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Atlantic City Official warns about tax increases if EMS isn’t declared an essential service

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March 5th, 2024 by Ric Hanson

(Atlantic, Iowa) – The Atlantic City Council will be focusing on Emergency Medical Services (EMS) as an Essential Service, in the weeks to come. Councilwoman Elaine Otte said the City has been working with the County and the hospital on EMS [ambulance] services.

The Board of Supervisors has set the date for a public hearing on the matter, and “In support of that, we all need to perk our ears up, we need to make sure that when that goes on the ballot in November, that gets passed as an essential service, for Cass County and Atlantic to continue to have ambulance service.”

City Administrator John Lund said the EMS issue “Will be a big thing,” when he discusses the City’s Budget. “The City of Atlantic needs to vote ‘yes’ on this, because if this [referendum] does not pass with a 60% [majority], which would put the property tax levy on a much wider [spread out] amongst a much larger tax base than the City has…if that fails, the City Council next year will have two options, and they’re both horrible.”

He said “It’ll be astronomically high tax rates that we’ve never seen before, or the Council will be in the position of having to gut departments. And I’m not being like dramatic about that…if you have to come up with $200,000 for an ambulance service, and you don’t want to raise the taxes, that’s the only alternative you have. And, it could be $300,000 if we don’t get fully funded again from the Small Business Income Tax credit,” and other “headwinds,” such as a Commercial Property tax rollback.

Lund said “Nobody likes to vote to increase their own taxes,” but about one-third of the base in the County comes from Atlantic. Councilwoman Otte reminded the Council and public, Essential Service gives the County and Cities the ability to levy taxes that support an ambulance or  EMS service. “We already have the right to do that for Police and Fire Departments, but ambulance services have never been considered an ‘essential service,’ so there was no way to get tax support for that.”

She said the legislature a few years ago made it possible for counties and cities would have the ability to do so, but it must be approved through a voter referendum. Mayor Grace Garrett said it will be very important for the City and County to educate the public and help them understand that this is another piece of providing an essential service to the community. Voters in Shelby County passed a referendum last November, approving a new tax to fund EMS. That decision puts EMS on the same level as police and fire services. Guthrie County is working on a similar proposal.