What is municipal incorporation? 

Municipal incorporation is a process where a local government (city or town) is established by the people of a community to provide local decision-making and deliver certain public services. Currently, services are provided through Placer County government. Examples within Placer County include Auburn and Colfax, each with their own city councils providing local services.

What are the main reasons for considering the creation of a Town in the North Tahoe area of eastern Placer County?

The two primary reasons are:

• Enhanced local governance and control for community-level services such as transit, parking, recreation, and tourism management.
• Local decision-making authority through a town council comprised of locally elected officials, similar to the successful model in Truckee.

Why explore this opportunity now?

As population growth shifts westward in Placer County, the representation and influence of North Tahoe in District 5 continue to diminish. Creating a town now would help ensure ongoing local representation and decision-making.

What are the proposed boundaries of the new town?

Preliminary boundaries include all areas of Placer County east of Donner Summit, excluding Serene Lakes, Donner Lake, and wildland areas designated as State Responsibility Areas (SRA) for wildfire protection.

The geographic spread of the proposed town is huge. How will the town efficiently operate services and make it feel like a town?

The operational structure is yet to be finalized, but the Town of Truckee successfully provides effective services across a similarly large geographic area.

What is the population of the proposed new Town?

New Town population: Estimated 13,387

Total District 5 population (includes Auburn): 81,000

Comparison: Town of Truckee close to 17,000

Tahoe City: 2,644

Kings Beach 2,589

West Shore: 2,290

Olympic Valley: 823

Alpine: 500

Northstar: 298

Other areas with the proposed town boundary: 4,243

What municipal services would the Town provide?

Services would include:

• Local government administration (Council, Town Manager, Town Attorney)
• Zoning, land planning, permitting
• Public works, stormwater management, snow removal, road maintenance
• Law enforcement (likely via county contract)
• Public transit, animal control, library (possibly via county contracts)
• Trash collection and recycling (through private providers)

Note: Services from existing special districts (fire protection, emergency medical, water, wastewater, parks and recreation) would remain unchanged.

What services would Placer County continue to provide?

Placer County would continue providing:

• Health and human services
• District attorney and court
• Contracted services as agreed upon with the Town

What are the primary sources of revenue in our current governing system with Placer County?

Right now, Eastern Placer (North Lake Tahoe area) is unincorporated, so most of the taxes and fees collected here are managed by Placer County’s General Fund in Auburn.

According to the Initial Fiscal Feasibility Review, which was based on actual Placer County costs and revenues for the fiscal year 2021-22, our area generates revenue through:

• Property Tax – About $16.4 million annually from properties within the proposed Town boundaries.
  
• Sales Tax – About $3.2 million annually from local sales.
  
• Transient Occupancy Tax (TOT) – About $22.7 million annually from hotels, vacation rentals, and other short-term lodging.
  
• Property Transfer Tax – About $2.1 million annually from property sales.
  
• Franchise Fees – About $862,000 annually from utility and service providers.

Currently, these revenues go into the larger County budget. Only a portion returns to directly fund local services; the rest supports countywide needs.

How would revenue change if we were to become a town?

If we incorporated, most of the general-purpose revenue generated here would stay here and be managed by a locally elected town council.

Based on the Initial Fiscal Feasibility Review:

• The new Town of North Tahoe would have about $50.1 million annually in General Fund revenue — drawn from the same sources we have today (property tax, sales tax, TOT, property transfer tax, franchise fees, and operating revenues).
  
• We would gain the ability to decide how those funds are spent — prioritizing local needs like snow removal, road repair, emergency services, housing, and environmental protection.
  
• Our projected General Fund surplus would be about 27%, well above the state’s recommended contingency, meaning the town could operate sustainably at current service levels without raising taxes.

Will my taxes go up if we become a town?

No. Incorporation itself does not raise taxes.

The Initial Fiscal Feasibility Review shows that a Town of North Tahoe could operate at current service levels with existing revenues — without any tax increases. In California, any new or increased local tax must be approved by voters, so no tax change could happen without a public vote.

It’s possible that future voters of the town could choose to fund additional services or projects with new revenue sources, but that would be entirely up to the community.

How much is spent now on the services Placer County provide that would then be taken over by the new town, i.e. planning, litigation, etc.?

According to the Preliminary Fiscal Analysis prepared by Urban Economics (September 2023, listed on the Resources page of this site), the cost to provide the municipal-level services that a new Town of North Lake Tahoe would assume from Placer County — such as planning, building inspection, engineering, public works, law enforcement, parks and recreation, and general government functions — is estimated at about $44 million per year.

These figures are based on the County’s most recent available budget data at the time of the study and reflect the costs of continuing current service levels. They also include allocations for administrative functions like legal services, human resources, and finance that support those municipal services.

It’s important to note that this is an initial, point-in-time estimate. The actual costs would be refined during the state-required LAFCO Comprehensive Fiscal Analysis, which will use updated budget data and more detailed service delivery assumptions

What are potential impacts to emergency preparedness/fire protection. Will it be safer?

No expected change in public safety services. Law enforcement will likely continue under contract, and local fire districts will continue unchanged.

What is the process and timeline for this effort to create a new town?

Key steps include:

• Application to Placer County Local Agency Formation Commission (LAFCO)
• Comprehensive fiscal analysis and service plan preparation by professional consultant
• Community surveys, meetings, and workshops
• Petition signed by at least 25% of registered voters within proposed boundaries
• Election for incorporation targeted for November 2026 General Election

For more information, visit our Timeline page.

Who votes to decide if we incorporate a new town?

Registered voters within the proposed town boundaries, currently estimated at 8,582 voters.

What is the proposed name of the new town?

The name is open for community input, ideally reflecting the interconnected nature of the region including Olympic, Alpine, Martis valleys, and the communities around the North and West shores of Lake Tahoe. “Town of North Tahoe” is a preliminary suggestion but subject to broader community vetting.

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