It is budget time for the city of Ames. The budget hearings started last Friday afternoon (2:00) and are continuing Monday (today), Tuesday, and Wednesday at city hall at 5:15 (See agendas) . The complete budget document can be found here (a big 15 Meg file) .
The tax rate is going up. The lion’s share of the increase is due to the new pool (aquatics center). The current rate is $10.43 per $1,000 of property value. The proposed new rate is $11.06 per $1,000 of property value. Forty-Seven cents of this rate increase is attributable to the first year’s debt payment for the new aquatics center. Without the pool the rate would have increased by 1.46%.
Coming Budget Years
Likely the biggest impacts to the citizens of Ames will not happen this coming budget year (2008-09). The 2009-10 budget year looks to have increases in water, sewer, storm sewer, and electric rates.
Due to growth in the city of Ames and growth in irrigation the city is coming close to reaching the capacity of its current water treatment plant. Increasing the capacity of the current plant will be costly and require an increase in rates for the 2009-10 budget year. This coming year you are likely to see a restructuring of water rates to encourage summer conservation. The best estimate at this time is that this type of project will require a series of five annual rate increases beginning in 2009-10
Due to environmental requirements for sewer treatment by the Iowa DNR and US EPA, the city is likely to see an increase in sewer rates to pay for new equipment required for water disinfection.
Due to growth in the city of Ames, growth in demand for energy, the age of the power plant and federal environmental requirements the city power customers are likely to a significant rate increase in the 2008-09 and 2009-10 budget year. This budget year the city is continuing to emphasize demand side management of power (conservation and efficiency increases). This should help reduce the needed capital required for upgrading power facilities and thus hopefully reduce the size of needed rate increases. The city is continuing to work to include renewable sources of electric generation such as wind, bio fuels, etc.
To maintain the current storm sewer and to comply with federal/state requirements reducing sediment and storm water run off, the city may need to increase rates. The city may also look at restructuring the rates. Currently every water meter in Ames is billed the same amount for storm water management regardless of the impervious surfaces associated with it. So a large big box could pay the same as a home for storm water management. I support changing the rate structure to take into account how much run off is attributable to a given property.
That is it for now. Many of you are receiving this message for the first time. I assure you it is not always full of news about tax and rate increases. As for the budget hearings, we usually do not have members of the public present at these meetings. If your so moved please attend to get a flavor of what goes on. If you do attend please stop by and say hello beforehand or at a break. Also ask city staff about getting a copy of the budget so you may follow along.
Jim Popken
City Council At Large
Disclaimer: My intent of this communication is to give you a heads up on items coming to the city council. I may state some of my impressions and leanings here. I will, however, try to avoid staking out a position on issues before the council meeting occurs. I feel that I should avoid committing to any positions until I have heard and considered all the public input at the council meeting before a vote.
