SOUTH LAKE TAHOE, Calif. — In a sudden and dramatic turn, Tamara Wallace has resigned as mayor of South Lake Tahoe after publicly admitting she stole funds from the Lake Tahoe Community Presbyterian Church, where she had served as an administrator.
A confession, resignation and call for more
Wallace submitted her resignation by email late Monday night to City Manager Joe Irvin, City Clerk Susan Blankenship and City Attorney Heather Stroud, stating her resignation was “effective immediately.” In the same message, she urged Mayor Pro Tem Cody Bass to resign, saying in part,
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“I am submitting my resignation … I urge Mayor Pro Tem Cody Bass to resign as well.”
Her resignation follows an open letter published Oct. 5 in which she confessed to embezzling church funds over an extended period and revealed that guilt over her actions drove her to attempt suicide on Sept. 11. She stated she would repay every cent and accept whatever consequences come.
Alleged theft under investigation
Church attorneys have estimated the missing amount to be about $300,000. While Wallace claims she turned herself in and provided account passwords to the church, church officials dispute that she self-reported and say they discovered the irregularities independently. The Lake Tahoe Community Presbyterian Church terminated her employment on Sept. 26 and referred the matter to authorities. The El Dorado County District Attorney’s Office has confirmed an ongoing investigation.
Concurrent scrutiny of the mayor pro tem
Mayor Pro Tem Cody Bass, who had assumed a greater public role amid this turmoil, faces separate legal challenges. He was arrested in late September following an altercation at a Stateline nightclub and now faces misdemeanor charges including harassment and trespassing. A prior assault charge was dropped by the Douglas County DA, but Bass continues to deny wrongdoing. He has indicated he will not resign, stating,
“I will absolutely not be stepping down … I have done nothing wrong.”
City operations and the path forward
City Manager Joe Irvin released a statement affirming that municipal services remain fully operational and that city finances are unaffected by the scandal. He emphasized that all departments continue to function and that the city’s budget undergoes annual independent audits pursuant to California law.
With Wallace’s departure, a number of board and commission seats she held now stand vacant, including on the California Tahoe Conservancy, El Dorado County LAFCO and the Clean Tahoe Program. According to city code and state law, the City Council must either appoint a replacement or call a special election within 60 days of the vacancy.
The Council’s next meeting is scheduled for Oct. 21 at 5:30 p.m., at which time it will address a reorganization of leadership, the vacant seat, and interim appointments.
Across South Lake Tahoe and El Dorado County, residents and local officials have expressed shock, concern and calls for transparency. El Dorado County Supervisor Brooke Laine, who previously served alongside Wallace on the City Council, publicly stated she believes the resignation was necessary. Some community members have even proposed pursuing a recall process. Paula Peterson, publisher of SouthTahoeNow, said congregants feel “doubly traumatized” given that the church had previously weathered a fire and other hardships.
As the investigation unfolds, residents will be watching closely throughout the upcoming Council meeting on Oct. 21. The decisions made then will shape the city’s governance through the remainder of Wallace’s term, which was set to expire in November 2026. Meanwhile, questions linger about the scale of the alleged theft, how repayment will occur, and whether additional revelations may yet emerge
According to public reporting, the church’s attorney has estimated that about $300,000 was stolen.
However, that figure is preliminary and subject to verification as the El Dorado County District Attorney’s Office continues its investigation.
