Ames residents could pay more in utilities in the upcoming fiscal year, including a proposed 1.5% increase in electricity and 5.5% increase in sanitary sewer rates.
The Ames City Council held public budget hearings Tuesday and Wednesday and will hold another Thursday. The council is reviewing a proposed budget that includes investments in public safety, a new Resource Recovery and Recycling Campus, the Fitch Family Indoor Aquatic Center, utility rate increases and major infrastructure projects.
Several utility rate increases are proposed. Electric rates would increase 1.5%, with the overall impact on customer bills estimated at about 3.5% when higher energy costs are included. Water rates would rise 3.5% and sanitary sewer rates would increase 5.5%, largely driven by a $65 million, state-mandated nutrient reduction project at the water pollution control plant. Stormwater rates would remain unchanged this year.
Capital improvement projects
The proposed budget reflects continued funding for the new aquatic center, which city officials say is a major addition to Ames’ parks and recreation system. The new facility is a significant driver of an overall 8.4% increase in the parks and recreation budget. Without the aquatic center, the department’s budget increase would be about 2.1%. City staff members estimate the annual operating deficit for the facility at $295,000, which is lower than earlier projections.
Another major focus of the budget is the city’s transition to a new Resource Recovery and Recycling Campus, which will replace the current waste-to-energy system. Officials say stricter air quality rules and rising costs prompted the change. To help pay for the transition, the budget proposes increasing the tipping fee from $75 per ton to $85 per ton, with higher fees expected in future years. A new single-stream, curbside recycling program is expected to begin July 1, 2026, and the best estimate for the cost to residents will be less than $10 for monthly pickup, according to the draft budget.
City services
Public safety remains a priority in the proposed budget. Funding for the police department is intended to maintain current service levels and support daily operations. Fire protection investments include continued planning for a new fire station No. 2, which city leaders say will improve emergency response times as the community grows. The fire department also plans to expand safety education outreach and continue using smaller, more efficient rescue vehicles.
Building safety and code enforcement would see higher fees under the proposal. Rental housing inspection fees would increase for the first time since 2023 and building and trade permit fees would rise 5% across the board. City officials say these programs are meant to be self-supporting, but costs currently exceed revenue by more than $100,000. Most neighborhood complaints are resolved through education rather than citations.
Animal control and sheltering services are expected to expand as the city prepares to open a new animal shelter next winter. The budget includes six months of operating costs for the larger facility, along with continued low- or no-cost microchip and vaccination clinics and donated pet food for residents in need.
Parking is another area highlighted in the budget. City officials project the parking fund could face a deficit by fiscal year 2028-29. In addition, a proposed downtown parking ramp is part of the city’s long-term planning efforts. To help stabilize the fund in the short term, the adjusted 2025-26 budget includes a $50,000 transfer from general fund savings. Staff members are also exploring a shift from traditional parking meters to app-based parking and enforcement systems as equipment becomes harder to replace.
Library services continue to be supported as an important community resource. The budget reflects a shift away from physical materials toward more expensive digital collections. The Ames Public Library will also continue to rely on support from its Friends Foundation, which is expected to contribute more than $458,546, and on volunteers who provide thousands of hours of service each year.
Local improvements
Streets and transportation improvements are included throughout the budget. Funding is provided for new construction management software, a citywide stormwater analysis, vehicle sensors to assess road conditions and a proactive sidewalk inspection program. The budget also supports snow and ice removal on more than 563 lane miles of roads and alleys and includes the purchase of a new street sweeper to reduce long-term costs.
Airport improvements are also planned. The budget places a greater emphasis on landscaping, site cleanup and appearance at the Ames Municipal Airport, along with reconstruction of Airport Drive and repairs to aging hangars. Iowa State University will continue contributing to debt payments for the new terminal building while the city’s revenue from leased farmland at the airport is expected to decline.
The budget also supports street maintenance, snow and ice removal, sidewalk inspections and transportation technology upgrades.
What’s next: The final budget hearing will be 5:15 p.m. Thursday in the council chambers at City Hall, 515 Clark Ave. The next regularly scheduled meeting will be 6 p.m. Tuesday in council chambers.
