The Fallen Leaf Lake Community Services District Board of Directors held a Special Meeting on Sunday, April 12, 2026, at 10:00 AM.
The meeting took place at the FLLCSD Community Room (400 Fallen Leaf Road, South Lake Tahoe), with an alternate location available at The Creperie Cafe in Seaside, and via Zoom for remote participation.
This meeting included an Executive Session regarding potential litigation, as well as discussion items including an update on a notice received from the IRS and related legal actions, and a report from the Fundraising Ad Hoc Committee. The Board also considered several policy approvals related to virtual meeting participation and board member roles.
President’s Remarks
We are about to go into executive session. When we return to the public portion of the meeting, we will address recent developments pertaining to the District’s finances and discuss the need to raise funds in order to operate this season. As background for those conversations, I want to acknowledge that many residents have expressed great surprise and dismay, asking “what the heck happened?” That’s been difficult to answer for a number of reasons. For just one example, the CSD’s bank account and IRS contacts had not been updated for over a decade, so our new GM and FC were not able to access our records. It’s hard to dig into details when you don’t have access to basic information. We have now overcome those hurdles and we are in communication with our legal team for guidance as we move forward.
Our situation is complicated, and I am choosing my words carefully here. As a community, we adopted a business model many years ago that was both complex and controversial, carrying with it significant financial risk. As an organization, we have experienced a breakdown due to a confluence of factors, all of which are being addressed by the board. There is certainly more work we need to do.
To be more specific, the strike team model as previously implemented by the CSD was not sustainable. That wasn’t obvious because the district’s billing practices, over-reliance on the reserve fund for day-to-day operating expenses, and deferment of tax payments obscured the reality.
Chief Sauer, General Manager Ashton, and the Board truly believe we can turn things around, but not without significant community support. We need a bridge loan, we need donations, we need volunteers, and we very much need your patience. We are not going to be able to fix this in one season, but together we can stabilize the CSD and create a sustainable plan for the future.
I want to stress the word “together.” In a community of approximately 270 homes, less than 10% of residents regularly engage in the affairs of the district. I’m not talking about turning out for the boat parade, barbecue, or wine tasting — I’m talking about the business of running this place. Thanks to Zoom, FLL residents no longer need to attend meetings in person and recordings are available online. Our Fire Chief and General Manager are readily accessible via phone or email, and Board members are doing community outreach. I realize this is preaching to the choir for those of you in attendance today, so I’m hoping to enlist all of you as advocates. PLEASE talk to your extended family members and to your lake neighbors to let them know how much we need everyone’s help.
I will close by sharing that I have personally spent about 1000 hours on CSD business since I joined the board, and I’m not even counting the sleepless nights. Some of that was admittedly my own learning curve because I am new to public service. Each of the other board members have been doing their own share of heavy lifting as well. I tell you this not because we are looking for gratitude, but to impress upon you how seriously we are taking this effort. We are committed to resolving these issues and providing full transparency on how we got here — so the community can move on and create a viable strategic plan for the future. Please keep the faith, and please consider how you can help. We all love Fallen Leaf Lake, and we will find a way through this together.
Thank you.
Karen Sipprell, FLLCSD Board President