Rupert

by

In re Lugo

Decision: In re Jason Josue Lugo, Case No. 15-40121-JDP (Bankr. D. Idaho, 25 Jun. 2015)
Judge: Honorable Jim D. Pappas, United States Bankruptcy Judge
Counsel for Debtor: Paul Ross, Idaho Bankruptcy Law, Paul, Idaho
Chapter 13 Trustee: Kathleen A. McCallister, Meridian, Idaho
Trustee’s Counsel: Holly Roark, Office of Kathleen A. McCallister, Meridian, Idaho

Background

Jason Josue Lugo and his wife Lori married in 1996. In December 2003, Lugo acquired real property in Declo, Idaho, and in March 2004 conveyed it to himself and Lori by quitclaim deed. The couple built a home on the property that year and moved in with their family, establishing an automatic homestead exemption by virtue of their occupancy as a principal residence under Idaho Code § 55-1004(1).

In July 2012, Lugo moved out of the marital home due to irreconcilable differences. His family remained in the home. He did not record a declaration of non-abandonment. Under Idaho Code § 55-1006, six months of continuous vacancy creates a presumption of abandonment — meaning Lugo’s automatic homestead was presumed abandoned by January 2013. On 12 September 2013, a stipulated divorce decree was entered awarding Lori sole possession of the property, subject to the two existing mortgages and a $40,000 obligation to Lugo’s father. Under the decree, Lori was to refinance the mortgages within seven months and pay Lugo’s father in installments; if she could not refinance, the property was to be sold and the proceeds used to satisfy the parties’ debts. The decree did not expressly grant Lugo any continuing interest in the property. Pending refinance or sale, Lori was responsible for the first mortgage payments and Lugo for the second.

On 17 February 2015, before filing his bankruptcy petition later that same day, Lugo recorded a Declaration of Homestead on the Declo property with Cassia County. He then filed a Chapter 13 bankruptcy petition claiming the property exempt as his homestead in the amount of $49,401.93 — the estimated equity — under Idaho Code §§ 55-1001, 55-1002, and 55-1003. His Chapter 13 plan proposed to sell the property and pay the secured creditors, with any nonexempt proceeds distributed to unsecured creditors. Lugo acknowledged he could not afford to continue making the second mortgage payments.

The Trustee’s Objection

The Trustee objected to the homestead exemption claim on two grounds: Lugo did not reside at the property — his petition listed his residence in Rupert, Idaho — and his Chapter 13 plan proposed to sell it, which the Trustee argued evidenced a lack of any intent to reside there. The Trustee contended that Lugo therefore did not qualify for the homestead exemption under either Idaho’s automatic or declared homestead provisions, and that the claim should be disallowed in its entirety.

The Debtor’s Response

Debtor’s counsel filed a response arguing that the homestead exemption was valid and that the Trustee had not met the burden of proof required to overcome it.

Counsel acknowledged that Lugo had vacated the property in 2012 and had not filed a declaration of non-abandonment, which created a rebuttable presumption of abandonment of the automatic homestead under Idaho Code § 55-1006. Counsel argued, however, that Lugo had done precisely what Idaho law provides as an alternative: he recorded a Declaration of Homestead with Cassia County, invoking the second track of homestead protection under Idaho Code § 55-1004. That provision permits an owner who is not currently occupying a property as a principal residence to establish a homestead by recorded declaration, provided the declaration states an intent to reside there. Lugo’s declaration did so, and the technical requirements of the statute were met.

On the plan-to-sell issue, counsel argued that the Trustee’s position ignored Idaho Code § 55-1008, which exempts proceeds from the voluntary sale of a homestead for up to one year when the debtor intends to acquire a new homestead. Lugo wished to preserve the equity in the property for use in acquiring a new home, and the homestead exemption should follow the proceeds accordingly.

The Court’s Ruling

Judge Pappas sustained the Trustee’s objection and disallowed the homestead exemption.

The Court began by tracing the two tracks through which Idaho law permits a homestead to be established. The first — the automatic or “springing” homestead — arises by operation of law from the moment a debtor occupies property as a principal residence, without any filing or formality. Idaho Code § 55-1004(1). The second — the declared homestead — permits an owner who is not presently occupying property as a residence to establish a homestead by recording a declaration stating an intent to reside there. Idaho Code § 55-1004(2). Both tracks were relevant here.

Lugo had unquestionably established an automatic homestead when he moved into the Declo property in 2004. But he vacated in July 2012 without filing a declaration of non-abandonment, and under Idaho Code § 55-1006 that homestead was presumed abandoned by January 2013. No automatic homestead survived. Lugo therefore could not rely on the first track and turned to the second.

The recorded Declaration of Homestead was facially sufficient. It satisfied each technical requirement of Idaho Code § 55-1004(3): it stated an intent to reside on the property, included a legal description, and provided an estimated cash value, and it had been properly recorded before the bankruptcy petition was filed. Under normal circumstances, that would be enough. The declared homestead is a recognized and legitimate mechanism, and the Court acknowledged that recording a declaration before filing is a conventional and proper way to establish a homestead exemption.

But the Court held that satisfying the statutory checklist does not end the inquiry when the exemption is contested. When an objecting party challenges the declaration, the Court must look behind its face and assess the quality and genuineness of the proof supporting it — in particular, whether the stated intent to reside is real. Here, because the parties proceeded on stipulated facts alone, with no live testimony from Lugo, the record was fixed. And that record told a story that was flatly inconsistent with any genuine intent to reside at the Declo property.

The divorce decree, entered more than a year before the bankruptcy filing, awarded Lori sole possession of the property and contemplated only two outcomes: refinancing or sale. No scenario in the decree provided for Lugo’s return. His bankruptcy plan reinforced the same conclusion — it proposed to sell the property, and if the sale failed, to surrender it. Lugo acknowledged he could not afford the mortgage. Nothing in the record suggested any realistic pathway by which he could or would live at the Declo property again. The declaration’s statement of intent to reside, the Court concluded, was not supported by the facts.

The Court also rejected the § 55-1008 sale-proceeds argument. That provision exempts proceeds from the voluntary sale of a homestead for the purpose of acquiring a new homestead — but it presupposes a valid homestead exemption in the first place. Because no valid homestead had been established, there was nothing to carry forward into the proceeds. Moreover, the record contained no evidence that Lugo intended to use any sale proceeds to purchase a replacement homestead. The Court found his true aim was to preserve equity against distribution to unsecured creditors — an understandable goal, but not one the homestead statutes were designed to serve.

Why This Matters

  1. Idaho’s two-track homestead system offers a genuine alternative to the automatic exemption. When an owner vacates a property and loses the automatic homestead through presumed abandonment, Idaho Code § 55-1004 provides a second path: recording a declaration of intent to reside. That mechanism is legitimate and used, and a properly recorded declaration ordinarily establishes the exemption. This case illustrates, however, that the declared homestead is not a rubber stamp. When the exemption is contested, the Court will look beyond the four corners of the declaration and assess whether the stated intent is genuine.

  2. The divorce decree can be the most important document in the file. A stipulated divorce decree that awards possession of the property to the other spouse and contemplates only refinancing or sale effectively closes the door on any claimed intent to return. Where no scenario in the decree provides for the debtor’s residency, that decree will be powerful — perhaps decisive — evidence against the homestead claim. Counsel evaluating a client’s homestead position after a divorce should read the decree carefully before advising that a recorded declaration will succeed.

  3. Failing to file a declaration of non-abandonment has lasting consequences. Idaho Code § 55-1006 gives a debtor who plans a long absence without intent to abandon the homestead a clear tool: record a declaration of non-abandonment. Lugo did not do so when he left in 2012, and by the time he filed for bankruptcy in 2015 the automatic homestead had been presumed abandoned for over two years. Practitioners advising clients who are leaving a marital home during separation or divorce proceedings should consider this step immediately.

  4. Live testimony on intent may be essential. The Court explicitly noted that because the parties stipulated to the facts and no live testimony was offered, Lugo had no opportunity to address his subjective intent to return to the property. Stipulated facts are efficient but inflexible — they cannot be supplemented after the fact. Where a homestead exemption contest turns on intent, practitioners should consider whether proceeding by stipulation forecloses testimony that might have been outcome-determinative.

  5. Idaho Code § 55-1008 requires both a valid underlying homestead and a genuine intent to acquire a replacement. The sale-proceeds exemption does not operate independently. It presupposes that the property being sold was validly exempt as a homestead. A debtor who cannot establish the underlying exemption cannot use § 55-1008 to protect sale proceeds. And even where the underlying exemption is valid, the proceeds exemption requires evidence of intent to use them to acquire a new homestead — a plan to sell, pay creditors, and retain equity does not qualify.

Full Decision: Available on PACER, Case No. 15-40121-JDP, Doc. 32 (Bankr. D. Idaho 25 Jun. 2015)

Homestead DecisionDownload
by

Lincoln County Courthouse

Lincoln County Idaho Courthouse

Lincoln County is closer to me so I get there more often. Shoshone is the Lincoln County seat. Minidoka County was created out of Lincoln County, so many of the Minidoka cities were incorporated in Lincoln County. This includes the cities of Heyburn, Minidoka, Paul, and Rupert. Acequia is the only city incorporated after the creation of Minidoka County.

This photo is from 2023. The Lincoln County Courthouse has been under renovation, so the last time I had court I attended in the old Wells Fargo Bank building. I will have to get an updated picture next time I am in Lincoln County.

by

Heyburn Gill Family

J Street – Heyburn – December 7th 1908

The Heyburn Citizens group received some photos from a Rose Pederson in Vancouver, Washington. These were given to the City of Heyburn. I took the opportunity to scan them and make them available more widely.

Burley Idaho Feb. 1920 – Mr. E. Bowman – Jossie & Flossy (Bays) – Walt Gill

I was able to track down Walter Arthur Gill fairly easily. Walter Arthur Gill born 19 July 1889 in St. Edward, Boone, Nebraska. The 1900 Census has him with his family still in St. Edward. The 1910 Census has him in Heyburn, living with his parents. His brother, Amos, is living next door with his family.

This letter from 1911 indicates he was now the owner of some real estate in Heyburn, Idaho.

This letter indicates his homestead application is allowed in Section 14, Township 10 South, Range 23 East. This would put this farm east of Heyburn’s A Street (400 West), west of 300 West, south of 400 South, and north of 500 South. Nothing on the 1910 census tells me exactly where they were living, but I don’t know that was where he homesteaded either.

Walt Gill (holding son Art Gill – born in 1922), Eva Lenore Anderson (from Edith’s prior marriage), Edith Marion Howell Gill, Amy Jane Hall Gill

Walt is the son of Arthur Erwin Gill (1854 – 1923) and Amy Jane Hall Gill (1858 – 1935). He married Dolly Genevera Baily (1891 – 1966) on 11 January 1911 in Albion, Cassia, Idaho. I do not see any children and do not know how that marriage ended.

He married Edith Marion Howell (1899 – 1940) on 19 July 1921 in Rupert, Minidoka, Idaho. The 1920 Census does not provide where he lives, but Dolly is not with him. Ralph Arthur Gill was born 4 April 1922 in Jarbridge, Elko, Nevada. Aimee Jean Gill was born 21 January 1924 in Idaho (not clear where).

Mr. E Bowman – Walt Gill

I cannot tell how long he was on the homestead he claimed. It doesn’t seem to have been very long.

Burley Idaho – Feb. 1920 – Anona Gill on Flossy – Lady & Rock (Blacks) – Walt Gill

Anona Gill (1912 – 1974) is his niece, daughter of Amos Hiram Gill (1881 – 1940) and Jane A Vizzard (1881 – 1953).

Edith remarried to Robert Earl Taylor (1894 – 1953) on 27 January 1931 in Elko, Elko, Nevada.

The 1930 Census has Walt living in Inyo County, California. He appears to be in or around Bishop, Inyo, California for the 1940 Census and reports he was also living there in 1935. The obituary for his mother lists him as living in Taft, Kern, California in 1935. When he registered for the draft in 1942, he was living in Hollywood, Los Angeles, California. He remarried to a Jessie Opal Shafer, nee Fowler, in California. She was using the Gill name for the 1940 Census, so likely married before then.

Nancy – Sis & Joy (Bays) – Walt Gill

I don’t know what Nancy is as referenced as a name on the photo. Maybe that is her shadow on the horse?

Walter died 13 February 1943 in Hollywood. He is buried in the Hollywood Forever Cemetery.

by

Pearlie letter to Jim

This letter was shared with me by Erron Alvey. Erron and I are cousins descending from James Thomas Ross/Meredith and Damey Catherine Graham. I have written about them before. In 2020, I shared that some more photos of James/Jim were found and I hoped that more would be found. Erron is a descendant through Robert “Bob” Leonard Ross, brother to my John “Jack” Ross. Bob’s daughter, Mary, is Erron’s Great Grandmother. It appears that some of Jim’s possessions and photos have come through the generations to her. She provided some photographs and other documents for scanning, I scanned 215 documents in all. Among them, was this letter. Pearlie was married to James Thomas Ross/Meredith Jr. Envelopes suggest Jim was living in Winton, California. None of the letters have an address on them.

The letter is dated 1934. That is right in the depths of the Great Depression. During this time in California, Jim is planning on making his way to the Salt Lake City Temple. There he will make covenants only available in temples. His closest temple at that time would have been St. George. But he has family and friends in Salt Lake City. I don’t know if he made it to Vernal and Lapoint to visit James and Pearlie and their family. But this certainly gives some more insight into the ongoing conversations and relationships that existed. I will share the scans of the letter below. I will also share some of the stash of photos that have come over, unfortunately most are unnamed individuals. Jim was baptized and confirmed 17 April 1898. He received his endowment 20 June 1935 in Salt Lake City, Utah. Damey, who has passed away in 1933, also received her endowment vicariously on the same date. They were also sealed that same date. This letter is 11 months before Jim made the trip and received these ordinances.

Pearlie May Marshall was born 16 September 1892 in Gladesboro, Carroll, Virginia and died 17 September 1976 in Vernal, Uintah, Utah. She married to James Thomas Ross (1895 – 1964) 4 June 1913 in Laurel Fork, Carroll, Virginia. They divorced and she remarried to Ashley Bartlett in Vernal, Utah, 22 November 1938. James Jr and Pearlie had six children: Vesta Virginia Ross (1914 – 2007), Eugene Dale Ross (1915 – 1986), Iola Inez Ross (1918 – 1976), Ernest Howard Ross (1919 – 1922), Sydney Bea Ross (1922 – 2010), and Carma Ross (1924 – 2015). All but Sydney were born in Lapoint, she was born in Rupert, Minidoka, Idaho. Ernest died in Rupert while there.

James and Pearlie Ross

Lapoint, Ut

July 20, 1934

Dear Dad,

We were surely pleased to get your letter as we half been expecting one for some time.

How are you and what are you doing?  We are all well as usual and not doing much of any thing.

Are times getting any better down there?  Don’t seem to be any better here, besides the water situation is getting serious.

Just enough for gardens and maybe that won’t last.

No hay or grain raised if under the White Rocks Canal and not much under the Government Canal.

Glad you are coming to Salt Lake City to go through the Temple.

Nothing would please me better than to go through with you, but I haven’t a penny now and don’t suppose I will then, but if it is possible I will be there.

One of my neighbors used to work in the Temple.  She said you could get some one there to go through with you, but I will if I can get there.

I wish Tom would go and be sealed to you and have our work done but I’ve about given up all hopes.

You must be sure and come on out here whether I can meet you there or not.

It won’t cost much more and we want to see you so bad.  The children talk about your a lot.  Sydney and Carma are getting to be quite big girls now.  Eugene hasn’t grown much since you saw him.  Surely sorry to hear Jack had cancer of the stomach.  Hope he is better by now.

How are Fannie’s folks?

I wrote her 2 or 3 weeks ago but haven’t heard from her.  

Do you still stay with Florence?  How are her and her family?  Tell her to write and tell all about herself and kiddies.

Where is Orson?  How are he and his wife getting along.  Where does Mary live and how is her health now.

Dad and Mother are getting quite feeble.  They ask about you often.  Said give you their love.  All the rest are quite well.  The depression has hit them all.  

Irma and Bill are still here but would like to lie in Calif.

Well, Dad don’t wait so long to write us as we are always anxious to hear from you.  Be sure you make your plans to come on here when you come to Salt Lake.

Would like for you to come stay with us.  It was not cold here last winter so maybe it won’t be this.

Any way come for awhile.  I’ll meet you if I can.

Please write soon.

Love from all

Pearlie

by

Early Heyburn Picture

Early Heyburn Idaho picture

This photo was recently shared on social media. I have written of Heyburn before with a photo of the train station. The above photo appears to have been taken before a train depot was built. It does show the old water tower for trains, but no depot nearby. The depot picture shared previously also does not show the tower. I do not know where the water tower or depot were in relation to each other. This photo does not appear to show the river, so this is likely looking to the northeast toward Rupert.

To the left of the water tower, you can see a taller building with a sloped roof but square facade. You can see the shadows of the facade. If you look at this photo below of the train depot, there is a chance the hotel in the photo is the same as that building left of the tower above.

Heyburn as a village was formally incorporated 18 January 1911 in Lincoln County. Minidoka County was not formed until 1913.

Heyburn was surveyed by Bureau of Reclamation 1904 and 1905.  The Oregon Short Line Railroad was finished to Heyburn in June 1905.  The photo cannot pre-date June 1905.

Heyburn’s first depot was a boxcar.  When the time came to build a depot, Heyburn had a brick plant operated by Barker and Sons. Heyburn told the railroad if they would build the depot of brick, Heyburn would furnish it free of charge. That is why you can see the depot is built of brick.

by

New Minidoka Councilman

Mayor Julie Peterson swears in new Councilman Monique Hurst

Earlier this year, I wrote about the City of Minidoka having a new Mayor and Councilman sworn in to City service. At that time, Councilman Bridgett Frost was sworn in to service. She had to move out of Minidoka leaving a vacancy on the City Council. On 7 October 2025, Mayor Peterson appointed a new Councilman, Monique Hurst. Welcome Councilwoman Hurst! (State law calls it Councilman, state law also indicates that it is gender neutral)

The City has recently been in the news. The City has more work to do. The City Clerk and Treasurer positions are now open. The City has hired a new certified water operator, Cody Creek. The City is setting up a new accounting/budgeting/billing/utility software through Caselle. Updates and upgrades are being made to some of the electrical system. The City has achieved compliance with the Idaho Tax Commission and Idaho Controller Office in the past few months. Area of Impact has been assigned. Many more good things are moving forward for this little town. Hopefully the ball can keep rolling and gaining speed despite the odds against it. Many thanks to surrounding towns for their assistance: Burley, Heyburn, Paul, and Rupert.

So many things are moving that residents are becoming more awakened to their sleepy little town. The Mayor and all four Councilman positions were up for election in November. Two of the Councilman positions are for 2 years, the other two are 4 years. But every single seat was contested! Julie Peterson and Becky Ziebach were running for Mayor. Bulmaro Paz, Bonnie Hofmeister, and Mark Cartwright were running for the two 4-year seats. James Cook, Monique Hurst, and Jerry Tolivar are running for the two 2-year seats. That is 8 people running for 5 seats! Elections are healthy. Citizens are willing to work for the bettering of their community.

Julie Peterson will continue on as Mayor. Bulmaro Paz will retain his seat and Bonnie Hofmeister will join him for the 4 year seats. James Cook will retain his seat and Monique Hurst will continue on in her newly appointed seat.

Citizens are willing to work for the bettering of their community.

by

General Conference October 2025

Ross and Hemsley families at October 2025 General Conference

As each child has joined the church at the age of 8 years old, we have made it a goal to take them to General Conference. We took Aliza in 2018, and Hiram in 2022. There is something about literally sitting in the same room as the prophets that is different than listening later, watching from afar, or reading in a magazine. You cannot duplicate the spirit that fills the room when 21,000 people sing We Thank Thee, O God, for a Prophet! The Tabernacle Choir cannot be duplicated. Period.

It took months of planning, but with the help of family, eight tickets were obtained. We left early Sunday morning to drive down and listen to Sunday morning’s session in Kaysville (Aliza got some road hours for her driving permit too). Before that session was over, we changed into church clothes and drove to Salt Lake City.

Salt Lake Temple under renovation, 5 October 2025

We found our seats as soon as the ushers would let us in. We had a pretty sweet section.

Shortly before the Sunday Afternoon Session began, 5 October 2025

After getting our seats, we took the kids to see some of the sights in the Conference Center.

Jill Hemsley, Paul, Lillian, James, and Aliza Ross
Aliza, James, and Lillian Ross with President Russell M Nelson’s bust

We were surprised to find out President Nelson passed away the weekend before Conference. I found it very interesting to attend a General Conference during an Apostolic Interregnum. I reminded the kids they may never have that chance again.

President Dallin H Oaks and Elders Jeffrey R Holland, Henry B Eyring, and Dieter F Uchtdorf leaving after the Session

We were also fortunate to attend the only session President Oaks spoke. I am very thankful to hear the keys of the Priesthood speak in person. It was a very personal talk, more than I remember him speaking in the past. In the past 125+ years, the Apostolic Interregnum has been very short lived. The opportunity to hear the President of the Quorum of Twelve Apostles also speak as the President of the Church in General Conference has not occurred in 74 years. Tradition always has the most senior Apostle being called, sustained, and set apart as the President of the First Presidency/High Priesthood with two counselors called to the same. That may happen today, 12 October 2025, if past precedent holds true.

Amanda, Aliza, and Lillian Ross with Jill Hemsley

I received my first testimony of a Prophet at Utah State University in 1997. I had joined the Logan Institute Choir. President Gordon B Hinckley was coming to speak at the Dee Glen Smith Spectrum. We had practiced multiple songs. One of which intrigued me, We Ever Pray for Thee. It was while singing that song that President Hinckley entered the arena. Wow. The Spirit overcome me. I have shared that experience many times, especially in the mission. My first testimony of a living prophet. It was as if every cell in my body jumped for joy and vibrated with excitement.

Bryan Hemsley and Hiram Ross at General Conference

My next prophetic testimony was related to Thomas S Monson. I have to admit, I always struggled a bit with President Monson. The story-telling and poems was too mushy for me, or something. I am not sure what gave me a bit of a burr, probably just personality. President Hinckley passed away and within the next week I was attending an endowment session in the Twin Falls Idaho Temple. I was in the prayer circle. It was then that the officiator included President Thomas S Monson in our prayer. As I repeated the words in the circle I felt the confirmation. The Spirit in that moment testified that President Monson was the Prophet upon the earth. I went away rejoicing and all my qualms with personality were lost.

Aliza and Hiram Ross excited to be in the Conference Center

President Monson also fell asleep in time. The next transition was to Russell M Nelson. After my experiences with Presidents Hinckley and Monson, I expected nothing less than another witness as to whether Russell M Nelson was the Prophet on earth. I prayed for the experience. In fact, Brigham Young taught us to expect to obtain a testimony of the Prophet. Well, in our own home watching General Conference in April 2018, we also participated in the Solemn Assembly. It was during that procedure that I again obtained a witness. No questions. In fact, President Nelson in his administration resolved some of my frustrations with church government and organization.

View of the rostrum from the farthest seats of the Conference Center before Sunday afternoon Session

Who will formally be set apart as the next President of the First Presidency? Tradition certainly would indicate Dallin H Oaks, and I expect the same. I also expect to obtain a witness that he is the Lord’s Prophet and Mouthpiece for the whole earth.

Paul Ross enjoying some light refreshments after Sunday afternoon’s General Conference

Since I really only began attending church regularly in 1997, President Hinckley was the only church president I knew for years. However, I will mention, my Grandma regularly spoke of my Great Grandmother’s connection to Ezra Taft Benson in Whitney, Idaho. Interestingly enough, when President Benson died in 1994, I spent the weekend of his funeral at Dustin McClellan’s home. I remember on Saturday, Dustin’s Mom, Bonnie, watching a funeral. I sat down and watched it for a little while. I remember the Tabernacle Choir. I asked her what it was and remember her telling me it was President Benson’s funeral. I felt something at that moment that made me more curious about the man. I still remember that occasion because the Spirit whispered to me. I have since also received a witness of President Benson. I have received one of every President since Joseph Smith.

Bryan Hemsley and James Ross enjoying Conference

Aliza recently attended a fireside in Rupert where President Emily Belle Freeman attended. I hope my children are gaining the golden strands in their testimony tapestry regarding the leadership of The Church of Jesus Christ of Latter-day Saints. We were fortunate enough to rub shoulders with President Freeman again and Sister Amy A Wright on Sunday.

Emily Belle Freeman and Aliza Ross in Rupert, Idaho, 21 September 2025
by

As state loses small towns, Minidoka fights to stay alive

A lone pickup leaves the tiny rural town of Minidoka via Broadway Street on Friday, Sept. 26, 2025. “The only time we get a crowd is at a city council meeting,” Mayor Julie Peterson told the Times-News.” Now that Minidoka has lost its post office, Peterson says she hopes the town can keep its incorporated status.

DREW NASH, TIMES-NEWS

City officials of the tiny town of Minidoka don’t want to end up like their counterparts in Atomic City, Hamer and Oxford.

All three of those Idaho cities have disincorporated over the past five years. Instead of a city council and mayor, county commissioners are now in charge.

“We are fighting,” Minidoka Mayor Julie Peterson said. “Actually, all four city council members, the mayor, and the attorney are doing everything in our power to stay incorporated and to stay compliant with all the government regulations.”

The rural community with a shrinking population sits on 64 acres on the eastern border of Minidoka County, just off Idaho Highway 24 — 13 miles northeast of Rupert and 50 miles southeast of Shoshone.

Idaho Highway 24 near Minidoka is seen Friday, Sept. 26, 2025, in Minidoka County. Travelers turn right onto Broadway to go into town or left to stay on Highway 24 to go to Shoshone, 50 miles away.

In the dozen or so years that the mayor has lived in Minidoka, she has seen a third of the town’s population disappear, dropping from 112 in 2010 to 75 now.

“Kids are growing up and moving away,” Peterson said.

And now, Minidoka’s post office in the Town Hall is moving out. Later this month, residents will switch to Rupert’s zip code of 83350.

The U.S. Postal Service determined that the Rupert Post Office is “able to fully serve the community,” and the contract post office in Minidoka “is no longer needed,” postal service spokesperson Janella Herron told the Times-News.

“We tried as a city to figure out a way to keep it open,” Peterson said, “but the post office powers that be decided they were just going to close it down.”

The Minidoka Town Hall is seen Friday, Sept. 26, 2025, in Minidoka County. Until later this month, the Town Hall serves as the tiny community’s post office.

Peterson said she uses the post office for her small business. When it shuts down, she will have to travel to Rupert instead of dropping off her mail in town.

“We’re losing our post office and I know from experience that’s a town killer,” Peterson said.

If the town gave up its incorporated status, she said, Minidoka County could take over the city-owned well and electric provider.

A water tower is seen Friday, Sept. 26, 2025, near Cherry and Broadway streets in the tiny town of Minidoka.

Eventually, “I think the citizens would lose their voice,” the mayor said.

State-imposed budget cap

Few in town “really know what’s going on behind the scenes,” Peterson said. “I don’t think they know the struggles the town is having.”

State law from 2021 is making it difficult for small cities like Minidoka to make plans to grow and pay for infrastructure projects, such as upgrading the city’s well or building a wastewater system.

“House Bill 389 has made it so our really small communities can’t survive and it’s been unfortunate,” said Kelley Packer, executive director of the Association of Idaho Cities.

Speaker of the House Mike Moyle championed House Bill 389 four years ago. The law imposes an 8% annual cap on budget growth for cities across Idaho.

Packer said HB 389 was intended to rein in big cities, but it has hurt small towns the most.

“(Moyle) will not let a solution be heard,” Packer said. “He does not believe the locals. He thinks they are just whining.”

Minidoka City Attorney Paul Ross said HB 389 has been a factor that has led to other cities disincorporating.

“Speaker Moyle and all these pushes that they’ve had to undermine some of these cities and their budgets are totally hammering these little cities,” Ross said.

According to data from Transparent Idaho, Minidoka’s city budget was $167,400 in 2023, with $103,000 in revenue from utility fees and $20,000 from property taxes.

With an 8% cap, the budget can’t grow more than $13,400 per year.

If the people of Minidoka make a strategic, thoughtful plan to grow their city, that cap might make those plans impossible, Packer said.

“One house takes them over that 8% cap now,” she said. “They can’t even — they can’t do it. And that’s what’s happening in these small communities.”

The struggle of a small town

Peterson walks the perimeter of Minidoka with her dog in the mornings.

She picks up garbage if it’s fallen out of dumpsters and uses a spade to pick up goat heads.

“I at least try to help beautify the city up a little bit,” Peterson said.

She was a city councilwoman last spring when the mayor had a heart attack. She became the acting mayor before officially becoming mayor.

The city’s finances were in a bit of trouble when she took over.

A backlog of audits goes back several years, Peterson said. Without an audited budget, cities in Idaho can’t receive state funding.

“They cut you off,” she said. “If you don’t do your audits, if a city doesn’t do their audits, then the state funding … your road tax gets cut off, your sales tax.”

In June, accounting firm Poulsen VanLeuven & Catmull released several years‘ worth of audits, going back to 2022.

According to the fiscal year 2023 audit, the city received a $125,000 USDA Rural Development grant with 3.25% interest for its water system in October 2021. As of September 2023, the remaining balance was $37,000.

That aging water infrastructure is expensive to maintain.

Peterson said the city increased electric rates by $3.50 per month, and the water bill went from $35 to $47.

“We had people coming to City Council saying they can’t afford that increase,” she said.

A mural on an exterior wall of the Town Hall depicts Minidoka’s railroad history, Friday, Sept. 26, 2025.

What keeps folks living here?

Most of the Minidoka’s residents work in local agriculture. Many are retired and living on Social Security.

Peterson said most residents own their homes free and clear, but they can’t afford to leave.

Besides, “who’s going to buy them out?” she said.

“We’re trying to keep our identity,” she said. “Minidoka doesn’t want to go away.”

Times-News Editor Mychel Matthews contributed to this story.