Confusion continues

Webster County EMS agencies unclear about what happens next with EMS levy

Webster County voters thought they had settled the question of how to fund emergency medical services when more than 83 percent of voters approved a levy of up to 75 cents last year. But then the state changed the calculation.

This summer, Webster County officials learned the Iowa Department of Management had calculated the county's EMS levy rate at roughly 66 cents per $1,000 of taxable value for the current fiscal year rather than the maximum 75-cent rate authorized by voters.

The lower rate does not mean EMS agencies will receive less than Webster County supervisors already approved for them in the current budget. The Department of Management has since told the county that the amount already budgeted for fiscal year 2027 will remain intact. But the confusion isn't over.

The change stems from state laws approved after Webster County supervisors had already adopted and certified the current fiscal year budget. Those state laws changed how EMS property tax revenue is treated within tax increment financing districts and established additional property tax restrictions that will affect future budget years.

Now, with another budget season approaching, Webster County supervisors, members of the EMS Advisory Council, Fort Dodge officials and rural EMS agencies are trying to determine how much money they can count on in fiscal year 2028 and beyond.

For agencies such as the Dayton Rescue Squad and Southwest Webster Emergency Medical Service, which already operate on tight margins, the answer could affect decisions about ambulances, equipment, staffing and other expenses that require years of planning.

Voters approve EMS as essential service

On March 4, 2025, Webster County voters approved the EMS levy by a vote of 3,447 to 676, or more than 83 percent.

The measure authorized the Webster County Board of Supervisors for 15 years to impose an EMS property tax levy of up to 75 cents per $1,000 of taxable valuation, officially establishing EMS as an essential service in Webster County.

That funding was designed to create a more stable countywide EMS system, including support for the Fort Dodge Fire Department and smaller rural agencies, like Dayton Rescue and Southwest Webster, that have struggled with aging equipment, staffing and rising operating costs.

The Webster County EMS Advisory Council developed a plan for how the money would be distributed, the supervisors approved EMS funding as part of the county's fiscal year 2027 budget, and then state law changed.

New law adds TIF property to EMS tax base

Senate File 2496 was approved during the 2026 legislative session to address how EMS property taxes were treated within tax increment financing, or TIF, districts.

Under the previous system, some property tax revenue generated within a TIF district could be captured for urban renewal purposes rather than going to EMS.

State Rep. Ann Meyer, R-Fort Dodge, said lawmakers heard from counties where voters had approved increased EMS funding only to find that TIF property was not contributing to the EMS system in the same way as other taxable property.

"Some of the people were noticing that they had voted to increase the levy to 75, and the TIF properties were excluded, and that wasn't the intent of an EMS levy," said Meyer. "The intent was that EMS got more money."

SF 2496 changed the law so EMS taxes are no longer excluded from that TIF valuation.

"What that bill does is just says that TIF districts are not excluded from the EMS levy," said Meyer.

That meant more taxable property became available to generate EMS revenue. But by the time the bill became law, Webster County's FY27 budget had already been approved.

According to Meyer, that timing is at the center of what happened next.

"The supervisors' budget was already approved before this bill was signed," said Meyer. "So that is the budget that goes forward."

Because the newly available TIF valuation expanded the tax base, the Department of Management determined that Webster County did not need the full 75-cent rate to generate the amount of money already included in its approved budget. The resulting rate was calculated at roughly 66 cents.

"While people are saying, 'Well, you've dropped the levy,' no, we haven't," said Meyer. "We've added more property, and the money that was budgeted before this bill was passed is what you're getting. You're just not getting 75 cents of everything else this year."

Meyer emphasized that the Legislature did not eliminate Webster County's authority to levy up to the amount voters approved.

"The levy is not changing," said Meyer. "It is not changed in law. The Legislature did not change the levy."

More than $217,000 in potential revenue

As Webster County officials began sorting through the change, they also calculated what the additional TIF valuation could have generated if the county had been able to apply the full 75-cent rate to it this year.

On Aug. 17, Webster County Budget and Finance Director Krystal Lloyd, who is now the county auditor, calculated the difference at $217,191.72 countywide. That figure is not money that was included in the county budget and then taken away. Rather, it represents potential additional EMS revenue that could have been generated from the expanded tax base if the full voter-authorized rate had been applied after the TIF change.

Because Webster County's budget had already been certified before the legislation took effect, that additional revenue was not included in the FY27 spending plan. That distinction has been one of the sources of confusion as county officials and EMS providers attempt to understand the new rules.

Officials are now trying to separate three separate figures: the maximum 75-cent rate voters authorized, the roughly 66-cent rate Department of Management calculated for FY27 and the actual dollar amount supervisors approved in the county EMS budget.

State Sen. Tim Kraayenbrink, R-Fort Dodge, said his understanding is that EMS providers will receive all of the funding included in that certified budget.

"They're still getting their full budgeted amount, but they were expecting more than that," said Kraayenbrink.

With more taxable property available following the TIF change, Kraayenbrink said the full 75-cent rate was not needed to generate the amount already budgeted. He also pointed to the timing of the legislation as a major factor in the confusion.

"I think some of (the confusion) was a timing issue of that property tax bill being passed after the budget process was done," said Kraayenbrink.

Rural agencies need predictability

While the difference does not represent a cut from this year's approved budget, the larger question matters significantly to Webster County's smaller EMS providers.

Dayton Rescue and Southwest Webster EMS already operate on tight margins, meaning relatively small changes in anticipated revenue can affect when an ambulance can be replaced, what equipment can be purchased and what services can be maintained.

"We're already being fiscally responsible," said Danny Hansen, director of the Dayton Rescue Squad. "Our ambulance is 28 years old. It's really going to hurt."

At the time Hansen made the comment, local officials were still working to understand whether the change in the levy rate would affect money already allocated to the agencies. The state has since clarified that the amount approved in the current county budget will remain available.

The question now is whether the additional revenue potentially available because of the TIF change can be captured in future years, and what new state property tax restrictions will allow counties to collect.

Another law affects FY28

Complicating the issue further is Senate File 2472, the larger property tax reform legislation approved by lawmakers this spring. The legislation did not remove the existing authority for counties to impose an EMS levy of up to 75 cents per $1,000. But it established additional limits on the growth of revenue generated by certain voter-approved EMS property tax levies beginning with the fiscal year that starts July 1, 2027. That means the maximum rate authorized by Webster County voters and the maximum number of dollars the county may be able to collect could become two different questions.

That distinction is particularly important as Webster County prepares its FY28 budget. Local officials are trying to determine how the new revenue limitations will interact with the levy voters approved in 2025, what FY27 revenue figure will be used to calculate the next year's limit and whether Webster County will be able to levy at the full 75-cent rate if its EMS budget requires it.

Meyer said the EMS Council will again develop its budget and supervisors will determine what is approved.

"The EMS board next year will make their budget, and the levy is not changing," said Meyer.

Locally, however, officials say they still need additional guidance to understand exactly how the new rules will apply. The challenge is attempting to build future budgets while the rules governing the funding have changed, sometimes after those budgets were already completed.

Planning beyond one year

For the Fort Dodge Fire Department, the concern extends well beyond the current fiscal year. The department has been planning for a second firehouse and additional staffing as it continues to respond to emergency calls throughout Webster County.

Fire Chief Matt Price said construction bids have not been awarded and additional personnel have not yet been hired, so the department is not currently committed to expenses it cannot meet. However, Station 2 is anticipated to be put out for bid next month. The larger concern is whether its long-term financial model remains sustainable.

"Our original planning looked at the affordability of the new station, equipment, and additional staffing over approximately the next 10 years," said Price. "When recurring revenue is removed from that model, it changes what is sustainable over time."

If Webster County is able to use the full levy authority approved by voters in FY28, some of the concern about future revenue could be alleviated. But until local officials understand exactly how the new state laws and Department of Management calculations will affect the next budget, agencies are hesitant to plan around dollars they cannot yet be certain will be available.

"This is not simply about one budget year," said Price. "The concern is whether we can continue building the EMS system that Webster County voters approved and maintain it for the long term."

Webster County not alone

Webster County is not the only Iowa county trying to determine what the state's changes mean for a voter-approved EMS levy. Ida County filed a petition for judicial review this summer challenging the Iowa Department of Management's handling of its EMS levy.

In 2023, more than 78 percent of Ida County voters approved a levy of up to 75 cents per $1,000 of taxable valuation to provide long-term EMS funding.

Ida County officials have said their legal challenge is not directed at the Legislature's decision to prevent EMS tax revenue from being diverted through TIF. Their disagreement centers on how the DOM subsequently applied the change to their voter-approved levy.

"The people of Ida County voted to authorize an EMS levy of up to 75 cents per $1,000 of taxable valuation," said Ida County EMS Director Corey Trucke. "This case is about ensuring that voter-approved local decisions are respected and that state agencies operate within the authority granted to them by the Legislature."

Webster County officials are watching that case while continuing to seek answers about their own levy.

For this fiscal year, one major question has been answered: EMS providers will receive the dollar amount supervisors already approved in the county budget.

The harder question is what happens next.

With FY28 budget discussions approaching, local officials must now determine how much of the funding authority voters approved they will actually be able to use, and rural EMS agencies must decide how much they can safely count on while making plans that extend years into the future.