HomeMy WebLinkAboutA037 - Hearing on first amendment to the FY 2025/26 Adopted BudgetITEM #:41
DATE:09-23-25
DEPT:FIN
SUBJECT:AMENDMENT TO FISCAL YEAR 2025/26 ADOPTED BUDGET FOR
CARRYOVERS FROM FISCAL YEAR 2024/25 AND OTHER BUDGET
CHANGES
COUNCIL ACTION FORM
BACKGROUND:
The Code of Iowa requires that city spending by program not exceed Council-approved
budget amounts at any time during the fiscal year. To maintain this level of compliance,
the City’s budget is typically amended three times during the fiscal year. The following is the
customary amendment schedule:
Amendment #1 - A first amendment is prepared to carry over unspent project amounts from
the prior fiscal year in the fall.
Amendment #2 - The second amendment is completed as part of the adoption process for the
next fiscal year’s budget. This is typically done in March or April.
Amendment #3 - A final spring amendment is done to adjust for any significant changes that
have occurred since the prior amendment.
This amendment is typically restricted to the early start of CIP projects approved for the
following fiscal year, new grants received and their associated project expenses, and any
significant changes in CIP projects, operating expenses, or revenues.
Staff has prepared the first amendment (#1) to the FY 2025/26 City budget. As noted
above, this amendment includes capital projects and specific operating projects that
either span fiscal years or are delayed due to unforeseen circumstances. Also included
in the amendment are other modifications to the budget that were unexpected when the
original budget was adopted on April 22, 2025. A summary is attached describing the
carryovers and other budget changes, which total $110,890,937.
Please note that the projects and associated budgeted expenditures and funding
sources for carryovers were approved by City Council as part of the FY 2024/25 budget,
but were not completed during the year. This amendment provides formal Council
authority to carry forward the appropriation for projects and other work that is expected
to be spent in FY 2025/26.
1
ALTERNATIVES:
1. Adopt a resolution amending the fiscal year 2025/26 budget to increase expenditures by
$110,890,937 for carryover amounts from fiscal year 2024/25 and other significant
changes to the fiscal year 2025/26 budget.
2. Refer this item back to staff for additional information or other adjustments to the
amendments.
CITY MANAGER'S RECOMMENDED ACTION:
Amending the FY 2025/26 budget for carryover amounts from the FY 2024/25 budget
early in the fiscal year will provide for improved budget monitoring and tracking. It will
also provide assurance that Council-approved projects and work not completed in the
prior year will not be delayed for spending authority. Therefore, it is the recommendation
of the City Manager that the City Council adopt Alternative No. 1, as described above.
ATTACHMENT(S):
2025-26 Fall Budget Amendment Report FINAL.pdf
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CITY OF AMES, IOWA
2025/26
FALL BUDGET AMENDMENT
SUMMARY
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Table of Contents
Expenditure Change Summaries................................................................................................. 3
Explanation of Expenditure Changes .......................................................................................... 5
Fund Summary ........................................................................................................................... 8
Notice of Public Hearing Publication (Amendment of Current City Budget) ............................... 10
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3
Expenditure Change by Program
Percentage
2025/26 2024/25 2025/26 Change from
Program: Adopted Carryover Adjusted Adopted
Public Safety:
Law Enforcement 12,269,884 130,186 12,400,070 1.1%
Fire Safety 9,250,301 102,120 9,352,421 1.1%
Building Safety 1,994,042 - 1,994,042 0.0%
Animal Control 908,763 15,776 924,539 1.7%
Other Public Safety 15,559 - 15,559 0.0%
Public Safety CIP 3,541,905 3,262,933 6,804,838 92.1%
Total Public Safety 27,980,454 3,511,015 31,491,469 12.6%
Utilities:
Electric Services 64,408,013 755,223 65,163,236 1.2%
Water and Pollution Control 11,956,279 85,316 12,041,595 0.7%
Water Distribution System 1,975,698 - 1,975,698 0.0%
Sanitary Sewer System 1,038,011 - 1,038,011 0.0%
Stormwater Management 980,255 - 980,255 0.0%
Resource Recovery 5,024,867 - 5,024,867 0.0%
Utility Customer Service 1,892,349 - 1,892,349 0.0%
Utilities CIP 49,973,000 53,756,964 103,729,964 107.6%
Total Utilities 137,248,472 54,597,503 191,845,975 39.8%
Transportation:
Streets/Traffic System 9,422,416 60,561 9,482,977 0.6%
Transit System 15,692,130 - 15,692,130 0.0%
Parking System 1,031,607 27,500 1,059,107 2.7%
Airport Operations 168,801 - 168,801 0.0%
Transportation CIP 37,840,563 38,834,395 76,674,958 102.6%
Total Transportation 64,155,517 38,922,456 103,077,973 60.7%
Culture and Recreation:
Parks and Recreation 6,564,041 173,746 6,737,787 2.7%
Library Services 6,102,886 - 6,102,886 0.0%
Art Services 298,978 207,022 506,000 69.2%
Cemetery 258,096 - 258,096 0.0%
Culture and Recreation CIP 6,810,079 9,337,485 16,147,564 137.1%
Total Culture and Recreation 20,034,080 9,718,253 29,752,333 48.5%
Community Development:
Planning Services 1,178,104 2,854 1,180,958 0.2%
Economic Development 2,853,961 - 2,853,961 0.0%
Sustainability 24,927 1,058,960 1,083,887 4248.2%
Housing Services 1,600,998 - 1,600,998 0.0%
Human Services 2,053,976 5,000 2,058,976 0.2%
Community Development CIP 175,000 264,248 439,248 151.0%
Total Community Development 7,886,966 1,331,062 9,218,028 16.9%
5
4
Expenditure Changes by Program, continued
Percentage
2025/26 2024/25 2025/26 Change from
Program: Adopted Carryover Adjusted Adopted
General Government:
City Council 609,033 114,274 723,307 18.8%
City Clerk 312,095 - 312,095 0.0%
City Manager 611,789 140,250 752,039 22.9%
Communications/Outreach 400,852 - 400,852 0.0%
Financial Services 596,981 104,370 701,351 17.5%
Legal Services 609,546 - 609,546 0.0%
Human Resources 493,804 67,685 561,489 13.7%
Facilities 410,591 111,320 521,911 27.1%
General Government CIP 75,000 905,664 980,664 1207.6%
Total General Government 4,119,691 1,443,563 5,563,254 35.0%
Debt Service:
General Obligation Bonds 14,092,994 - 14,092,994 0.0%
Electric Revenue Bonds 966,075 - 966,075 0.0%
SRF Loan Payments 6,070,082 - 6,070,082 0.0%
Bond Costs 200,222 - 200,222 0.0%
Total Debt Service 21,329,373 - 21,329,373 0.0%
Internal Services:
Fleet Services 5,775,956 1,216,700 6,992,656 21.1%
Information Technology 2,760,052 150,385 2,910,437 5.5%
Risk Management 3,650,429 - 3,650,429 0.0%
Health Insurance 12,175,481 - 12,175,481 0.0%
Health Promotion 373,131 - 373,131 0.0%
Internal Services CIP - - -
Total Internal Services 24,735,049 1,367,085 26,102,134 5.5%
Total Expenditures
Before Transfers 307,489,602 110,890,937 418,380,539 36.1%
Transfers 25,030,918 - 25,030,918 0.0%
Total Expenditures 332,520,520 110,890,937 443,411,457 33.4%
6
5
2025/26 Amendments by Program
Public Safety Program $3,511,015
Public Safety operating expenses are being increased by $248,082 for delayed equipment and
capital purchases for the Police Department ($130,186), the Fire Department ($102,120), and
Animal Control ($15,776).
Funding of $3,262,933 is being carried over in the Public Safety CIP for the following projects:
Fire station improvements $146,768
Fire Station 2 relocation study 64,662
New Animal Shelter 3,051,503
Utilities Program $54,597,503
Operating funding of $840,539 is being added to the Utilities program for delayed equipment
purchases or projects for Electric Production ($486,000), the Electric Demand Side Management
Program ($269,223), W&PC Administration ($81,793), and Water Plant Operations ($3,523).
A total of $49,756,964 of Utility CIP project funds is being carried over. Additionally, Electric
Services is bringing forward $4,000,000 in future CIP funding for the Advanced Metering
Infrastructure project. The total Utility CIP funding change of $53,756,964 is allocated to the
following projects:
Electric Utility CIP projects ($17,073,174):
o Advanced metering infrastructure $5,469,116
o CT generation improvements 2,745,707
o Ontario substation 1,371,465
o Critical generators 1,123,618
o New thermal generation 1,092,327
o Other Electric CIP projects 5,270,941
Water Utility CIP projects ($9,883,562):
o North River Valley Well Field 4,479,242
o Water distribution system improvements 3,840,140
o Water Plant facility improvements 753,755
o Other Water Utility CIP projects 810,425
Sewer Utility CIP projects ($19,951,857):
o Sanitary sewer system improvements 11,238,882
o Nutrient reduction modifications 8,144,990
o Other Sewer Utility CIP projects 567,985
Stormwater erosion control projects 4,138,739
Low point drainage improvements 935,229
Other Stormwater Utility CIP projects 1,418,240
Resource Recovery improvements 356,163
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6
Transportation Program $38,922,456
Operating funding of $88,061 is being added to the Transportation Program for Traffic Operations
equipment ($15,000), parking meters and parking meter smart card retrofits ($27,500), and the
Right-of-Way Maintenance Emerald Ash Borer (EAB) program ($45,561).
Transportation CIP funding carryovers total $38,834,395 and consist of the following programs
and projects:
Street improvement projects ($12,109,109):
o South 16th Street widening $3,295,170
o Hyland Avenue improvements 2,323,424
o Collector street improvements 2,102,944
o Right-of-way restoration 865,603
o Concrete pavement improvements 800,919
o Asphalt pavement improvements 730,107
o Other street improvement projects 1,990,942
Shared use path projects 2,136,319
Traffic improvement projects 7,437,523
Street rehabilitation projects 3,141,896
Transit system improvements 11,307,319
Airport improvements 2,702,229
Culture and Recreation Program $9,718,253
Culture and Recreation operating funding of $380,768 is being carried forward. Of this amount,
$173,746 is for Parks and Recreation projects and equipment, primarily funded through
donations. Funding of $207,022 is also being carried forward in Art Services for Public Art
($57,022) and the artwork for Schainker Plaza.
Funding of $9,337,485 is being carried over for the following Culture and Recreation CIP projects:
Parks and Recreation CIP projects ($9,243,129):
o Fitch Family Indoor Aquatic Center $5,209,527
o Park maintenance facility 1,303,920
o Splash pad 977,314
o AHHP path replacement 530,341
o Park ADA improvements 224,496
o Downtown plaza 199,107
o Park play equipment 187,477
o Homewood improvements 121,084
o Other park and facility improvements 489,863
Cemetery improvements 94,356
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Community Development Program $1,331,062
In Community Development, operating funding has been increased by $1,066,814. In
Sustainability, $1,058,960 in funding is being carried over for Sustainability projects ($927,400),
the City facilities study ($61,560), the community grants program ($66,500) and the youth mini-
grants program ($3,500). Funding of $2,854 is being included in Planning Services to reflect the
remaining grant expenses and local match for the Chautauqua Park and Ridgewood Historic
District nomination to the National Register of Historic Places. Funding of $5,000 is also being
carried over from unallocated 2024/25 ASSET funds for continued homelessness outreach.
Funding of $264,248 is being carried over in Community Development CIP funding for the
Downtown Façade grant program.
General Government Program $1,443,563
Operating funding in the General Government program has been increased by $537,899.
In the City Council budget, $114,274 in funding has been carried forward. This includes the
remaining funding for the City’s website upgrade ($25,038) and for the Ames History Museum
($30,000). Unspent Council Contingency funds of $59,236 are also being carried forward.
Funding of $67,685 has also been carried over in the Human Resources budget for the Excellence
Through People (ETP) program. In the City Manager’s Office, funding has been carried over for
the Community-Wide Engagement Plan ($100,000) and engagement training ($40,250). The
remaining balance of $215,690 is funding being carried over for software and furniture for the
Finance Department ($104,370), and funding being carried over in the Facilities program for
space needs and remodeling projects in City Hall ($111,320).
The General Government CIP carryover of $905,664 is for the following projects:
City Hall improvements $300,043
Auditorium HVAC system 605,621
Internal Services Program $1,367,085
In the Internal Services program, $1,216,700 is being carried over in the Fleet Services budget
for delayed vehicle and equipment purchases. Funding of $150,385 is also being carried over in
Information Technology for equipment purchases.
Total Carryovers: $110,890,937
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8
Expenditure Changes by Fund
Percentage
2025/26 2024/25 2025/26 Change from
Fund: Adopted Carryover Adjusted Adopted
General Fund 47,465,237 2,461,255 49,926,492 5.2%
Special Revenue Funds:
Local Option Sales Tax 12,514,377 4,514,499 17,028,876 36.1%
Hotel/Motel Tax 2,580,261 77,951 2,658,212 3.0%
Road Use Tax 11,225,779 5,407,301 16,633,080 48.2%
Police Forfeiture 12,000 - 12,000 0.0%
Public Safety Donations/Grants 48,000 - 48,000 0.0%
Animal Shelter Donations 80,500 - 80,500 0.0%
New Animal Shelter Donations 1,500,000 3,000,000 4,500,000 200.0%
City-Wide Housing Programs 29,410 - 29,410 0.0%
CDBG Program 684,122 - 684,122 0.0%
HOME Program 256,483 - 256,483 0.0%
HOME/American Rescue Plan 630,983 - 630,983 0.0%
Employee Benefit Property Tax - - -
Police/Fire Retirement - - -
Parks & Rec Grants/Donations 654,900 196,466 851,366 30.0%
American Rescue Plan - 612,732 612,732
Library Grants/Donations 471,831 - 471,831 0.0%
Utility Assistance 15,500 - 15,500 0.0%
Miscellaneous Special Revenues - - -
Developer Projects - - -
Economic Development 28,032 - 28,032 0.0%
Tax Increment Financing (TIF) 882,550 - 882,550 0.0%
Total Special Revenue Funds 31,614,728 13,808,949 45,423,677 43.7%
Capital Project Funds:
Special Assessments 49,400 - 49,400 0.0%
Street Construction 3,786,000 7,571,443 11,357,443 200.0%
Park Development - 130,330 130,330
Winakor Donation 139,366 - 139,366 0.0%
Indoor Aquatic Center Donations 800,000 - 800,000 0.0%
Council Priorities Fund 1,750,000 1,315,278 3,065,278 75.2%
General Obligation Bonds 18,240,213 14,835,727 33,075,940 81.3%
Total Capital Project Funds 24,764,979 23,852,778 48,617,757 96.3%
Permanent Funds:
Cemetery Perpetual Care - - -
Furman Aquatic Center Trust - - -
Total Permanent Funds - - -
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Expenditure Changes by Fund continued,
Percentage
2025/26 2024/25 2025/26 Change from
Fund: Adopted Carryover Adjusted Adopted
Enterprise Funds:
Airport Operations/Improvements 11,178,662 2,094,929 13,273,591 18.7%
Water Utility/Improvements 24,613,133 10,104,939 34,718,072 41.1%
Sewer Utility/Improvements 38,341,464 19,968,157 58,309,621 52.1%
Electric Utility/SunSmart 81,563,608 17,828,397 99,392,005 21.9%
Parking/Parking Reserve 1,031,607 27,500 1,059,107 2.7%
Transit/Transit Reserve 23,002,693 11,307,319 34,310,012 49.2%
Stormwater Utility/Improvements 3,537,255 6,742,198 10,279,453 190.6%
Ice Arena Operations/Reserve 595,249 16,268 611,517 2.7%
Homewood Golf Course 406,229 75,000 481,229 18.5%
Resource Recovery 5,577,633 1,236,163 6,813,796 22.2%
Total Enterprise Funds 189,847,533 69,400,870 259,248,403 36.6%
Debt Service 14,092,994 - 14,092,994 0.0%
Internal Service Funds:
Fleet Services/Reserve 5,775,956 1,216,700 6,992,656 21.1%
Information Technology/Reserve 2,760,052 150,385 2,910,437 5.5%
Risk Insurance 3,650,429 - 3,650,429 0.0%
Health Insurance 12,548,612 - 12,548,612 0.0%
Total Internal Service Funds 24,735,049 1,367,085 26,102,134 5.5%
Total Expenditures 332,520,520 110,890,937 443,411,457 33.4%
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REVENUES & OTHER FINANCING SOURCES
Total Budget
as Certified
or Last Amended
Current
Amendment
Total Budget After
Current Amendment
Taxes Levied on Property 1 37,684,403 0 37,684,403
Less: Uncollected Delinquent Taxes - Levy Year 2 0 0 0
Net Current Property Tax 3 37,684,403 0 37,684,403
Delinquent Property Tax Revenue 4 0 0 0
TIF Revenues 5 550,000 0 550,000
Other City Taxes 6 15,288,394 0 15,288,394
Licenses & Permits 7 1,562,801 0 1,562,801
Use of Money & Property 8 29,077,356 0 29,077,356
Intergovernmental 9 48,243,067 0 48,243,067
Charges for Service 10 343,377,704 0 343,377,704
Special Assessments 11 209,414 0 209,414
Miscellaneous 12 4,098,108 0 4,098,108
Other Financing Sources 13 46,471,500 0 46,471,500
Transfers In 14 16,987,645 0 16,987,645
Total Revenues & Other Sources 15 543,550,392 0 543,550,392
EXPENDITURES & OTHER FINANCING USES
Public Safety 16 24,438,549 248,082 24,686,631
Public Works 17 9,422,416 60,561 9,482,977
Health and Social Services 18 2,069,476 5,000 2,074,476
Culture and Recreation 19 12,222,523 380,768 12,603,291
Community and Economic Development 20 5,657,990 1,061,814 6,719,804
General Government 21 4,035,108 537,899 4,573,007
Debt Service 22 14,092,994 0 14,092,994
Capital Projects 23 32,037,539 37,828,858 69,866,397
Total Government Activities Expenditures 24 103,976,595 40,122,982 144,099,577
Business Type/Enterprise 25 418,149,587 69,400,870 487,550,457
Total Gov Activities & Business Expenditures 26 522,126,182 109,523,852 631,650,034
Transfers Out 27 16,987,645 0 16,987,645
Total Expenditures/Transfers Out 28 539,113,827 109,523,852 648,637,679
Excess Revenues & Other Sources Over
(Under) Expenditures/Transfers Out 29 4,436,565 -109,523,852 -105,087,287
Beginning Fund Balance July 1, 2025 30 1,369,953,613 0 1,369,953,613
Ending Fund Balance June 30, 2026 31 1,374,390,178 -109,523,852 1,264,866,326
Explanation of Changes: Increases to the budget primarily include fiscal year 2025 carryovers. The majority of the carryovers are delayed capital projects.
NOTICE OF PUBLIC HEARING - AMENDMENT OF CURRENT BUDGET
City of AMES
Fiscal Year July 1, 2025 - June 30, 2026
The City of AMES will conduct a public hearing for the purpose of amending the current budget for fiscal year ending June 30, 2026
Meeting Date/Time: 9/23/2025 06:00 PM Contact: Nancy Masteller Phone: (515) 239-5113
Meeting Location: 515 Clark Avenue, Ames, IA 50010
There will be no increase in taxes. Any residents or taxpayers will be heard for or against the proposed amendment at the time and place specified above. A
detailed statement of: additional receipts, cash balances on hand at the close of the preceding fiscal year, and proposed disbursements, both past and
anticipated, will be available at the hearing. Budget amendments are subject to protest. If protest petition requirements are met, the State Appeal Board will
hold a local hearing. For more information, consult https://dom.iowa.gov/local-gov-appeals.
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