Incorporate Olympic Valley has been in the news quite a bit lately, and this is due to the recent financial situations pending with the future of the area. There are many individuals who are very against incorporating Olympic Valley. Cityhood for this valley is something that may be a fiscal nightmare for the area. There are fewer than 1,000 residents that live in Olympic Valley and fiscal experts are saying that it would be nearly impossible for this are to support themselves as a city. Cityhood for this small area would be a recipe for disaster as incorporation would cause more problems than solutions.
The main source of revenue for the city would be a tax that is imposed upon hotel guests, and it is very unlikely that this tax would cover all the costs that it takes in order to run a city. There would be much more needed than taxes on hotel guests to make cityhood a viable option. If this area was to become a city, there is an estimated deficit that would be growing more and more by 2017. There were some residents that were pushing towards cityhood with the announcement of a new hotel and 300,000 square foot center for commercial development. Residents believed that cityhood would give them much more say on these types of developments, but they didn’t think of the fiscal implications of this incorporation.
Experts have said,“The independent study confirms the prevailing wisdom, that creating a town of 500 people, based on one revenue source and dependent on tourism and weather conditions, doesn’t make sense.” There is not a stable enough type of revenue for this area to be incorporated into a township. There are many more sources of revenue that need to go into a city on order for it to be incorporated.