HomeMy WebLinkAboutA001 - Council Action Form dated May 26, 2026ITEM #:42
DATE:05-26-26
DEPT:FIN
SUBJECT:FINAL AMENDMENT TO FISCAL YEAR 2025/26 ADJUSTED BUDGET
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 year. To maintain compliance, the City of Ames
monitors spending against the approved budget and prepares amendments to the budget
several 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.
Amendment #3 - A final spring amendment is necessary 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 final amendment (#3) to the FY 2025/26 City budget. The attached
summary outlines the revenue and expenditure changes by fund and contains a
narrative explaining the changes. The final FY 2025/26 budget includes a final net
decrease in revenues of $1,357,773 and a net decrease in expenditures of $3,767,448.
Changes include modifications to CIP projects and schedules, operating budget
adjustments, and the adjustment of debt service schedules related to SRF-funded
projects.
ALTERNATIVES:
1. Approve a final amendment to the Fiscal Year 2025/26 budget by decreasing revenues
by $1,357,773 and expenditures by $3,767,448.
2. Refer this item back to staff for additional information or other adjustments to the
amendments
1
CITY MANAGER'S RECOMMENDED ACTION:
The proposed amendment to the FY 2025/26 budget allows the budget to better reflect
the changes noted in the FY 2025/26 final amendment document. Therefore, it is the
recommendation of the City Manager that the City Council approve Alternative No. 1, as
described above.
ATTACHMENT(S):
2025-26 Final Amendments report.pdf
2
CITY OF AMES, IOWA
FY 2025/26
FINAL AMENDMENTS
3
Fund Balance Summary
Fund
2025/26
Adjusted
Fund
2025/26
Final
Revenue
2025/26
Final
Expense
2025/26
Net
2025/26
Final
Fund
Percentage
Change
from
General Fund 11,074,767 (98,612) (84,775) (13,837) 11,060,930 -0.1%
Special Revenue Funds:
Local Option Sales Tax 5,451,689 - (71,639) 71,639 5,523,328 1.3%
Hotel/Motel Tax 1,955,092 - 37,112 (37,112) 1,917,980 -1.9%
Road Use Tax 2,647,605 - (24,602) 24,602 2,672,207 0.9%
Police Forfeiture 165,301 46,000 44,147 1,853 167,154 1.1%
Public Safety Donations/Grants 963 235,516 235,516 - 963 0.0%
Animal Shelter Donations 179,950 (29,000) - (29,000) 150,950 -16.1%
New Animal Shelter Donations 1,292 - - - 1,292 0.0%
City-Wide Housing Programs 348,661 - - - 348,661 0.0%
CDBG Program - - - - -
HOME Program - - - - -
HOME American Rescue Plan - - - - -
Parks & Rec Donations/Grants 26,148 28,000 - 28,000 54,148 107.1%
Parks & Rec Scholarships 701,640 - - - 701,640 0.0%
American Rescue Plan 2,748,750 - 23,554 (23,554) 2,725,196 -0.9%
Library Donations/Grants 424,943 - - - 424,943 0.0%
Utility Assistance 22,932 - 13,000 (13,000) 9,932 -56.7%
Miscellaneous Donations 32 - - - 32 0.0%
Developer Projects 250,481 - - - 250,481 0.0%
Economic Development 547,166 - - - 547,166 0.0%
Tax Increment Financing (TIF) 969,457 - - - 969,457 0.0%
Total Special Revenue Funds 16,442,102 280,516 257,088 23,428 16,465,530 0.1%
Capital Project Funds:
Special Assessments (441,975) - - - (441,975) 0.0%
Street Construction 294,326 48,294 48,294 - 294,326 0.0%
Park Development 689,028 - - - 689,028 0.0%
Winakor Donation 2,063,130 - - - 2,063,130 0.0%
Aquatic Center Donations 583,189 - - - 583,189 0.0%
Council Priorities Fund 5,997,500 - - - 5,997,500 0.0%
General Obligation Bonds 4,808,400 - 30,752 (30,752) 4,777,648 -0.6%
Total Capital Project Funds 13,993,598 48,294 79,046 (30,752) 13,962,846 -0.2%
Permanent Funds:
Cemetery Perpetual Care 1,157,315 - - - 1,157,315 0.0%
Furman Aquatic Center Trust 1,185,220 - - - 1,185,220 0.0%
Total Permanent Funds 2,342,535 - - - 2,342,535 0.0%
4
Fund Balance Summary, continued
Fund
2025/26
Adjusted
Fund
2025/26
Final
Revenue
2025/26
Final
Expense
2025/26
Net
2025/26
Final
Fund
Percentage
Change
from
Enterprise Funds:
Airport Operations 81,968 - (70,500) 70,500 152,468 86.0%
Airport Improvements 176,323 (108,500) (118,425) 9,925 186,248 5.6%
Airport Sigler Reserve 2,871,777 - - - 2,871,777 0.0%
Water Utility 16,454,811 44,979 645,347 (600,368) 15,854,443 -3.7%
Water Construction - - - - -
Water Sinking 265,322 - - - 265,322 0.0%
Sewer Utility 26,203,938 - (22,550) 22,550 26,226,488 0.1%
Sewer Improvements 3,791 (2,700,000) (2,700,000) - 3,791
Sewer Sinking 176,511 - 35,000 (35,000) 141,511 -19.8%
Electric Utility 40,142,128 985,860 (2,230,664) 3,216,524 43,358,652 8.0%
Electric Sinking 80,696 - - - 80,696 0.0%
SunSmart Community Solar 1,004,468 - - - 1,004,468 0.0%
Electric Sustainability Reserve 2,475,160 - - - 2,475,160 0.0%
Parking Operations 105,974 (8,703) (13,592) 4,889 110,863 4.6%
Parking Capital Reserve 1,320,554 - - - 1,320,554 0.0%
Transit Operations 7,713,042 - - - 7,713,042 0.0%
Transit Student Govt Trust 1,548,822 - - - 1,548,822 0.0%
Transit Capital Reserve 10,621,007 - - - 10,621,007 0.0%
Stormwater Utility 2,302,354 - 5,000 (5,000) 2,297,354 -0.2%
Stormwater Improvements - - - - -
Ames/ISU Ice Arena 400,112 - - - 400,112 0.0%
Ice Arena Capital Reserve 144,148 - (2,869) 2,869 147,017 2.0%
Homewood Golf Course 1,057,068 - - - 1,057,068 0.0%
Resource Recovery 1,411,359 - (781,137) 781,137 2,192,496 55.4%
Res Recovery Improvements - 103,000 37,413 65,587 65,587
Recycling Services 150,000 - 150,000 (150,000) - -100.0%
Total Enterprise Funds: 116,711,333 (1,683,364) (5,066,977) 3,383,613 120,094,946 2.9%
Debt Service Fund 4,887,798 20,802 65 20,737 4,908,535 0.4%
Internal Service Funds:
Fleet Services 140,378 - - - 140,378 0.0%
Fleet Replacement 11,052,523 74,591 74,591 - 11,052,523 0.0%
Fleet Services Reserve 1,834,752 - 425,000 (425,000) 1,409,752 -23.2%
Information Technology 120,000 - - - 120,000 0.0%
Technology Replacement 2,303,344 - 87,357 (87,357) 2,215,987 -3.8%
Shared Communications - - 8,000 (8,000) (8,000)
Information Technology Reserve 1,723,328 - 43,250 (43,250) 1,680,078 -2.5%
Risk Management 4,231,053 - 409,907 (409,907) 3,821,146 -9.7%
Health Insurance 7,423,561 - - - 7,423,561 0.0%
Total Internal Service Funds: 28,828,939 74,591 1,048,105 (973,514) 27,855,425 -3.4%
Totals 194,281,072 (1,357,773) (3,767,448) 2,409,675 196,690,747 1.2%
5
Revenue Summary by Fund
Fund
2025/26 2025/26 2025/26
Percentage
Change from
General Fund 47,394,942 (98,612) 47,296,330 -0.2%
Special Revenue Funds:
Local Option Sales Tax 12,578,464 - 12,578,464 0.0%
Hotel/Motel Tax 3,120,000 - 3,120,000 0.0%
Road Use Tax 9,562,721 - 9,562,721 0.0%
Police Forfeiture 10,000 46,000 56,000 460.0%
Public Safety Donations/Grants 96,515 235,516 332,031 244.0%
Animal Shelter Donations 93,000 (29,000) 64,000 -31.2%
New Animal Shelter Donations 4,038,942 4,038,942 0.0%
City-Wide Housing Programs 500 - 500 0.0%
CDBG Program 2,371,973 - 2,371,973 0.0%
HOME Program 1,269,492 - 1,269,492 0.0%
HOME American Rescue Plan 631,705 - 631,705 0.0%
Parks & Rec Grants/Donations 906,995 28,000 934,995 3.1%
Parks & Rec Scholarships 196,523 - 196,523 0.0%
American Rescue Plan - - -
Library Grants/Donations 446,982 - 446,982 0.0%
Utility Assistance 15,500 - 15,500 0.0%
Miscellaneous Donations 7,840 - 7,840 0.0%
Developer Projects 1,500 - 1,500 0.0%
Economic Development 28,032 - 28,032 0.0%
Tax Increment Financing (TIF) 595,000 - 595,000 0.0%
Total Special Revenue Funds 35,971,684 280,516 36,252,200 0.8%
Capital Project Funds:
Special Assessments 190,072 - 190,072 0.0%
Street Construction 13,355,159 48,294 13,403,453 0.4%
Park Development 290,000 - 290,000 0.0%
Winakor Donation 45,000 - 45,000 0.0%
Indoor Aquatic Center Donations 800,000 - 800,000 0.0%
Council Priorities 819,546 - 819,546 0.0%
General Obligation Bonds 15,270,000 - 15,270,000 0.0%
Total Capital Project Funds 30,769,777 48,294 30,818,071 0.2%
Permanent Funds:
Cemetery Perpetual Care 24,750 - 24,750 0.0%
Furman Aquatic Center Trust 35,000 - 35,000 0.0%
Total Permanent Funds 59,750 - 59,750 0.0%
6
Revenue Summary by Fund, continued
Fund
2025/26 2025/26
2025/26
Final
Percentage
Change from
Enterprise Funds:
Airport Operations 400,130 - 400,130 0.0%
Airport Improvements 12,426,869 (108,500) 12,318,369 -0.9%
Airport Sigler Reserve 75,000 - 75,000 0.0%
Water Utility 19,866,024 44,979 19,911,003 0.2%
Water Construction 4,531,036 - 4,531,036 0.0%
Water Sinking 4,640,852 - 4,640,852 0.0%
Sewer Utility 14,153,424 - 14,153,424 0.0%
Sewer Improvements 52,721,621 (2,700,000) 50,021,621 -5.1%
Sewer Sinking 2,223,938 - 2,223,938 0.0%
Electric Utility 80,983,395 985,860 81,969,255 1.2%
Electric Sinking 966,253 - 966,253 0.0%
Electric SunSmart 186,500 - 186,500 0.0%
Electric Sustainability Reserve 70,000 - 70,000 0.0%
Parking Operations 973,790 (8,703) 965,087 -0.9%
Parking Capital Reserve 30,000 - 30,000 0.0%
Transit Operations 15,686,069 - 15,686,069 0.0%
Transit Student Govt Trust 19,000 - 19,000 0.0%
Transit Capital Reserve 13,078,405 - 13,078,405 0.0%
Stormwater Utility 2,216,500 - 2,216,500 0.0%
Stormwater Improvements 1,300,000 - 1,300,000 0.0%
Ames/ISU Ice Arena 685,537 - 685,537 0.0%
Ice Arena Capital Reserve 83,000 - 83,000 0.0%
Homewood Golf Course 587,656 - 587,656 0.0%
Resource Recovery 5,309,128 - 5,309,128 0.0%
Resource Recovery Improvements 6,954,697 103,000 7,057,697 1.5%
Recycling Services 150,000 - 150,000 0.0%
Total Enterprise Funds: 240,318,824 (1,683,364) 238,635,460 -0.7%
Debt Service Fund 15,146,464 20,802 15,167,266 0.1%
Internal Service Funds:
Fleet Services 2,859,675 - 2,859,675 0.0%
Fleet Replacement 2,927,330 74,591 3,001,921 2.6%
Fleet Services Reserve 400,000 - 400,000 0.0%
Information Technology 2,085,863 - 2,085,863 0.0%
Technology Replacement 350,098 - 350,098 0.0%
Shared Communications 410,000 - 410,000 0.0%
Information Technology Reserve 70,000 - 70,000 0.0%
Risk Management 3,520,502 - 3,520,502 0.0%
Health Insurance 14,246,041 - 14,246,041 0.0%
Total Internal Service Funds 26,869,509 74,591 26,944,100 0.3%
Total Revenues 396,530,950 (1,357,773) 395,173,177 -0.3%
7
Expenditure Summary by Fund
Fund
2025/26 2025/26 2025/26
Percentage
Change from
General Fund 50,757,620 (84,775) 50,672,845 -0.2%
Special Revenue Funds:
Local Option Sales Tax 16,956,800 (71,639) 16,885,161 -0.4%
Hotel/Motel Tax 3,010,891 37,112 3,048,003 1.2%
Road Use Tax 16,827,886 (24,602) 16,803,284 -0.2%
Police Forfeiture 12,000 44,147 56,147 367.9%
Public Safety Donations/Grants 88,871 235,516 324,387 265.0%
Animal Shelter Donations 75,000 - 75,000 0.0%
New Animal Shelter Donations 4,500,000 - 4,500,000 0.0%
City-Wide Housing Programs 35,188 - 35,188 0.0%
CDBG Program 2,359,943 - 2,359,943 0.0%
HOME Program 1,269,492 - 1,269,492 0.0%
HOME American Rescue Plan 631,705 - 631,705 0.0%
Parks & Rec Grants/Donations 900,126 - 900,126 0.0%
Parks & Rec Scholarships - - -
American Rescue Plan 612,732 23,554 636,286 3.8%
Library Grants/Donations 509,088 - 509,088 0.0%
Utility Assistance 15,500 13,000 28,500 83.9%
Miscellaneous Donations 7,840 - 7,840 0.0%
Developer Projects - - -
Economic Development 28,032 - 28,032 0.0%
Tax Increment Financing (TIF) 882,550 - 882,550 0.0%
Total Special Revenue Funds: 48,723,644 257,088 48,980,732 0.5%
Capital Project Funds:
Special Assessments 49,400 - 49,400 0.0%
Street Construction 11,655,403 48,294 11,703,697 0.4%
Park Development 184,866 - 184,866 0.0%
Winakor Donation 21,595 - 21,595 0.0%
Indoor Aquatic Center Donations 800,000 - 800,000 0.0%
Council Priorities 3,148,028 - 3,148,028 0.0%
General Obligation Bonds 33,859,834 30,752 33,890,586 0.1%
Total Capital Project Funds: 49,719,126 79,046 49,798,172 0.2%
Permanent Funds:
Cemetery Perpetual Care - - -
Furman Aquatic Center Trust 15,685 - 15,685 0.0%
Total Permanent Funds: 15,685 - 15,685 0.0%
8
Expenditure Summary by Fund, continued
Fund
2025/26 2025/26 2025/26 Change from
Enterprise Funds:
Airport Operations 400,130 (70,500) 329,630 -17.6%
Airport Improvements 12,879,179 (118,425) 12,760,754 -0.9%
Airport Sigler Reserve 134,645 - 134,645 0.0%
Water Utility 25,179,892 645,347 25,825,239 2.6%
Water Construction 4,718,739 - 4,718,739 0.0%
Water Sinking 4,641,500 - 4,641,500 0.0%
Sewer Utility 14,068,737 (22,550) 14,046,187 -0.2%
Sewer Improvements 44,933,785 (2,700,000) 42,233,785 -6.0%
Sewer Sinking 2,161,608 35,000 2,196,608 1.6%
Electric Utility 98,863,691 (2,230,664) 96,633,027 -2.3%
Electric Sinking 966,075 - 966,075 0.0%
Electric SunSmart 186,862 - 186,862 0.0%
Electric Sustainability Reserve 150,000 - 150,000 0.0%
Parking Operations 974,306 (13,592) 960,714 -1.4%
Parking Capital Reserve - - -
Transit Operations 16,680,270 - 16,680,270 0.0%
Transit Student Govt Trust - - -
Transit Capital Reserve 17,741,373 - 17,741,373 0.0%
Stormwater Utility 8,667,174 5,000 8,672,174 0.1%
Stormwater Improvements 1,260,000 - 1,260,000 0.0%
Ames/ISU Ice Arena 644,470 - 644,470 0.0%
Ice Arena Capital Reserve 10,135 (2,869) 7,266 -28.3%
Homewood Golf Course 495,002 - 495,002 0.0%
Resource Recovery 5,723,265 (781,137) 4,942,128 -13.7%
Resource Recovery Improvements 6,889,110 37,413 6,926,523 0.5%
Recycling Services - 150,000 150,000
Total Enterprise Funds: 268,369,948 (5,066,977) 263,302,971 -1.9%
Debt Service Fund 14,092,994 65 14,093,059 0.0%
Internal Service Funds:
Fleet Services 2,819,675 - 2,819,675 0.0%
Fleet Replacement 5,225,260 74,591 5,299,851 1.4%
Fleet Services Reserve 327,000 425,000 752,000 130.0%
Information Technology 2,085,863 - 2,085,863 0.0%
Technology Replacement 411,350 87,357 498,707 21.2%
Shared Communications 410,000 8,000 418,000 2.0%
Information Technology Reserve 265,775 43,250 309,025 16.3%
Risk Management 3,382,949 409,907 3,792,856 12.1%
Health Insurance 14,741,737 - 14,741,737 0.0%
Total Internal Service Funds: 29,669,609 1,048,105 30,717,714 3.5%
Total Expenditures 461,348,626 (3,767,448) 457,581,178 -0.8%
9
Final Amendment Fund Changes
General Fund
Overall, General Fund revenue has been reduced by $98,612 in FY 2025/26 final amendments.
Fitch Family Indoor Aquatic Center revenue has been decreased by $160,000 to reflect the later
opening date for the facility. This revenue decrease is partially offset by increases in several other
revenues. A Bloomberg Youth Climate Action Plan grant for $50,000 was obtained by the
Sustainability program and has been added to the budget. Animal Shelter revenues have been
increased by $5,500 to better reflect year-to-date revenue and $5,888 has been added for Iowa
State University’s share of the local match for the FEMA grant used to purchase the new fire
safety trailer.
The General Fund operating budget has been reduced by $3,724. Funding of $85,000 has been
added to the Fire operating budget to cover the additional cost of overtime and minimum manning
for the department. An additional $11,776 has also been added as the local match for the FEMA
grant the department received for the new safety trailer.
Additional funding of $30,000 has been added to the Animal Shelter budget, largely to cover the
cost of chemicals and cleaning supplies for the multiple virus outbreaks experienced at the Shelter
this year. The additional Animal Shelter funding will be covered by salary savings in the Law
Enforcement budget.
Parks and Recreation has reduced the Aquatics operating budget by $160,000 to reflect the later
opening date for the Fitch Family Indoor Aquatic Center. Funding of $9,500 has also been added
to the Parks and Recreation operating budget for necessary repairs at the skate park.
Funding of $50,000 has been added to the Sustainability budget to reflect the expenses that will
be associated with the Bloomberg Youth Climate Action Plan grant.
The General Fund CIP budget has been reduced by $81,051 to reflect completed Fire CIP
projects.
The overall effect of these changes is a decrease of $98,612 in projected revenue and an overall
decrease of $84,775 in projected expenditures. The projected change to the General Fund
balance is a decrease of $13,837.
Local Option Sales Tax Fund
A portion of reserved ASSET funding ($4,172) will be used for the City’s share of new software
being purchased to better track ASSET funding.
In Street Improvement CIP projects, Local Option Sales Tax funding for the 2022/23 CyRide
Pavement Improvements/West Lincoln Way project is being reduced by $71,639 because the
project is complete.
The overall effect of final amendments on the projected Local Option Sales Tax Fund balance is
an increase of $71,639.
10
Hotel/Motel Tax Fund
Funding of $50,000 has been allocated from the Hotel/Motel Tax Fund balance for additional legal
fees associated with the development of Schainker Plaza.
In Street Maintenance CIP projects, funding for the Main Street Improvements project has been
reduced by $12,888 because the project is complete.
The overall effect of the changes on the Hotel/Motel Tax Fund balance is a projected reduction of
$37,112.
Road Use Tax Fund
Expenditures in the Road Use Tax operating budget have been decreased by $25,725 to reflect
projected savings in Traffic Operations ($8,174), Snow and Ice Control ($5,850), and Public
Works Engineering ($11,701). The Street Maintenance operating budget was increased by
$1,142, for a net reduction in the Public Works operating budget of $24,583.
In the Road Use CIP budget, funding for the Capacity/Airport Road project has been redirected
to the 13th Street and Grand Avenue Intersection Improvements project. Funding of $150,000 has
also been redirected from the Neighborhood Curb program to the 2025/26 Seal Coat/Ferndale
project. The local funding match for the MPO Safety Plan has been reduced by $19 due to the
completion of the plan.
The overall effect of final amendments on the projected Road Use Tax Fund balance is an
increase of $24,602.
Police Forfeiture Fund
Police Forfeiture revenue has been increased by $46,000 to account for higher than budgeted
revenue for seized property ($30,000) and evidence proceeds ($16,000).
In expenditures, funding of $7,147 has been added from available federal forfeiture funds to cover
the cost of drone components that were budgeted in FY 2024/25 but were not received until FY
2025/26. The expenditure for refunds of evidence has also been increased by $37,000.
These changes will result in a projected increase of $1,853 to the Police Forfeiture Fund balance.
Public Safety Donations and Grants Fund
FEMA grant funding of $235,516 has been added to the budget for the purchase and outfitting of
a safety trailer for the Fire Department. This funding was originally budgeted in FY 2024/25, but
the project was not completed until FY 2025/26. Expenditures of $235,516 have also been added
to the budget, resulting in no change to the fund balance in the Public Safety Donations and
Grants Fund.
11
Animal Shelter Donations Fund
Animal Shelter donations revenue is being reduced by $25,000 to reflect lower donations to the
Shelter in FY 2025/26, probably due to donations being redirected to the New Animal Shelter.
Revenue in the Animal Shelter fund has also been reduced by $4,000 to reflect volunteer program
fees being moved to the General Fund, along with the expenditures associated with the program.
The effect of these two revenue changes is a projected reduction in the Animal Shelter Donations
Fund balance of $29,000.
Parks and Recreation Donations and Grants
Donation revenue has been increased in the Parks and Recreation Donations and Grants Fund
by $28,000. The increase includes $6,025 in general donations, $13,000 in donations for Ada
Hayden Heritage Park, and $8,975 in park memorials and donations.
No additional expenditures have been programmed at this time for the additional donations,
resulting in a $28,000 projected increase to the fund balance.
American Rescue Plan Fund
Funding of $30,364 has been added from unallocated American Rescue Plan funding for the
City’s 50% share of preliminary design work for the proposed roundabout at the intersection of
George Washington Carver Avenue and Cameron School Road. Story County will reimburse the
City for the other 50% of the design costs.
The $6,810 in remaining funding for the East 13th Street Utility Extension CIP project is being
returned to the fund as the project is complete.
The effect of the changes is a projected $23,554 reduction in the fund balance.
Utility Assistance Fund
Green Choices revenue is received when Electric Utility customers elect to make a contribution
as part of their utility payments. These funds are to be used for programs or projects involving
alternative energy sources. Funding of $13,000 in this fund will be used as a portion of the local
match for grant funding received to purchase a solar trailer.
Street Construction Fund
Additional grant funding of $7,930 has been budgeted to cover additional costs associated with
the completion of the Metropolitan Transportation Plan and the MPO Safety Plan. Additional Iowa
State University revenue of $10,000 has also been budgeted for their portion of the South Fourth
Street pedestrian bridge project. Funding of $30,364 has also been budgeted as a reimbursement
from Story County for the County’s share of the design work for the George Washington Carver
Avenue/Cameron School Road roundabout.
Expenditures have been budgeted to match the additional revenue, resulting in no change to the
Street Construction Fund balance.
12
City Council Priorities Capital Fund
In the City Council Priorities Capital Fund, $145,000 was transferred from City Council
Sustainability funding to the Community Climate Grants Program ($66,500), the Youth Mini-
Grants Program ($3,500), and the new Residential Sustainability Grants Program ($75,000).
G.O. Bond Funds
Bond funding of $432,587 has been redirected from the Capacity/Airport Road CIP project to the
13th Street and Grand Avenue Intersection Improvements project. Funding of $750,000 has also
been transferred from unallocated bond funding to the Freel Drive Paving project ($225,000), the
South 16th Street Widening project ($100,000), and the 2025/26 Asphalt Improvements program
($425,000).
Bond funding of $10,000 from bonds to be issued in FY 2026/27 has been added to the FY
2025/26 budget to allow for the early start of the Airport Parking CIP project.
Funding of $20,752 has also been added to close the 2019/20 G.O. bonds as the projects funded
with that bond issue have all been completed.
The overall effect of the final amendment changes is a $30,752 reduction to the projected balance
in G.O. Bond Funds.
Airport Operations
Funding of $73,000 for the replacement of t-hangar doors at the Airport has been dropped in FY
2025/26. The Airport’s operating budget for outside professional services has been increased by
$2,500, resulting in a projected expense decrease and fund balance increase of $70,500.
Airport Improvements
In the Airport Improvements Fund, grant revenue and expenditures of $148,500 for the ASOS
Relocation CIP project have been dropped due to the project being delayed. Grant revenue and
expenditures of $40,000 have been moved forward from FY 2026/27 for the early start of the
Airport Parking Lot CIP project.
South Apron Rehabilitation expenses of $9,925 have also been removed due to the completion
of the project, resulting in a $9,925 increase to the Airport Improvements Fund balance.
Water Utility Fund
Operating expenses in the Water Utility have been increased by $44,979 to install a new backflow
prevention device at the National Animal Disease Center (NADC). Matching revenue has also
been budgeted as this expenditure is expected to be reimbursed by the NADC. Additional funding
of $700 has also been added to the Water Distribution Maintenance budget for outside
professional services.
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In CIP funding, $600,000 has been added for the Water Well Main Protection project. This project,
which addresses areas along the South Skunk River between Southeast 16th Street and East
Lincoln Way that need stabilization to protect the water well infrastructure, was originally
scheduled for FY 2027/28. Erosion in late winter, however, exposed piping in the area, making it
imperative that the project be moved ahead in the budget.
In other CIP changes, funding of $10,000 from the FY 2026/27 Water CIP project to clean the
ground storage reservoirs at the Water Treatment Plant has been moved forward to allow for the
early start of the project. Remaining funding in the Ada Hayden Water Quality project ($1,128)
and the Campustown Improvements project ($9,204) is being returned to the fund balance.
The net effect of final amendments on the Water Utility Fund is a projected decrease of $600,368
in the fund balance.
Sewer Utility Fund
Operating expenses have been reduced in the Sewer Utility Fund by $22,600 for expected lower
costs for conferences ($3,600), equipment parts and supplies ($10,000), and aggregate products
($9,000). Funding for the Sewer Utility’s transfer to the Debt Service fund has been increased by
$50 to reflect updated debt service schedules.
In Sewer CIP expenses, $34,473 in funding was transferred from the Sanitary Sewer System
Improvements program to cover funding shortfalls in the Campustown Improvements project
($10,703) and the 2022/23 Sanitary Sewer Rehabilitation/Basin 12 project ($23,770).
The net effect of the changes on the Sewer Utility Fund is a projected $22,550 increase in the
fund balance.
Sewer Improvements Fund
Expenses in the Sewer Improvements Fund have been reduced by $2,700,000 due to better-
than-expected bids for two Sanitary Sewer CIP projects: Basin 11 ($400,000) and East Lincoln
Way/Nikkol ($2,300,000). Because of the lower cost of the projects, less funding will need to be
borrowed through the State of Iowa’s State Revolving Fund (SRF) program. Revenues have
therefore also been reduced by $2,700,000, resulting in no change to the overall fund balance.
Electric Utility Fund
In the Electric Utility Fund, revenues have been increased by $1,107,860 to reflect increases in
energy sales to Iowa State University ($600,000), gas trading revenue ($450,000), MISO
transmission ($35,000), and outside work for others ($22,860). Two revenues were reduced:
MISO sales to Iowa State University ($112,000) and EV charging station revenue ($10,000). The
net effect of the changes on Electric Services revenue is an increase of $985,860.
Operating expenses have been reduced by $1,210,014. The largest changes are in the Fuel and
Purchased Power division, where natural gas purchases were reduced by $4,000,000, while the
cost of electric service was increased by $2,200,000. Other changes in Fuel and Purchased
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Power resulted in a $539,336 increase. The net effect of final amendment changes is a decrease
of $1,260,664 in Fuel and Purchased Power expenses.
Operating expenses have been increased by $80,650 in the Electric Distribution budget to renew
software subscriptions and warranties for the City’s EV charging stations ($50,650) and for a
database conversion for the division’s Milsoft software program ($30,000).
Expenses in the Demand Side Management program were reduced by $30,000. The funding was
transferred to Electric Distribution ($5,800) to help offset the cost of the EV charging station
software renewals and to the EV Charging Station CIP project ($24,200) for the installation cost
of new charging stations.
In Electric CIP, $44,850 in funding was transferred from the EV Infrastructure project to the Electric
Distribution operating budget to cover the cost of renewing the software subscriptions and
warranties for the City’s EV charging stations. Funding of $24,200 was transferred to the EV
Infrastructure project from the Demand Side Management program to cover the cost of new
charging station installations. Funding of $600,000 was also transferred from savings or delays in
multiple CIP projects to cover the cost of streetlight and line relocations needed for the 13th Street
and Grand Avenue Intersection Improvements project.
Funding of $1,000,000 was also removed from the Electric Utility Fund budget for the New
Thermal Generation project. The project will instead be completely funded with Electric revenue
bonds. Overall, CIP funding changes in final amendments result in a $1,020,650 reduction in
expenses.
Final amendment changes in the Electric Utility resulted in a $985,860 revenue increase and a
$2,230,664 expense decrease, increasing the Electric Utility’s projected ending fund balance for
FY 2025/26 by $3,216,524.
Parking Operations Fund
Parking Operations revenue has been reduced by $11,600 due to lower rentals in the City Hall
parking lot. The decrease was partially offset by a $2,897 increase for the reimbursement that will
be received from the Ames Farmer’s Market for lost parking revenue during the Downtown
Farmers Market. The net effect on Parking Fund revenues is an $8,703 decrease.
Parking operating expenses have been decreased by $13,592. The largest component of the
decrease is for meter and meter parts ($25,000). The decrease in meter expenses was offset by
increases in fleet costs ($7,908), outside printing services ($1,500), and equipment parts and
supplies ($2,000).
The overall effect on the Parking Operations Fund is a projected increase in the fund balance of
$4,889.
Stormwater Utility Fund
Operating expenses have been increased by $14,400 to purchase software that will be used to
televise the storm sewer system to evaluate the system for future CIP projects. The funding for
the software was shifted from the Stormwater Quality CIP program. The remaining balance in the
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Stormwater Quality CIP program ($159,077) has been shifted to the Resource Recovery and
Recycling Campus (R3C) project for stormwater costs associated with the project.
Funding of $628,657 for the 2018/19 Erosion Control/South Skunk River project has been
dropped. This project was intended for erosion control to facilitate the construction of the South
Skunk River shared use path. Since the shared use path project is no longer moving forward, the
funding will be redirected to another project. The project has currently been moved to the 2025/26
Low Point Drainage project, where a study is being done on stormwater improvements that may
be necessary in the Grand Avenue underpass area to accommodate the construction of the Grand
Avenue shared use path.
Funding of $5,000 has also been added for the early start of the 2026/27 Erosion
Control/Canterbury Court project.
The overall effect on the Stormwater Utility Fund balance is a projected reduction of $5,000.
Ice Arena Capital Reserve Fund
CIP funding for the concessions and office area at the Ames/ISU Ice Arena has been returned to
the fund as the project is complete. As a result, the fund balance is projected to increase by
$2,869.
Resource Recovery Fund
CIP funding of $781,137 is being returned to the fund as no further capital expenditures are
anticipated at the current Resource Recovery facility.
The overall effect on the Resource Recovery Fund is a projected increase in the fund balance of
$781,137.
Resource Recovery Improvements Fund
Revenues in the Resource Recovery Improvements Fund have been increased to reflect
$100,000 in SWAP grant funding and $3,000 in Electric Services rebates for the Resource
Recovery and Recycling Campus (R3C) project.
Expenses for the R3C project have been increased by $37,413 to reflect the most recent cost
estimates for the project.
The overall effect on the Resource Recovery Improvements Fund is a projected increase in the
6/30/26 fund balance of $65,587.
Recycling Service Fund
Funding of $150,000 has been added to the Recycling Services Fund for preliminary expenses
associated with the new curbside recycling program.
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Debt Service Fund
Additional revenue of $20,802 has been budgeted to adjust the transfer for the remaining balance
in 2019/20 G.O. Bonds to close the bond issuance to the Debt Service Fund ($20,752) and to
adjust the transfer from the Sewer Utility Fund to match updated debt schedules ($50).
Debt Service expenditures have also been increased by $65 to reflect updated principal and
interest schedules for the 2025/26 G.O. bond issuance. The overall effect on the Debt Service
Fund balance is a projected increase of $20,737.
Fleet Replacement Fund
Fleet Services Replacement Fund expenses have been increased by $74,591 to cover the cost
of a solar trailer ($63,091) and a new mower at the Water Pollution Control facility to allow staff to
assume mowing duties at the facility rather than contract for the service ($11,500).
Fleet Services will receive $37,456 in grant funding for the solar trailer purchase, as well as
$25,635 in local match funding from the Green Choices program ($13,000) and the Electric
Demand Side Management program ($12,635). Funding of $11,500 will also be transferred from
the Water Pollution Control operating budget to purchase the mower.
The final amendment changes will have no effect on the projected fund balance.
Fleet Services Reserve Fund
Funding of $425,000 in the Fleet Services Reserve Fund will be used to construct the new fueling
station included in the Resource Recovery and Recycling Campus (R3C) project. The funding will
also be used to help fund the access system for the campus. This additional expense will reduce
the projected Fleet Services Reserve Fund balance by $425,000.
Information Technology Fund
Expenses have been increased by $75,626 due to additional software costs. Since the Information
Technology Fund is budgeted to break even and department allocations have already been
determined, the amount projected to be transferred to the Information Technology Reserve Fund
for technology replacement will be reduced by $75,626 so the fund continues to break even.
Technology Replacement Fund
Expenses have been increased by $87,357 to purchase additional equipment needed by City
departments. The equipment includes a switch replacement for the shared communication system
($50,000), new computers for the Library ($24,557), and new routers for Police vehicles
($12,800).
Shared Communications Fund
Expenses have been increased by $8,000 for the system’s connection to the new Fire Station
Alerting System project.
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Information Technology Reserve Fund
Funding of $23,250 has been added to the Information Technology Reserve budget to purchase
checkout laptops that can be used by departments on a short-term basis or for trainings offered
to City employees.
Funding of $20,000 has also been added to cover cost increases for the Furman Aquatic Center
fiber project ($5,000) and for network changes at the Community Center ($15,000).
Risk Management Fund
Risk Management expenses have been increased by $409,907 to cover a higher level of workers
compensation claims. This will reduce the anticipated 2025/26 fund balance in the Risk
Management Fund by $409,907.
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