The Gypsum Fire Protection District's proposed property tax went down by an almost 2-1 margin.
Gypsum's Ballot Question 4A lost, 1,038-570.
The proposal would have raised a total of $260,000 a year for the Gypsum fire department.
Since 2008, the Gypsum fire department has lost one-third of its budget, which is based on property values, said Fire Chief Dave Vroman.
In 2008, the department's budget was $1.5 million. It's now down to around $1 million and they're looking at losing another 15 percent as property values continue to fall.
With their tax proposal failing, the department will have to cut staff and services, Vroman said.
"We don't want to cut services. We worked for 30 years to get to where we are," Vroman said.
The Gypsum fire department was founded in 1911 and operates three stations - Gypsum, Sweetwater and Dotsero. It covers 450 square miles in Eagle and Garfield counties, with 11 paid fire fighters and 40 volunteers.