447
Uninsured losses payable (Note 12)
Due within one year 1,892,623 - 1,892,623
Due in more than one year 4,451,160 4,451,160 -
Subscription liability (Note 7)
Due within one year 227,825 - 227,825
Due in more than one year 1,336,618 1,336,618 -
Lease liability (Note 6)
Due within one year 33,337 - 33,337
Due in more than one year 279,210 - 279,210
Long-term liabilities due in more than one year
Net pension liability (Note 11) 83,102,418 2,200,394 85,302,812 Arbitrage liability 991,107 - 991,107
Long-term debt (Note 8)
Due within one year 4,465,826 10,104 4,475,930
Due in more than one year 69,934,559 10,568 69,945,127
Total liabilities 193,561,078 2,673,601 196,234,679
33 100
See Notes to Financial Statements
City of South Lake Tahoe, California
Statement of Net Position
September 30, 2025
Governmental Business-Type
Activities Activities Total
Deferred Inflows of Resources
Deferred inflows related to pensions $ 7,412,593 $ 127,720 $ 7,540,313 Total deferred inflows of resources 7,412,593 127,720 7,540,313 Net Position (Note 10)
Net investment in capital assets 138,307,510 23,181,722 161,489,232 Restricted for
Debt service - 17,285 17,285
Public safety 1,639,386 1,639,386 -
Snow removal 1,122,773 1,122,773 -
Housing and economic development 49,510,136 49,510,136 - Community and tourism improvement 2,419,890 2,419,890 - Parks and recreation projects 14,111,434 14,111,434 -
Capital projects 732,704 - 732,704
Transportation 524,102 - 524,102
Solid waste 9,943 - 9,943
Vehicle replacement 1,559,979 1,559,979 -
PEG program 347,524 - 347,524
Erosion control 165,422 - 165,422
Total restricted net position 72,143,293 17,285 72,160,578 Unrestricted (20,743,410) 1,592,349 (19,151,061)
Total net position $ 189,707,393 $ 24,791,356 $ 214,498,749 34 101
See Notes to Financial Statements
City of South Lake Tahoe, California
Statement of Activities
Year Ended September 30, 2025
Operating Capital
Charges for Grants and Grants and Governmental Business-type Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Governmental Activities
General government 16,309,273 $ $ 2,972,057 $ 2,380,395 $ - $ (10,956,821) $ - $ (10,956,821) Public safety 29,669,072 4,569,577 1,148,100 81,809 (23,869,586) (23,869,586) - Public works 14,333,889 3,583,982 694,900 7,087,220 (2,967,787) (2,967,787) - Parks and recreation 9,795,380 622,040 426,225 (8,747,115) - (8,747,115) - Streets 9,201,228 150,859 2,523,133 1,379,667 (5,147,569) (5,147,569) - Interest on long-term debt 3,250,375 - - (3,250,375) - (3,250,375) - Total governmental acƟviƟes 82,559,217 11,898,515 7,172,753 8,548,696 (54,939,253) (54,939,253) - Business-type Activities
Transit 266,810 172,510 - - (94,300) - (94,300)
Airport 4,248,196 1,767,688 655,275 - (1,825,233) - (1,825,233) Parking garage 1,123,860 968,313 330,000 - 174,453 - 174,453 Parking management 48,481 270,970 - - 222,489 - 222,489 Total business-type activities 5,687,347 3,179,481 985,275 - (1,522,591) - (1,522,591) Total $ 88,246,564 $ 15,077,996 $ 7,172,753 $ 9,533,971 (54,939,253) (1,522,591) (56,461,844) General Revenues
Taxes
Property taxes 12,197,225 12,197,225 -
Sales taxes 21,095,111 8,384 21,103,495
Transient occupancy taxes 23,244,704 23,244,704 -
Franchise taxes 2,292,404 2,292,404 -
Other taxes 7,280,891 7,280,891 -
Use of money and property 6,279,541 176,412 6,455,953
Miscellaneous 3,059,669 3,059,669 -
Total general revenues 75,449,545 184,796 75,634,341
Transfers (Note 3A) 70,000 (70,000) -
Change in Net Position 20,580,292 (1,407,795) 19,172,497 Net Position-Beginning 169,127,101 26,199,151 195,326,252 Net Position-Ending $ 189,707,393 $ 24,791,356 $ 214,498,749 Net (Expense) Revenue and
Program Revenues Changes in Net Position
35 102
36 103
City of South Lake Tahoe, California
Major Governmental Funds
September 30, 2025
The funds described below were determined to be Major Funds by the City in fiscal year 2025. 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. 37 104
38 105
See Notes to Financial Statements
City of South Lake Tahoe, California
Balance Sheet – Governmental Funds
September 30, 2025
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 2) 29,189,587 $ $ 3,966,590 $ 12,352,504 $ 29,062,090 $ 105,082 $ 12,616,673 $ 87,292,526 Restricted cash and investments (Note 2) - - - - 17,339,027 - 17,339,027 Accounts receivable 7,570,870 273,314 342,445 5,973,302 - 1,591,798 15,751,729 Interest receivable 657,345 - - - - - 657,345
Due from other funds (Note 3B) 416,222 - - 5,643,368 - - 6,059,590 Prepaid items 181,559 - - - 376,918 - 558,477
Inventory 255,376 - - - - - 255,376
Land held for resale 1,294,610 - - - - - 1,294,610
Loans receivable (Note 4) 1,304,018 45,798,911 - - - - 47,102,929 Advances to other funds (Note 3C) - - - 23,813 - - 23,813 Advances to RDA Successor Agency (Note 3C) 4,638,627 - - - - 317,809 4,956,436 Total assets 45,508,214 $ 50,038,815 $ 12,694,949 $ 40,702,573 $ 17,821,027 $ 14,526,280 $ 181,291,858 $ Liabilities
Accounts payable 2,115,560 $ $ 200,763 $ 10,557,087 - $ $ 1,000 $ 943,667 $ 13,818,077 Accrued expenditures 1,578,903 - - - - - 1,578,903
Due to other funds (Note 3B) - - - - 5,643,368 416,222 6,059,590 Deposits 2,570,315 327,916 - - - - 2,898,231
Due to developers 780,339 - - - - - 780,339
Unearned revenue 110,258 - - 2,669 - 692,319 805,246
Advances from other funds (Note 3C) - - - - 23,813 - 23,813 Total liabilities 7,155,375 528,679 - 10,559,756 5,668,181 2,052,208 25,964,199 Deferred Inflows of Resources
Unavailable revenue - revolving loans 1,304,018 45,798,911 - - - - 47,102,929 Fund Balances (Note 10)
Nonspendable 6,370,172 - - - 376,918 - 6,747,090
Restricted - 3,711,225 12,694,949 - 11,775,928 8,803,604 36,985,706 Committed 500,000 - - 30,119,004 - 1,416,485 32,035,489 Assigned 969,466 - - 23,813 - 2,294,319 3,287,598
Unassigned 29,209,183 - - - (40,336) - 29,168,847
Total fund balances 37,048,821 3,711,225 12,694,949 30,142,817 12,152,846 12,474,072 108,224,730 Total liabilities, deferred inflows
of resources and fund balances $ 45,508,214 $ 50,038,815 $ 12,694,949 $ 40,702,573 $ 17,821,027 $ 14,526,280 $ 181,291,858 39 106
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, 2025
Total fund balances reported on the governmental funds balance sheet $ 108,224,730 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. 189,980,091
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 8,949,251 $
Restricted cash and investments 35,604
Accounts receivable - net 102,847
Advances to other funds 332,742
Accounts payable and accrued expenses (1,262,852)
Uninsured losses payable (6,038,078)
2,119,514
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. 47,102,929
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 (7,412,593) Deferred outflows of resources - amounts related to pensions 16,072,074 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 (74,400,385)
Lease liability (312,547)
Subscription liability (1,564,443)
Accrued interest (1,790,726)
Uninsured losses payable (305,705)
Arbitrage liability (991,107)
Compensated absences (3,912,021)
Net pension liability (83,102,418)
Net position of governmental activities $ 189,707,393
40 107
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, 2025
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 54,096,788 $ $ 3,653,389 - $ $ - $ 1,586,980 - $ $ 59,337,157 Licenses, permits and impact fees 2,600,687 - - - - 1,629,985 4,230,672 Fines and penalties 1,054,546 - - - - 134,027 1,188,573 Use of money and property 3,109,051 152,955 575,554 37,480 1,407,819 518,351 5,801,210 Intergovernmental revenue 3,384,612 1,204,708 - 9,092,770 - 4,452,257 18,134,347 Charges for current services 5,480,984 345,133 - 1,372,167 - 4,015,904 11,214,188 Other revenue 788,313 323,765 - 221,405 - 441,631 1,775,114 Total revenues 70,514,981 2,026,561 4,228,943 10,723,822 1,407,819 12,779,135 101,681,261 Expenditures
Current
General government 14,434,050 1,764,448 - - 27,064 168,266 16,393,828 Public safety 27,486,654 - - - - 1,946,043 29,432,697
Public works 7,044,627 - - - - 808,814 7,853,441
Parks and recreation 5,163,513 - - - - 3,713,072 8,876,585 Streets - - - - - 4,410,662 4,410,662
Capital outlay 2,105,265 - - 54,156,962 3,366,381 - 59,628,608 Debt service
Principal 301,868 - - 4,798,394 - 88,853 5,189,115
Interest and fiscal charges 1,603 - - 3,153,171 - 18,556 3,173,330 Debt issuance costs - - - 82,525 - 82,525 -
Total expenditures 56,537,580 1,764,448 54,156,962 - 8,061,154 14,520,647 135,040,791 Excess (Deficiency) of Revenues
over Expenditures 13,977,401 262,113 4,228,943 (43,433,140) (6,653,335) (1,741,512) (33,359,530) Other Financing Sources (Uses)
Transfers in (Note 3A) 546,618 270,000 44,540,678 - 7,783,414 4,229,767 57,370,477 Transfers out (Note 3A) (18,595,770) (4,631,286) - (32,373,433) - (1,667,988) (57,268,477) Issuance of SBITA 1,866,311 - - - - 1,866,311 -
Issuance of debt - - 7,890,475 - 82,525 7,973,000 -
Proceeds from sale of capital assets 283 - - - 266,760 - 267,043 Total other financing sources (uses) (16,182,558) 270,000 (4,631,286) 52,431,153 (24,507,494) 2,828,539 10,208,354 Net Change in Fund Balances (2,205,157) 532,113 (402,343) 8,998,013 (31,160,829) 1,087,027 (23,151,176) Beginning Fund Balances 39,253,978 3,179,112 13,097,292 21,144,804 43,313,675 11,387,045 131,375,906 Ending Fund Balances $ 37,048,821 $ 3,711,225 $ 12,694,949 $ 30,142,817 $ 12,152,846 $ 12,474,072 $ 108,224,730 41 108
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, 2025
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 (23,151,176) $ 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 and amortization expense.

Purchase of capital assets, net of retirements 55,879,123 Depreciation and amortization expense (8,042,397)
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 (46,645)
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 5,189,115
Issuance of SBITA (1,866,311)
Amortization of deferred amounts on refunding (31,332)
Amortization of bond premium 325,525
Accrued interest expense (288,713)
Finance purchase issue (7,973,000)
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 750,512
Compensated absences (561,043)
Uninsured losses payable 440,073
Change in net pension liability (125,720)
Change in arbitrage liability (240,523)
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 322,804 Change in net position of governmental activities $ 20,580,292 42 109

City of South Lake Tahoe, California
Proprietary Funds
September 30, 2025
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.
43 110
See Notes to Financial Statements
City of South Lake Tahoe, California
Statement of Net Position – Proprietary Funds
September 30, 2025
Governmental
ActivitiesParking Other Enterprise Internal Service
Airport Garage Funds Totals Funds
Assets
Current Assets
Cash and investments (Note 2) 1,382,564 $ $ 1,524,757 $ 1,142,135 $ 4,049,456 $ 8,949,251 Restricted cash and investments (Note 2) - 17,285 - 17,285 35,604 Accounts receivable - net 220,702 2,048 1,135 223,885 102,847 Total current assets 1,603,266 1,544,090 1,143,270 4,290,626 9,087,702 Non-Current Assets
Advances to RDA Successor Agency (Note 3C) - - - - 332,742 Capital assets (Note 5)
Nondepreciable 1,509,180 1,463,617 1,315,373 4,288,170 - Depreciable 13,367,164 4,226,221 1,320,839 18,914,224 - Total noncurrent assets 14,876,344 5,689,838 2,636,212 23,202,394 332,742 Total assets 16,479,610 7,233,928 3,779,482 27,493,020 9,420,444 Deferred Outflows of Resources
Deferred outflows related to pensions 56,597 43,060 99,657 - - Liabilities
Current Liabilities
Accounts payable 147,846 121,117 11,724 280,687 1,262,852 Unearned revenue 36,412 - 36,412 - -
Deposits 64,987 - 64,987 - -
Due to developers 1,352 - - 1,352 -
Current portion of
long-term debt (Note 8) 10,104 - 10,104 - -
Compensated absences (Note 9) 16,830 4,095 20,925 - -
Uninsured losses payable (Note 12) - - - 1,586,918 -
Total current liabilities 277,531 125,212 11,724 414,467 2,849,770 Long-Term Liabilities
Uninsured losses payable (Note 12) - - - 4,451,160 -
Net pension liability (Note 11) 1,249,638 950,756 2,200,394 - - Compensated absences (Note 9) 43,685 4,487 48,172 - -
Long-term debt (Note 8) 10,568 - 10,568 - -
Total long-term liabilities 1,303,891 955,243 2,259,134 - 4,451,160 Total liabilities 1,581,422 1,080,455 11,724 2,673,601 7,300,930 Deferred Inflows of Resources
Deferred inflows related to pensions 72,534 55,186 127,720 - - Net Position (Note 10)
Net investment in capital assets 14,855,672 5,689,838 2,636,212 23,181,722 - Restricted for debt service 17,285 - 17,285 - -
Unrestricted 26,579 434,224 1,131,546 1,592,349 2,119,514 Total net position $ 14,882,251 $ 6,141,347 $ 3,767,758 $ 24,791,356 $ 2,119,514 Business-Type Activities - Enterprise Funds
44 111
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, 2025
Governmental
ActivitiesParking Other Enterprise Internal Service
Airport Garage Funds Totals Funds
Operating Revenues
Charges for current services 336,448 $ $ 959,265 $ 270,970 $ 1,566,683 $ 6,797,930 Rental and reimbursements 1,431,240 9,048 172,510 1,612,798 171,352 Other income - - - - 100,856
Total operating revenues 1,767,688 968,313 443,480 3,179,481 7,070,138 Operating Expenses
Salaries and wages 532,137 285,961 - 818,098 39,057
Payroll expenses 190,663 160,640 - 351,303 -
Contracted services 1,474,177 169,364 - 1,643,541 144,479 Supplies 183,342 109,842 14,822 308,006 -
Communication 6,241 1,149 - 7,390 -
Repairs and maintenance 307,862 - - 307,862 -
Insurance 39,041 48,532 179,077 266,650 -
Claims - - - - 6,887,908
General expenses 35,017 28,519 19,718 83,254 14,583
Depreciation (Note 5) 1,478,323 271,200 81,580 1,831,103 - Total operating expenses 4,246,803 1,075,207 295,197 5,617,207 7,086,027 Operating income (loss) (2,479,115) (106,894) 148,283 (2,437,726) (15,889) Nonoperating Revenues (Expenses)
Interest expense (1,393) (48,653) (20,094) (70,140) -
Investment earnings 62,876 70,141 43,395 176,412 370,693 Taxes and assessments 8,384 - 8,384 - -
Total nonoperating revenues (expenses) 69,867 21,488 23,301 114,656 370,693 Income (Loss) Before Contributions and Transfers (2,409,248) (85,406) 171,584 (2,323,070) 354,804 Capital grants and contributions 655,275 330,000 985,275 - - Transfers in (Note 3A) - 5,000 - 5,000 45,000
Transfers out (Note 3A) (75,000) - (75,000) - (77,000)
Total contributions and transfers 655,275 255,000 5,000 915,275 (32,000) Change in Net Position (1,753,973) 169,594 176,584 (1,407,795) 322,804 Beginning Net Position 16,636,224 5,971,753 3,591,174 26,199,151 1,796,710 Ending Net Position $ 14,882,251 $ 6,141,347 $ 3,767,758 $ 24,791,356 $ 2,119,514 Business-Type Activities - Enterprise Funds
45 112
See Notes to Financial Statements
City of South Lake Tahoe, California
Statement of Cash Flows – Proprietary Funds
Year Ended September 30, 2025
Governmental
ActivitiesParking Other Enterprise Internal Service
Airport Garage Funds Totals Funds
Operating Activities
Receipts from customers 1,774,700 $ $ 967,312 $ 449,336 $ 3,191,348 $ 6,967,291 Payments to suppliers (1,970,517) (244,471) (203,819) (2,418,807) (160,033) Payments to employees (827,867) (390,049) (1,217,916) - (39,057) Claims paid - - - - (6,054,625)
Net Cash Provided by (used for)
Operating Activities (1,023,684) 332,792 245,517 (445,375) 713,576 Noncapital Financing Activities
Transfers in - - 5,000 5,000 45,000
Transfers out (75,000) - (75,000) - (77,000)
Net Cash Provided by (used for) Noncapital
Financing Activities (75,000) - 5,000 (70,000) (32,000) Capital and Related Financing Activities
Capital grants 663,659 - 663,659 - -
Capital asset purchases (65,289) (571,291) (636,580) - - Contributions 330,000 - 330,000 - -
Principal payments on debt (9,660) - (9,660) - -
Interest paid (1,393) (48,653) (20,094) (70,140) -
Net Cash Provided by (Used For) Capital and
Related Financing Activities 587,317 (289,944) (20,094) 277,279 - Investing Activities
Investment earnings 62,876 70,141 43,395 176,412 370,693 Net Increase/(decrease) in Cash and Investments (373,491) 37,989 273,818 (61,684) 1,052,269 Cash and Investments at Beginning of Period 1,756,055 1,504,053 868,317 4,128,425 7,932,586 Cash and Investments at End of Period $ 1,382,564 $ 1,542,042 $ 1,142,135 $ 4,066,741 $ 8,984,855 Reconciliation of Operating Income (Loss) to net cash
Provided by (used by) Operating Activities
Operating income (loss) $ (2,479,115) $ (106,894) $ 148,283 $ (2,437,726) $ (15,889) Adjustments to reconcile operating income (loss)
to cash flows from operating activities
Depreciation 1,478,323 271,200 81,580 1,831,103 -
Increase (decrease) in pension
related amounts 127,117 60,994 188,111 - -
Change in assets and liabilities
Prepaid items 29,623 - 29,623 - -
Receivables, net 5,660 (1,001) 5,856 10,515 (102,847)
Net pension liability (209,275) (8,537) (217,812) - -
Accounts payable and other accrued expenses 23,983 117,030 9,798 150,811 832,312 Net Cash Provided by (used for) Operating Activities (1,023,684) $ $ 332,792 $ 245,517 $ (445,375) $ 713,576 Business-Type Activities - Enterprise Funds
46 113

City of South Lake Tahoe, California
Fiduciary Funds
September 30, 2025
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 2025:

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. 47 114
See Notes to Financial Statements
City of South Lake Tahoe, California
Statement of Fiduciary Net Position
September 30, 2025
Redevelopment
Obligation
Retirement
Private-Purpose Custodial
Trust Fund Funds
Assets
Cash and investments (Note 2) $ 1,967,558 $ 2,113,723
Restricted cash and investments (Note 2) 9,773,138 1,152,969 Accounts receivable 3,500 56,348
Capital assets (Note 16)
Land 6,784,744 -
Depreciable capital assets, net 1,404,121 -
Total assets 19,933,061 3,323,040
Deferred Outflows of Resources
Deferred amount on refunding 893,152 -
Liabilities
Accounts payable - 980
Deposits and other accruals - 8,905
Accrued Interest payable 1,039,002 -
Advances payable to City of South Lake Tahoe (Note 3C) 5,289,178 - Long-term liabilities (Note 16)
Due in one year 3,090,000 -
Due in more than one year 50,938,540 -
Total liabilities 60,356,720 9,885
Net Position (Deficit)
Restricted for individuals, organizations,
and other governments $ (39,530,507) $ 3,313,155
48 115
See Notes to Financial Statements
City of South Lake Tahoe, California
Statement of Changes in Fiduciary Net Position
Year Ended September 30, 2025
Redevelopment
Obligation
Retirement
Private-Purpose Custodial
Trust Fund Funds
Additions
Taxes and assessments 5,412,287 $ $ 942,191
Interest income 425,165 138,511
Other income 3,500 20,000
Total additions 5,840,952 1,100,702
Deductions
General government 129,692 -
Program and administrative charges - 125,184
Debt service principal - 380,000
Distributions to other governments 285,019 330,000
Interest and fiscal charges 1,983,937 126,070
Total deductions 2,398,648 961,254
Net Change in Net Position 3,442,304 139,448
Net Position (Deficit)
Beginning of Year (42,972,811) 3,173,707
End of Year $ (39,530,507) $ 3,313,155
49 116
50 117
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
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 21,022. 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. 51 118
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
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. 52 119
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
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. 53 120
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
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.

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.

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).
54 121
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
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.

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 straight-line method. The amortization period is based on the lease term, which is 10 years.
55 122
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
Right to use subscription IT assets are recognized at the subscription commencement date and represent the City’s right to use the underlying IT asset for the subscription term. Right to use subscription IT assets are measured at the initial value of the subscription liability plus any payments made to the vendor at the commencement of the subscription term, less any subscription incentives received from the vendor at or before the commencement of the subscription term, plus any capitalizable initial implementation costs necessary to place the subscription asset into service. Right to use subscription IT assets are amortized over the shorter of the subscription term or useful life of the underlying asset using the straight-line method. The amortization period is based on the subscription term, which are 3 – 10 years.

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. 56 123
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
J. Compensated Absences
Compensated absences comprise unused vacation leave and compensated time off, which are accrued as earned. Sick leave amounts that can be cashed out at retirement (excess sick leave over max) and amounts that are more likely than not to be used in the future are also accrued. 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.

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 is discounted based on a borrowing rate determined by the City.

L. Subscription Liabilities
Subscription Liabilities represent the City’s obligation to make subscription payments arising from the subscription contract. Subscription liabilities are recognized at the subscription commencement date based on the present value of future subscription payments expected to be made during the subscription term. The present value of subscription payments are discounted based on a borrowing rate determined by the City.

M. 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.

N. Cash and Cash Equivalents
The City's cash and cash equivalents reported in the proprietary fund statements as cash and investments 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.

O. 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. 57 124
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
P. 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, 2025.

GASB Statement No. 101 – In June 2022, GASB issued Statement No. 101, Compensated Absences. The primary objective of the Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences by aligning the recognition and measurement guidance under a unified model and amending certain previously required disclosures. The City determined that there was no material impact on the financial statements.

GASB Statement No. 102 – In December 2023, GASB issued Statement No, 102, Certain Risk Disclosures. The primary objective of this Statement is to provide users of government financial statements with essential information about risks related to a government's vulnerabilities due to certain concentrations or constraints. A concentration is defined as a lack of diversity related to an aspect of a significant inflow of resources or outflow of resources. A constraint is a limitation imposed on a government by an external party or by formal action of the government's highest level of decision making authority. The City determined that there was no material impact on the financial statements.
58 125
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
Note 2 - 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, 2025:

Cash and investments $ 100,291,233
Restricted cash and investments 17,391,916
City cash and investments 117,683,149
Cash and investments in Fiduciary Funds 4,081,281
Restricted cash and investments in Fiduciary Funds 10,926,107 Total cash and investments $ 132,690,537
59 126
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
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
Highest letter
and number
rating by an
NRSRO 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
60 127
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
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 45,000,000 $ $ 1,977,342 $ 42,974,921 $ 44,952,263 Local Agency Investment Fund (State pool) 46,759,820 46,850,047 - 46,850,047 Retiree Health Savings Trust - Mutual Funds 56,744 56,744 - 56,744 Money Market Mutual Funds 35,384,899 35,384,899 - 35,384,899 Certificate of Deposits 1,000,000 749,459 248,342 997,801 Total investments 128,201,463 $ 85,018,491 $ 43,223,263 $ 128,241,754 Cash with Trustee 35,604
Cash in Banks and on Hand 4,413,179
Total cash and investments 132,690,537 $
Investment Type
61 128
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
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, 2025, these investments matured in an average of 254 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, 2025, for each investment type as provided by Standard and Poor’s.

AAA/AAAm AA+ A Total
Available for Operations
U.S. Government Agencies - $ 44,952,263 $ $ 44,952,263 - $ Money Market Mutual Funds 7,159,225 - - 7,159,225
Restricted
Money Market Mutual Funds 28,225,674 - - 28,225,674
Totals 35,384,899 $ 44,952,263 $ - $ 80,337,162
Not Rated
Retiree Health Savings Trust - Mutual Funds 56,744
Local Agency Investment Fund 46,850,047
Certificates of Deposit 997,801
Exempt from Credit Rating Disclosures
Cash with Trustee 35,604
Cash in Banks and on Hand 4,413,179
Total cash and investments 132,690,537 $
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. 62 129
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
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 27,980,650 $
Federal Farm Credit Bank 6,959,317
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. 63 130
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
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, 2025. 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.
64 131
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
As of September 30, 2025, 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 $ 44,952,263 $ 44,952,263 - $ $ - Money Market Mutual Funds 35,384,899 35,384,899 - -
Retiree Health Savings Trust - Mutual Funds 56,744 56,744 - - 35,441,643 80,393,906 $ 44,952,263 $ - $
Investments not measured at fair value or subject
Local Agency Investment Fund 46,850,047
Certificates of Deposits 997,801
Total fair value of investments 128,241,754
Cash with Trustee 35,604
Cash in Banks and on Hand 4,413,179
Total cash and investments 132,690,537 $
Investments by fair value level
to fair value hierarchy
65 132
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
Note 3 - 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, 2025, were as follows:

Transfer Reason for
Fund Making Transfer Amount Transfer
General Fund Non-Major Governmental Funds $ 469,618 A, B, D Internal Service Fund 77,000 B
Total General fund 546,618
City Housing & Economic Development Fund General Fund 270,000 A City Capital Projects Fund General Fund 10,561,634 C
Measure P Recreation 1,255,611 C
City Debt Service Fund 32,373,433 C
Non-Major Governmental Funds 350,000 C
Total City Capital Projects Fund 44,540,678
City Debt Service General Fund 4,382,739 A
Measure P Recreation 3,375,675 A
Non-Major Governmental Funds 25,000 A
Total City Debt Service 7,783,414
Non-Major Governmental Funds General Fund 3,331,397 A, C Parking Garage 75,000 C
Non-Major Governmental Funds 823,370 C
Total Gon-Major Governmental Funds 4,229,767
Non-Major Enterprise Funds General Fund 5,000 A
Internal Service Funds General Fund 45,000 A
Total Interfund Transfers $ 57,420,477
Net Transfers Between Governmental and Business-Type Activities $ 70,000 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
66 133
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
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, 2025, the General Fund was owed by the following funds for deficit cash positions at September 30, 2025. The City Capital Project Fund was owed by the City Debt Service Fund reimbursement of expenditures made in fiscal year 2025 from bond proceeds.

Amount
General Fund Other Governmental Funds
Boat Patrol Grant 18,560 $
Domestic Violence Grant 45,253
DUI/Traffic Safety Grant 29,961
Ice Arena 48,081
Disaster Preparedness 274,367
Total Other Governmental Funds 416,222 $
City Capital Projects Fund City Debt Service Fund $ 5,643,368 (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, 2025, 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, 2025 and is recorded in the City Debt Service Fund.

At September 30, 2025, 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, 2025, the long-term portion of principal and accumulated interest was $4,535,370 and $753,808, respectively.

Also see Note 16.
67 134
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
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, 2025.

Note 4 - 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, 2025:

Balance at Balance at
September 30, Additions to Interest September 30,
2024 Principal Accrued Collections Write-offs 2025
City Housing & Economic Development Fund
Housing Rehabilitation Loans $ 466,095 $ - $ - (3,047) $ $ 463,048 - $ Interest on loans 46,025 3,457 - (241) 49,241 -
First-Time Homebuyer Loans 2,328,129 - - - - 2,328,129
Interest on loans 826,013 - 37,658 (30,162) - 833,509
Moderate Income Loans 385,000 - - - - 385,000
Interest on loans 124,109 7,700 - - - 131,809
Projects Loans 33,162,453 294,141 (73,117) - - 33,383,477 Interest on loans 7,734,075 - 478,289 (21,481) - 8,190,883 Rental Assistance 1,500 32,865 - (550) 33,815 -
City Housing & Economic Development Fund total 45,073,399 327,006 527,104 (98,436) (30,162) 45,798,911 General Fund
Projects Loans 1,250,000 - - - - 1,250,000
Interest on loans 29,018 - 25,000 - 54,018 -
General fund total 1,279,018 - 25,000 - - 1,304,018
Total governmental funds $ 46,352,417 $ 327,006 $ 552,104 $ (98,436) $ (30,162) $ 47,102,929 Fund/Loan Program
68 135
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
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.

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, 2025, 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.
69 136
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
Note 5 - Capital Assets
A. Capital Asset Activity
Capital assets activity of the City’s Governmental Activities for the year ended September 30, 2025, comprises the following:

Balance at Balance at
September 30, September 30,
2024 Additions Retirements Transfers 2025
Governmental activities
Capital assets not being depreciated
Land $ 8,500,153 $ - $ - $ 8,500,153 - $
Intangible assets 824,258 - - 824,258 -
Construction in progress 45,418,338 50,561,012 (46,645) (5,162,980) 90,769,725 Total capital assets not
being depreciated 54,742,749 50,561,012 (46,645) (5,162,980) 100,094,136 Capital assets being depreciated
Buildings 22,442,811 63,204 (11,435) 79,959 22,574,539
Vehicles 6,631,638 907,512 (37,034) 7,502,116 -
Furniture and equipment 22,740,993 2,427,337 (565,552) 24,602,778 - Improvements other than buildings 8,414,430 53,747 (18,500) 447,528 8,897,205 Bike paths 14,429,200 - - 14,429,200 -
Streets 39,165,349 - 4,635,493 - 43,800,842
Streetscape 8,436,460 - - 8,436,460 -
Sidewalks, curbs, gutters, lighting 7,941,045 - - 7,941,045 - Basin and stream environment
zone construction 67,961,112 - - 67,961,112 -
Total capital assets
being depreciated 198,163,038 3,451,800 (632,521) 5,162,980 206,145,297 Less accumulated depreciation for
Buildings (17,507,046) (330,842) 11,435 (17,826,453) -
Vehicles (5,394,286) (500,845) 37,034 (5,858,097) -
Furniture and equipment (13,917,359) (1,720,644) 565,552 (15,072,451) - Improvements other than buildings (7,196,403) (271,547) 18,500 (7,449,450) - Bike paths (5,672,036) (661,134) - (6,333,170) -
Streets (27,045,703) (1,424,117) - (28,469,820) -
Streetscape (4,581,549) (297,181) - (4,878,730) -
Sidewalks, curbs, gutters, lighting (2,106,822) (280,482) - (2,387,304) - Basin and stream environment
zone construction (27,743,956) (2,273,836) - (30,017,792) - Total accumulated depreciation (111,165,160) (7,760,628) 632,521 (118,293,267) - 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) (49,917) - (99,699) - Right to use subscription assets being amortized
Right to use subscription asset 1,866,311 - - 1,866,311 - Less accumulated amortization for
Right to use subscription asset (231,852) - - (231,852) - Total capital assets being
depreciated and amortized, net 87,447,261 (2,724,286) 5,162,980 - 89,885,955 Governmental activities capital assets, net 142,190,010 $ $ 47,836,726 $ (46,645) $ 189,980,091 - $ 70 137
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
Capital assets activity of the City’s Business-Type Activities for the year ended September 30, 2025 comprises the following:

Balance at Balance at
September 30, September 30,
2024 Additions Retirements Transfers 2025
Business-type activities
Capital assets not being depreciated
Land $ 4,288,170 $ - $ - $ 4,288,170 - $
Construction in progress 100,236 - - (100,236) -
Total capital assets not
being depreciated 4,388,406 - - (100,236) 4,288,170
Capital assets, being depreciated
Transit center buildings 6,512,815 - - - 6,512,815
Terminal buildings 5,371,343 - - - 5,371,343
Runways 26,243,039 - - - 26,243,039
Machinery and equipment 2,910,681 65,289 - - 2,975,970
Parking garage 8,071,581 571,291 (124,571) 100,236 8,618,537 Total capital assets being
depreciated 49,109,459 636,580 (124,571) 100,236 49,721,704 Less accumulated depreciation for
Transit center buildings (5,110,395) (81,580) - - (5,191,975) Terminal buildings (4,878,848) (167,023) - - (5,045,871) Runways (12,550,221) (1,171,828) - - (13,722,049)
Machinery and equipment (2,315,795) (139,472) - - (2,455,267) Parking garage (4,245,689) (271,200) 124,571 - (4,392,318) Total accumulated depreciation (29,100,948) (1,831,103) 124,571 - (30,807,480) Total capital assets being
depreciated, net 20,008,511 (1,194,523) - 100,236 18,914,224 Business-type activities capital assets, net 24,396,917 $ (1,194,523) $ - $ - $ 23,202,394 $ 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 154,550 $
Public safety 1,010,454
Public works 2,967,971
Parks and recreation 1,063,457
Streets 2,845,965
Current year depreciation and amortization expense 8,042,397 $ Business-Type Activities
Transit 81,580 $
Airport 1,478,323
Parking garage 271,200
Current year depreciation expense 1,831,103 $
71 138
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
Note 6 - Leases
The City entered into a lease agreement as lessee for the use of medical equipment. As of September 30, 2025, the value of the lease liability was $312,547. 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, 2025, are summarized as follows:

Balance at Balance at
September 30, September 30, Current
2024 Additions Retirements 2025 Portion
Lease Liability $ 344,410 $ 31,863 - $ $ 312,547 $ 33,337 Remaining obligations associated with these leases are as follows:

Principal Interest
2026 $ 33,337 $ 12,666
2027 34,833 11,108
2028 36,397 9,506
38,005 7,780
39,738 661
2031-2033 130,237 1,028
$ 312,547 $ 42,749
For the Year
Ending September 30,
2029
2030
72 139
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
Note 7 - Subscriptions
The City entered into subscription agreements for software services. As of September 30, 2025, the value of these subscription liabilities was $1,564,443. The City is required to make annual principal and interest payments ranging from $113,550 to $189,369 through fiscal year 2035. The subscriptions were valued using a discount rate of 4.8% based on the City’s estimated incremental borrowing rate.

Balance at Balance at
September 30, September 30, Current
2024 Additions Retirements 2025 Portion
Subscription Liability $ 1,866,311 - $ $ 301,868 $ 1,564,443 $ 227,825 Remaining obligations associated with these subscriptions are as follows:

Principal Interest
2026 $ 227,825 $ 66,941
2027 55,361 237,327
2028 48,417 135,423
41,368 141,936
34,105 149,034
2031-2035 672,898 56,450
$ 302,642 1,564,443 $
For the Year
Ending September 30,
2029
2030
73 140
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
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
2024 Additions Retirements 2025 Portion
Governmental-type Activities
Revenue Bonds
Refunding Revenue Bonds, 2016 Series A,

2.00% - 4.00% due serially until 10/1/2025 2,485,000 $ $ 1,260,000 - $ $ 1,225,000 $ 1,225,000 Add: bond premium 146,405 146,405 - - -
2012 Certificates of Participation (COPs)

2.0% - 4.0%, due serially until 9/1/2042 4,230,000 170,000 - 4,060,000 175,000 2014 Taxable Pension Obligation Bonds

1.875% - 4.000% due serially until 6/1/2027 4,455,000 1,380,000 - 3,075,000 1,485,000 Lease Revenue Bonds, 2023 Series A,

5.00% -5.25% due serially until 10/1/2053 51,300,000 765,000 - 50,535,000 805,000 Add: bond premium 5,179,557 179,120 - 5,000,437 -
Total revenue bonds 67,795,962 3,900,525 - 63,895,437 3,690,000 Notes from Direct Borrowings
2010 California Energy Commission Loan

3.0% due serially until 6/22/2026 115,706 56,992 - 58,714 58,714 Total notes from direct borrowings 115,706 56,992 - 58,714 58,714 Notes from Direct Placements
2014 Agreement for Road Improvements (Harrison Avenue)

3.990% due serially until 10/1/2029 945,000 157,000 - 788,000 163,000 Total notes from direct placements 945,000 157,000 - 788,000 163,000 Financed Purchases
Communications System 1.08% due 8/1/2025 548,717 548,717 - - - Snow Removal Equipment 4.099% due 04/06/2028 2,202,909 517,675 - 1,685,234 539,112 Energy Equipment 4.055% due 04/01/2041 7,973,000 - 7,973,000 - 15,000 Total financed purchase 2,751,626 7,973,000 1,066,392 9,658,234 554,112 Total governmental activities long-term debt $ 71,608,294 $ 7,973,000 $ 5,180,909 $ 74,400,385 $ 4,465,826 Business-type Activities
Notes from Direct Borrowings
2010 State Department of Transportation Loan

4.594% due serially until 9/22/2027 $ 30,332 $ - $ 9,660 $ 20,672 $ 10,104 Total notes from direct borrowings 30,332 - 9,660 20,672 10,104 Total business-type activities long-term debt $ 30,332 $ - $ 9,660 $ 20,672 $ 10,104 74 141
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
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, 2025 was $1,225,000. 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 $4,060,000, as of September 30, 2025. 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, 2025 is $3,075,000.

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. 75 142
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
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, 2025, is $50,535,000.

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, 2025 was $58,714. 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, 2025 was $788,000. 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. At September 30, 2025, the agreement was paid off. 76 143
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
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, 2025 was $1,685,234.

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. Payments are due bi-annually on April 1 and October 1 for amounts ranging from $12,023 to $280,198 through April 1, 2041, commencing October 1, 2025. The outstanding principal balance at September 30, 2025 was $7,973,000. The agreement includes a provision that in the event of default, the lender may declare the outstanding principal and accrued interest due.

Business-Type Activities
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 $20,672 as of September 30, 2025. The Airport Enterprise Fund’s total principal and interest paid for the current year and total customer revenues were $11,053 and $1,767,688 respectively. 77 144
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
C. Debt Service Requirements
Aggregate principal and interest payments on all outstanding long-term debt are as follows at September 30, 2025:

Principal Interest Principal Interest Principal Interest Principal Interest 2026 3,690,000 $ $ 2,876,375 $ 58,714 $ 1,326 $ 163,000 $ 29,825 $ 554,112 $ 505,460 2,745,538 2,615,000 - - 170,000 23,262 617,436 363,414
2,632,488 1,075,000 - - 176,000 16,419 687,686 337,407
2,579,925 1,130,000 - - 184,000 9,317 156,000 314,668
2,524,738 1,180,000 - - 95,000 1,895 217,000 307,714
2031-2035 6,815,000 11,697,475 - - - - 2,062,000 1,344,395 2036-2040 8,625,000 9,844,675 - - - - 4,178,000 748,938 2041-2045 9,880,000 7,532,381 - - - - 1,186,000 36,069
2046-2050 11,905,000 4,771,069 - - - - - -
2051-2054 11,980,000 1,298,063 - - - - - -
Total 58,895,000 48,502,727 $ 58,714 $ 1,326 $ 788,000 $ 80,718 $ 9,658,234 $ 3,958,065 $ Add: Bond Premium 5,000,437
Total 63,895,437 $
Principal Interest
2026 10,104 $ $ 950
485 10,568
Total 20,672 $ 1,435 $
Business-Type Activities
Notes from
Ending September 30
For the Year Direct Borrowings
Governmental Activities
For the Year Revenue Bonds Notes from Direct Borrowings Notes from Direct Placements Financed Purchases 2027
2030
Ending September 30
2028
2027
2029
Note 9 - Compensated Absences
As of September 30, 2025, compensated absences balances are as follows:

Governmental Business-Type
Activities Activities Total
Beginning Balance 3,350,978 $ $ 39,739 $ 3,390,717
Net Change 561,043 29,358 590,401
Ending Balance $ 3,912,021 $ 69,097 $ 3,981,118
Noncurrent Portion $ 2,898,275 $ 48,172 $ 2,946,447
Current Portion $ 1,013,746 $ 20,925 $ 1,034,671
78 145
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
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. 79 146
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
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, 2025, 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 $ 255,376 $ - $ - $ - $ - $ - $ 255,376
Prepaid items 181,559 - - - 376,918 - 558,477
Land held for resale 1,294,610 - - - - - 1,294,610
Long-term interfund receivables - 4,638,627 - - - - 4,638,627 Total nonspendable fund balances - 6,370,172 - - 376,918 - 6,747,090 Restricted for
Debt service - - - 11,775,928 - 281,881 12,057,809
Housing and economic development - 3,711,225 - - - 3,711,225 - Gas tax - - - - - 680,506 680,506
Public safety - - - - - 1,613,663 1,613,663
Snow removal - - - - - 1,122,773 1,122,773
Solid waste - - - - - 9,943 9,943
Vehicle replacement - - - - - 1,559,979 1,559,979
Boat patrol - - - - - 25,723 25,723
Community improvement - - - - - 1,623,742 1,623,742
Erosion control - - - - - 165,422 165,422
Tourism improvement - - - - - 796,148 796,148
Measure S - - - - - 524,102 524,102
Transportation - - - - - 52,198 52,198 Measure P - - 12,694,949 - - - 12,694,949 PEG program - - - - - 347,524 347,524 Total restricted fund balances 3,711,225 - 12,694,949 - 11,775,928 8,803,604 36,985,706 `
Committed to
Capital projects - - 30,119,004 - - - 30,119,004
Community-wide benefit grant program - - - - - 1,416,485 1,416,485 General liability program 500,000 - - - - - 500,000
Total committed fund balances 500,000 - 30,119,004 - - 1,416,485 32,035,489 Assigned to
Contractual services - 969,466 - - - - 969,466
Long-term interfund receivables - - 23,813 - - 317,809 341,622 Pledged Transient Occupancy Tax - - - - - 1,976,510 1,976,510 Total assigned fund balances - 969,466 23,813 - - 2,294,319 3,287,598 Unassigned
General fund 29,209,183 - - - - - 29,209,183
Disaster preparedness - - - - - (107) (107)
Ice arena - - - - - (40,229) (40,229)
Total unassigned fund balances 29,209,183 - - - (40,336) - 29,168,847 Total fund balances $ 37,048,821 $ 3,711,225 $ 12,694,949 $ 30,142,817 $ 12,152,846 $ 12,474,072 $ 108,224,730 Fund Balance
Classifications
80 147
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
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, 2025, the reserve balance was $16.3 million.

D. Fund Deficits
The Ice Arena Fund and the Disaster Preparedness Fund had fund balance deficits in the amounts of $40,229 and $107, respectively. The deficits were due to the fair value adjustment to investments recognized at year-end and short-term interfund balances owed by this fund at September 30, 2025. The City expects these deficits will be eliminated with future changes in fair value of investments and future revenues. The Health, Vision, and Dental Insurance internal service fund also had a deficit net position of $746,852 at September 30, 2025 due to insurance costs payable in the fiscal year in excess of charges collected. The City expect to eliminate this deficit with future rates collected from City funds.

Note 11 - Pension Plans
As of September 30, 2025, 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 37,132,777 $ $ 5,237,232 $ 2,155,335 $ 4,094,543 Safety Plan 48,170,035 10,934,499 5,384,978 6,562,752
Total 85,302,812 $ 16,171,731 $ 7,540,313 $ 10,657,295 $ 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.
81 148
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
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, 2025 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, 2024 - June 30, 2025 7 - 8% 8.0%
July 1, 2025 - September 30, 2025 7 - 8% 8.0%
Required employer contribution rates
Oct 1, 2024 - June 30, 2025 10.77% 10.77%
July 1, 2025 - September 30, 2025 10.61% 10.61%
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, 2025, 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 2025 were $4,791,542. 82 149
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
Employees Covered
At the June 30, 2024, valuation date, the following employees were covered by the benefit terms for the Miscellaneous Plan:

Active employees 131
Inactive employees receiving benefits 299
Inactive employees not receiving benefits 183
Total 613
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, 2025, using an annual actuarial valuation as of June 30, 2024, 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, 2024
Measurement Date June 30, 2025
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. 83 150
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
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.
84 151
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
Changes in the Net Pension Liability
The change in the Net Pension Liability for the Miscellaneous Plan, measured as of June 30, 2025, follows:

Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
Balance at September 30, 2024 117,736,665 $ $ 77,633,496 $ 40,103,169 Changes in the year
Service Cost 1,999,531 - 1,999,531
Interest on the total pension liability 8,091,962 - 8,091,962 Differences between actual and
expected experience 2,221,425 - 2,221,425
Contributions - employer - 4,710,652 (4,710,652)
Contributions - employee - 1,123,016 (1,123,016)
Net investment income - 9,505,120 (9,505,120)
Benefit payments, including
refunds of employee contributions (7,366,083) (7,366,083) - Administrative expense - (55,478) 55,478
Net changes 4,946,835 7,917,227 (2,970,392)
Balance at September 30, 2025 122,683,500 $ 85,550,723 $ 37,132,777 $ 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 51,764,306 $ 37,132,777 $ 24,942,545 $ 85 152
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions For the measurement period ended June 30, 2025, the City recognized pension expense of $4,094,543. At September 30, 2025, 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 3,889,114 $ $ - Changes of Assumptions 1,348,118 -
Net differences between projected and actual
earnings on plan investments - 2,155,335
Total $ 5,237,232 $ 2,155,335
Miscellaneous Plan
The amount 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, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
2026 $ 2,066,242
2027 (787,808)
2028 (1,244,668)
2029 (840,983)
Total $ (807,217)
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.
86 153
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
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, 2025, 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, 2024 - July 1, 2025 -
June 30, 2025 September 30, 2025
Safety Safety
Required employee contribution rates
Classic 8.99% 8.99%
PEPRA 14.500% 14.500%
Required employer contribution rates:

Classic:

Police Tier 1 29.300% 29.350%
Police Tier 2 27.840% 27.880%
Police Tier 3 24.960% 25.020%
Fire Tier 1 29.300% 29.350%
Fire Tier 2 27.840% 27.880%
Fire Tier 3 24.960% 25.020%
PEPRA:

Safety Police 14.720% 14.960%
Safety Fire 14.720% 14.960%

87 154
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
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 2025 were $6,738,565.

Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions As of September 30, 2025, based on the measurement date of June 30, 2025, the City reported a net pension liability of $48,170,035 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, 2025, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2024. 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, 2024 and 2025 was 0.5589%, and 0.5637%, respectively.

For the year ended September 30, 2025, the City recognized pension expense of $6,562,752. At September 30, 2025, 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 5,261,251 $ $ - Differences between expected and actual experiences 3,339,274 - Changes in proportions 2,333,974 1,611,274
Net differences between projected and actual
earnings on plan investments - 3,773,704
Total 10,934,499 $ 5,384,978 $
Safety Plan
88 155
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
The amount 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, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
2026 $ 3,977,116
2027 (719,870)
2028 (1,546,623)
2029 (1,422,353)
Total 288,270 $
Year ended September 30,
Actuarial Assumptions
The total pension liability was determined using the following actuarial assumptions:

Valuation Date June 30, 2024
Measurement Date June 30, 2025
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. 89 156
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
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.
90 157
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
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 73,294,229 $ 48,170,035 $ 27,617,717 $ 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.

Prior to July 1, 2025, the City was a member of the Local Agency Workers’ Compensation Excess Joint Powers Authority (LAWCX), which provides workers’ compensation insurance coverage up to $45,000,000. The City retained risk of the first $500,000 in losses for each accident and employee under this policy.

Effective July 1, 2025, the City transitioned its workers’ compensation coverage to CIRA. Under the new policy, statutory maximum limits of indemnity per occurrence are provided through Gray Insurance Company and Safety National Casualty Corporation for losses exceeding the City’s $500,000 self-insured retention (SIR), under CIRA.

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.
91 158
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
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.

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 $ 6,463,527 $ 745,778 $ 7,209,305
Liability for current fiscal year claims and
claims incurred but not reported (IBNR) 1,372,779 28,296 1,401,075 Claims paid (1,798,228) (468,369) (2,266,597)
Ending Balance $ 6,038,078 $ 305,705 $ 6,343,783
Balance due within one year $ 1,586,918 $ 305,705 $ 1,892,623 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 2025
2024
No settlement payments have exceeded insurance coverage in each of the past three fiscal years. 92 159
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
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, 2025 was $3,100,000. 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. 93 160
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
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, 2025 are discussed in Note 2. Information presented in the following footnotes represents other assets and liabilities of the Successor Agency as of September 30, 2025.
94 161
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
C. Capital Assets
Capital assets recorded in the Successor Agency Private Purpose Trust Fund at September 30, 2025 comprise:

Balance at Balance at
September 30, September 30,
2024 Additions Retirements 2025
Successor Agency
Capital assets not being depreciated
Land 6,784,744 $ - $ - $ 6,784,744 $
Total capital assets not being depreciated 6,784,744 - - 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 (1,801,382) (82,192) - (1,883,574)
Total accumulated depreciation (1,801,382) (82,192) - (1,883,574) Total capital assets being
depreciated, net 1,486,313 (82,192) - 1,404,121
Successor Agency capital assets, net 8,271,057 $ (82,192) $ - $ 8,188,865 $ 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, 2025 are as follows:

Balance at Balance at
September 30, September 30, Current
2024 Additions Retirements 2025 Portion
Successor Agency
Redevelopment Agency Obligations
Revenue Bonds
Refunding Revenue Bonds, 2014 Series A

2.0%-5.0%, due serially until 10/1/2034 23,255,000 $ $ 810,000 - $ $ 22,445,000 $ 855,000 Add: Premium 529,035 - 48,094 480,941 -
Refunding Revenue Bonds, 2015 Series A

2.0% - 5.0% due serially until 10/1/2035 16,050,000 - 1,760,000 14,290,000 1,835,000 Add: Premium 1,116,804 - 101,527 1,015,277 -
Refunding Revenue Bonds, 2017 Series A

2.0%-5.0%, due serially until 10/1/2037 15,850,000 - 385,000 15,465,000 400,000 Add: Premium 362,534 - 30,212 332,322 -
Total revenue bonds 57,163,373 - 3,134,833 54,028,540 3,090,000 Notes from Direct Borrowings
Advance due to the City 5,289,178 - - 5,289,178 -
$ - 62,452,551 $ 3,134,833 $ 59,317,718 $ 3,090,000 $
95 162
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
The annual debt service requirements to maturity for the outstanding Revenue Bonds at September 30, 2025, were as follows:

Principal Interest
2026 3,090,000 $ $ 2,009,306
2027 3,230,000 1,868,106
2028 3,375,000 1,735,606
1,596,034 3,490,000
1,427,950 3,650,000
2031-2035 20,840,000 4,581,591
2036-2038 14,525,000 724,516
Total 52,200,000 13,943,109 $
Add: Bond Premium 1,828,540
Advance due to City 5,289,178
Total 59,317,718 $
Revenue Bonds
Ending September 30,
2029
Private Purpose Trust Fund
2030
For the Year
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, 2025, 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, 2025 was $22,445,000.

A deferred amount on refunding of $812,990 was recognized with the issuance of the bonds. The unamortized balance at September 30, 2025 was $366,263.
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City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
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, 2025 was $14,290,000.

A deferred amount on refunding of $399,748 was recognized with the issuance of the bonds. The unamortized balance at September 30, 2025 was $199,874.

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, 2025 was $15,465,000.

A deferred amount on refunding of $528,255 was recognized with the issuance of the bonds. The unamortized balance at September 30, 2025 was $327,015.

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, 2025. 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, 2025 from the County’s RPTTF totaled collections of $5,412,287, which represented coverage of 106% of the $5,100,906 of debt service.
97 164
City of South Lake Tahoe, California
Notes to Financial Statements
September 30, 2025
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, 2025, the outstanding loan balance was $141,191.

Note 17 - Subsequent Events
On March 10, 2026, the City Council approved a financing agreement with Banc of America Public Capital Corp to finance the purchase of snow grader equipment. The total principal amount of the financing is $1,590,186, with a 5-year term and a fixed interest rate of 3.589%. 98 165
Required Supplementary Information
September 30, 2025
City of South Lake Tahoe, California
99 166
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
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Total pension liability
Service cost 1,999,531 $ $ 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 Interest on total pension liability 8,091,962 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 Change of benefit terms - 197,405 - - - - - - - -
Changes of assumptions - - 3,019,702 - - - (541,838) - 4,933,223 - Difference between expected and actual experience 2,221,425 575,159 1,532,731 (454,974) (233,289) 516,492 1,287,266 473,296 (436,341) 613,254 Benefit payments, including refunds of employee
contributions (7,366,083) (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) Net change in total pension liability 4,946,835 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 Total pension liability - beginning 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 Total pension liability - ending (a) $ 122,683,500 $ 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 Plan fiduciary net position
Contributions - employer $ 4,710,652 $ 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 Contributions - employee 1,123,016 1,002,328 949,041 839,628 829,398 808,150 744,445 639,930 637,329 579,366 Net investment income 9,505,120 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 Plan to plan resource movements - - - - - - - (235) 13,996 - Benefit payments, including refunds of employee
contributions (7,366,083) (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) Administrative expense (55,478) (59,197) (51,832) (48,995) (65,512) (90,449) (44,258) (92,073) (80,545) (34,250) Other miscellaneous income/expense - - - - - - 144 (174,849) - - Net change in fiduciary net position 7,917,227 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) Plan fiduciary net position - beginning 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 Plan fiduciary net position - ending (b) $ 85,550,723 $ 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 Net pension liability - ending (a) - (b) $ 37,132,777 $ 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 Plan fiduciary net position as a percentage
of the total pension liability 69.73% 65.94% 63.39% 63.65% 74.23% 63.48% 64.31% 64.80% 63.73% 64.16% Covered payroll $ 12,302,379 $ 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 Net pension liability as a percentage of
covered payroll 301.83% 371.52% 422.68% 430.01% 295.19% 378.49% 385.62% 401.70% 397.60% 402.71% Measurement date June 30, 2025 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 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. 100
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City of South Lake Tahoe, California
Schedule of Contributions – Miscellaneous Plan
Last Ten Years
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Actuarially determined contributions 4,791,542 $ $ 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 Contributions in relation to the actuarially
determined contribution (4,791,542) (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) Contribution deficiency (excess) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Covered payroll $ 12,621,306 $ 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 Contributions as a percentage of
covered payroll 37.96% 41.38% 39.29% 42.29% 42.78% 37.97% 32.05% 31.75% 32.28% 31.01% 101
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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
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
City's proportion of the net pension liability 0.5637% 0.5589% 0.5698% 0.5807% 0.5893% 0.6039% 0.6200% 0.3935% 0.3764% 0.3761% City's proportionate share of the net pension liability 48,170,035 $ $ 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 City's covered payroll 9,258,944 $ $ 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 City's proportionate share of the net pension liability as a percentage of covered payroll 520.25% 650.21% 623.52% 600.96% 346.06% 541.13% 591.98% 576.95% 577.73% 529.73% Plan fiduciary net position as a percentage of the
total pension liability 73.90% 69.35% 68.05% 68.95% 81.60% 70.75% 72.47% 75.26% 73.31% 74.06% Measurement Date June 30, 2025 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 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. 102
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City of South Lake Tahoe, California
Schedule of Contributions – Safety Cost Sharing Plan
Last Ten Years
2025 2024 2023 2022 2021 2020 2019 2018 2017 2016
Actuarially determined contributions $ 6,738,565 $ 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 Contributions in relation to the actuarially
determined contribution (6,738,565) (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) Contribution deficiency (excess) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Covered payroll 9,276,780 $ $ 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 Contributions as a percentage of covered payroll 72.64% 70.47% 58.21% 59.66% 58.28% 52.51% 41.92% 41.76% 38.13% 32.06% 103
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See Note to Required Supplementary Information
City of South Lake Tahoe, California
Budgetary Comparison Schedule - Budget and Actual – General Fund Year Ended September 30, 2025
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues
Taxes and assessments 51,206,562 $ $ 51,971,562 $ 54,096,788 $ 2,125,226 Licenses, permits, and impact fees 2,255,200 2,455,200 2,600,687 145,487 Fines and penalties 1,050,000 1,150,500 1,054,546 (95,954) Use of money and property 1,607,765 2,407,765 3,109,051 701,286 Intergovernmental revenue 3,996,700 4,070,186 3,384,612 (685,574) Charges for current services 5,474,362 5,526,418 5,480,984 (45,434) Other revenue 602,138 662,410 788,313 125,903
Total revenues 66,192,727 68,244,041 70,514,981 2,270,940 Expenditures
Current
General government 14,973,478 16,016,964 14,434,050 1,582,914 Public safety 28,042,158 28,716,658 27,486,654 1,230,004 Public works 7,487,642 8,428,699 7,044,627 1,384,072
Parks and recreation 4,521,228 4,901,975 5,163,513 (261,538) Capital outlay - 874,364 2,105,265 (1,230,901)
Debt service
Principal - - 301,868 (301,868)
Interest and fiscal charges - - 1,603 (1,603)
Total expenditures 55,024,506 58,938,660 56,537,580 2,401,080 Excess of Revenues
over Expenditures 11,168,221 9,305,381 13,977,401 4,672,020 Other Financing Sources (Uses)
Transfers in 910,628 946,989 546,618 (400,371)
Transfers out (12,066,636) (18,734,651) (18,595,770) 138,881 Issuance of SBITA - - 1,866,311 1,866,311
Proceeds from sale of capital assets - - 283 283
Total other financing sources (uses) (11,156,008) (17,787,662) (16,182,558) 1,605,104 Net Change in Fund Balance $ 12,213 $ (8,482,281) (2,205,157) $ 6,277,124 Beginning Fund Balance 39,253,978
Ending Fund Balance $ 37,048,821
104
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See Note to Required Supplementary Information
City of South Lake Tahoe, California
Budgetary Comparison Schedule - Budget and Actual – City Housing & Economic Development Fund Year Ended September 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues
Use of money and property 60,800 $ $ 60,800 $ 152,955 $ 92,155 Intergovernmental revenue 1,041,356 2,772,565 1,204,708 (1,567,857) Charges for services 145,000 265,000 345,133 80,133
Other revenue 455,019 335,019 323,765 (11,254)
Total revenues 1,702,175 3,433,384 2,026,561 (1,406,823) Expenditures
Current
General government 1,928,798 3,984,158 1,764,448 2,219,710 Total expenditures 1,928,798 3,984,158 1,764,448 2,219,710 Excess (Deficiency) of Revenues
over Expenditures (226,623) (550,774) 262,113 812,887
Other Financing Sources (Uses)
Transfers in 100,000 270,000 270,000 -
Total other financing sources (uses) 100,000 270,000 270,000 - Net Change in Fund Balance $ (126,623) $ (280,774) 532,113 $ 812,887 Beginning Fund Balance 3,179,112
Ending Fund Balance $ 3,711,225
Budgeted Amounts
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See Note to Required Supplementary Information
City of South Lake Tahoe, California
Budgetary Comparison Schedule - Budget and Actual – Measure P Recreation Fund Year Ended September 30, 2025
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
Revenues
Taxes and assessments $ 3,403,000 $ 3,403,000 $ 3,653,389 $ 250,389 Use of money and property 250,000 450,000 575,554 125,554 Total revenues 3,653,000 3,853,000 4,228,943 375,943
Other Financing Sources (Uses)
Transfers out (16,442,014) (15,090,199) (4,631,286) 10,458,913 Total other financing sources (uses) (16,442,014) (15,090,199) (4,631,286) 10,458,913 Net Change in Fund Balance $ (12,789,014) $ (11,237,199) (402,343) $ 10,834,856 Beginning Fund Balance 13,097,292
Ending Fund Balance $ 12,694,949
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City of South Lake Tahoe, California
Note to Required Supplementary Information
Year Ended September 30, 2025
Budgetary Basis
Budgets for governmental funds are adopted on a modified accrual basis consistent with the governmental funds in the financial statements. Budgeted amounts are as originally adopted and further amended by the City Council. Capital project budgets are primarily “long-term” in nature; however, the budgets are established on a year-by-year basis; and 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. 107
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108
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Supplementary Information
September 30, 2025
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, 2025
Variance
Final Positive
Budget Actual (Negative)
Revenues
Use of money and property 5,000 $ $ 37,480 $ 32,480
Intergovernmental revenue 19,847,030 9,092,770 (10,754,260) Charges for current services 1,509,417 1,372,167 (137,250) Other revenue 966,389 221,405 (744,984)
Total revenues 22,327,836 10,723,822 (11,604,014)
Expenditures
Current
General government 25,719 - 25,719
Capital outlay 106,178,168 54,156,962 52,021,206
Total expenditures 106,203,887 54,156,962 52,046,925
Excess (Deficiency) of Revenues
over Expenditures (83,876,051) (43,433,140) 40,442,911
Other Financing Sources (Uses)
Transfers in 62,367,318 44,540,678 (17,826,640)
Transfers out (3,092,452) 3,092,452 -
Issuance of long term debt 7,887,682 7,890,475 2,793
Total other financing sources (uses) 67,162,548 52,431,153 (14,731,395) Net Change in Fund Balances $ (16,713,503) 8,998,013 $ 25,711,516 Beginning Fund Balance 21,144,804
Ending Fund Balance $ 30,142,817
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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, 2025
Variance
Final Positive
Budget Actual (Negative)
Revenues
Use of money and property 600,000 $ $ 1,407,819 $ 807,819 Total revenues 600,000 1,407,819 807,819
Expenditures
Current
General government 24,550 27,064 (2,514)
Debt service
Principal 4,798,391 4,798,394 (3)
Interest and fiscal charges 3,153,171 3,153,171 -
Debt issuance costs 85,318 82,525 2,793
Total expenditures 8,061,430 8,061,154 276
Excess (Deficiency) of Revenues
over Expenditures (7,461,430) (6,653,335) 808,095
Other Financing Sources (Uses)
Transfers in 7,783,414 7,783,414 -
Transfers out (35,924,336) (32,373,433) 3,550,903
Issuance of debt 85,318 82,525 (2,793)
Total other financing sources (uses) (28,140,922) (24,507,494) 3,633,428 Net Change in Fund Balances (35,602,352) $ (31,160,829) 4,441,523 $ Beginning Fund Balance 43,313,675
Ending Fund Balance 12,152,846 $
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City of South Lake Tahoe, California
Non-Major Governmental Funds
September 30, 2025
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, 2025
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. 114
181
City of South Lake Tahoe, California
Non-Major Governmental Funds
September 30, 2025
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
182
City of South Lake Tahoe, California
Non-Major Governmental Funds
Combining Balance Sheet
September 30, 2025
Snow Vehicle Solid
Gas Tax TOT Removal Replacement Waste
Assets
Cash and investments 738,692 $ $ 1,976,510 $ 1,157,722 $ 1,103,076 $ 9,943 Accounts receivable 63,130 - - 497,421 -
Advances to RDA Successor Agency - - - 317,809 -
Total assets 801,822 $ 1,976,510 $ 1,157,722 $ 1,918,306 $ 9,943 $ Liabilities
Accounts payable 121,316 $ $ 34,949 - $ $ 40,518 $ -
Due to other funds - - - - -
Unearned revenue - - - - -
Total liabilities 121,316 - 34,949 40,518 -
Fund Balance
Restricted 680,506 - 1,122,773 1,559,979 9,943
Committed - - - - -
Assigned - 1,976,510 - 317,809 -
Unassigned - - - - -

Total fund balances 680,506 1,976,510 1,122,773 1,877,788 9,943 Total liabilities and fund balances 801,822 $ 1,976,510 $ 1,157,722 $ 1,918,306 $ 9,943 $ Special Revenue Funds
116
183
City of South Lake Tahoe, California
Non-Major Governmental Funds
Combining Balance Sheet
September 30, 2025
Safety AB3229 Local Law Asset Stormwater Clean
Sales Tax COPS Enforcement Forfeiture Management EMS Community $ 1,014,897 $ 316,532 $ 109,352 - $ $ 310,026 $ 80,477 $ 44,496 84,952 83,570 - - 27,803 - -
- - - - - - -
$ 401,484 1,098,467 $ - $ 109,352 $ 337,829 $ 80,477 $ 44,496 $ $ - $ - $ - $ - $ 38,166 $ 12,702 $ 736
- - - - - - -
- - - - - - -
- - - - 38,166 12,702 736
401,484 1,098,467 - 109,352 299,663 67,775 43,760
- - - - - - -
- - - - - - -
- - - - - - -
401,484 1,098,467 - 109,352 299,663 67,775 43,760
$ 401,484 1,098,467 $ - $ 109,352 $ 337,829 $ 80,477 $ 44,496 $ (Continued)
Special Revenue Funds
117
184
City of South Lake Tahoe, California
Non-Major Governmental Funds
Combining Balance Sheet
September 30, 2025
Assets
Cash and investments
Accounts receivable
Advances to RDA Successor Agency
Total assets
Liabilities
Accounts payable
Due to other funds
Unearned revenue
Total liabilities
Fund Balance
Restricted
Committed
Assigned
Unassigned

Total fund balances
Total liabilities and fund balances
Ski Run General Plan/
Business Measure S Community Boat
Abatement Improvement Maintenance Plan Patrol
$ 444,135 $ 2,805 $ 530,977 $ 577,728 $ -
- 74,532 - - 44,328
- - - - -
$ 2,805 518,667 $ 530,977 $ 577,728 $ 44,328 $
$ 2,084 $ 2,804 $ 6,875 $ 2 $ 45
- - - - 18,560
- - - - -
2,804 2,084 6,875 2 18,605
1 516,583 524,102 577,726 25,723
- - - - -
- - - - -
- - - - -
1 516,583 524,102 577,726 25,723
$ 2,805 518,667 $ 530,977 $ 577,728 $ 44,328 $
Special Revenue Funds
118
185
City of South Lake Tahoe, California
Non-Major Governmental Funds
Combining Balance Sheet
September 30, 2025
DUI/
Domestic Traffic Explore Tourism Vacation
Violence Safety Tahoe Improvement Home Ice
Grant Grant Transit Center District Arts Program Rental Program Arena $ - $ - $ 54,846 $ 387,521 $ 25,670 $ 908,986 $ -
33,893 115,211 14,896 - - 46,694 32,495
- - - - - - -
$ 33,893 115,211 $ 69,742 $ 387,521 $ 25,670 $ 955,680 $ 32,495 $ $ 27,953 $ - $ 17,544 $ 387,371 $ 159,683 - $ $ 24,643
29,961 45,253 - - - - 48,081
- - - - - - -
29,961 73,206 17,544 387,371 - 159,683 72,724
3,932 42,005 52,198 150 25,670 795,997 -
- - - - - - -
- - - - - - -
- - - - - - (40,229)

3,932 42,005 52,198 150 25,670 795,997 (40,229)
$ 33,893 115,211 $ 69,742 $ 387,521 $ 25,670 $ 955,680 $ 32,495 $ (Continued)
Special Revenue Funds
119
186
City of South Lake Tahoe, California
Non-Major Governmental Funds
Combining Balance Sheet
September 30, 2025
Assets
Cash and investments
Accounts receivable
Advances to RDA Successor Agency
Total assets
Liabilities
Accounts payable
Due to other funds
Unearned revenue
Total liabilities
Fund Balance
Restricted
Committed
Assigned
Unassigned

Total fund balances
Total liabilities and fund balances
Bijou Erosion Harrsion
Cannabis PEG Control Plan Avenue Disaster
Program Program CFD CFD Preparedness
$ 1,274,546 $ 333,068 $ 173,159 $ 281,881 $ -
14,456 141,939 - - 316,478
- - - - -
$ 347,524 1,416,485 $ 173,159 $ 281,881 $ 316,478 $
$ - $ - $ 7,737 $ 42,218 - $
- - - - 274,367
- - - - -
- - 7,737 - 316,585
347,524 - 165,422 281,881 -
- 1,416,485 - - -
- - - - -
- - - - (107)

347,524 1,416,485 165,422 281,881 (107)
$ 347,524 1,416,485 $ 173,159 $ 281,881 $ 316,478 $
Special Revenue Funds
120
187
City of South Lake Tahoe, California
Non-Major Governmental Funds
Combining Balance Sheet
September 30, 2025
Special
Revenue Fund
Total
Opioid Nonmajor
Abatement Governmental
Program Funds
$ 759,628 $ 12,616,673
1,591,798 -
317,809 -
$ 14,526,280 759,628 $
$ 16,321 $ 943,667
416,222 -
692,319 692,319
2,052,208 708,640
8,803,604 50,988
1,416,485 -
2,294,319 -
(40,336) -

12,474,072 50,988
$ 14,526,280 759,628 $
121
188
City of South Lake Tahoe, California
Non-Major Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year Ended September 30, 2025
Snow Vehicle Solid
Gas Tax TOT Removal Replacement Waste
Revenues
Taxes and assessments - $ $ 233,907 - $ $ 62,052 - $
Licenses, permits and impact fees - - - - -
Fines and penalties - - - - -
Use of money and property 40,425 86,879 34,849 43,824 291 Intergovernmental revenue 636,243 - 1,886,890 556,065 - Charges for current services - - - 9,920 -
Other revenue 7,500 - 5,463 101,050 -
Total revenues 684,168 86,879 2,161,109 710,859 62,343
Expenditures
Current
General government - - - - -
Public safety - - - - -
Public works - - - - 71,805
Parks and recreation - - - - -
Streets 1,650,762 - 2,665,056 - -
Capital outlay - - 1,163,959 2,157,217 -
Debt service
Principal repayment - - - - -
Interest and fiscal charges - - - - -
Total expenditures 1,650,762 - 3,829,015 2,157,217 71,805 Excess (Deficiency) of
Revenues over Expenditures (966,594) 86,879 (1,667,906) (1,446,358) (9,462) Other Financing Sources (Uses)
Transfers in 1,380,045 1,054,000 - 1,075,000 -
Transfers out - - - - -
Proceeds from sale of capital assets - - 266,760 - -
Total other financing sources (uses) 1,380,045 1,054,000 - 1,341,760 - Net Change in Fund Balance 413,451 86,879 (613,906) (104,598) (9,462) Beginning Fund Balance (Deficit) 267,055 1,889,631 1,736,679 1,982,386 19,405 Ending Fund Balance $ 680,506 $ 1,976,510 $ 1,122,773 $ 1,877,788 $ 9,943 Special Revenue Funds
122
189
City of South Lake Tahoe, California
Non-Major Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year Ended September 30, 2025
Safety AB3229 Local Law Asset Stormwater Clean
Sales Tax COPS Enforcement Forfeiture Management EMS Community $ 1,071,542 $ - $ - $ - $ - $ - $ -
- - - - 3,437 - -
- - - - - - -
13,798 48,966 - 4,807 29 (55) 1,888
150,437 - - - - - 5,536
- - - - 147,422 - -
- - - - - 142,645 307
164,235 1,120,508 - 4,807 150,888 142,590 7,731
- - - - - - -
39,613 - - - - 100,801 -
- - - - 219,765 - 11,593
- - - - - - -
- - - - 94,844 - -
30,205 - - - - - -
- - - - - 31,863 -
- - - - - 15,506 -
- 69,818 - 314,609 - 148,170 11,593
1,120,508 94,417 - 4,807 (163,721) (5,580) (3,862)
- 1,994 - 349,352 - - 12,000
(806,000) - (1,994) (87,503) - - -
- - - - - - -
(806,000) 1,994 (1,994) 261,849 - - 12,000
314,508 96,411 (1,994) 4,807 98,128 (5,580) 8,138
783,959 305,073 1,994 104,545 201,535 73,355 35,622
$ 1,098,467 $ 401,484 $ 109,352 - $ $ 299,663 $ 67,775 $ 43,760 (Continued)
Special Revenue Funds
123
190
City of South Lake Tahoe, California
Non-Major Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year Ended September 30, 2025
Revenues
Taxes and assessments
Licenses, permits and impact fees
Fines and penalties
Use of money and property
Intergovernmental revenue
Charges for current services
Other revenue
Total revenues
Expenditures
Current
General government
Public safety
Public works
Parks and recreation
Streets
Capital outlay
Debt service
Principal repayment
Interest and fiscal charges
Total expenditures
Excess (Deficiency) of
Revenues over Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Proceeds from sale of capital assets
Total other financing sources (uses)
Net Change in Fund Balance
Beginning Fund Balance (Deficit)
Ending Fund Balance
Ski Run General Plan/
Business Measure S Community Boat
Abatement Improvement Maintenance Plan Patrol
$ 13,583 - $ $ - $ 55,612 - $
4 - - - -
- - - - -
322 19,579 22,979 23,210 (2)
- - - - 52,287
- 282,394 - 108,595 -
- - 118,000 - -
13,909 301,973 140,979 131,805 107,897
- - - - -
- - - - 97,204
30,722 265,171 - 209,758 -
- - 166,887 - -
- - - - -
- - - - -
- - - - -
- - - - -
30,722 265,171 166,887 209,758 97,204
(16,813) 36,802 (25,908) (77,953) 10,693
11,000 - - - -
- - - - -
- - - - -
11,000 - - - -
36,802 (5,813) (25,908) (77,953) 10,693
479,781 5,814 550,010 655,679 15,030
$ 516,583 $ 524,102 1 $ $ 577,726 $ 25,723
Special Revenue Funds
124
191
City of South Lake Tahoe, California
Non-Major Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year Ended September 30, 2025
Domestic DUI/Traffic Explore Tourism Vacation
Violence Safety Tahoe Improvement Arts Home Ice
Grant Grant Transit Center District Program Rental Program Arena $ - $ - $ - $ - $ - $ - $ -
- - - - - 785,933 -
- - - - - 134,027 -
(11) (24) 7,183 13,944 6 22,032 24,905
50,455 220,414 - - 100,000 - -
- - - 3,264,315 - 117,188 -
- - 32,466 - - - 34,200
50,444 220,390 39,649 3,278,259 100,006 1,059,180 59,105 - - - - 111,500 - -
50,456 118,919 - - - 593,107 -
- - - - - - -
- - 138,876 3,245,630 - - 161,679
- - - - - - -
- - - - - 15,000 -
- - - - - - 56,990
- - - - - - 3,050
118,919 50,456 138,876 3,245,630 111,500 608,107 221,719 101,471 (12) (99,227) 32,629 (11,494) 451,073 (162,614) - - 60,000 - 30,000 145,000 -
(101,495) - (32,647) - - - -
- - - - - - -
(101,495) - 60,000 (32,647) 30,000 145,000 -
(24) (12) (39,227) (18) 18,506 451,073 (17,614)
42,029 3,944 91,425 168 7,164 344,924 (22,615)
$ 42,005 $ 3,932 $ 52,198 $ 150 $ 25,670 $ 795,997 $ (40,229) (Continued)
Special Revenue Funds
125
192
City of South Lake Tahoe, California
Non-Major Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year Ended September 30, 2025
Revenues
Taxes and assessments
Licenses, permits and impact fees
Fines and penalties
Use of money and property
Intergovernmental revenue
Charges for current services
Other revenue
Total revenues
Expenditures
Current
General government
Public safety
Public works
Parks and recreation
Streets
Capital outlay
Debt service
Principal repayment
Interest and fiscal charges
Total expenditures
Excess (Deficiency) of
Revenues over Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Proceeds from sale of capital assets
Total other financing sources (uses)
Net Change in Fund Balance
Beginning Fund Balance (Deficit)
Ending Fund Balance
Bijou Erosion Harrsion
Cannabis PEG Control Plan Avenue Disaster
Program Program CFD CFD Preparedness
$ 61,002 - $ $ 19,276 $ 70,006 $ -
- 840,611 - - -
- - - - -
13,639 44,596 7,739 11,688 (106)
- - - - 661,105
- 86,070 - - -
- - - - -
74,641 971,277 27,015 81,694 660,999
- 26,959 28,750 1,057 -
- 198,916 - - 616,692
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- 225,875 28,750 1,057 616,692
74,641 745,402 (1,735) 80,637 44,307
54,931 - - 56,445 -
(510,000) - (25,000) - (100,859)
- - - - -
(455,069) - (25,000) - (44,414)
290,333 74,641 (1,735) 55,637 (107)
1,126,152 272,883 167,157 226,244 -
$ 1,416,485 $ 347,524 $ 165,422 $ 281,881 $ (107)
Special Revenue Funds
126
193
City of South Lake Tahoe, California
Non-Major Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Year Ended September 30, 2025
Special
Revenue Fund
Total
Opioid Nonmajor
Abatement Governmental
Program Funds
$ 1,586,980 - $
1,629,985 -
134,027 -
518,351 30,971
4,452,257 132,825
4,015,904 -
441,631 -
163,796 12,779,135
168,266 -
130,335 1,946,043
808,814 -
3,713,072 -
4,410,662 -
3,366,381 -
- 88,853
- 18,556
130,335 14,520,647
33,461 (1,741,512)
4,229,767 -
(2,490) (1,667,988)
266,760 -
(2,490) 2,828,539
30,971 1,087,027
20,017 11,387,045
$ 50,988 $ 12,474,072
127
194
City of South Lake Tahoe, California
Budgeted Non-Major Funds
Combining Schedules of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Year Ended September 30, 2025
Variance
Final Positive
Budget Actual (Negative)
Revenues
Taxes and assessments - $ $ - $ -
Licenses, permits and impact fees - - -
Fines and penalties - - -
Use of money and property - 40,425 40,425
Intergovernmental revenue 610,000 636,243 26,243
Charges for current services - - -
Other revenue 7,500 7,500 -
Total revenues 617,500 684,168 66,668
Expenditures
Current
General government - - -
Public safety - - -
Public works - - -
Parks and recreation - - -
Streets 2,107,095 1,650,762 456,333
Capital outlay 19,500 - 19,500
Debt service
Principal repayment - - -
Interest and fiscal charges - - -
Total expenditures 2,126,595 1,650,762 475,833
Excess (Deficiency) of
Revenues over Expenditures (1,509,095) (966,594) 542,501 Other Financing Sources (Uses)
Transfers in 1,380,045 1,380,045 -
Transfers (out) - - -
Sale of property - - -
Total other financing sources (uses) 1,380,045 1,380,045 - Net Change in Fund Balance (129,050) $ 413,451 542,501 $ 267,055
Ending Fund Balance (Deficit) 680,506 $
Beginning Fund Balance (Deficit)
Gas Tax
128
195
City of South Lake Tahoe, California
Budgeted Non-Major Funds
Combining Schedules of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Year Ended September 30, 2025
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
$ - $ - $ 230,000 - $ $ 233,907 $ 3,907
- - - - - -
- - - - - -
86,879 40,000 46,879 50,000 34,849 (15,151)
- - 1,876,645 - 1,886,890 10,245
- - - - - -
- - - - 5,463 5,463
40,000 86,879 46,879 2,156,645 2,161,109 4,464
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - 3,026,539 - 2,665,056 361,483
- - 1,192,453 - 1,163,959 28,494
- - - - - -
- - - - - -
- - 4,218,992 - 3,829,015 389,977
40,000 86,879 46,879 (2,062,347) (1,667,906) 394,441
- - 1,054,000 - 1,054,000 -
- - - - - -
- - - - - -
- - 1,054,000 - 1,054,000 -
$ 40,000 86,879 $ 46,879 $ (1,008,347) (613,906) $ 394,441 1,889,631 1,736,679
$ 1,976,510 $ 1,122,773
TOT Snow Removal
129
196
City of South Lake Tahoe, California
Budgeted Non-Major Funds
Combining Schedules of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Year Ended September 30, 2025
Revenues
Taxes and assessments
Licenses, permits and impact fees
Fines and penalties
Use of money and property
Intergovernmental revenue
Charges for current services
Other revenue
Total revenues
Expenditures
Current
General government
Public safety
Public works
Parks and recreation
Streets
Capital outlay
Debt service
Principal repayment
Interest and fiscal charges
Total expenditures
Excess (Deficiency) of
Revenues over Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers (out)
Sale of property
Total other financing sources (uses)
Net Change in Fund Balance
Ending Fund Balance (Deficit)
Beginning Fund Balance (Deficit)
Variance
Final Positive
Budget Actual (Negative)
$ - $ - $ -
- - -
- - -
43,824 27,000 16,824
556,065 481,378 74,687
9,920 9,920 -
101,050 - 101,050
710,859 518,298 192,561
- - -
- - -
- - -
- - -
- - -
2,157,217 2,769,263 612,046
- - -
- - -
2,157,217 2,769,263 612,046
(1,446,358) (2,250,965) 804,607
1,075,000 1,075,000 -
- - -
266,760 - 266,760
1,341,760 1,075,000 266,760
$ (104,598) (1,175,965) 1,071,367 $
1,982,386
$ 1,877,788
Vehicle Replacement
130
197
City of South Lake Tahoe, California
Budgeted Non-Major Funds
Combining Schedules of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Year Ended September 30, 2025
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
$ 66,000 $ 62,052 $ (3,948) $ 1,096,000 $ 1,071,542 $ (24,458) - - - - - -
- - - - - -
291 50 241 8,000 48,966 40,966
- - - - - -
- - - - - -
- - - - - -
62,343 66,050 (3,707) 1,104,000 1,120,508 16,508
- - - - - -
- - - - - -
84,846 71,805 13,041 - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
84,846 71,805 13,041 - - -
(18,796) (9,462) 9,334 1,104,000 1,120,508 16,508
- - - - - -
- - (806,000) - (806,000) -
- - - - - -
- - (806,000) - (806,000) -
$ (18,796) (9,462) $ 9,334 $ 298,000 314,508 $ 16,508
19,405 783,959
$ 9,943 $ 1,098,467
Solid Waste Safety Sales Tax
131
198
City of South Lake Tahoe, California
Budgeted Non-Major Funds
Combining Schedules of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Year Ended September 30, 2025
Revenues
Taxes and assessments
Licenses, permits and impact fees
Fines and penalties
Use of money and property
Intergovernmental revenue
Charges for current services
Other revenue
Total revenues
Expenditures
Current
General government
Public safety
Public works
Parks and recreation
Streets
Capital outlay
Debt service
Principal repayment
Interest and fiscal charges
Total expenditures
Excess (Deficiency) of
Revenues over Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers (out)
Sale of property
Total other financing sources (uses)
Net Change in Fund Balance
Ending Fund Balance (Deficit)
Beginning Fund Balance (Deficit)
Variance
Final Positive
Budget Actual (Negative)
$ - $ - $ -
- - -
- - -
13,798 1,200 12,598
150,437 135,000 15,437
- - -
- - -
164,235 136,200 28,035
- - -
39,613 114,611 74,998
- - -
- - -
- - -
30,205 50,000 19,795
- - -
- - -
69,818 164,611 94,793
94,417 (28,411) 122,828
1,994 1,994 -
- - -
- - -
1,994 1,994 -
$ 96,411 (26,417) 122,828 $
305,073
$ 401,484
AB3229 COPS
132
199
City of South Lake Tahoe, California
Budgeted Non-Major Funds
Combining Schedules of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Year Ended September 30, 2025
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
$ - $ - $ - $ - $ - $ -
- - - - - -
- - - - - -
- - - 1,500 4,807 3,307
- - - - - -
- - - - - -
- - - - - -
- - - 1,500 4,807 3,307
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - 1,500 4,807 3,307
- - - - - -
(1,994) (1,994) - - - -
- - - - - -
(1,994) (1,994) - - - -
$ (1,994) (1,994) $ - $ 1,500 4,807 $ 3,307
1,994 104,545
$ - $ 109,352
Local Law
Enforcement Grant Asset Forfeiture
133
200
City of South Lake Tahoe, California
Budgeted Non-Major Funds
Combining Schedules of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Year Ended September 30, 2025
Revenues
Taxes and assessments
Licenses, permits and impact fees
Fines and penalties
Use of money and property
Intergovernmental revenue
Charges for current services
Other revenue
Total revenues
Expenditures
Current
General government
Public safety
Public works
Parks and recreation
Streets
Capital outlay
Debt service
Principal repayment
Interest and fiscal charges
Total expenditures
Excess (Deficiency) of
Revenues over Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers (out)
Sale of property
Total other financing sources (uses)
Net Change in Fund Balance
Ending Fund Balance (Deficit)
Beginning Fund Balance (Deficit)
Variance
Final Positive
Budget Actual (Negative)
$ - $ - $ -
3,437 8,000 (4,563)
- - -
29 - 29
- - -
147,422 129,000 18,422
- - -
150,888 137,000 13,888
- - -
- - -
219,765 338,093 118,328
- - -
94,844 147,258 52,414
- 1,000 1,000
- - -
- - -
314,609 486,351 171,742
(163,721) (349,351) 185,630
349,352 349,352 -
(87,503) (20,155) (67,348)
- - -
261,849 329,197 (67,348)
$ 98,128 (20,154) 118,282 $
201,535
$ 299,663
Stormwater Management
134
201
City of South Lake Tahoe, California
Budgeted Non-Major Funds
Combining Schedules of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Year Ended September 30, 2025
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
$ - $ - $ - $ - $ - $ -
- - - - - -
- - - - - -
(55) - (55) 100 1,888 1,788
- - - 5,000 5,536 536
- - - - - -
142,645 175,000 (32,355) 29,520 307 (29,213)
175,000 142,590 (32,410) 34,620 7,731 (26,889)
- - - - - -
138,700 100,801 37,899 - - -
- - - 41,650 11,593 30,057
- - - - - -
- - - - - -
56,677 - 56,677 - - -
- 31,863 (31,863) - - -
- 15,506 (15,506) - - -
195,377 148,170 47,207 41,650 11,593 30,057
(20,377) (5,580) 14,797 (7,030) (3,862) 3,168
- - - 12,000 12,000 -
- - - - - -
- - - - - -
- - - 12,000 12,000 -
$ (20,377) (5,580) $ 14,797 $ 4,970 8,138 $ 3,168
73,355 35,622
$ 67,775 $ 43,760
EMS Clean Community
135
202
City of South Lake Tahoe, California
Budgeted Non-Major Funds
Combining Schedules of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Year Ended September 30, 2025
Revenues
Taxes and assessments
Licenses, permits and impact fees
Fines and penalties
Use of money and property
Intergovernmental revenue
Charges for current services
Other revenue
Total revenues
Expenditures
Current
General government
Public safety
Public works
Parks and recreation
Streets
Capital outlay
Debt service
Principal repayment
Interest and fiscal charges
Total expenditures
Excess (Deficiency) of
Revenues over Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers (out)
Sale of property
Total other financing sources (uses)
Net Change in Fund Balance
Ending Fund Balance (Deficit)
Beginning Fund Balance (Deficit)
Variance
Final Positive
Budget Actual (Negative)
$ - $ - $ -
- - -
- - -
19,579 3,000 16,579
- - -
282,394 266,000 16,394
- - -
301,973 269,000 32,973
- - -
- - -
265,171 370,178 105,007
- - -
- - -
- - -
- - -
- - -
265,171 370,178 105,007
36,802 (101,178) 137,980
- - -
- - -
- - -
- - -
$ 36,802 (101,178) 137,980 $
479,781
$ 516,583
Abatement
136
203
City of South Lake Tahoe, California
Budgeted Non-Major Funds
Combining Schedules of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Year Ended September 30, 2025
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
$ 13,000 $ 13,583 $ 583 $ - $ - $ -
4 - 4 - - -
- - - - - -
322 - 322 7,000 22,979 15,979
- - - - - -
- - - - - -
- - - 115,000 118,000 3,000
13,909 13,000 909 122,000 140,979 18,979
- - - - - -
- - - - - -
24,000 30,722 (6,722) - - -
- - 525,706 - 166,887 358,819
- - - - - -
- - - - - -
- - - - - -
- - - - - -
24,000 30,722 (6,722) 525,706 166,887 358,819
(11,000) (16,813) (5,813) (403,706) (25,908) 377,798
11,000 11,000 - - - -
- - - - - -
- - - - - -
11,000 11,000 - - - -
$ - (5,813) $ (5,813) $ (403,706) (25,908) $ 377,798
5,814 550,010
$ 1 $ 524,102
Business Improvement
Ski Run
Measure S Maintenance
137
204
City of South Lake Tahoe, California
Budgeted Non-Major Funds
Combining Schedules of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Year Ended September 30, 2025
Revenues
Taxes and assessments
Licenses, permits and impact fees
Fines and penalties
Use of money and property
Intergovernmental revenue
Charges for current services
Other revenue
Total revenues
Expenditures
Current
General government
Public safety
Public works
Parks and recreation
Streets
Capital outlay
Debt service
Principal repayment
Interest and fiscal charges
Total expenditures
Excess (Deficiency) of
Revenues over Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers (out)
Sale of property
Total other financing sources (uses)
Net Change in Fund Balance
Ending Fund Balance (Deficit)
Beginning Fund Balance (Deficit)
Variance
Final Positive
Budget Actual (Negative)
$ - $ - $ -
- - -
- - -
23,210 12,000 11,210
- - -
108,595 90,000 18,595
- - -
131,805 102,000 29,805
- - -
- - -
209,758 213,788 4,030
- - -
- - -
- - -
- - -
- - -
209,758 213,788 4,030
(77,953) (111,788) (33,835)
- - -
- - -
- - -
- - -
$ (77,953) (111,788) 33,835 $
655,679
$ 577,726
General Plan/Community Plan
138
205
City of South Lake Tahoe, California
Budgeted Non-Major Funds
Combining Schedules of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Year Ended September 30, 2025
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
$ 55,612 $ 55,612 $ - $ - $ - $ -
- - - - - -
- - - - - -
(2) - (2) - (24) (24)
52,287 97,442 (45,155) 248,209 220,414 (27,795)
- - - - - -
- - - - - -
153,054 107,897 (45,157) 248,209 220,390 (27,819)
- - - - - -
153,054 97,204 55,850 153,831 118,919 34,912
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
153,054 97,204 55,850 153,831 118,919 34,912
- 10,693 10,693 94,378 101,471 7,093
- - - - - -
- - (94,378) - (101,495) (7,117)
- - - - - -
- - (94,378) - (101,495) (7,117)
$ - 10,693 $ 10,693 $ - (24) $ (24)
15,030 42,029
$ 25,723 $ 42,005
Boat Patrol Domestic Violence Grant
139
206
City of South Lake Tahoe, California
Budgeted Non-Major Funds
Combining Schedules of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Year Ended September 30, 2025
Revenues
Taxes and assessments
Licenses, permits and impact fees
Fines and penalties
Use of money and property
Intergovernmental revenue
Charges for current services
Other revenue
Total revenues
Expenditures
Current
General government
Public safety
Public works
Parks and recreation
Streets
Capital outlay
Debt service
Principal repayment
Interest and fiscal charges
Total expenditures
Excess (Deficiency) of
Revenues over Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers (out)
Sale of property
Total other financing sources (uses)
Net Change in Fund Balance
Ending Fund Balance (Deficit)
Beginning Fund Balance (Deficit)
Variance
Final Positive
Budget Actual (Negative)
$ - $ - $ -
- - -
- - -
(11) - (11)
50,455 82,400 (31,945)
- - -
- - -
50,444 82,400 (31,956)
- - -
50,456 82,400 31,944
- - -
- - -
- - -
- - -
- - -
- - -
50,456 82,400 31,944
(12) - (12)
- - -
- - -
- - -
- - -
$ (12) - (12) $
3,944
$ 3,932
DUI/Traffic Safety Grant
140
207
City of South Lake Tahoe, California
Budgeted Non-Major Funds
Combining Schedules of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Year Ended September 30, 2025
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
$ - $ - $ - $ - $ - $ -
- - - - - -
- - - - - -
7,200 7,183 (17) 6,000 13,944 7,944
- - - - - -
- - 3,106,000 - 3,264,315 158,315
28,000 32,466 4,466 - - -
35,200 39,649 4,449 3,112,000 3,278,259 166,259
- - - - - -
- - - - - -
- - - - - -
158,250 138,876 19,374 3,080,880 3,245,630 (164,750)
- - - - - -
- - - - - -
- - - - - -
- - - - - -
158,250 138,876 19,374 3,080,880 3,245,630 (164,750)
(123,050) (99,227) 23,823 31,120 32,629 1,509
60,000 60,000 - - - -
- - (31,120) - (32,647) (1,527)
- - - - - -
60,000 60,000 (31,120) - (32,647) (1,527)
$ (63,050) (39,227) $ 23,823 $ - (18) $ (18)
91,425 168
$ 52,198 $ 150
Explore Tahoe Transit Center Tourism Improvement District 141
208
City of South Lake Tahoe, California
Budgeted Non-Major Funds
Combining Schedules of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Year Ended September 30, 2025
Revenues
Taxes and assessments
Licenses, permits and impact fees
Fines and penalties
Use of money and property
Intergovernmental revenue
Charges for current services
Other revenue
Total revenues
Expenditures
Current
General government
Public safety
Public works
Parks and recreation
Streets
Capital outlay
Debt service
Principal repayment
Interest and fiscal charges
Total expenditures
Excess (Deficiency) of
Revenues over Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers (out)
Sale of property
Total other financing sources (uses)
Net Change in Fund Balance
Ending Fund Balance (Deficit)
Beginning Fund Balance (Deficit)
Variance
Final Positive
Budget Actual (Negative)
$ - $ - $ -
- - -
- - -
6 - 6
100,000 - 100,000
- - -
- - -
100,006 - 100,006
111,500 137,000 25,500
- - -
- - -
- - -
- - -
- - -
- - -
- - -
111,500 137,000 25,500
(11,494) (137,000) 125,506
30,000 130,000 (100,000)
- - -
- - -
30,000 130,000 (100,000)
$ 18,506 (7,000) 25,506 $
7,164
$ 25,670
Arts Program
142
209
City of South Lake Tahoe, California
Budgeted Non-Major Funds
Combining Schedules of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Year Ended September 30, 2025
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
$ - $ - $ - $ - $ - $ -
785,933 1,071,175 (285,242) - - -
70,000 134,027 64,027 - - -
4,000 22,032 18,032 36,000 24,905 (11,095)
- - - - - -
170,500 117,188 (53,312) - - -
- - - 34,200 34,200 -
1,315,675 1,059,180 (256,495) 70,200 59,105 (11,095)
- - - - - -
1,057,085 593,107 463,978 - - -
- - - - - -
- - 129,400 - 161,679 (32,279)
- - - - - -
240,000 15,000 225,000 - - -
- - - 56,992 56,990 2
- - - 3,048 3,050 (2)
1,297,085 608,107 688,978 189,440 221,719 (32,279)
18,590 451,073 432,483 (119,240) (162,614) (43,374)
- - 145,000 - 145,000 -
- - - - - -
- - - - - -
- - 145,000 - 145,000 -
$ 18,590 451,073 $ 432,483 $ 25,760 (17,614) $ (43,374) 344,924 (22,615)
$ 795,997 $ (40,229)
Vacation Home Rental Programs Ice Arena
143
210
City of South Lake Tahoe, California
Budgeted Non-Major Funds
Combining Schedules of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Year Ended September 30, 2025
Revenues
Taxes and assessments
Licenses, permits and impact fees
Fines and penalties
Use of money and property
Intergovernmental revenue
Charges for current services
Other revenue
Total revenues
Expenditures
Current
General government
Public safety
Public works
Parks and recreation
Streets
Capital outlay
Debt service
Principal repayment
Interest and fiscal charges
Total expenditures
Excess (Deficiency) of
Revenues over Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers (out)
Sale of property
Total other financing sources (uses)
Net Change in Fund Balance
Ending Fund Balance (Deficit)
Beginning Fund Balance (Deficit)
Variance
Final Positive
Budget Actual (Negative)
$ - $ - $ -
840,611 950,000 (109,389)
- - -
44,596 35,000 9,596
- - -
86,070 95,700 (9,630)
- - -
971,277 1,080,700 (109,423)
26,959 495,946 468,987
198,916 211,691 12,775
- - -
- - -
- - -
- - -
- - -
- - -
225,875 707,637 481,762
745,402 373,063 372,339
54,931 - 54,931
(510,000) (510,000) -
- - -
(455,069) (510,000) 54,931
$ 290,333 (136,937) 427,270 $
1,126,152
$ 1,416,485
Cannabis Program
144
211
City of South Lake Tahoe, California
Budgeted Non-Major Funds
Combining Schedules of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Year Ended September 30, 2025
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
$ 80,000 $ 61,002 $ (18,998) $ 15,000 $ 19,276 $ 4,276
- - - - - -
- - (4,000) - - -
4,000 13,639 13,639 4,000 7,739 3,739
- - - - - -
- - - - - -
- - - - - -
84,000 74,641 (9,359) 19,000 27,015 8,015
45,000 - 45,000 65,200 28,750 36,450
- - - - - -
- - - - - -
- - - - - -
- - - - - -
45,000 - 45,000 - - -
- - - - - -
- - - - - -
90,000 - 90,000 65,200 28,750 36,450
(6,000) 74,641 80,641 (46,200) (1,735) 44,465
- - - - - -
- - - - - -
- - - - - -
- - - - - -
$ (6,000) 74,641 $ 80,641 $ (46,200) (1,735) $ 44,465
272,883 167,157
$ 347,524 $ 165,422
PEG Program Bijou Erosion Control Plan CFD
145
212
City of South Lake Tahoe, California
Budgeted Non-Major Funds
Combining Schedules of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Year Ended September 30, 2025
Revenues
Taxes and assessments
Licenses, permits and impact fees
Fines and penalties
Use of money and property
Intergovernmental revenue
Charges for current services
Other revenue
Total revenues
Expenditures
Current
General government
Public safety
Public works
Parks and recreation
Streets
Capital outlay
Debt service
Principal repayment
Interest and fiscal charges
Total expenditures
Excess (Deficiency) of
Revenues over Expenditures
Other Financing Sources (Uses)
Transfers in
Transfers (out)
Sale of property
Total other financing sources (uses)
Net Change in Fund Balance
Ending Fund Balance (Deficit)
Beginning Fund Balance (Deficit)
Variance
Final Positive
Budget Actual (Negative)
$ 60,100 $ 70,006 $ 9,906
- - -
- - -
11,688 6,000 5,688
- - -
- - -
- - -
81,694 66,100 15,594
1,057 1,200 143
- - -
- - -
- - -
- - -
- - -
- - -
- - -
1,057 1,200 143
80,637 64,900 15,737
- - -
(25,000) (25,000) -
- - -
(25,000) (25,000) -
$ 55,637 39,900 15,737 $
226,244
$ 281,881
Harrison Avenue CFD
146
213
City of South Lake Tahoe, California
Budgeted Non-Major Funds
Combining Schedules of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Year Ended September 30, 2025
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
$ - $ - $ - $ - $ - $ -
- - - - - -
- - - - - -
- (106) (106) 4,000 30,971 26,971
2,822,146 661,105 (2,161,041) 250,000 132,825 (117,175) - - - - - -
- - - - - -
2,822,146 660,999 (2,161,147) 254,000 163,796 (90,204)
- - - - - -
2,358,579 616,692 1,741,887 223,303 130,335 92,968
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
2,358,579 616,692 1,741,887 223,303 130,335 92,968
463,567 44,307 (419,260) 30,697 33,461 2,764
10,231 56,445 46,214 - - -
(463,567) (100,859) 362,708 - (2,490) (2,490)
- - - - - -
(453,336) (44,414) 408,922 - (2,490) (2,490)
$ 10,231 (107) $ (10,338) $ 30,697 30,971 $ 274
- 20,017
$ (107) $ 50,988
Disaster Preparedness Opioid Abatement Program
147
214
148
215
City of South Lake Tahoe, California
Non-Major Enterprise Funds
September 30, 2025
Transit Fund – Established for assets and the activities associated with the operations and maintenance of the City’s public transit activities and has emphasis on serving the elderly and the handicapped.

Parking Management Fund – Established for metered areas, parking enforcement and parking citations. Funding for this program is received from parking meters and citation revenue. 149
216
City of South Lake Tahoe, California
Non-Major Enterprise Funds
Combining Statement of Net Position
September 30, 2025
Total
Nonmajor
Parking Enterprise
Transit Management Funds
Assets
Current Assets
Cash and investments (Note 2) 606,829 $ $ 535,306 $ 1,142,135 Accounts receivable 1,135 - 1,135
Total current assets 607,964 535,306 1,143,270
Non-Current Assets
Capital assets (Note 5)
Nondepreciable 1,315,373 - 1,315,373
Depreciable 1,320,839 - 1,320,839
Total noncurrent assets 2,636,212 - 2,636,212
Total assets 3,244,176 535,306 3,779,482
Liabilities
Current Liabilities
Accounts payable 542 11,182 11,724
Total current liabilities 542 11,182 11,724
Net Position
Net investment in capital assets 2,636,212 - 2,636,212
Unrestricted 607,422 524,124 1,131,546
Total net position 3,243,634 $ 524,124 $ 3,767,758 $
150
217
City of South Lake Tahoe, California
Non-Major Enterprise Funds
Combining Statement of Revenues, Expenses and Changes in Fund Net Position Year Ended September 30, 2025
Total
Nonmajor
Parking Enterprise
Transit Management Funds
Operating Revenues
Charges for current services - $ $ 270,970 $ 270,970
Rental and reimbursements 172,510 - 172,510
Total operating revenues 172,510 270,970 443,480
Operating Expenses
Supplies 6,153 8,669 14,822
Insurance 179,077 - 179,077
General expenses - 19,718 19,718
Depreciation 81,580 - 81,580
Total operating expenses 266,810 28,387 295,197
Operating income (loss) (94,300) 242,583 148,283
Nonoperating Revenues (Expenses)
Interest expense - (20,094) (20,094)
Investment earnings 26,878 16,517 43,395
Total nonoperating revenues (expenses) 26,878 (3,577) 23,301 Income (Loss) Before Transfers (67,422) 239,006 171,584 - Transfers in - 5,000 5,000
Change in Net Position (67,422) 244,006 176,584
Beginning Net Position 3,311,056 280,118 3,591,174
Ending Net Position $ 3,243,634 $ 524,124 $ 3,767,758
151
218
City of South Lake Tahoe, California
Non-Major Enterprise Funds
Combining Statement of Cash Flows
Year Ended September 30, 2025
Total
Nonmajor
Parking Enterprise
Transit Management Funds
Operating Activities
Receipts from customers 178,366 $ $ 270,970 $ 449,336
Payments to suppliers (185,182) (18,637) (203,819)
Net cash provided by (used for) Operating Activities (6,816) 252,333 245,517 Noncapital Financing Activities
Transfers in - 5,000 5,000
Net cash provided by (used for) Noncapital
Financing Activities - 5,000 5,000
Capital and Related Financing Activities
Interest paid - (20,094) (20,094)
Net cash provided by (used for) Capital and
Related Financing Activities - (20,094) (20,094)
Investing Activities
Interest received 26,878 16,517 43,395
Net cash provided (used for) Investing Activities 26,878 16,517 43,395 Net increase (decrease) in cash and investments 20,062 253,756 273,818 Cash and Investments at Beginning of Period 586,767 281,550 868,317 Cash and Investments at End of Period $ 606,829 $ 535,306 $ 1,142,135 Reconciliation of Operating Income (Loss) to Net Cash
Provided by (used by) Operating Activities:

Operating income (loss) $ (94,300) $ 242,583 $ 148,283
Adjustments to reconcile operating income (loss)
to cash flows from operating activities:

Depreciation 81,580 - 81,580
Change in assets and liabilities:

Receivables, net 5,856 - 5,856
Accounts payable and other accrued expenses 48 9,750 9,798 Net Cash Provided by (used for) Operating Activities $ (6,816) $ 252,333 $ 245,517 152
219
City of South Lake Tahoe, California
Internal Service Funds
September 30, 2025
The funds described below include the internal service funds that provide services to the other City funds and departments on a cost reimbursement basis.

Health, Vision and Dental Insurance Fund – To account for and fund the City’s Insurance for Employee Health Insurance.

Worker’s Compensation Self Insurance Fund – To account for and fund the City’s Self-Insurance Worker’s Compensation Program.
153
220
City of South Lake Tahoe, California
Internal Service Funds
Combining Statement of Net Position
September 30, 2025
Workers'
Health, Vision Compensation
and Dental Self
Insurance Insurance Total
Assets
Current Assets
Cash and investments 413,153 $ 8,536,098 $ 8,949,251 $
Restricted cash and investments - 35,604 35,604
Accounts receivable - net 102,847 - 102,847
Total current assets 516,000 8,571,702 9,087,702
Non-Current Assets
Advances to RDA Successor Agency - 332,742 332,742
Total assets 516,000 8,904,444 9,420,444
Liabilities
Current Liabilities
Accounts payable 1,262,852 1,262,852 -
Uninsured losses payable 1,586,918 - 1,586,918
Total current liabilities 1,262,852 1,586,918 2,849,770 Long-Term Liabilities
Uninsured losses payable 4,451,160 - 4,451,160
Total long-term liabilities 4,451,160 - 4,451,160
Total liabilities 1,262,852 6,038,078 7,300,930
Net Position (Deficit)
Restricted -
Unrestricted (746,852) 2,866,366 2,119,514
Total net position (deficit) $ (746,852) $ 2,866,366 $ 2,119,514 154
221
City of South Lake Tahoe, California
Internal Service Funds
Combining Statement of Revenues, Expenses and Changes in Fund Net Position Year Ended September 30, 2025
Workers'
Health, Vision Compensation
and Dental Self
Insurance Insurance Total
Operating Revenues
Charges for services 3,993,542 $ $ 2,804,388 $ 6,797,930 Rental and reimbursements 171,352 - 171,352
Other income 100,856 - 100,856
Total operating revenues 4,265,750 2,804,388 7,070,138
Operating Expenses
Salaries and wages - 39,057 39,057
Contracted services 50,479 94,000 144,479
Claims 5,589,098 1,298,810 6,887,908
General expenses 12,199 2,384 14,583
Total operating expenses 5,651,776 1,434,251 7,086,027
Operating Income/(Loss) (1,386,026) 1,370,137 (15,889)
Nonoperating Revenues (Expenses)
Investment earnings 5,350 365,343 370,693
Total non-operating revenues 5,350 365,343 370,693
Income Before Transfers (1,380,676) 1,735,480 354,804
Transfers in 45,000 - 45,000
Transfers (out) - (77,000) (77,000)
Change in Net Position (1,335,676) 1,658,480 322,804
Beginning Net Position 588,824 1,207,886 1,796,710
Ending Net Position (Deficit) $ (746,852) $ 2,866,366 $ 2,119,514 155
222
City of South Lake Tahoe, California
Internal Service Funds
Combining Statement of Cash Flows
Year Ended September 30, 2025
Workers'
Health, Vision Compensation
and Dental Self
Insurance Insurance Total
Operating Activities
Receipts from customers 4,162,903 $ $ 2,804,388 $ 6,967,291 Payments to suppliers (59,825) (100,208) (160,033)
Payments to or on behalf of employees - (39,057) (39,057) Claims paid (4,330,366) (1,724,259) (6,054,625)
Net Cash Provided by (used for) Operating Activities (227,288) 940,864 713,576 Noncapital Financing Activities
Transfers in 45,000 - 45,000
Transfers out - (77,000) (77,000)
Net Cash Provided by (used for)
Noncapital Financing Activities 45,000 (77,000) (32,000) Investing Activities
Investment earnings 5,350 365,343 370,693
Net Cash Provided by (used for) Investing Activities 5,350 365,343 370,693 Net Increase (Decrease) in Cash and Investments (176,938) 1,229,207 1,052,269 Cash and Investments at Beginning of Period 590,091 7,342,495 7,932,586 Cash and Investments at End of Period 413,153 $ 8,571,702 $ 8,984,855 $ Reconciliation of Operating Income (Loss) to Net Cash
Flows from Operating Activities:

Operating income (loss) $ (1,386,026) $ 1,370,137 $ (15,889) Change in assets and liabilities:

Accounts receivable (102,847) (102,847) -
Accounts and other payables 1,261,585 (429,273) 832,312 Net Cash Provided by (used for) Operating Activities (227,288) $ $ 940,864 $ 713,576 156
223
City of South Lake Tahoe, California
Custodial Funds
September 30, 2025
The funds described below include the custodial funds that hold resources in trust for other agencies.

Special Assessment District – To account for the fees charged and disbursed on behalf of the Special Assessment Districts.

Other Custodial Funds – To account for miscellaneous custodial funds held by the City.

Tahoe Basin Solid Waste Management Authority – To account for resources and the collection and disbursement of fees on behalf of the Tahoe Basin Solid Waste Management Authority.

Park Avenue CFD – To account for the resources and the collection of resources for the Park Avenue Community Facilities District.

Retiree Opt-Out Fund – To account for funds held for retirees who opted out of the City’s post-retirement health plan.

Athletic Facilities Parks & Rec Fund – To account for resources collected for the development of the recreation center and program operations.
157
224
City of South Lake Tahoe, California
Custodial Funds
Combining Statement of Fiduciary Net Position
September 30, 2025
Special Other Tahoe Basin
Assessment Custodial Solid Waste
District Funds Management
Assets
Cash and investments (Note 2) $ 4,574 $ 4,334 $ 1,088,512 Restricted cash and investments (Note 2) - - -
Accounts receivable - - 56,348
Total assets 4,574 4,334 1,144,860
Liabilities
Accounts payable - - 80
Deposits and other accruals 4,572 4,333 -
Total liabilities 4,572 4,333 80
Net Position
Restricted for individuals, organizations,
and other governments $ 2 $ 1,144,780 1 $
158
225
City of South Lake Tahoe, California
Custodial Funds
Combining Statement of Fiduciary Net Position
September 30, 2025
Park Athletic Total
Avenue Retiree Facilities Custodial
CFD Opt Out Parks & Rec Funds
$ 996,295 $ - $ 20,008 $ 2,113,723
1,096,225 56,744 1,152,969 -
- - - 56,348
2,092,520 56,744 20,008 3,323,040
900 - - 980
- - - 8,905
900 - - 9,885
$ 2,091,620 $ 56,744 $ 20,008 $ 3,313,155
159
226
City of South Lake Tahoe, California
Custodial Funds
Combining Statement of Changes in Fiduciary Net Position Year Ended September 30, 2025
Special Other Tahoe Basin
Assessment Custodial Solid Waste
District Funds Management
Additions
Taxes and assessments $ - $ - $ -
Interest income (1) (1) 48,186
Other income - - -
Total additions (1) (1) 48,186
Deductions
Program and administrative expenses - - 33,350
Debt service principal - - -
Distributions to other governments - - -
Interest and fiscal charges - - -
Total deductions - - 33,350
Net Change in Fiduciary Net Position (1) (1) 14,836
Net Position
Beginning of Year 3 2 1,129,944
End of Year 2 $ 1 $ 1,144,780 $
160
227
City of South Lake Tahoe, California
Custodial Funds
Combining Statement of Changes in Fiduciary Net Position Year Ended September 30, 2025
Park Athletic Total
Avenue Retiree Facilities Custodial
CFD Opt Out Parks & Rec Funds
$ 942,191 $ - $ - $ 942,191
2,025 88,294 8 138,511
- - 20,000 20,000
2,025 1,030,485 20,008 1,100,702
- 91,834 - 125,184
- 380,000 - 380,000
- 330,000 - 330,000
364 125,706 - 126,070
364 927,540 - 961,254
1,661 102,945 20,008 139,448
55,083 1,988,675 - 3,173,707
$ 56,744 2,091,620 $ 20,008 $ 3,313,155 $
161
228
162
229
City of South Lake Tahoe, California
Statistical Section
This part of the City’s Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health. In contrast to the financial section, the statistical section information is not subject to independent audit.

Financial Trends
These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time:

1. Net Position by Component

2. Changes in Net Position

3. Fund Balances of Governmental Funds

4. Changes in Fund Balance of Governmental Funds
Revenue Capacity
These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax:

1. Assessed and Estimated Actual Value of Taxable Property

2. Property Tax Rates, All Overlapping Governments

3. Principal Secured Property Tax Payers

4. Principal Transient Occupancy Tax (TOT) Payers

5. Property Tax Levies and Collections
Debt Capacity
These schedules present information to help the reader assess the affordability of the City’s current level of outstanding debt and the City’s ability to issue additional debt in the future:

1. Ratio of Outstanding Debt by Type

2. Computation of Direct and Overlapping Debt

3. Computation of Legal Bonded Debt Margin

4. Bonded Debt Pledged-Revenue Coverage
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place:

1. Demographic and Economic Statistics

2. Principal Employers
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs:

1. Full-Time Equivalent City Government Employees by Function

2. Operating Indicators by Function/Program

3. Capital Asset Statistics by Function/Program
Sources
Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive Financial Report for the relevant year.
163
230
164
231
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Governmental Activities
Net investment in capital assets $ 73,215,544 $ 63,642,741 $ 71,516,175 $ 68,835,594 $ 75,300,912 $ 76,620,561 $ 88,324,150 $ 99,349,106 $ 119,574,017 $ 138,307,510 Restricted 5,056,903 6,017,117 7,008,898 18,076,408 19,697,506 21,182,527 55,063,386 69,787,821 69,176,844 72,143,293 Unrestricted (42,322,072) (13,679,138) (22,863,284) (3,053,675) (5,535,604) 6,363,760 (21,887,466) (17,997,613) (19,623,760) (20,743,410) Total Governmental Activities Net Position $ 35,950,375 $ 55,980,720 $ 55,661,789 $ 83,858,327 $ 89,462,814 $ 104,166,848 $ 121,500,070 $ 151,139,314 $ 169,127,101 $ 189,707,393 Business-type Activities
Net investment in capital assets $ 18,656,424 $ 17,893,924 $ 19,382,974 $ 18,655,126 $ 17,655,894 $ 20,513,769 $ 19,740,496 $ 20,144,930 $ 24,366,585 $ 23,181,722 Restricted 2,848,793 2,745,807 2,918,247 2,746,816 2,948,781 2,865,117 2,837,117 2,807,542 17,285 17,285 Unrestricted (427,911) 693,913 2,115,789 3,830,797 4,356,972 5,157,992 6,253,338 5,167,798 1,815,281 1,592,349 Total Business-type Activities Net Position $ 21,077,306 $ 21,333,644 $ 24,417,010 $ 25,232,739 $ 24,961,647 $ 28,536,878 $ 28,830,951 $ 28,120,270 $ 26,199,151 $ 24,791,356 Primary Government
Net investment in capital assets $ 91,871,968 $ 81,536,665 $ 90,899,149 $ 87,490,720 $ 92,956,806 $ 97,134,330 $ 108,064,646 $ 119,494,036 $ 143,940,602 $ 161,489,232 Restricted 7,905,696 8,762,924 9,927,145 20,823,224 22,646,287 24,047,644 57,900,503 72,595,363 69,194,129 72,160,578 Unrestricted (42,749,983) (12,985,225) (20,747,495) 777,122 (1,178,632) 11,521,752 (15,634,128) (12,829,815) (17,808,479) (19,151,061) Total Primary Government Net Position $ 57,027,681 $ 77,314,364 $ 80,078,799 $ 109,091,066 $ 114,424,461 $ 132,703,726 $ 150,331,021 $ 179,259,584 $ 195,326,252 $ 214,498,749 Source: Annual Basic Financial Statements, Statement of Net Position

CITY OF SOUTH LAKE TAHOE
Net Position by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
165
232
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
ExpensesGovernmental Activities:

General Government $ 7,339,770 $ (3,906,248) $ 14,791,205 $ 9,581,797 $ 10,862,346 $ 16,178,272 $ 13,495,234 $ 19,993,362 $ 20,525,822 $ 16,309,273 Public Safety 20,429,955 17,709,027 19,038,272 21,397,853 21,786,017 19,117,131 26,440,234 23,432,803 30,040,700 29,669,072 Public Works 9,872,607 9,702,934 10,590,121 11,757,610 12,287,753 8,175,125 9,945,369 11,905,095 12,736,086 14,333,889 Parks and Recreation 5,645,921 6,849,951 6,601,298 6,601,600 5,596,795 4,329,864 7,627,864 8,081,204 8,680,644 9,795,380 Streets 3,899,325 4,857,414 6,147,282 5,577,586 5,313,202 3,280,145 5,742,372 7,923,603 7,214,554 9,201,228 Interest on long term debt 1,623,748 877,906 1,010,094 929,798 820,212 743,184 658,802 1,025,252 3,344,471 3,250,375 Total Governmental Activities Expenses 48,811,326 36,090,984 58,178,272 55,846,244 56,666,325 51,823,721 63,909,875 72,361,319 82,542,277 82,559,217 Business-Type Activities:

Transit 384,738 384,019 461,294 301,433 310,343 310,670 393,282 313,613 287,198 266,810 Airport 1,693,630 2,305,141 2,229,118 2,388,758 2,380,645 2,163,804 2,385,911 3,591,720 4,330,762 4,248,196 Parking Garage 753,667 869,357 803,906 922,017 872,771 902,351 1,209,649 1,593,074 1,597,410 1,123,860 Parking Management 20,298 26,429 31,181 26,378 6,924 16,187 13,351 52,023 34,589 48,481 Total Business-Type Activities Expenses 2,852,333 3,584,946 3,525,499 3,638,586 3,570,683 3,393,012 4,002,193 5,550,430 6,249,959 5,687,347 Total Primary Government Expenses $ 51,663,659 $ 39,675,930 $ 61,703,771 $ 59,484,830 $ 60,237,008 $ 55,216,733 $ 67,912,068 $ 77,911,749 $ 88,792,236 $ 88,246,564 Program RevenuesGovernmental Activities:

Charges for Services:

General Government $ 5,302,704 $ 2,090,949 $ 1,642,226 $ 2,422,840 $ 1,774,952 $ 2,246,194 $ 2,708,476 $ 8,802,565 $ 7,947,854 $ 2,972,057 Public Safety 1,859,145 2,012,465 2,026,698 2,418,471 2,866,260 2,871,525 2,695,421 3,670,834 3,931,450 4,569,577 Public Works 2,466,385 2,424,102 2,586,445 2,343,727 2,975,426 2,650,282 3,795,673 4,187,935 3,945,179 3,583,982 Parks and Recreation 972,840 1,229,203 1,161,633 877,332 297,122 94,068 345,286 458,767 578,361 622,040 Streets 71,769 116,523 118,734 126,600 1,181,222 128,313 138,928 141,824 149,022 150,859 Operating Grants and Contributions 2,392,843 1,940,341 2,601,991 2,085,337 3,247,288 3,086,867 4,716,592 15,255,284 7,687,826 7,172,753 Capital Grants and Contributions 4,243,208 2,516,762 1,062,149 4,103,928 5,279,169 1,493,475 5,627,979 3,322,534 3,136,149 8,548,696 Total Governmental Activities Program Revenues 17,308,894 12,330,345 11,199,876 14,378,235 17,621,439 12,570,724 20,028,355 35,839,743 27,375,841 27,619,964 Business Type Activities:

Charges for Services:

Transit 125,269 108,210 134,055 135,533 142,610 149,000 158,263 167,277 179,233 172,510 Airport 746,792 916,741 858,313 934,514 876,206 965,976 966,209 1,455,334 1,655,518 1,767,688 Parking Garage 1,155,608 1,385,939 1,531,511 1,552,535 985,626 1,024,565 1,288,197 1,272,770 1,156,010 968,313 Parking Management 187,475 100,712 107,720 97,904 73,589 179,322 133,515 125,847 187,669 270,970 Capital Grants and Contributions 1,349,072 451,244 1,956,411 649,166 402,505 4,323,173 897,209 378,043 921,050 985,275 Total Business-Type Activities Program Revenues 3,564,216 2,962,846 4,588,010 3,369,652 2,480,536 6,642,036 3,443,393 3,399,271 4,099,480 4,164,756 Total Primary Government Program Revenues $ 20,873,110 $ 15,293,191 $ 15,787,886 $ 17,747,887 $ 20,101,975 $ 19,212,760 $ 23,471,748 $ 39,239,014 $ 31,475,321 $ 31,784,720

CITY OF SOUTH LAKE TAHOE
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
166
233
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Net (Expense)/RevenueGovernmental Activities $ (31,502,432) $ (23,760,639) $ (46,978,396) $ (41,468,009) $ (39,044,886) $ (39,252,997) $ (43,881,520) $ (36,521,576) $ (55,166,436) $ (54,939,253) Business-Type Activities 711,883 (622,100) 1,062,511 (268,934) (1,090,147) 3,249,024 (558,800) (2,151,159) (2,150,479) (1,522,591) Total Primary Government Net (Expense)/Revenue $ (30,790,549) $ (24,382,739) $ (45,915,885) $ (41,736,943) $ (40,135,033) $ (36,003,973) $ (44,440,320) $ (38,672,735) $ (57,316,915) $ (56,461,844) General Revenues and Other Changes in Net PositionGovernmental Activities:

Taxes: Property taxes $ 7,213,873 $ 7,625,064 $ 8,122,952 $ 8,452,643 $ 9,019,367 $ 9,714,974 $ 10,227,658 $ 11,158,434 $ 11,846,421 $ 12,197,225 Sales taxes 8,464,611 8,665,212 9,587,216 9,390,835 9,169,121 15,012,487 20,102,606 20,274,021 20,093,107 21,095,111 Transient occupancy taxes 15,686,640 19,279,754 20,902,441 21,681,476 17,286,076 20,353,784 21,511,525 21,593,360 21,540,142 23,244,704 Franchise taxes 1,517,188 1,513,064 1,604,594 1,611,646 1,679,459 1,708,253 1,942,987 1,924,053 2,282,688 2,292,404 Other taxes 4,785,295 5,049,887 5,315,182 5,758,862 5,123,365 6,276,684 6,345,783 6,627,271 6,968,598 7,280,891 Use of money and property 744,279 967,716 1,359,923 1,366,103 767,036 239,104 (734,455) 2,696,300 8,311,325 6,279,541 Miscellaneous 1,925,021 1,211,204 1,368,923 2,220,194 1,108,432 1,569,747 1,476,646 1,889,334 2,026,942 3,059,669 Transfers (4,629) (520,917) (1,601,766) (577,167) (391,082) (316,710) (714,041) (1,953) 85,000 70,000 Special items Adjustment to nonexchange financial guarantee - - 19,759,955 - 887,599 (816,776) 307,801 - - - Total Governmental Activities 40,332,278 43,790,984 46,659,465 69,664,547 44,649,373 53,741,547 60,466,510 66,160,820 73,154,223 75,519,545 Business-type activities
Use of money and property 12,428 27,521 89,089 177,496 97,973 9,497 (115,643) 373,520 292,705 176,412 Sales taxes - - - - - - - - 8,991 8,384
Miscellaneous 330,000 330,000 330,000 330,000 330,000 254,475 - 1,065,005 12,664 - Transfers 4,629 520,917 1,601,766 577,167 391,082 316,710 714,041 1,953 (85,000) (70,000) Total Business-Type Activies 347,057 878,438 2,020,855 1,084,663 819,055 326,207 852,873 1,440,478 229,360 114,796 Total Primary Government $ 40,679,335 $ 44,669,422 $ 48,680,320 $ 70,749,210 $ 45,468,428 $ 54,067,754 $ 61,319,383 $ 67,601,298 $ 73,383,583 $ 75,634,341 Change in Net PositionGovernmental Activities 8,829,846 20,030,345 (318,931) 28,196,538 5,604,487 14,488,550 16,584,990 29,639,244 17,987,787 20,580,292 Business-Type Activities 1,058,940 256,338 3,083,366 815,729 (271,092) 3,575,231 294,073 (710,681) (1,921,119) (1,407,795) Total Primary Government Change in Net Position $ 9,888,786 $ 20,286,683 $ 2,764,435 $ 29,012,267 $ 5,333,395 $ 18,063,781 $ 16,879,063 $ 28,928,563 $ 16,066,668 $ 19,172,497 Source: Annual Financial Statements, Statement of Activities 167
234
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General Fund
Nonspendable $5,790,355 $9,015,263 $5,999,471 $5,971,043 $6,230,880 $6,216,835 $6,256,734 $5,608,045 $6,419,743 $6,370,172 Restricted - 750,000 - 750,000 750,000 750,000 - - - - Committed - - - - - 500,000 - 500,000 500,000 500,000 Assigned 305,689 199,173 448,767 607,125 350,876 788,610 704,959 - 1,174,658 969,466 Unassigned 20,018,169 21,921,994 23,610,256 17,493,113 21,091,779 24,880,959 27,865,327 32,758,900 31,159,577 29,209,183 Total General Fund $26,114,213 $31,136,430 $30,808,494 $24,821,281 $28,423,535 $32,636,404 $34,622,061 $39,571,904 $39,253,978 $37,048,821 (a) All Other Governmental Funds
Nonspendable
Special Revenue Funds -$ -$ $135,075 $507,552 -$ -$ -$ -$ -$ -$ Capital Projects Funds - - 100,000 - - - - Debt Service Funds - 96,232 - 96,778 96,204 96,531 96,758 96,865 96,853 376,918 Restricted Special Revenue Funds 3,789,660 5,372,372 8,615,403 13,949,345 3,400,747 4,893,052 6,078,447 9,683,766 8,076,068 8,803,604 City Housing & Econ. Develop. Funds 871,640 948,421 2,167,337 2,380,356 2,599,310 1,603,282 1,776,300 7,100,127 3,179,112 3,711,225 City Debt Service Fund 359,425 1,553,995 1,222,716 1,746,707 1,786,963 1,259,080 1,218,974 58,258,575 43,216,822 11,775,928 Measure P Recreation - - - 11,910,486 - 13,427,113 11,195,435 13,661,100 13,097,292 12,694,949 Committed Special Revenue Funds - 361,104 - - 2,440,176 - 1,632,862 1,684,994 1,126,152 1,416,485 Capital Projects Funds 8,733,639 5,862,733 4,909,487 5,062,834 5,154,010 8,131,858 13,377,024 16,792,895 21,120,991 30,119,004 Assigned Special Revenue Funds 2,267,529 2,853,249 3,679,944 3,848,840 1,986,804 567,633 1,849,367 2,109,491 2,207,440 2,294,319 Capital Projects Funds 547,428 547,428 535,876 46,265 23,813 23,813 23,813 23,813 23,813 23,813 City Housing & Econ. Develop. Funds 226,114 623,922 - - - - - - - - Unassigned Special Revenue Funds (211,182) (11,354) (10,061) - (13,834) (123,648) (10,494) (3,245) (22,615) (40,336) Total All Other Governmental Funds $16,584,253 $17,750,766 $21,723,174 $27,728,616 $26,944,503 32,318,890 $ $ 37,238,486 $ 109,408,381 $ 92,121,928 $ 71,175,909 (a) Source: Annual Financial Statements, Balance Sheet
Notes: (a) The change in total fund balance for the General Fund and Other Governmental Funds is explained in Management's Discussion and Analysis.

CITY OF SOUTH LAKE TAHOE
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
($10,000)
$10,000$30,000$50,000$70,000$90,000
$110,000$130,000$150,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Thousands
Nonspendable Restricted Committed Assigned Unassigned
168
235
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Revenues
Taxes and assessments $ 33,364,866 $ 37,563,952 $ 40,700,365 $ 41,611,890 $ 37,646,232 $ 47,267,315 $ 54,270,194 $ 55,454,177 $ 56,274,912 $ 59,337,157 Licenses, permits and impact fees 2,218,216 2,550,430 2,610,142 2,853,184 2,649,387 2,121,188 2,157,781 2,656,965 3,730,848 4,230,672 Fines and penalties 127,647 42,803 202,669 156,240 159,720 156,963 183,770 1,066,242 1,336,897 1,188,573 Use of money and property 388,936 437,278 714,214 1,169,495 701,836 149,804 (1,101,549) 2,387,351 7,715,184 5,801,210 Intergovernmental revenue 8,454,370 6,485,535 5,982,506 8,780,653 11,427,777 7,751,230 11,623,175 20,559,780 14,388,885 18,134,347 Charges for current services 7,841,829 8,007,508 8,112,421 7,606,177 8,436,781 8,592,703 12,084,502 12,026,887 9,645,610 11,214,188 Other revenue 1,602,273 747,224 1,182,110 2,114,782 944,357 1,055,256 1,263,669 1,212,316 1,830,672 1,775,114 Loss on investment in land held for resale - (2,157,647) - - - - - - - - Total Revenue 53,998,137 55,834,730 57,346,780 64,292,421 61,966,090 67,094,459 80,481,542 95,363,718 94,923,008 101,681,261 Expenditures
Current:

General government 6,347,972 7,043,991 11,195,465 9,366,002 9,840,016 10,236,293 12,488,092 19,061,183 19,134,022 16,393,828 Public safety 15,611,769 15,348,170 17,047,112 19,943,229 19,661,692 21,581,140 22,542,852 23,638,308 26,583,036 29,432,697 Public works 6,383,562 6,378,603 6,545,420 7,365,389 7,132,453 6,749,793 6,467,228 6,853,613 7,848,252 7,853,441 Parks and recreation 4,407,557 5,103,457 4,843,053 4,965,477 3,877,886 4,761,748 6,004,446 6,640,158 7,605,111 8,876,585 Streets 2,401,550 3,147,256 2,604,335 3,513,155 3,110,329 2,713,902 3,415,257 4,853,239 4,606,281 4,410,662 Capital outlay 6,920,358 8,956,654 4,110,904 12,459,765 11,477,766 9,740,091 17,748,824 12,536,084 41,156,357 59,628,608 Debt service:

Principal repayment 2,273,516 1,474,189 2,960,372 4,186,202 2,956,022 3,065,059 3,129,497 3,270,750 4,071,008 5,189,115 Interest and fiscal charges 1,304,060 986,714 1,118,900 1,038,603 929,022 851,992 767,608 664,829 2,130,385 3,173,330 Debt issuance costs 358,400 - - - - - - 484,158 - 82,525 Payment of financial guarantee 2,219,856 1,754,190 1,197,816 793,413 316,681 406,000 1,067,000 - - - Total Expenditures 48,228,600 50,193,224 51,623,377 63,631,235 59,301,867 60,106,018 73,630,804 78,002,322 113,134,452 135,040,791 Excess (deficiency) of revenues over
(under) expenditures 5,769,537 5,641,506 5,723,403 661,186 2,664,223 6,988,441 6,850,738 17,361,396 (18,211,444) (33,359,530) Other Financing Sources (Uses)
Sale of property 281,055 359,907 - 50,645 - 41 524 - - 267,043 Capital lease 232,104 1,742,640 - - - - - - - - Lease (GASB 87) - - - - - - - - 499,165 - Payment to refunded debt escrow agent (14,358,387) - - - - - - - - - Issuance of long term debt 10,055,000 - - - 2,700,000 - 59,373,604 - 7,973,000 - Bond issuance premium/(discount) 1,342,514 - - - - - - - - - Transfers in 12,800,628 8,913,659 8,659,055 18,211,441 11,551,478 14,043,287 24,165,384 19,056,667 46,371,690 57,370,477 Transfers out (13,689,928) (10,468,982) (10,737,986) (18,905,043) (11,397,560) (14,359,997) (24,859,625) (18,671,929) (46,263,790) (57,268,477) Proceeds from SBITA - - - - - - - - 1,866,311 - Total Other Financing Sources (Uses) (3,337,014) 547,224 (2,078,931) (642,957) 153,918 2,383,331 (693,717) 59,758,342 607,065 10,208,354 Net Change in Fund Balance $ 2,432,523 $ 6,188,730 $ 3,644,472 $ 18,229 $ 2,818,141 $ 9,371,772 $ 6,157,021 $ 77,119,738 $ (17,604,379) $ (23,151,176) Debt Service as a percentage of non-capitalexpenditures 8.5% 5.8% 8.3% 10.0% 7.8% 7.4% 6.9% 5.8% 8.6% 10.6% Source: Annual Basic Financial Statements, Governmental Funds, Statement of Revenues, Expenditures and Changes in Fund BalancesNote: Governmental Funds exclude Enterprise funds (Transit, Airport, Parking Garage, and Parking Management) that are classified as Proprietary Funds.

CITY OF SOUTH LAKE TAHOE
Changes in Fund Balance of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
169
236
Total Less: Taxable Total
Fiscal Secured Unsecured Assessed Tax-Exempt Assessed Direct Year Property Property Value Property Value Tax Rate (2) 2016 $ 4,012,841 $ 90,397 $ 4,103,238 $ 15,045 $ 4,088,193 1.0907 2017 4,195,442 91,432 4,286,874 15,188 4,271,686 1.0860 2018 4,466,533 94,196 4,560,729 15,377 4,545,352 1.0871 2019 4,768,126 105,870 4,873,997 15,700 4,858,297 1.0830 2020 4,993,100 108,080 5,101,180 15,778 5,085,402 1.0863 2021 5,270,055 115,990 5,386,044 15,888 5,370,157 1.0703 2022 5,522,534 123,415 5,645,949 15,853 5,630,095 1.0750 2023 5,985,912 146,334 6,132,246 15,911 6,116,335 1.0706 2024 6,462,392 160,679 6,623,072 15,852 6,607,220 1.0601 2025 6,762,869 161,237 6,924,107 15,982 6,908,125 1.0579 Source: El Dorado County Auditor Controller Office
Notes: 1. The State Constitution requires property to be assessed at one hundred percent of the most recent purchase price, plus an increment of no more than two percent annually, plus any local over-rides. These values are considered to be full market values.

2. California cities do not set their own direct tax rate. The state constitution establishes the rate at 1% and allocates a portion of that amount, by an annual calculation, to all the taxing entities within a tax rate area.

3. The City does not have a reasonable basis for estimating actual values of taxable property within city limits, thus Estimated Actual Value information is not provided on this schedule.

CITY OF SOUTH LAKE TAHOE
Assessed Value and Estimated Actual3
Value of Taxable Property
Last Ten Fiscal Years
(in thousands of dollars)
Assessed Value
$0
$2,500,000
$5,000,000
$7,500,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
City - Secured Property City - Unsecured Property
170
237
Basic Lake Lake Tahoe
County Tahoe Unified Community Total
Fiscal Wide School College Direct
Year Levy District District Rate
2016 1.0000 0.0667 0.0240 1.0907
2017 1.0000 0.0634 0.0226 1.0860
2018 1.0000 0.0653 0.0218 1.0871
2019 1.0000 0.0609 0.0221 1.0830
2020 1.0000 0.0639 0.0224 1.0863
2021 1.0000 0.0473 0.0230 1.0703
2022 1.0000 0.0526 0.0224 1.0750
2023 1.0000 0.0493 0.0213 1.0706
2024 1.0000 0.0451 0.0150 1.0601
2025 1.0000 0.0434 0.0145 1.0579
Source: El Dorado County Auditor's Office
Note: California cities do not set their own direct tax rate. The state constitution establishes the rate at 1% and allocates a portion of that amount, by an annual calculation, to all the taxing entities within a tax rate area.

CITY OF SOUTH LAKE TAHOE
Property Tax Rates
All Overlapping Governments
Last Ten Fiscal Years
(rate per $100 of assessed value)
$0.8
$1.0
$1.2
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Per Hundred $
Lake Tahoe Community College District Lake Tahoe Unified School District Basic County Wide Levy 171
238
% of Total % of Total
Taxable Secured Taxable Secured
Assessed Assessed Assessed Assessed
Tax Payer Land Use Value Rank Value1Value Rank Value2
Sodalite Tahoe Hotel LLC Hotel $ 91,618,504 1 1.35%
First American Trust FSB Resort/Timeshare 80,853,906 2 1.20% 60,431,467 $ 1 1.51% Tahoe Chateau Land Holding LLC Planned Residential Development 45,888,816 3 0.68% Trans Sierra Investments Shopping Center 42,403,845 4 0.63% 29,966,542 5 0.75% Diamondrock Tahoe Owner LLC Hotel 36,836,646 5 0.54%
Imperium Blue Tahoe Holdings LLC Commercial 34,333,193 6 0.51% LCOF Lake Tahoe Invest LLC Hotel 29,531,977 7 0.44%
Tahoe Crescent LLC Commercial 28,609,205 8 0.42%
Gondola Vista Development Company LLC Residential Properties 27,983,424 9 0.41% Heavenly Valley LP Ski Resort 25,700,709 10 0.38% 34,030,305 3 0.85% Roppongi-Tahoe LP Hotel 54,861,976 2 1.37%
Tahoe Stateline Venture Commercial 30,943,926 4 0.77%
Tahoe Crescent LP Commercial 24,755,544 6 0.62%
Marriott Ownership Resorts Timeshare Properties 19,634,848 7 0.49% South Tahoe Refuse Co. Inc. Industrial 19,453,215 8 0.48% Tahoe Verde Partnership Mobile Home Park 17,318,327 9 0.43% Seven Springs LP Commercial 15,000,000 10 0.37%
Total $ 443,760,225 6.56% 306,396,150 $ 7.64%
Source: California Municipal Statistics, Inc.

Notes: 1. 2024-25 Local Secured Assessed Valuation: $6,762,869,457

2. 2015-16 Local Secured Assessed Valuation: $4,012,840,871. 2024-25 2015-16

CITY OF SOUTH LAKE TAHOE
Principal Secured Property Tax Payers
Current Year and Nine Years Ago
Principal Property
Taxpayers
7%
Other Property
Taxpayers
93%
2024-25 Top Ten Secured Property Tax Payers
172
239
TOT Payer Type Taxable Rents Rank Taxable Rents Rank
Margaritaville Resort Hotel (fmr. LT Resort Hotel) Hotel 12% 19,439,373 $ 1 13.17% 13,498,305 $ 1 14.10% Marriott's Timber Lodge Hotel 12% 10,772,876 2 7.30% 10,675,101 2 11.15% The Landing Resort and Spa Hotel 10% 8,939,570 3 6.06% 5,389,305 5 5.63% Beach Retreat & Lodge at Tahoe Hotel 10% 8,568,141 4 5.81% 6,433,717 4 6.72% Marriott's Grand Residence Club Hotel 12% 8,283,136 5 5.61% 8,489,130 3 8.86% Diamond Resorts Management, Inc. Agent 12% 7,213,443 6 4.89% 3,745,200 7 3.91% Hampton Inn and Suites Hotel 12% 6,201,288 7 4.20%
Forest Suites Resort Hotel 10% 5,937,097 8 4.02% 3,821,789 6 3.99% Coachman Hotel Hotel 10% 4,807,965 9 3.26%
Hotel Azure (fmr. Inn by the Lake) Hotel 10% 4,284,739 10 2.90% 2,353,420 10 2.46% Station House Inn (fmr. Best Western Station House Inn) Motel 10% 2,983,704 8 3.12% Holiday Inn Express - South Lake Tahoe Hotel 10% 2,812,127 9 2.94% Total $ 84,447,628 57.22% 60,201,798 $ 62.87%
Source: City of South Lake Tahoe Revenue Division
Notes: 1. The City TOT rate is 10% except specific redevelopment properties where the rate is 12% . An additional 2% TOT approved by voters of South Lake Tahoe in November 2016 is dedicated for recreation and is accounted for in a special revnue fund. Information on the additional 2% TOT is not inlcuded on this schedule.

2. 2024-25 Total Taxable Rents: $147,580,238.

3. 2015-16 Total Taxable Rents: $95,762,441.

CITY OF SOUTH LAKE TAHOE
Principal Transient Occupancy Tax (TOT) Payers
Current Year and Nine Years Ago
Effective
TOT Rate1
% of Total
Taxable
Rents2
% of Total
Taxable
Rents3
2024-25 2015-16
Principal TOT Payers
57%
Other TOT Taxpayers
43%
2024-25 Top Ten Transient Occupancy Tax (TOT)
Payers
173
240
Secured Unsecured Total Percent
Property Property Property of Total
Tax Levied Tax Levied Tax Levied Tax
Fiscal and and and Collections
Year Collected Collected Collected to Tax Levy
2016 $ 6,794,173 $ 119,578 $ 6,913,751 100%
2017 7,167,959 117,816 7,285,775 100%
2018 7,644,525 121,044 7,765,569 100%
2019 7,969,647 143,416 8,113,063 100%
2020 8,484,544 148,165 8,632,709 100%
2021 8,970,941 164,536 9,135,477 100%
2022 9,524,807 155,015 9,679,822 100%
2023 10,478,579 164,473 10,643,052 100%
2024 11,170,274 214,637 11,384,911 100%
2025 11,539,515 212,876 11,752,391 100%
Source: El Dorado County Auditor-Controller's Office
Notes: 1. The City of South Lake Tahoe is on the Teeter plan with El Dorado County, thus the amount of property tax levied is the amount of property tax collected.

CITY OF SOUTH LAKE TAHOE
Property Tax Levies and Collections
Last Ten Fiscal Years
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
$10,000
$11,000
$12,000
$13,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Thousands
Total Property Tax Levied and Collected
174
241
Ratio of
Taxable Total O/S
Refunding Lease Pension Certificates Parking Total to Total Fiscal Revenue Revenue Obligation of Purchase Revenue Purchase Primary Per Personal Year Bonds Bonds Bonds Participation Financing Loans Bonds Financing Loans Government Capita Income 2016 11,372,653 $ $ 11,905,000 - $ 5,400,000$ 4,419,737$ 1,018,299$ 7,315,000$ -$ 93,805$ $ 41,524,494 1,970 7.61% 2017 11,226,247 11,905,000 - 5,270,000 5,059,816 776,670 7,090,000 - 87,061 41,414,794 1,966 7.00% 2018 10,134,841 11,030,000 - 5,135,000 4,234,515 596,600 6,855,000 - 80,007 38,065,963 1,739 6.19% 2019 8,983,435 10,105,000 - 5,000,000 2,298,139 411,776 6,615,000 - 72,629 33,485,979 1,469 5.23% 2020 7,797,029 9,120,000 - 4,860,000 1,567,650 351,240 6,365,000 - 64,912 30,125,831 1,337 4.53% 2021 6,575,623 8,070,000 - 4,710,000 3,539,938 288,893 6,105,000 - 56,840 29,346,294 1,254 4.12% 2022 5,309,217 6,950,000 - 4,555,000 2,869,623 224,712 5,835,000 - 48,398 25,791,950 1,217 3.25% 2023 3,992,811 56,658,677 5,745,000 4,395,000 4,887,570 171,015 5,555,000 - 39,568 81,444,641 3,964 9.96% 2024 2,631,405 56,479,557 4,455,000 4,230,000 3,696,626 115,706 - - $30,332 71,638,626 3,446 7.48% 2025 1,225,000 55,535,437 3,075,000 4,060,000 10,446,234 58,714 - - 20,672 74,421,057 3,540 7.07% Source: City of South Lake Tahoe
Governmental Activities

CITY OF SOUTH LAKE TAHOE
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Business-Type Activities
175
242
2024-25 Assessed Valuation1
: $6,932,481,772
Percentage City's Share of
Total Debt Applicable (1) Debt
OVERLAPPING TAX AND ASSESSMENT DEBT:

Lake Tahoe Community College District $40,475,000 65.344% $26,447,984 Lake Tahoe Unified School District 84,452,914 65.344% 55,184,912 South Lake Tahoe Recreational Facilities Community Facilities District No. 2000-1 1,556,613 65.344% 1,017,153 South Tahoe Redevelopment Agency Community Facilities District No. 2001-1 3,100,000 100.00% 3,100,000 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 85,750,049
OVERLAPPING GENERAL FUND DEBT: 52,198,000 15.324% 7,998,822 OVERLAPPING TAX INCREMENT DEBT (Successor Agency): 52,200,000 100.00% 52,200,000 TOTAL OVERLAPPING DEBT 145,948,871
CITY DIRECT DEBT $74,400,385 100.00% 74,400,385
TOTAL DIRECT AND OVERLAPPING DEBT $220,349,256
(1) For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed property values.

Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is whithin the city's boundaties and dividing it by each unit's total taxable assessed value.

Ratios to 2024-2025 Assessed Valuation:

Total Overlapping Tax and Assessment Debt 1.24%
Total Direct Debt 1.07%
Total Direct and Overlapping Debt 3.18%
Ratios to Redevelopment Successor Agency Incremental Valuation ($649,189,572):

Total Overlapping Tax Increment Debt 8.04%
Source: California Municipal Statistics, Inc.

2. Information is as of 09/30/2025
Computation of Direct and Overlapping Debt

CITY OF SOUTH LAKE TAHOE
September 30, 2025
Note: 1. Assessed Valuation on this schedule includes aircraft 176
243
ASSESSED VALUATION:

Secured property assessed value, net of
exempt real property $6,746,887
BONDED DEBT LIMIT (3.75% OF ASSESSED VALUE) (a) $253,008 AMOUNT OF DEBT SUBJECT TO LIMIT:

Total Bonded Debt 0
Less Tax Allocation Bonds, Sales Tax Revenue
Bonds, and Certificates of Participation not subject to limit 0 Amount of debt subject to limit 0
LEGAL BONDED DEBT MARGIN $253,008
Total net debt
Total Net Debt Legal applicable to the limit
Fiscal Debt Applicable to Debt as a percentage
Year Limit Limit Margin of debt limit
2016 149,917 0 149,917 0.00%
2017 156,760 0 156,760 0.00%
2018 166,918 0 166,918 0.00%
2019 178,216 0 178,216 0.00%
2020 186,650 0 186,650 0.00%
2021 197,031 0 197,031 0.00%
2022 206,501 0 206,501 0.00%
2023 223,875 0 223,875 0.00%
2024 241,745 0 241,745 0.00%
2025 253,008 0 253,008 0.00%
Source: City of South Lake Tahoe Finance Department
Notes: (a) California Government Code, Section 43605 sets the debt limit at 15%. The Code section was enacted prior to the change in basing assessed value to full market value when it was previously 25% of market value. Thus, the limit shown as 3.75% is one-fourth the limit to account for the adjustment of showing assessed valuation at full cash value.
(amounts expressed in thousands)

CITY OF SOUTH LAKE TAHOE
Computation of Legal Bonded Debt Margin
September 30, 2025
177
244
S.T. Joint Powers Financing Authority 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Pledged Revenues: Transient Occupancy Tax Revenues $ 5,825,251 $ 6,275,346 $ 6,505,358 $ 6,978,997 $ 4,982,523 $ 5,952,873 $ 7,463,579 $ 7,264,552 $ 7,513,043 $ 8,264,006 Property Tax Increment Revenues 3,084,927 3,344,345 3,825,579 4,247,416 4,362,198 4,833,919 4,195,707 5,740,296 5,228,760 5,412,287 Total Revenue 8,910,178 9,619,691 10,330,937 11,226,413 9,344,721 10,786,792 11,659,285 13,004,848 12,741,802 13,676,293 Bond Year Debt Service - Parity Bonds:
1999 Series A1 - - - - - - - - - - 2003 Series A1 - - - - - - - - - - 2004 Series A1 - - - - - - - - - - 2005 Series A2 - - - - - - - - - - 2007 Series A4 1,168,578 1,166,328 - - - - - - - - 2014 Series A 1,746,268 1,749,469 1,751,269 1,762,069 1,761,469 1,758,219 1,763,469 1,771,719 1,762,719 1,775,319 2015 Series A 2,478,743 2,478,894 2,477,294 2,463,694 2,464,694 2,472,194 2,465,694 2,455,694 2,462,194 2,449,1942017 Series A - - 765,252 897,344 944,094 935,894 937,494 938,494 943,894 943,494 Total Debt Service - Parity Bonds 5,393,589 5,394,691 4,993,815 5,123,106 5,170,256 5,166,306 5,166,656 5,165,906 5,168,806 5,168,006 Debt Service Coverage - Parity Bonds 165% 178% 207% 219% 181% 209% 226% 252% 247% 265% Pledged Revenue after Parity Debt 3,516,589 4,225,000 5,337,122 6,103,307 4,174,465 5,620,486 6,492,629 7,838,942 7,572,996 8,508,287 Bond Year Debt Service - Subordinate Bonds: 2006 Lease Bonds3 1,803,469 - - - - - - - - - 2016 Refunding Lease Bonds 226,024 - 1,308,800 1,344,275 1,343,400 1,336,100 1,337,200 1,341,400 1,338,700 1,334,200 Total Debt Service - Subordinate Bonds 1,803,469 226,024 1,308,800 1,344,275 1,343,400 1,336,100 1,337,200 1,341,400 1,338,700 1,334,200 Debt Service Coverage - Subordinate Bonds 195% 1869% 408% 454% 311% 421% 486% 584% 566% 638% S.T. Joint Powers Parking Financing Authority 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 (a)Operating Revenue $ 1,155,608 $ 1,385,939 $ 1,531,511 $ 1,552,535 $ 985,626 $ 1,024,565 $ 1,288,197 $ 1,272,770 $ 1,156,010 $ - Operating Expense 160,786 262,013 198,131 327,455 304,256 354,004 681,360 1,068,502 1,273,985 - Net Operating Revenue 994,822 1,123,926 1,333,380 1,225,080 681,370 670,561 606,837 204,268 (117,975) - Bond Year Debt Service 569,550 569,550 569,550 569,550 569,550 569,550 569,550 569,550 569,550 0 Surplus Special Tax Revenue 330,000 330,000 330,000 330,000 330,000 330,000 330,000 330,000 330,000 0 Surplus Special Tax Coverage Requirement 110% 110% 110% 110% 110% 110% 110% 110% 110% 0% Net Surplus Special Tax Revenue 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 0 Net Maximum Annual Debt Service 269,550 269,550 269,550 269,550 269,550 269,550 269,550 269,550 269,550 0 Debt Service Coverage 369% 417% 495% 454% 253% 249% 225% 76% -44% 0% 1 - Refunded by 2014 Series A Bonds.2 - Refunded by 2015 Series A Bonds. 3 - Refunded by 2016 Series A Bonds.4 - Refunded by 2017 Series A Bonds.

Source: City of South Lake Tahoe Finance Department.

Note: (a) 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.

CITY OF SOUTH LAKE TAHOE
Bonded Debt Pledged-Revenue Coverage
Last Ten Fiscal Years
178
245
Fiscal Year Total Per Capita City of SLT State of CA National Ended City Personal Personal Unemployment Unemployment Unemployment September 30, Population (a) Income (b) Income (a) Rate (c) Rate (c) Rate (c) 2016 21,078 545,498,640 $ 25,880$ 5.9% 5.6% 4.9%
2017 21,068 591,968,664 28,098 5.2% 5.0% 4.5%
2018 22,491 631,952,118 28,098 4.2% 4.3% 4.0%
2019 22,800 640,634,400 28,098 4.1% 4.1% 3.7%
2020 22,525 664,960,525 29,521 8.4% 9.1% 7.3%
2021 23,398 712,258,518 30,441 8.0% 8.2% 6.0%
2022 21,199 792,927,396 37,404 3.5% 4.5% 3.8%
2023 20,548 817,954,236 39,807 3.4% 4.5% 3.6%
2024 20,790 958,273,470 46,093 4.1% 5.3% 3.9%
2025 21,022 1,053,160,156 50,098 5.1% 5.5% 4.2%
Sources: California State Department of Finance
California Employment Development Department
U.S. Census Bureau, American FactFinder
Notes: (a) Based on 5-Year Annual American Community Survey Estimates. Data in years beyond those available from Surveys reflects the closest year available. The population data is according to the latest data from the California Department of Finance. (b) Calculated by multiplying City Population by Per Capita Personal Income. (c) Averaged over 12-fiscal-month period. Not seasonally adjusted. In 2015 the California Employment Development Department has revised the last 5 years of unemployment data for South Lake Tahoe due to new census ratios. According to EDD, new ratios better represent the current economic situation.

CITY OF SOUTH LAKE TAHOE
Last Ten Fiscal Years
Demographic and Economic Statistics

0.0%

3.0%

6.0%

9.0%

12.0%

15.0%

18.0%
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
City of SLT Unemployment Rate
State of CA Unemployment Rate
National Unemployment Rate
0 10
20 30
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Thousands
City Population
$0
$200
$400
$600
$800
$1,000
$1,200
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Millions
Total Personal Income
$0
$10
$20
$30
$40
$50
$60
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Thousands
Per Capita Personal Income
179
246
Percentage Percentage
Product/ Number of of Total City Number of of Total City Employer Service Employees Rank Workforce Employees Rank Workforce Barton Memorial Hospital Health Services 883 1 7.0% 808 1 6.9% Lake Tahoe Community College Education 394 2 3.1% 254 4 2.2% Heavenly Mountain Resort Ski Industry 378 3 3.0% 389 2 3.3% Lake Tahoe Unified School District Education 357 4 2.8% 386 3 3.3% El Dorado County Government 274 5 2.2% 242 5 2.1%
City of South Lake Tahoe Government 257 6 2.0% 204 6 1.7% Marriott Corporation Lodging 236 7 1.9% 188 7 1.6%
Sodalite Tahoe Hotel TRS LLC Lodging 145 8 1.1% 172 8 1.5% South Tahoe Public Utility District Utilities 121 9 1.0% - - - United States Forest Service Government 100 10 0.8% 149 9 1.3% Raley's Supermarket Food/Drug - - - 146 10 1.2%
Subtotal 3,145 24.9% 2,938 24.9%
Total Workforce 12,662 11,791
Sources: South Tahoe Public Utility District Finance Department City of South Lake Tahoe Finance Department
California Labor Market Info Data Library

CITY OF SOUTH LAKE TAHOE
Principal Employers
Current Year and Nine Years Ago
2024-25 2015-16
Principal
Employers
25%
Other Workforce
75%
2024-25 Principal Employers
180
247
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Function
General government 46.25 47.84 47.75 46.75 43.75 43.25 43.00 43.34 44.17 45.50 Public Works 44.00 44.50 45.00 45.00 46.00 41.00 34.83 36.00 38.37 37.67 Police 61.05 61.85 65.60 66.60 69.10 68.10 65.00 68.00 69.00 71.10 Fire 38.00 29.00 32.00 33.00 40.00 40.00 40.75 41.00 41.50 42.00 Parks and Recreation 5.00 4.00 4.00 4.00 4.00 7.00 13.00 14.00 14.75 16.84 Airport 1.00 1.00 2.00 2.00 3.00 3.00 3.00 3.00 4.00 4.00 Housing & Redevelopment 0.00 0.00 0.00 0.00 1.00 1.00 2.00 3.00 4.00 4.00 Total 195.30 188.19 196.35 197.35 206.85 203.35 201.58 208.34 215.79 221.11 Source: City of South Lake Tahoe Finance Department

CITY OF SOUTH LAKE TAHOE
Full-Time Equivalent City Government Employees by Function Last Ten Fiscal Years
0 50
100
150
200
250
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
FTE's
Housing & Redevelopment Airport Parks and Recreation Public Works Fire Police General government 181
248
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Function/Program
Police:

Police calls for Service 25,246 31,785 24,204 25,515 26,002 24,108 21,956 21,044 24,097 24,661 Law violations:

Homicide 1 0 3 2 1 2 0 0 1 1
Forcible Rape 12 12 9 10 18 21 11 13 8 9
Robbery 23 9 22 20 20 5 17 10 9 6
Aggravated Assaults 275 240 147 79 242 335 244 385 421 480 Violent Crimes, Total 311 261 181 111 281 363 272 408 439 496 Burglary 87 132 114 114 81 77 104 45 43 33
Larceny 288 262 279 335 312 303 200 186 247 251
Motor Vehicle Theft 41 59 61 35 34 61 52 30 23 19
Property Crimes, Total 416 453 454 484 427 441 356 261 313 303 Total Arrests, including citations and
juvenile 1,301 1,756 1,113 1,091 942 756 763 829 884 935 Community Development:

Street reconstruction (travel lane
miles) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Paving/Patching performed in-house
(square feet) 53,192 36,922 19,972 34,031 12,326 7,853 10,777 13,937 97,393 74,726 Community Recreation: (2)
Recreation Complex participants 37,089 33,280 33,260 32,389 10,156 4,734 18,444 20,927 35,791 33,559 Swimming Pool N/A N/A N/A N/A N/A N/A N/A 8,324 10,496 26,819 Campground 50,343 50,782 66,968 57,162 2,716 10,603 6,958 7,190 7,129 9,970 Golf Course 8,982 7,598 8,481 6,971 552 0 1,862 3,749 7,327 7,688 Fire:

Number of incidents related to:

Fires 103 56 71 64 52 84 48 56 45 54
Hazardous Conditions/
Hazardous Material 93 150 116 138 127 198 229 270 113 108 Rescue, Medical Aid 2,491 2,424 2,169 2,412 2,083 1,860 1,911 1,885 1,797 1,907 Number of calls related to:

Citizen Assistance 224 368 311 385 506 512 535 457 371 747 Good Intent 378 357 380 404 350 443 403 436 N/A N/A
False Calls/Alarms/Other 254 360 433 388 218 265 300 350 679 330 Weather Related 2 15 2 3 3 3 16 4 3 8
Source: City of South Lake Tahoe
Notes: 1. N/A denotes information not available

2. Indicators for fiscal year 2020 and 2021 reflect the impact of COVID-19 restrictions

CITY OF SOUTH LAKE TAHOE
Operating Indicators by Function/Program
Last Ten Fiscal Years
182
249
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Function/Program
Police:

Police stations 1 1 1 1 1 1 1 1 1 1
Police vehicles, Total 44 42 39 48 56 57 58 66 56 63
Patrol units 20 22 21 28 36 37 38 45 36 40

Fire:

Fire stations 2 2 2 2 3 3 3 3 3 3
Fire vehicles, Total 10 11 13 12 16 16 17 19 20 20
Fire apparatus (1) 7 7 8 7 8 8 8 9 9 8
JPA Ambulances (2) 3 0 0 0 0 0 0 0 0 0
Community Recreation:

Community services:

Athletic Fields 7 7 7 7 7 7 7 7 7 7
Parks 1 1 1 1 1 1 1 1 1 1
Ice Arena 1 1 1 1 1 1 1 1 1 1
Skate Park 1 1 1 1 1 1 1 1 1 1
Park Acreage 35 35 35 35 35 35 35 35 35 35
Golf Courses 1 1 1 1 1 1 1 1 1 1
Public Swimming Pools 1 1 1 1 1 1 1 1 1 1
Bike Trails 7 7 7 7 7 7 7 7 7 7
Public Beaches 3 3 3 3 3 3 3 3 3 3
Recreation Center 1 1 1 1 1 1 1 1 1 1
Senior Center 1 1 1 1 1 1 1 1 1 1
Airport:

Runway length in feet 8,541 8,541 8,541 8,541 8,541 8,541 8,541 8,541 8,541 8,541 Aircraft Operations (3) 0 0 0 0 0 0 0 0 9,900 10,001
Air Carriers:

Major 0 0 0 0 0 0 0 0 0 0
Commuters 0 0 0 0 0 0 0 0 0 0
Source: City of South Lake Tahoe
Notes: (1) Fire apparatus is a multi-purpose vehicle carrying professionals and equipment for a wide range of fire-fighting and rescue tasks.
(2) The ambulance vehicles are the property of California Tahoe Emergency Services Operations Authority JPA. In 2016, the City stopped providing ambulance transportation as part of the Cal Tahoe JPA and converted its emergency medical services delivery system to providing Advance Life Support (paramedic) engine companies. (3) Starting in 2024, the Airport Aircraft Operations data collection method has been updated using Virtower to track actual aircraft operations. The old data that included estimates has been removed.

Capital Asset Statistics by Function/Program
Last Ten Fiscal Years

CITY OF SOUTH LAKE TAHOE
183
250
184
251
(Back of the cover page. Intentionally left blank.)
252
City of South Lake Tahoe
1901 Lisa Maloff Way
South Lake Tahoe, CA 96150
CITYOFSLT.GOV • (530) 542-6000 • @CITYOFSLT
253
City of South Lake Tahoe
Agenda Item Executive Summary
Hilary Roverud, Interim City Manager
__________________________________
Meeting Date: April 21, 2026
Agenda Item #:6
Agenda Item:

Acceptance of Funds from California State Boating and Enforcement Aid Program for Police Boat Safety and Enforcement Program
Executive Summary: Council authorized staff to apply for financial aid for the Police Boating and Safety Enforcement Program on 11/04/25. The City has since been awarded financial aid from the California Division of Boating and Waterways. The financial aid program agreement requires Council to accept financial aid in an amount up to $39,953.66 and agree to participate in the program. Additional funding will be allocated to the Police Boating and Safety Program from El Dorado County vessel property taxes in an amount up to $59,508.00.

Requested Action / Suggested Motions:

Pass a Resolution: 1) authorizing acceptance of an amount up to $39,953.66 from the California State Boating and Enforcement Aid Program; 2) authorizing and directing the Mayor, or the Chief of Police to execute the Program Agreement and each reimbursement claim; (3) accepting El Dorado County vessel property taxes in the amount up to $59,508.00 for a total program amount up to $99,461.66; and 4) authorizing budget of that amount into the current City’s budget into account #237 02110 effective July 1, 2026.

Responsible Staff Member: Lieutenant Russell Liles
Reviewed and Approved By: Jeff Roberson, Chief of Police Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney Attachments:
01 - Staff Report - Police Boat Financial Aid.docx
02- Resolution - Police Boat Financial Aid.docx
03-Boating Safety and Enforcement Financial Aid Program Agreement.doc 04-Form 801.4 SLT2026-27 signed.pdf
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Council Agenda Report – April 21, 2026
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