Town Creation for Olympic [Squaw] Valley Update: Town Likely Financially Viable

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IOV
IOV

Incorporate Olympic Valley (IOV) is a movement that began in 2013.  IOV’s goal is to make Olympic Valley (aka Squaw Valley) into a town that’s in control of its own direction and destiny.  Currently, Olympic Valley is under the control of Placer County.

“Incorporate Olympic Valley was formed in 2013 by Squaw Valley residents concerned about maintaining their mountain culture and gaining local authority and jurisdiction over land use decisions, locally generated tax revenues, and key services prioritized locally, such as snow removal, road maintenance and parks & recreation.” – IOV

Squaw Valley ski resort has come out against the formation of a town in Olympic Valley in a 5-page letter to the Local Agency Formation CommissionSquaw has put $750,000 dollars into funding “Save Olympic Valley” a non-profit aimed at stopping the incorporation movement.

squaw_valley_logo

One of the biggest hurdles to creating a new town is having a fiscal analysis drawn up.  IOV paid the $85,000 to have a fiscal analysis drawn up in 2014.  That fiscal analysis showed that Olympic Valley would not to have enough funds to be a viable township.

IOV reviewed the fiscal analysis, found multiple flaws in the document, then sent it to be reviewed by the state controller.  IOV had to pay $125,000 to have the state controller review the document.  Today, IOV is announcing that the state controller has found 18 errors in the fiscal analysis.

“We are very pleased that the State Controller Office agreed that the draft Comprehensive Fiscal Analysis was indeed flawed. They reversed 18 different errors, demonstrating that the proposed town is actually financially viable (even thriving!), as IOV has always firmly believed.

Next up are revenue neutrality negations and paying for an Environmental Impact Report (EIR).” – Jamie Schectman, Incorporate OV PAC Board Member

This is why we're all here... Squaw Valley, 2011. skier: miles clark / photo: hank devre
This is why we’re all here… Squaw Valley, 2011. skier: miles clark / photo: hank devre

IOV reports that if the changes that the state controller observed are applied to the fiscal analysis, Olympic Valley could potentially have a general fund balance of $15 million by 2025.

“Application of the SCO’s (State Controllers Office) responses in a quantitative analysis by Incorporate Olympic Valley (IOV) shows a dramatically changed financial picture for the town, with positive net results and growing general fund balances, exceeding $15 Million by 2025, even after yet-to-be-negotiated revenue neutrality payments to Placer County.” – IOV today

Squaw Valley, USA trail map
Squaw Valley, USA trail map

I.O.V. PRESS RELEASE:

California State Controller Confirms Draft Fiscal Analysis Is Flawed

Review Clearly Demonstrates Financial Viability For Proposed Town Of Olympic Valley

For Immediate Release – November 3, 2015 – Olympic Valley, California

Last week, the California State Controller’s Office (SCO) released its review of the Draft Comprehensive Fiscal Analysis (Draft CFA) for the proposed town of Olympic Valley.   The SCO’s report confirms that the draft CFA contained many flaws, leading to incorrect conclusions, and formally reversed its erroneous assumptions and conclusions.

The SCO reviewed 31 separate issues with the draft CFA, reversing conclusions on 18 of them.   Application of the SCO’s responses in a quantitative analysis by Incorporate Olympic Valley (IOV) shows a dramatically changed financial picture for the town, with positive net results and growing general fund balances, exceeding $15 Million by 2025, even after yet-to-be-negotiated revenue neutrality payments to Placer County.

“IOV is excited and energized by the feedback and perspective from the State Controller’s Office, who validated the majority of concerns raised in our request to have the draft CFA reviewed”, said Fred Ilfeld, Chairman of the Incorporate OV Foundation.   “The results clearly demonstrate that the proposed town of Olympic Valley is financially viable.”

The SCO’s review document can be viewed at: 
http://www.incorporateolympicvalley.org/wp-content/uploads/2015/10/State-Controller-Review-Report.pdf

IOV has documented the impact of the SCO decisions in a letter to LAFCO’s Executive Officer.  The letter and analysis for LAFCO can be viewed at:
http://www.incorporateolympicvalley.org/wp-content/uploads/2015/11/Lafco-Letter_SCO-Report_11-3-15.pdf 

IOV welcomes the SCO mandated changes that clearly demonstrate financial viability.   IOV analysis was developed in consultation with financial experts at Municipal Resource Group, whose 28 team members include former city managers of three newly incorporated cities, municipal planning directors, former police chiefs and other seasoned veterans on town municipal finance and administration.

“With the SCO’s reversals on key issues in the draft CFA, revised data and analysis reveals positive net revenue and growing general fund equity balances.  The bottom line demonstrating financial viability is unequivocal.” said Tom Sinclair, Principal Consultant, Municipal Resource Group.

IOV looks forward to work by LAFCO staff and CFA contractor RSG to apply the SCO’s review to a comprehensive revision of the CFA, setting the stage for revenue neutrality negotiations based on the corrected financial analysis.   “Opponents of incorporation saw what they wanted to see in the SCO review, not what the decisions and numbers clearly show.” said Fred Ilfeld.

With financial viability confirmed, attention now shifts to the Environmental Impact Report (EIR).
“IOV has proven the new town’s financial viability.   Now we need the whole community to step up with contributions to cover EIR and associated expenses which are expected to exceed $200,000.   Having been forced to spend precious funds on the SCO review, it’s now essential that donors add their financial support to the cause.”
said Ilfeld.

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Incorporate Olympic Valley was formed in 2013 by Squaw Valley residents concerned about maintaining their mountain culture and gaining local authority and jurisdiction over land use decisions, locally generated tax revenues, and key services prioritized locally, such as snow removal, road maintenance and parks & recreation.

All media inquiries, please contact info@IncorporateOlympicValley.org

Learn more at:  www.incorporateolympicvalley.ORG

Like us on Facebook at:   www.facebook.com/IncorporateOlympicValley


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One thought on “Town Creation for Olympic [Squaw] Valley Update: Town Likely Financially Viable

  1. Who produced the flawed CFA in the first place? causing so much extra work for IOV? Is there a burden of proof for IOV every time Placer Co publishes false information about Olympic Valley? Placer Co is trying to wear out IOV by putting it through numerous hoops and obstacles. Placer county has a full staff working full time to block IOV by creating a never ending stream of conditions to meet and obstructions to overcome. It won’t work. IOV is onto them.

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