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Eldora council adopts FY26 budget as residents warn reserves will shrink
Summary
The Eldora City Council adopted the FY26 budget and certified city taxes despite public concern that reserves could fall from roughly $3.67 million to $900,000 by the end of FY26; councilmembers said cuts to infrastructure are planned and long-term personnel reductions remain uncertain.
The Eldora City Council voted to adopt the city's FY26 budget and certify city taxes after a public hearing in which residents and council members raised concerns about a rapidly shrinking fund balance.
At a roll-call vote on resolution 4253540, councilmembers Miley, Don, Carrie and Mike voted to adopt the budget. The action follows a public hearing called by the mayor and staff to solicit comment on the proposed spending plan.
Why it matters: Resident Jerry Kramer told the council he had reviewed the budget notice and projections and said the city's ending fund balance appears to drop from about $3.67 million (FY24) to roughly $900,000 at the end of FY26. "It looks to me as if you're really digging into the reserve," Kramer said, asking whether the budget assumes a $2 million shortfall in revenue.
City staff responded that the projection reflects a mix of one-time uses and timing of revenues. Gary, speaking for staff, said the council would start by trimming infrastructure spending — buildings, fuel and vehicle costs — and that while they are evaluating options they could not promise personnel cuts. "We have been operating at a deficit in our city budget for many years now," Gary said, adding that state legislation has reduced options and the adjustments could take three to five years.
Council members and residents discussed next steps and timeline: staff said a budget amendment hearing will be scheduled in mid-May to finalize any changes before submitting documents to the state. The council also acknowledged that property taxes levied on property, as presented in the certification sheet, reflect an increase of about 10.2% compared with the previous levy.
Other concerns raised during the hearing included the timing of a planned ambulance delivery (staff said the earliest expected delivery is in the FY27 budget) and a public suggestion to pursue reverse annexation to remove two high-call facilities from the city limits to reduce emergency-service demands.
The council concluded by approving the budget and tax certification and setting follow-up steps to refine budget cuts and evaluate future options for services and capital maintenance.
