A recent examination on the proposal to seek cityhood for Olympic Valley was performed. Olympic Valley is a community located near Tahoe. The report that was generated delivers a cold dose of reality for cityhood proponents like Incorporate Olympic Valley in an area that once provided one of the greatest international stages for the winter Olympics. Further information is provided at the Sacramento Business Journal.
The Placer County Local Agency Formation Commission performed an analysis on the fiscal feasibility of cityhood. They determined that the 1,000 permanent citizens or less residing in Olympic Valley does not constitute enough citizenry to support being a self-sufficient municipality.
One of the only consistent revenue generators would be a transient tax that is levied on hotel occupants. The revenue generated by this tax is not enough to sustain a city budget on a yearly basis even if most city services were outsourced and with operating with minimal personnel.
If incorporation were to occur in the approaching fiscal year, projections reveal an initial fiscal year deficit that would continue to expand to approximately $2 million over the next 10 years. Other projections that assume a continuation of the current fiscal policy that exists between unincorporated areas and the county will produce harrowing deficits that exceed even the prior deficit projections.
The evaluation was performed by RSG. RSG is the land-use forecasting firm that filed the damning report. The analysis was initiated by Placer LAFCO.
The initial push for cityhood began within the last few years. This push occurred at the same time that commercial proposals were solicited for a 300,000 square foot hotel and condo with 850 rooms. The proponents were spurred by their lack of control over situations like building projects like these.
Save Our Valley is a group that is comprised of Olympic Valley residents that are opposed to incorporation. They assert that the independent, unbiased study supports their case against incorporation. This assertion was vocalized by Andy Wirth. Andy Wirth is the president and CEO of Squaw Valley Ski Holdings LLC, and he heads Save Our Valley. Additionally, his company is a proponent for new development in what would be Olympic Village.