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Newton staff propose changing timing of fire/EMS fee calculation for North Newton to aid budgeting
Summary
City staff told the commission they will propose an addendum to change when the city calculates and invoices North Newton for fire and EMS costs, aiming to give North Newton a reliable figure earlier in its budget process; commission asked staff to return with a formal agreement.
The Newton City Commission heard a staff proposal on March 20 to change the timing of how fire and emergency medical services (EMS) fees are calculated and billed to North Newton. Staff said the current formula produces figures too late in the annual cycle for North Newton to adopt them into its budget, and recommended moving to a timing similar to the city’s wholesale water billing process so that North Newton receives a usable figure for the following year.
Why it matters: The timing of interlocal payments affects North Newton’s ability to set an accurate budget for one of its largest expense items. Changing the timing could reduce year-to-year volatility for the smaller jurisdiction and improve fiscal planning.
Staff explained the current compensation formula: it uses the fire/EMS budget, actual ambulance receipts for the year, and a factor based on the assessed valuation of non-exempt properties in North Newton divided by the combined non-exempt valuation for Newton and North Newton; after that calculation staff add 10 percent. The staff presenter said the formula was developed by a previous employee and “it’s worked well,” but the production of the component data (budgets, receipts and assessed valuations) arrives at different times in the year, making timely invoicing difficult.
Staff proposed holding the computed figure steady for 2026 while using the current calculation for 2025, and bringing a legal addendum or amendment back to the commission at the next meeting. The presenter said the city already uses the same timing approach with the wholesale water district (PWWSD).
No formal motion was taken on March 20; commissioners expressed support for the planning approach and asked staff and legal counsel to prepare the necessary addendum for formal approval at a future meeting.
Key details: Staff identified the timing mismatches as (1) budget figures not final until July or August, (2) ambulance receipts complete in January and (3) assessed valuations available in late fall, creating a delay in producing a final number on which North Newton can rely for its budget book. Staff said they had discussed the legal mechanics with the city attorney and would return with recommended language for the commission to approve.
