HomeMy WebLinkAboutA001 - Council Action Form dated September 22, 2026ITEM #:39
DATE:09-22-26
DEPT:FIN
SUBJECT:AMENDMENT TO FY 2026/27 ADOPTED BUDGET FOR CARRYOVERS
FROM FY 2025/26 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 2026/27 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 14, 2026. A summary is attached describing the
carryovers and other budget changes, which total $149,171,518.
Please note that the projects and associated budgeted expenditures and funding
sources for carryovers were approved by City Council as part of the FY 2025/26 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 2026/27.
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ALTERNATIVES:
1. Adopt a resolution amending the FY 2026/27 budget to increase expenditures by
$149,171,518 for carryover amounts from FY 2025/26 and other significant changes to
the FY 2026/27 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 2026/27 budget for carryover amounts from the FY 2025/26 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):
2026-27 Fall Budget Amendment Report FINAL.pdf
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CITY OF AMES, IOWA
2026/27
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
Program:
2026/27 2025/26 2026/27
Percentage
Change from
Public Safety:
Total Public Safety
Utilities:
Total Utilities
Transportation:
Total Transportation
Culture and Recreation:
Total Culture and Recreation
Community Development:
Total Community Development
5
4
Expenditure Changes by Program, continued
Program:
2026/27 2025/26 2026/27
Percentage
Change from
General Government:
Total General Government
Debt Service:
Total Debt Service
Internal Services:
Total Internal Services
Total Expenditures
333,361,339 149,171,518 482,532,857 44.8%
28,193,165 - 28,193,165 0.0%
361,554,504 149,171,518 510,726,022 41.3%
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5
2026/27 Amendments by Program
Public Safety Program $6,812,964
Public Safety operating expenses are being increased by $141,298 for delayed equipment and
capital purchases for the Police Department ($92,349) and the Fire Department ($48,949).
Funding of $6,671,666 is being carried over in the Public Safety CIP for the following projects:
• Fire station improvements $340,495
• Fire Station 2 relocation 239,516
• New Animal Shelter 6,091,655
Utilities Program $86,763,712
Operating funding of $479,992 is being added to the Utilities program for delayed equipment
purchases or projects for Electric Services ($428,452), Water and Pollution Control ($10,500),
Sanitary Sewer System Maintenance ($9,990), and Resource Recovery and Recycling Services
($31,050).
A total of $50,403,720 of Utility CIP project funds is being carried over. In addition to the Utility
carryovers, additional funding of $35,880,000 has been added to the Ames Municipal Energy
Center (AMEC) project to match the budget to the anticipated cash flow for the project. The total
Utility CIP funding change of $86,283,720 is allocated to the following projects:
• Electric Utility CIP projects ($47,923,522):
o Ames Municipal Energy Center $38,999,187
o Advanced metering infrastructure 1,975,495
o Ontario substation 1,309,144
o Load centers/breakers 1,277,232
o CT generation improvements 883,143
o Other Electric Utility CIP projects 3,479,321
• Water Utility CIP projects ($11,388,426):
o Water distribution system improvements 3,663,122
o Technical Services Complex renovation 1,946,306
o Wellfield standby power 1,849,520
o North River Valley well field 1,652,496
o Other Water Utility CIP projects 2,276,982
• Sewer Utility CIP projects ($17,276,437):
o Sanitary sewer system improvements 10,369,812
o Nutrient reduction modifications 5,935,989
o Other Sewer Utility CIP projects 970,636
• Stormwater erosion control projects 2,727,384
• Low point drainage improvements 1,581,744
• Other Stormwater Utility CIP projects 1,838,096
• Resource Recovery improvements 3,548,111
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Transportation Program $47,402,653
Operating funding of $55,790 is being carried over in the Right-of-Way Maintenance Emerald Ash
Borer (EAB) program.
Transportation CIP funding carryovers total $47,346,863 and consist of the following programs
and projects:
• Street improvement projects ($14,774,956):
o Asphalt pavement improvements $4,278,635
o Concrete pavement improvements 3,139,916
o Seal coat improvements 1,268,404
o South 16th Street widening 1,108,174
o Hyland Avenue improvements 1,098,382
o Right-of-way restoration 1,042,470
o Other street improvement projects 2,838,975
• Shared use path projects 2,766,255
• Traffic improvement projects 9,996,480
• Street rehabilitation projects 2,211,337
• Transit system improvements 9,291,121
• Airport improvements 8,306,714
Culture and Recreation Program $2,865,511
Operating funding of $539,842 is being carried forward in the Culture and Recreation program.
Of this amount, $264,468 is for Parks and Recreation projects and equipment, primarily funded
through donations. An additional $50,731 is being carried forward for the Library for delayed
projects. Funding of $224,643 is also being carried forward in Art Services for COTA Summer
Special Grants ($5,813), Public Art ($68,830), and the artwork for Schainker Plaza ($150,000).
Funding of $2,325,669 is being carried over for the following Culture and Recreation CIP projects:
• Parks and Recreation CIP projects ($2,156,313):
o Daley Park splash pad $528,853
o Fitch Family Indoor Aquatic Center 307,573
o Park ADA improvements 304,129
o Downtown plaza 183,869
o Furman water heaters 182,700
o Homewood improvements 135,510
o Ontario Park 111,558
o Rec Center conceptual plan 100,000
o Other park and facility improvements 302,121
• Cemetery improvements 169,356
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Community Development Program $1,466,532
In Community Development, operating funding of $1,147,569 is being carried over to FY 2026/27.
In Sustainability, $1,099,805 in funding is being carried over for Sustainability projects ($820,150),
the community grants program ($104,099), the youth mini-grants program ($5,721), the multi-
family recycling pilot program ($19,835), the residential sustainability grants program ($80,000),
the net-zero home pilot program ($20,000), and expenses associated with the Bloomberg grant
($50,000). Funding of $47,764 is also being carried over from unallocated 2025/26 ASSET funds
for continued non-profit training and other special additional needs.
Funding of $318,963 is being carried over in Community Development CIP funding for the
Downtown Façade grant program.
General Government Program $534,252
Operating funding in the General Government program has been increased by $74,373. Of this
amount, $53,048 is being carried over in the Facilities program for space needs and remodeling
projects in City Hall. Council Contingency funding of $10,000 is also being carried over as the
funding was allocated in FY 2025/26 to provide financial assistance to host the International Town
and Gown conference in Ames. The $11,325 balance of operating funding is being carried over
for furniture, equipment, and support staff for the City Manager’s Office and the City Clerk’s Office.
The General Government CIP carryover of $459,879 is for the following projects:
• City Hall improvements $297,129
• City Hall courtyard renovation 150,000
• Welch Avenue clocktower repair 12,750
Internal Services Program $3,325,894
Operating funding of $2,900,894 is being carried over in the Internal Services program. Of this
amount, $2,652,200 is being carried over in the Fleet Services budget for delayed vehicle and
equipment purchases. The $248,694 balance includes funding for equipment and software for
Information Technology ($232,780) and Health Insurance ($15,914).
Internal Services CIP funding of $425,000 is also being carried over to FY 2026/27. This is Fleet
Services funding for its contribution to the Resource Recovery and Recycling Center (R3C) for
the fueling station and access control.
Total Carryovers: $149,171,518
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Expenditure Changes by Fund
Fund:
2026/27 2025/26 2026/27 Change from
General Fund
Special Revenue Funds:
Total Special Revenue Funds
Capital Project Funds:
Total Capital Project Funds
Permanent Funds:
Total Permanent Funds
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9
Expenditure Changes by Fund, continued
Fund:
2026/27 2025/26 2026/27 Change from
Enterprise Funds:
Total Enterprise Funds
Debt Service
Internal Service Funds:
Total Internal Service Funds
Total Expenditures
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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 39,802,320 0 39,802,320
Less: Uncollected Delinquent Taxes - Levy Year 2 0 0 0
Net Current Property Tax 3 39,802,320 0 39,802,320
Delinquent Property Tax Revenue 4 0 0 0
TIF Revenues 5 800,000 0 800,000
Other City Taxes 6 16,047,615 0 16,047,615
Licenses & Permits 7 1,597,466 0 1,597,466
Use of Money & Property 8 31,254,757 0 31,254,757
Intergovernmental 9 53,591,310 0 53,591,310
Charges for Service 10 359,127,253 0 359,127,253
Special Assessments 11 186,144 0 186,144
Miscellaneous 12 2,599,051 0 2,599,051
Other Financing Sources 13 49,959,306 0 49,959,306
Transfers In 14 18,525,494 0 18,525,494
Total Revenues & Other Sources 15 573,490,716 0 573,490,716
EXPENDITURES & OTHER FINANCING USES
Public Safety 16 25,408,155 141,298 25,549,453
Public Works 17 9,722,547 55,790 9,778,337
Health and Social Services 18 2,133,960 47,764 2,181,724
Culture and Recreation 19 12,960,590 539,842 13,500,432
Community and Economic Development 20 6,862,197 1,099,805 7,962,002
General Government 21 3,847,800 74,373 3,922,173
Debt Service 22 15,674,470 0 15,674,470
Capital Projects 23 33,596,305 41,012,575 74,608,880
Total Government Activities Expenditures 24 110,206,024 42,971,447 153,177,471
Business Type/Enterprise 25 438,854,822 102,874,177 541,728,999
Total Gov Activities & Business Expenditures 26 549,060,846 145,845,624 694,906,470
Transfers Out 27 18,525,494 0 18,525,494
Total Expenditures/Transfers Out 28 567,586,340 145,845,624 713,431,964
Excess Revenues & Other Sources Over
(Under) Expenditures/Transfers Out 29 5,904,376 -145,845,624 -139,941,248
Beginning Fund Balance July 1, 2026 30 1,361,515,822 0 1,361,515,822
Ending Fund Balance June 30, 2027 31 1,367,420,198 -145,845,624 1,221,574,574
Explanation of Changes: Increases to the budget primarily include fiscal year 2026 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, 2026 - June 30, 2027
The City of AMES will conduct a public hearing for the purpose of amending the current budget for fiscal year ending June 30, 2027
Meeting Date/Time: 9/22/2026 06:00 PM Contact: Nancy Masteller Phone: (515) 239-5113
Meeting Location: City Hall Council Chambers, 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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