A South Lake Tahoe mayor admitted to stealing from a church. Will she resign?

Paula Peterson’s journalistic instincts kicked in when she learned South Lake Tahoe Mayor Tamara Wallace was accused of stealing from a local church. She placed calls Saturday to police and awaited more information about an investigation.

Then, a letter from Wallace dropped Sunday in Peterson’s email inbox detailing a bombshell exposé. The mayor, who led a local response to 2021’s Caldor Fire and is a decadeslong public servant, admitted to stealing money from Lake Tahoe Community Presbyterian Church and attempted suicide.

“‘Oh my god,’” Peterson said she thought as she scanned the letter.

Peterson, who was among the first local residents to hear of the shocking account, added “I am sure my mouth was open the whole time.”

That 1,339-word letter, published Monday in the Tahoe Daily Tribune and SouthTahoeNow.com, attracted headlines across the state and emotions of every sort across the region. Wallace should resign, some residents wrote online, while others noted her service to the city.

The lingering question for residents: How does a community move forward after its leader openly admits to stealing from a house of worship?

El Dorado County Supervisor Brooke Laine, who represents an area including South Lake Tahoe, said she placed her faith in city officials to guide residents back to business. Laine called for Wallace to resign.

“We have been through equally as bad situations as we are in today and we will stand together and move forward in a way,” Laine said, who served for about two years on the City Council with Wallace. “It is dreadful that we’re having to be in this situation, but we will come out of it on the other end.”

A South Lake Tahoe spokesperson did not immediately respond to a request for comment for this story. City Manager Joe Irvin declined an interview. City Councilmembers Scott Robbins, Keith Rodgers, David Jenkins and Cody Bass (who also made headlines Monday after authorities arrested him in connection to a verbal and physical assault in Nevada) all did not respond to a request for comment.

In her letter, Wallace wrote she hoped to pay back every cent she took and help others in a mental health crisis. She listed out a series of traumatic events that occurred throughout her life.

Wallace’s employment with the church ended Sept. 26 after she committed a “significant offense,” according to a statement sent Tuesday by the Lake Tahoe Community Presbyterian Church.

“Our congregation has suffered extensive loss, and as we address this loss and its impact, we remain committed to prayer, compassion, transparency, and justice,” Dr. Greg Hughes, a reverend with the Tahoe Community Presbyterian Church, wrote in the statement.

The mayor served on numerous boards, such as the Kiwanis Club, the South Lake Tahoe Chamber of Commerce, the California Tahoe Conservancy Board. Her influence spread nearly across all sectors in the Tahoe region.

Robert Schimmel, a former arts liaison on the South Lake Tahoe Chamber of Commerce, said he was not surprised to hear Wallace spilled her truth for thousands to read. He described her as a personable and caring individual.

“It speaks to her faith and vulnerabilities and understanding of the human condition that she’s putting herself out there,” Schimmel said, who knew Wallace while he advocated for the arts community. He has since moved away from South Lake Tahoe.

But residents still sought answers and wondered if Wallace would resign. A city council seat is vacated if a person is convicted of a felony or pleads guilty, South Lake Tahoe City Attorney Heather Stroud said.

The El Dorado County District Attorney’s Office is investigating Wallace’s conduct.

Peterson has known the mayor for about 20 years and was devastated to read Wallace’s letter. She published Wallace’s letter because she thought the community should know about her conduct.

“There were so many people who trusted her, and looked up to her as the moral compass,” she said.

Laine requested community members let law enforcement conduct their investigation and let the facts come to light. But she also asked residents to be kind, and remember everyone has tragedy in their life which affects them.

“It’s never too late to own your mistakes and to hopefully grow from them and be a better person down the road,” she said.

The next South Lake Tahoe City Council meeting is scheduled for Oct. 21.

This story was originally published October 7, 2025 at 3:21 PM.