Gaming revenues in South Lake Tahoe have been generally flat. This means real gaming revenues are decreasing and real gaming revenues per capita are decreasing even more. In general tax bases over the last ten years are decreasing. However, there has been an increase in the property tax base and sales tax base in the last year or so. Even so, the tax base indicators are negative and should be monitored.
Local governments receive revenues from various sources.
Some sources are relatively stable while the business cycle and growth of the community affect others. The community needs to have sufficient revenues to provide the necessary services while having a mix of revenue sources that will not be too sensitive to any downturn in the local economy. The elastic revenue sources are that sensitive to the business cycle. If the share of revenues coming from elastic sources is rising, this may forebode problems in the event of an economic downturn. A community's tax rates are an indicator of whether the tax base is keeping pace with growth or whether higher rates are needed to finance necessary services for growth.