HomeMy WebLinkAboutA040 - April 28, 2026, Regular Meeting of the Ames City CouncilITEM #:44
DATE:04-28-26
DEPT:W&PC
SUBJECT:FY 2026/27 DRINKING WATER AND SANITARY SEWER RATES
COUNCIL ACTION FORM
BACKGROUND:
On April 14, 2026, 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 2026/27 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, 2026. The
attached ordinance prepared by the Legal Department would implement those increases. The
ordinance also deletes obsolete language in 28.304 that was related to the original financing
of the Water Pollution Control Facility and is no longer applicable.
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, 2026.
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 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,
2026.
ATTACHMENT(S):
FINAL DRAFT Ordinance Water-Sewer Rates FY2026-27.PDF
1
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)(8), 28.303 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)(8), 28.303 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, 2025, 2026 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):
$0.0288 $0.0298 per cubic foot for the first 1000 cubic feet of usage
$0.0508 $0.0525 per cubic foot for the next 1500 cubic feet of usage
$0.0288$0.0790 per cubic foot for all usage over 2500 cubic feet
(b) for bills mailed on or between November 1 and June 30 (winter period):
$0.0288$0.0298 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):
$0.0376 $0.0389 per cubic foot
(b) for bills mailed on or between November 1 and June 30 (winter period):
$0.0288 $0.0298 per cubic foot
2
(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):
$0.0288 $0.0298 per cubic foot
(b) for bills mailed on or between November 1 and June 30 (winter period):
$0.0288 $0.0298 per cubic foot
(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):
$0.0415 $0.0429 per cubic foot for the first 2000 cubic feet of usage
$0.0763 $0.0790 per cubic foot for the next 3000 cubic feet of usage
$0.1270$0.1315 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):
$0.0288 $0.0298 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):
$0.0477 $0.0493 per cubic foot for the first 2000 cubic feet of usage
$0.0877 $0.0908 per cubic foot for the next 3000 cubic feet of usage
$0.1461$0.1512 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):
$0.0331$0.0342 per 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 seven dollars and six thirty-one cents $7.06 $7.31).
3
The minimum monthly charge for each water meter location shall be as follows:
(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..............$4.23$4.38/month/unit
For a ¾ inch meter serving 4 or more dwelling units............... $4.23$4.38/month/unit
For a 1 inch meter serving 8 or more dwelling units................ $4.23$4.38 /month/unit
For a 1-1/2 inch meter serving 16 or more dwelling units........ $4.23$4.38/month/unit
For a 2 inch meter serving 30 or more dwelling units..........126.61$131.04/month
for the first 30 units plus $6.57 $6.80/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 $5.81 $6.02/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.
***
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”$14.70 $15.21 $5.5 7$5.77 $16.91 $17.50
3/4 inch $29.39 $30.42 $8.64 $8.94 $33.80 $34.99
1 inch $58.80 $60.85 $12.40 $12.46 $67.62 $69.99
1-1/2 inch $117.59 $121.71 16.61 $17.19 $135.24$139.97
2 inch $235.19 $243.42 $22.08 $22.85 $270.46$279.93
2 inch, battery of 2 $455.53 $471.48 --$523.86 $542.20
2 inch, battery of 3 $675.97 $699.63 --$777.37 $804.58
3 inch $470.26 $486.72 $28.72 $29.72 $540.81 $559.74
4 inch $793,53 $821.31 $35.70 $36.95 $912.56 $944.50
6 inch $1,322.55 $1,368.83 $42.76 $44.26 $1,520.93 $1,574.16
8 inch $2,645.09 $2,737.67 $49.82 $51.56 $3,041.85 $3,148.31
10 inch $3,967.64 $4,106.50 $56.34 $58.32 $4,562.78 $4,722.48
4
DIVISION III
SEWERS
Sec. 28.303. USE OF RATE REVENUE.
The user charge system shall generate adequate annual revenues to pay costs of annual
operation and maintenance, including replacement, and costs associated with debt retirement of
bonded capital associated with financing the treatment works which the City may by ordinance
designate to be paid by the user charge system. That portion of the total user charge, which is
designated for operation and maintenance, including replacement of the treatment works, shall be
established by this ordinance.
That portion of the total user charge collected which is designated for operation and
maintenance, including replacement, shall be deposited in a separate non-lapsing fund known as
the WPC Operation, Maintenance and Replacement Fund.
Fiscal year-end balances in the operation, maintenance, and replacement fund shall be
used for no other purposes than those designated. Monies which have been transferred from
other sources to meet temporary shortages in the operation, maintenance, and replacement fund
shall be returned to their respective accounts upon appropriate adjustment of the user charge
rates for operation, maintenance, and replacement. The user charge rate(s) shall be adjusted
such that the transferred monies will be returned to their respective accounts within six months of
the fiscal year in which the monies were borrowed.
Sec. 28.304. SEWER RATES ESTABLISHED.
***
(3)The rates and charges for sewer service provided by the sewer utility of the City,
to be billed on or after July 1, 20252026, for each monthly billing period are as follows:
(a)Resident Customers. The Resident Rate shall apply to all customer
accounts within the Ames corporate limits.
(i) a monthly minimum charge of thirteen dollars and seventy-three cents
($13.73) fourteen dollars and forty-eight cents ($14.48).
(ii) a charge for sewer usage during the billing period of three dollars and
fifty-one cents ($3.51) three dollars and seventy cents ($3.70) per 100 cubic feet.
(b)Nonresident Customers. The Nonresident Rate shall apply to all customers
accounts outside the Ames corporate limits, except for those covered by a separate wholesale
contract or agreement for service.
(i) a monthly minimum charge of fifteen dollars and seventy-nine cents
($15.79) sixteen dollars and sixty-six cents ($16.66).
(ii) a charge for sewer usage during the billing period of four dollars and
four cents ($4.04) four dollars and twenty-six cents ($4.26) per 100 cubic feet.
(c) 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 ($5.27)five dollars and fifty-
six cents ($5.56).
***”
5
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 , 2026.
________________________________________________________
John A. Haila, Mayor
First Reading:
Second Reading:
Third Reading:
Passed on:
I, Renee Hall, City Clerk of the City of Ames, Iowa, hereby certify that the above
and foregoing is a true copy of Ordinance No. ______________, passed by the City Council of
said City at the meeting held on ______________________and signed by the Mayor on
___________________________, and published in the Ames Tribune on
___________________________.
________________________________
Renee Hall, City Clerk
6