Oskaloosa Faces Mounting Financial Strain Over Unpaid 911 Service Bills

Oskaloosa, Iowa—The City of Oskaloosa is grappling with a significant financial challenge as its unpaid balance for Mahaska County 911 services continues to grow. Despite a recent payment of $237,703 to the Mahaska County 911 Board, the city’s outstanding debt has increased to $860,305.12, raising concerns about the fiscal responsibility and stability of essential emergency services.

Background on the Debt

The financial strain became apparent earlier this year when it was revealed that Oskaloosa had not paid $71,950.78 for services rendered in the fiscal year ending June 30, 2023. In addition, the city had not made any payments for the current fiscal year, during which it was expected to contribute $513,028.67 to 911 services.

The growing deficit, now surpassing $860,000, as the new fiscal year began, has put a significant burden on Mahaska County. County officials have had to allocate additional funds to cover the city’s lapse, impacting the overall cash flow of the 911 agency.

Ongoing Efforts to Resolve the Issue

City Manager Amal Eltahir earlier this year acknowledged the city’s financial oversight and has been working to find a solution. She explained that the city had budgeted for the annual expenditure but was caught off guard by the unpaid balance from the previous fiscal year, which was not accounted for in the budget.

To address the issue, Eltahir had instructed the city attorney to draft a resolution authorizing a payment of more than $200,000 to help reduce the debt. Eltahir stated that the city had about half a million dollars available in its fund for 911 services. However, previous expenses, such as the $283,644.94 payment to the Mahaska County Emergency Management Agency, have depleted these funds.

No other payments have been made to Mahaska County 911 since April 17th, 2024.

The city has expressed interest in conducting an audit of the 911 agency’s finances to ensure transparency and accountability. While the county and city support this measure, finding an auditing firm has proven challenging.

City officials have committed to resolving the issue and maintaining their partnership with Mahaska County 911. However, the city must act swiftly to regain public trust and ensure that vital emergency services remain fully funded and operational.

A financial dispute between two Iowa municipalities over an unpaid bill for 911 services is raising concerns about potential state intervention. The unpaid amount, which is significant, remains unresolved, and the service-providing municipality could consider suspending services if the bill is not settled.

Currently, there have been no official discussions involving the state of Iowa, but the situation could lead to state involvement if the municipalities do not reach an agreement soon.

Potential State Involvement

If state intervention becomes necessary, the following actions might be considered:

Mediation: The state could facilitate negotiations between the municipalities to establish a payment plan or settlement that satisfies both parties.

Adjustments in State Funding: The state might consider adjusting or withholding funds or grants to the non-paying municipality until the debt is resolved.

Audits and Oversight: Financial audits of the non-paying municipality could be conducted to ensure proper management of funds and prevent future disputes.

Legislative Measures: The Iowa General Assembly might explore legislative options to create mechanisms for enforcing payments between municipalities.

State Provision of Services: If necessary, the state could temporarily provide 911 services, billing the non-paying municipality directly for the cost.

Penalties and Legal Actions: The state could impose penalties or pursue legal action to recover the unpaid amounts and ensure adherence to contractual obligations.

Impact on Governance: Continued non-payment could prompt investigations into the financial management and governance practices of the non-paying municipality.