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Council accepts forgone recovery; staff explains state foregone mechanics
Summary
Council voted to recover forgone funds for FY2025 and discussed how the state's "foregone" account works — staff said the city has about $71,000 in forgone authority and that not taking the 3% now means slower recovery later at 1% per year.
The Lava Hot Springs City Council approved a resolution during its Aug. 15 special meeting to recover forgone levy authority and discussed how the state's foregone mechanism affects local tax choices.
Finance presenter Rodney Burch explained the mechanics to residents: "If the city chooses to not increase property tax by the allowable 3% that foregone grows by 3% that we can only extract in the future at 1% per year," he said. Burch said the city’s foregone account totals roughly $71,000, accumulated when the city previously did not raise taxes to the allowable maximum.
Council voted to accept a resolution tied to forgone recovery (the meeting record includes motions referencing Resolution 2024-002 and later Resolution 2024-003 in agenda reordering). The council recorded a motion to recover $1,781 for use in the FY2025 budget and passed the motion unanimously.
Councilmembers framed the choice as a trade-off: take the allowable increase now to capture available revenue for immediate budget needs, or leave the forgone authority in place and recover it slowly in later years. Officials said the immediate revenue is modest compared with the city’s total budget but helps address rising operating costs.
