HomeMy WebLinkAboutA001 - Council Action Form dated April 22, 2025ITEM #:37
DATE:04-22-25
DEPT:W&PC
SUBJECT:FY 2025/26 DRINKING WATER AND SANITARY SEWER RATES
COUNCIL ACTION FORM
BACKGROUND:
The Ames Municipal Code states at 28.201(6):
"It shall be the duty of the director of water and pollution control to review and recommend to the city
council revisions of the [drinking water] rates and charges established and set out in this division at
intervals appropriate to provide for the funding needs of the utility."
Similarly, it states at 28.304(7):
"The City will review the [sewer] user charge system at least every three years and revise user charge
rates as necessary to ensure that the system generates adequate revenues to pay the costs of operation
and maintenance including replacement and that the system continues to provide for the proportional
distribution of operation and maintenance including replacement costs among users."
On April 8, 2025, staff presented Council with an overview of recent trends in water and sewer rates in
Ames, across Iowa, and throughout the US. The presentation also shared projected balances in the
Water and Sewer Funds over the next ten years based on the anticipated operating and capital expenses,
and a likely pattern of rate increases that would be needed to fully fund the anticipated expenses.
For the upcoming 2025/26 Fiscal Year, staff has recommended the adoption of a 3.5% across-the-
board increase in water rates, and a 5.5% across-the-board increase in sewer rates. The new
rates would be effective for bills mailed on or after July 1, 2025. The attached ordinance prepared
by the Legal Department would implement those increases.
ALTERNATIVES:
1. Approve on first reading the attached ordinance increasing water rates by three-and-one-half
percent (3.5%) and increasing sanitary sewer rates by five-and-one-half percent (5.5%), effective
for charges billed on or after July 1, 2025.
2. Direct staff to make modifications to the rate ordinance to enact some alternate rate adjustment.
3. Do not take any action to adjust the water and sanitary sewer rates and give staff direction on
expenditure reductions in order to maintain positive balances in the Water and Sewer Funds.
CITY MANAGER'S RECOMMENDED ACTION:
The proposed rate increases are necessary to fund the ongoing operations and maintenance
budget plus the anticipated capital improvements projects. The recommendation is part of a
consistent, predictable pattern of rate increases projected over the next ten years. Therefore, it is
the recommendation of the City Manager that the City Council adopt Alternative No. 1, thereby
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approving on first reading an ordinance that increases water rates by three-and-one-half percent (3.5%)
and that increases the sanitary sewer rates by five-and-one-half percent (5.5%), effective for charges
billed on or after July 1, 2025.
ATTACHMENT(S):
Ordinance Water-Sewer Rates FY2025-2026.PDF
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ORDINANCE NO. __________
AN ORDINANCE TO AMEND THE MUNICIPAL
CODE OF THE CITY OF AMES, IOWA, BY
AMENDING SECTIONS 28.201(1)(2)(3)(4)(5)(7) and (8)
AND 28.304(3) THEREOF, FOR THE PURPOSE OF
AMENDING WATER AND SEWER RATES AND
CHARGES REPEALING ANY AND ALL
ORDINANCES OR PARTS OF ORDINANCES IN
CONFLICT TO THE EXTENT OF SUCH CONFLICT;
AND ESTABLISHING AN EFFECTIVE DATE.
BE IT ENACTED, by the City Council for the City of Ames, Iowa, that:
Section One. The Municipal Code of the City of Ames, Iowa shall be and the same is hereby
amended by amending Sections 28.201(1)(2)(3)(4)(5)(7) and (8)and 28.304(3) as follows:
DIVISION II
WATER SERVICE
Sec. 28.201. WATER RATES AND CHARGES
The rates and charges for water supplied to consumers by the water utility of the city, to be billed on or
after July 1, 2021, 2025 are as follows:
(1)Residential Rates.
***
(b)Rate per billing period.For each monthly billing period a residential rate customer:
(i) shall be charged a minimum charge based on meter size, and in addition
(ii) shall be charged for water usage during the billing periods as follows:
(a) for bills mailed on or between July 1 and October 31 (summer period):
$0.0278 $0.0288 per cubic foot for the first 1000 cubic feet of usage
$0.0490 $0.0508 per cubic foot for the next 1500 cubic feet of usage
$0.0737 $0.0763 per cubic foot for all usage over 2500 cubic feet
(b) for bills mailed on or between November 1 and June 30 (winter period):
$0.0278 $0.0288 per cubic foot
(2)Non-residential (Commercial) Rates
***
(b)Rate per billing period:For each monthly billing period a non-residential customer:
(i) shall be charged a minimum charge based on meter size, and in addition
(ii) shall be charged for water usage during the billing periods as follows:
(a) for bills mailed on or between July 1 and October 31 (summer period):
$0.0364 $0.0376 per cubic foot
(b) for bills mailed on or between November 1 and June 30 (winter period):
$0.0278 $0.0288 per cubic foot
(3)Non-Peaking Industrial Rate.
***
(b)Rate per Billing Period.For each monthly billing period a non-peaking
industrial rate customer:
(i) shall be charged a minimum charge based on meter size, and in addition
(ii) shall be charged for water usage during the billing periods as follows:
(a) for bills mailed on or between July 1 and October 31 (summer period):
$0.0278 $0.0288 per cubic foot
(b) for bills mailed on or between November 1 and June 30 (winter period):
$0.0278 $0.0288 per cubic foot
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(4)Irrigation and Yard Water Service Rate.
***
(b)Rate per Billing Period.For each monthly billing period an irrigation and yard
water rate customer:
(i) shall be charged a minimum charge as described below, and in addition
(ii) shall be charged for water usage during billing periods as follows:
(a) for bills mailed on or between July 1 and October 31 (summer period):
$0.0401 $0.0415 per cubic foot for the first 2000 cubic feet of usage
$0.0737 $0.0763 per cubic foot for the next 3000 cubic feet of usage
$0.1227 $0.1270 per cubic foot for all usage greater than 5000 cubic feet.
(b) for bills mailed on or between November 1 and June 30 (winter period):
$0.0278 $0.0288 per cubic foot
(5)Rural Water Rate.
***
(b)Rate per billing period.For each monthly billing period, a rural water rate
customer:
(i) shall be charged a Rural water minimum charge based on meter size.
(ii) shall be charged for water usage during billing periods as follows:
(a) for bills mailed on or between July 1 and October 31 (summer period):
$0.0461 $0.0477 per cubic foot for the first 2000 cubic feet of usage
$0.0848 $0.0877 per cubic foot for the next 3000 cubic feet of usage
$0.1412 $0.1461 per cubic foot for all usage greater than 5000 cubic feet.
(b) for bills mailed on or between November 1 and June 30 (winter period):
$0.0320 $0.0331per cubic foot for all consumption
***
(7)Minimum charges.For each monthly billing, each customer shall be charged a minimum
monthly charge based on the size of the water meter (s) and/or irrigation meter (s) at each location. The
minimum monthly charge may be prorated, based on a 30-day billing period, for the customer’s initial
and/or final bills, provided that in no case shall the minimum monthly charge be less than six dollars and
thirty-one cents ($6.82) seven dollars and six cents ($7.06).
The minimum monthly charge for each water meter location shall be as follows:
Size of Meter
Residential,
Non-Residential,
Non-Peaking Industrial,
and Irrigation Account Yard Water Accounts Rural Water Accounts
5/8”or 5/8” x 3/4”$14.20 $14.70 $5.38 $5.57 $16.34 $16.91
3/4 inch $28.40 $29.39 $8.35 $8.64 $32.66 $33.80
1 inch $56.81 $58.80 $11.63 $12.04 $65.33 $67.62
1-1/2 inch $113.62 $117.59 $16.04 $16.61 $130.67 $135.24
2 inch $227.23 $235.19 $21.33 $22.08 $261.32 $270.46
2 inch, battery of 2 $440.13 $455.53 --$506.15 $523.86
2 inch, battery of 3 $653.12 $675.97 --$751.09 $777.37
3 inch $454.36 $470.26 $27.74 $28.72 $522.52 $540.81
4 inch $766.70 $793.53 $34.49 $35.70 $881.70 $912.56
6 inch $1,277.82 $1,322.55 $41.31 $42.76 $1,469.50 $1,520.93
8 inch $2,555.64 $2,645.09 $48.13 $49.82 $2,938.99 $3,041.85
10 inch $3,833.46 $3,967.64 $54.55 $56.34 $4,408.48 $4,562.78
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(8)Multiple dwellings – Mobile home parks.Multiple dwellings, including mobile home parks,
may be serviced from a single water meter. However, there shall be a surcharge added to the water rates
set forth above, to be calculated as follows:
For a 5/8 inch meter serving 2 or more dwelling units..............4.09 $4.23/month/unit
For a ¾ inch meter serving 4 or more dwelling units............... 4.09 $4.23/month/unit
For a 1 inch meter serving 8 or more dwelling units................ 4.09 $4.23 /month/unit
For a 1-1/2 inch meter serving 16 or more dwelling units........ 4.09 $4.23/month/unit
For a 2 inch meter serving 30 or more dwelling units..........122.33 $126.61/month
for the first 30 units plus $6.35 $6.57/month per unit
for each additional unit in excess of 30 units
For a 3 inch or larger meter serving any number of dwelling units 5.62 $5.81/month/unit
For the purposes of this section, a dwelling unit is defined as a self-contained living facility,
(i.e., including kitchen and bath) such as an apartment or a licensed independent mobile home
space.
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DIVISION III
SEWERS
***
Sec. 28.304. SEWER RATES ESTABLISHED.
***
(3) For each monthly billing on or after July 1, 2024 2025, each customer shall be
charged a minimum monthly charge. The minimum charge for each location shall be thirteen
dollars and one cent seventy-three cents ($13.0173). The minimum monthly charge may be
prorated, based on a 30-day billing period, for the customer’s initial and/or final bills, provided
that in no case shall the prorated minimum monthly charge be less than five dollars and twenty-
seven cents ($5.0027). In addition, for all water metered beginning with the first cubic foot each
month, each user shall pay three dollars and thirty-three fifty-one cents ($3.3351) per 100 cubic
feet.
***
Section Two. All ordinances, or parts of ordinances, in conflict herewith are hereby
repealed to the extent of such conflict, if any.
Section Three. This ordinance shall be in full force and effect from and after its passage
and publication as required by law.
Passed this day of , 2025.
_______________________________________________________________________
Renee Hall, City Clerk John A. Haila, Mayor
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