Voters in Lake Tahoe Resort Communities Reject Cityhood Plan

Voters in several resort communities decided Tuesday against forming the city of Lake Tahoe, a move opposed by casinos but favored by residents demanding more for their taxes.

The vote was 1,001 against and 802 for the plan--a high 60% turnout. Douglas County Clerk Barbara Reed had predicted the strong showing, compared with a normal turnout of 35-40%.

The proposed city, with a population of about 6,500, would have embraced the casino area of Stateline and smaller communities along about 15 miles of Lake Tahoe’s southeastern shore.

“This hits very close to home. It affects these people personally. There have been really intense campaigns on both sides,” Reed said in explaining the turnout.

Communities in California, on the western side of the lake, complained that the name Lake Tahoe would create confusion between the lake and the city.

Proponents argued that the Nevada lake shore communities make up nearly 25% of the Douglas County population, while contributing 60% of the tax revenue and not receiving proportionate services.

“We want to keep our tax dollars here,” said Bill Bigham, a leader of the movement to create the city.

Ron Nino, leader of the opposition, said a city government would only raise taxes without a corresponding improvement in services.

The opposition received financial support from the Stateline casinos, whose tax burden Nino said would rise by at least $300,000 yearly under a city government.

Commissioners of the county, which would lose about $1.8 million in yearly tax revenue to the city, mostly from the big Stateline casinos, also advised rejection.