(Atlantic) Facing a steep increase in ambulance service costs, the City of Atlantic will use a sewer utility surplus to balance its budget and maintain vital emergency services, according to City Administrator John Lund.
The city’s subsidy to its EMS provider, Midwest Medical, has increased from $124,061 to $239,603—an unexpected rise of $115,542. With limited options and mounting state-imposed financial restrictions from House File 295, Senate File 619, House File 2552, and HF 718, the City Council ultimately chose what Lund described as its “break the glass” option: declaring a surplus in the sewer utility and transferring funds to the General Fund.
Lund says this was not a decision taken lightly, noting that the alternative—cutting staff or services in departments like police, fire, EMS, and parks—was deemed unacceptable. Running a deficit was also ruled out due to the long-term risks to the city’s credit rating and financial stability.
Lund says this marks only the second time the city has used this mechanism, the first being in 2015 to cover catastrophic self-insurance claims. This year’s declaration, although smaller, is essential to bridge the funding gap until the EMS Essential Services Levy takes effect in FY 2026. He thanked the community for saying yes to EMS.
The city began discussing this approach during the FY 2025 and FY 2026 budget sessions. Budget documents acknowledged the ambulance contract increase would require a one-time surplus declaration and noted future reliance on non-TIF transfers to stabilize the General Fund.
The move ensures that Atlantic residents continue to receive uninterrupted emergency medical services while maintaining fiscal responsibility under challenging circumstances.
