Jun 102015

Today is a LAFCO meeting and workshop running late this afternoon in to the early summer evening taking public comments on the draft CFA. IOV proponents are trying to convince commissioners to incorporating Olympic Valley makes sense financially.

The problem is several recent studies show otherwise. Under every scenario studied by the independent consulting firm, RSG, incorporation doesn’t pencil out.

Another fiscal analysis, done by Blue Sky consulting agrees. Incorporation is infeasible under every scenario reviewed. The Tahoe City PUD just blew the concept up – basically stating that Olympic Valley would suck money out of tourism and would force tax increases to be viable. They even went so far as to mention that Olympic Valley would take over the most expensive section of trail within their current boundaries!

Overcoming fiscal reality should make a decision by Placer County a no brainer. Instead, LAFCO commissioners, led by Loomis councilman, Miguel Ucovich, continue to allow the applicant, Fred Ilfeld, to continue his Don Quixote quest of foolishness. Why is my friend Miguel supporting something that even by the most conservative of estimates will be $2 million in the hole by 2017 and be so far in the hole that it will require massive tax increases to support within the first decade?!

The IOV people need to understand a couple of key examples, and I think Miguel needs to understand that this is not Loomis 2.0.

Weed California burnt down and luckily most everything was insured. Weed is a great example of why small incorporated cities need to maintain 30% reserves as the CFA suggests Olympic Valley should, as Weed will be in the hole for several years replacing and repairing the damage from the fire that gutted their little town. Little towns are extremely vulnerable to disasters.

Jurupa Valley is seeking to de-incorporate. They can’t afford the 30-35 contract employees they have and they have stated that they can not provide services with less than 25 employees that comply with state mandates. (I know this as I have friends in Riverside County local government) State Mandates have made incorporating a city terribly difficult and many believe that Rancho Cordova and Citrus Heights may be the last cities to actually make it in California. (Arden-Arcade was torpedoed by a successful fear campaign) Olympic Valley would have 7 employees for a town of 500, let that sink in for a bit.

If all that hasn’t convinced you that Incorporate Olympic Valley is absurd:

Incorporation requires taking Transient Occupant Tax (TOT) funds, or hotel tax revenue, away from the North Lake Tahoe Resort Association, which uses funds on projects that benefit all of North Lake Tahoe, not just a wannabe berg in Olympic Valley.

The bottom line – if you want to permanently screw tourism and North Lake Tahoe, and be forced to raise taxes in the future, Incorporate Olympic Valley.

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