This is Part One of IFF’s investigation into Lava Hot Springs.

Governor Brad Little’s office selected Lava Hot Springs as “Capital for a Day” for September 22, and IFF showed up to his morning town hall. 

IFF previously documented the city’s history of noncompliance HERE.

So, instead of facing accountability, the city was rewarded by the state’s highest office. What incentives does this create for other local entities to be in compliance with state law? It certainly won’t help spur accountability in Bannock County — a county with a documented history of questionable spending practices.

IFF reached out to Little’s office and asked why the state chose Lava Hot Springs despite its record of noncompliance. His office did not respond to an emailed request for comment.

It’s entirely possible the governor’s office was unaware of the extent of the city’s noncompliance when selecting it for the occasion. After all, Lava Hot Springs is one city out of 197 in Idaho.

So, IFF traveled over four hours to Little’s town hall in Lava Hot Springs. IFF asked about the thought process behind choosing the city to host the event, and IFF asked whether his office was aware of the city’s noncompliance with the State Controller’s Office (SCO).

The governor did not answer IFF’s first question, but in response to the second, he admitted he was “familiar with it,” adding that State Controller Brandon Woolf sent him a letter.

“It’s the local government first, if there’s a problem it’s the attorney general and the state controller, and they’re handling it,” he told IFF. “None of those issues come to anybody up here at this table. But I am aware of it, and I know that Brandon [Woolf] sent me a note that it’s an ongoing issue.”

IFF obtained that September 18 letter through a records request. 

“The city is experiencing a significant challenge reconciling their accounting books and accomplishing annual audit requirements — a situation that has existed prior to 2020,” the letter read. “The former city clerk failed to accomplish the required tasks and exhibited poor bookkeeping practices. We do not believe there is fraud or theft, at this time.”

The letter added that Mayor Vicky Lyon, City Clerk Amantha Sierra, and City Councilman Mark Oyler are working with a CPA firm to resolve the noncompliance.

“We expect to have a ‘date certain’ when the city should achieve compliance based on an agreed upon roadmap no later than October 16,” the letter stated.

Plenty of reasons could explain why Little’s office chose the City of Lava Hot Springs to host “Capital for a Day.” It’s a major tourist attraction, for one. 

And, in emails obtained through a public records request, an employee in Little’s office told Mayor Lyon the office hoped the city would host the governor because Little “hasn’t yet been to Bannock County for one of these.” 

Perhaps that was the justification, then.

So why didn’t the governor, or his office, simply provide one of the above explanations when asked by IFF? Why didn’t they give a glowing endorsement of the city they asked to be “Capital for a Day”?

IFF also obtained documents showing the city submitted a compliance plan to the SCO and that Woolf told the city continued noncompliance could result in a daily $500 late fee. These documents will be detailed in a forthcoming article.

But the city’s noncompliance is not its only controversy. 

IFF investigated a contentious sewer-extension project the city committed to partly funding — and the aftermath will come to light in subsequent articles this week.

IFF will continue investigating local governments and ensuring transparency. Idahoans may submit tips about their counties and cities HERE.