Olympic Valley is one of the premiere communities in the Lake Tahoe area. The area once played host to the Olympics. In the last few years, this community has been considering applying to become a city. The town has commissioned a study to see if becoming a city would be worth it, and according to the Sacramento Business Journal, it appears that becoming a city is not worth it for the community.
The Placer County Local Agency Commission spent a great deal of time studying the issue and they have concluded that the Olympic Valley community contains less than a thousand people. Due to the small size of their population, it would be impossible for the city to sustain itself despite claims from Incorporate Olympic Valley.
The commission studied a wide variety of options for the city to support itself. The current plan was for the city to support itself off of a transient occupancy tax. This tax would mostly impact hotel guests, who visit the area to take in the beautiful views and participate in many of the recreational activities. After analyzing the tax, the commission concluded that the tax would not be enough to sustain the city. The cost of operating a city would require at least three employees and would be rather difficult for a thousand people to support.
The commission analyzed the projections and they determined that if the city incorporated this year, it would be looking at a more than a million dollar deficit after two years.
The community has been pushing for incorporation as a way to gain more control over the zoning in the area. There have been many hotels opened in the area, and many community members do not want to see a massive expansion of tourism in the area. While the community wants more home rule, it appears that they will have to find a different solution.