We live in an area that is mostly open. A family that we know well, owned a young small breed dog, several mornings in a row they witnessed a coyote, playing just out side their yard fence ( barbed wire ) in the field. The coyote would play, role, and jump around while the small dog watched from the yard, and the family watched from the window, this went on for three days or so.
One day the small dog decided to join in on the fun, and leave the yard. Suddenly two other coyotes came out of nowhere, needless to say the dog became a meal for three coyotes as the family watched from the window.
I also read that urban coyotes feed heavily on house cats and strays, I will keep my opinion about coyotes to myself, I will say this they are smart, work in numbers, and are opportunistic, they are here for a reason, and I have shot many of them.
In my neck of the woods there are several chicken growers, and dairy farms, their dead pits and compost areas keep an abundance of coyotes in my hunting area.
While this may be an isolated incident, I would not trust my fluffy puppy with a coyote.