ZIONSVILLE, Ind. -- While cities across Indiana are blaming new property tax caps for their financial woes, leaders in one community said fiscal discipline has helped them to flourish.

In Zionsville, officials have streamlined government by merging the town with surrounding Eagle and Union townships, and have enacted more than 20 efficiency recommendations on personnel, building and purchasing, 6News' Norman Cox reported.

So instead of the civil government property tax rate going over the cap, they were able to reduce their tax levy by 25 percent with no loss of services.

"No layoffs. We have held the line on expenses, haven't added new people and have looked for ways to save money wherever possible, and cross train our employees so they can fulfill multiple functions," said Zionsville Town Council President Matt Price. "I think everybody can exercise fiscal discipline. I don't think that's unique to Zionsville at all."

The state Department of Local Government Finance has praised Zionsville's efforts, and said the ideas can work elsewhere if community leaders are willing.

"What it takes is cooperation at the local level from the locally elected officials, and the leadership to challenge the status quo and do what's in the best interest of taxpayers," said agency spokeswoman Mary Jane Michalak.

The Indiana Association of Cities and Towns said it congratulates Zionsville on what it's accomplished, but insisted that the technique will not work everywhere because every community's problems are different.

In Anderson, city government has stopped paying bills to vendors, while Muncie leaders have discussed shutting off every other street light to save money, and Lawrence has sliced $5 million from its fire budget. All of the communities blame the property tax caps for a drastic loss in revenue.