City of Ames Proposes Slight Property Tax Increase, And Higher Water and Sewer Fees

The bond referendum for the Ames Public Library, retirement fund contributions and structural improvements to the City's water and sewer utility will take a bigger nibble out of Ames residents' pocket books in the fiscal year beginning July 2013.

The city is currently setting its budget for the fiscal year that starts July 1.

The city's share of property tax bills will increase by 14 cents per $1,000 assessed taxable valuation from $10.72 to $10.86. And water and sewer utility bills will increase by 6 and 9 percent respectively, according to a draft budget presented to the Ames City Council.

Public input on the budget will be accepted at a meeting scheduled for 5:15 p.m. Tuesday, Feb. 12. in Council Chambers at City Hall, 515 Clark Ave.

While the levy rate is going up just 14 cents the Iowa legislature increased the property tax rollback for 2013-14 by about 2 percent from 50.75 percent to 52.81 percent.

Under the proposed tax rate, a home with an assessed valuation of $100,000 would receive a city tax bill of about $573, a $29 increase. (This figure doesn't count a homestead credit which would reduce the tax bill.)

The property tax increase covers greater contributions for the fire and police retirement system and the library renewal project approved by voters, but Ames City Manager Steve Schainker wrote in a budget summary that “because of the outstanding effort of our city staff, we have absorbed many of the increases,” he said.

The construction of the new water treatment plant will be funded through a series of rate increases. In the fiscal year beginning July 2013, a 6 percent increase is expected. The average bill would increase by $1.66 per month.

Sewer bills are expected to go up by 9 percent or a total of $1.97 per month for the average customer in July. The increases are due in part to a $21 million in expected capital improvements, Schainker wrote in a budget summary.

However rates for other city services such as electric and garbage are expected to remain the same.