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Lava Hot Springs council adopts FY2025 budget including property-tax increase and use of forgone funds
Summary
The Lava Hot Springs City Council approved its FY2025 budget Aug. 15, 2024, authorizing a property-tax increase (up to the statutory 3%) and the use of available forgone funds; officials said the measures yield about $11,000 for the general fund and would add roughly $36–$39 annually to a $300,000 home.
The Lava Hot Springs City Council voted unanimously Aug. 15 to adopt the FY2025 budget, which includes a property-tax increase and recovery of forgone funds.
Council President Rickey Frandsen moved to accept the proposed FY2025 budget; the motion carried with Mayor Vicky Lyon and Councilpersons John Head and Leah Navarro voting in favor. The motion followed a public hearing during which residents and business owners asked questions about the tax impact and how new revenue would be used.
Councilperson Leah Navarro framed the hearing’s focus: "This hearing is about approving the fiscal year 24/25 budget, which includes raising property taxes." Finance presenter Rodney Burch said the combined steps in the proposal — the 3% allowable increase plus reclaiming part of the forgone authority — amount to about $11,000 total for the city’s general fund. He described the forgone account as funds accumulated when the city previously did not levy the allowable increase: "That foregone account is about $71,000 from prior years," Burch said, and the statute now limits recovery to smaller increments if not taken immediately.
Officials said much of the added revenue will cover inflation-driven costs rather than a single large project. Burch told the council the bulk of the city’s budget pressures are increased insurance and the cost of living adjustments for wage-earning employees. Elected officials and staff emphasized enterprise funds (water, sewer, sanitation) and the local option tax remain the municipality’s principal revenue sources and are restricted for specific uses.
The council also approved an annual-appropriation ordinance (agenda item listed as the FY2025 Annual Appropriation Ordinance) by waiving the requirement for three separate readings and conducting a single summary reading at the meeting. The budget vote was recorded as unanimous; the council set related housekeeping items — including a separate vote on forgone authority — during the same session.
