Ames City Council Discusses $332.3 Million Budget for Fiscal Year 2025-26
In a bustling meeting at Ames City Hall, City Manager Steven L. Schainker and Mayor John Haila delved into the details of the upcoming $332.3 million fiscal year 2025-26 budget. The discussion centered on property tax and utility rate increases that will impact residents and businesses in Ames, Iowa.
Property Tax Rate Adjustments
City documents revealed that property owners in Ames can expect a 1.59% increase in the tax rate, climbing from $10.09 to $10.25 per $1,000 of taxable property. This uptick is partially attributed to a reduction in state funding, particularly the phased-out “backfill” payments, resulting in a loss of $195,000 for the city.
On average:
– Homeowners will face an additional cost of around $18.96 per $100,000 of home value.
– Commercial properties will witness a $0.53 rise per $100,000.
– Industrial property taxes are set to increase by $24.97 per $100,000.
City Manager Steve Schainker emphasized the necessity of these adjustments, stating, “We’ve done what we think is prudent, what we think we need to generate sufficient funds to provide the quality of services that you and the citizens are asking for.”
Utility Tax Rate Modifications
Electricity rates are slated to increase by approximately 1.5%, translating to an extra $1.20 per month on the average utility bill. This increase aims to fund renewable energy initiatives, with plans to add 50 MW of wind power over the next four years, boosting renewable energy usage from 15% to 31%.
Water rates will see a 3.5% increase to bolster system maintenance and capital improvements, including the implementation of a new chlorine monitoring system to enhance water quality.
Sanitary sewer rates will climb by 5.5% to cover biosolid disposal expenses and upgrade aging infrastructure. Meanwhile, stormwater and garbage collection fees will remain unchanged.
Investments in Public Safety
Significant allocations in the budget are earmarked for public safety initiatives. The Ames Police Department is set to receive $132,000 for the Alternative Response for Community Health (ARCH) program, a collaborative effort that pairs mental health professionals with EMTs to respond to crises effectively.
City documents highlight the benefits of this program, stating, “By responding with the ARCH team rather than with our law enforcement personnel, we are able to provide trained professionals equipped to de-escalate the situation, stabilize the crisis, and provide mental health support.”
Moreover, the Ames Fire Department will introduce a new firefighter position in preparation for the gradual establishment of a fourth fire station in Ames. Additionally, the local animal shelter plans to hire extra staff in anticipation of the opening of a new, larger facility in late 2026.
Upcoming Budget Hearings
Budget hearings are slated to commence on Tuesday and continue through Thursday, providing an opportunity for community members to engage with city officials and voice their opinions on the proposed budget adjustments.
As the city of Ames prepares for the fiscal year 2025-26, these deliberations underscore the commitment to balancing financial responsibilities with the delivery of essential services to residents and businesses alike. Stay tuned for further updates on how these budget decisions will shape the future of Ames.
