Eldora hearing outlines cuts, $963,000 EMS shortfall as state law forces levy drop

Eldora city staff told residents at a public hearing that a state mandate to lower the general property tax levy will force multiyear budget adjustments and that the largest near‑term deficits are in the municipal EMS service and the public library.

City staff described the mandate — House File 718 — requiring the city’s general levy to fall from 8.37% to 8.1% by fiscal year 2029, a change staff estimated will reduce available revenue by roughly $1.5 million under current assumptions. Staff said the general fund supports eight entities (pool, office, EMS, fire, police, IT, cemetery and library) and that EMS and the library are the most significant outliers in the current projections.

Why it matters: The levy reduction constrains the portion of local revenue the city can raise for general‑fund services; officials said they prefer phased, targeted reductions over “big sweeping changes” and have begun trimming the library and a single $75,000 line item to reduce the projected shortfall.

Staff outlined the immediate steps already taken: library hours will be reduced from 45 to 40 per week, and the library assistant‑director position will move from full‑time to part‑time. Those changes were presented as initial, painful steps meant to avoid abrupt, across‑the‑board cuts.

Residents and councilmembers pressed staff on EMS, which staff described as operating at a cumulative projected deficit of about $963,000 (the deficit is cumulative year‑over‑year; staff said the annual loss has been about $350,000 in recent years). Staff explained that ambulance runs are partly reimbursed by insurance — roughly 50–60% of billed charges — and the unpaid portion is typically written off, contributing to the operating shortfall.

Several residents asked whether the city could cancel a recently approved ambulance purchase. A council member asked whether that purchase could be rescinded; staff said canceling the order was "potentially" an option but warned the repair‑vs‑replace calculus can make postponement costly. Staff cited an empty ambulance cost of about $350,000 as a reference during discussion.

Public commenters stressed the levy’s local impact. "You're asking more for people who are on fixed incomes and cannot pay more," said resident Mark Murphy, who urged a moratorium on tax increases for fixed‑income residents and said job creation, not tax hikes, is the long‑term fix. Resident John Kelly said his taxes rose about 28% three years ago and asked what to expect this cycle; staff referred residents to the assessor for parcel‑specific details.

On EMS policy and potential county solutions, staff said the service is not a state‑mandated essential service for municipalities (the city’s obligation comes from local ordinance, as one resident noted). Staff and commenters discussed two state bills that could enable counties to receive state funding to support EMS; staff said making EMS an essential county service would require countywide ballot approval (estimated at a 60% margin under current law) and that countywide funding and management would require a detailed plan and broad political agreement.

Staff also clarified budget math: under current estimates the portion of the tax rate that goes to the general fund (the 8.37 levy) produces roughly $499,000 in revenue — about 30% of the city’s annual receipts — and the remaining funds come from separate levies and enterprise revenues (water, sewer, road use, capital funds).

The public hearing closed after motions and voice votes. A motion to close the public hearing carried on a voice vote, and a subsequent motion to adjourn also carried. Staff said the city will continue committee reviews and that further, harder conversations about additional cuts are expected as officials refine the budget ahead of the state submission.

What’s next: Staff said the city will continue committee deliberations and recommended community involvement on committees; residents were told they may speak further with staff or join advisory committees. The council must finalize the levy and submit required figures to the state on the established schedule.