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Eldora council orders budget cuts, schedules EMS restructuring and votes to end Ackley contract

Eldora City Council · March 19, 2025
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Summary

After a lengthy FY26 budget review, the Eldora City Council directed a combination of measures to cut projected deficits—endorsing a modest library reduction, exploring EMS staffing/pay changes, pursuing a fire/EMS merger, and voting to terminate the contract with Ackley EMS effective at the contract expiration.

Facing a multi‑hundred thousand‑dollar projected deficit tied largely to EMS and library operations, the Eldora City Council gave staff direction on a set of budget measures and voted to end the city’s current EMS contract with Ackley (Aley/ACLY).

Treasurer Michelle presented FY26 projections showing a general fund shortfall and described constraints created by recent state legislation requiring a lower general levy. She said EMS and the library are the largest drivers of the deficit and presented two library reduction options: a modest cut to 40 weekly open hours (option one) and a deeper cut to the state minimum of 29 hours (option two). The finance committee recommended option one, citing ways to explore trust funds and school partnerships before deeper cuts.

On EMS, the council explored multiple measures to reduce costs: terminating the contractual obligation with Ackley to eliminate contractual financial commitments; shifting to a 28‑day pay cycle to reduce payroll‑related overtime expense; increasing use of part‑time staff and volunteer crews; and initiating planning for a fire/EMS merger to share levy tools and insurance/staffing efficiencies. Michelle and the finance committee estimated combined measures could reduce costs substantially but noted staffing and reimbursement rates remain limiting factors.

After extended debate and public input about service levels and community priorities, the council voted by roll call to send contract termination notice to Ackley, effective at the end of the current contract period (the city clerk was directed to follow the contract’s notice requirements). The council also authorized staff to pursue the finance committee's path: implement interim staffing/shift changes where feasible, analyze the 28‑day pay cycle, pursue more part‑time utilization and volunteer incentives, and begin formal merger discussions.

Council members and staff emphasized tradeoffs: residents prefer uninterrupted EMS coverage but the city must reconcile costs with a capped levy and long‑term sustainability. The council set subcommittees to work with department heads, the library board, and community stakeholders and asked staff to return specific implementation plans and budgets in coming weeks.