Ames Approves $361.5M Budget, Hikes Water and Sewer Rates

The city's 2026-27 spending plan sees a $29 million increase, with higher utility fees for residents.

Apr. 15, 2026 at 6:41pm

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A composition of overlapping triangles and rectangles in shades of blue, green, and red, conceptually representing the complex tradeoffs of a municipal budget and rising utility costs.Ames' budget increase and utility rate hikes aim to fund essential services, but could impact affordability for some residents.Ames Today

The Ames City Council has approved a $361.5 million budget for fiscal year 2026-27, a $29 million increase over the previous year. Along with the higher overall spending plan, the council also voted to raise local sewer and water rates for residents.

Why it matters

Ames, like many cities, is facing rising costs for essential services and infrastructure. The budget increase and utility rate hikes aim to fund ongoing operations, maintenance, and upgrades, but could impact affordability for some residents.

The details

The $361.5 million budget for fiscal year 2026-27 represents a nearly $30 million increase from the previous year's spending plan. City officials cited the need to fund ongoing operations and maintenance as the primary driver behind the higher budget. As part of the budget approval, the council also voted to raise sewer and water rates for local residents.

  • The Ames City Council approved the 2026-27 budget on April 14, 2026.
  • The new sewer and water rates will go into effect on July 1, 2026.

The players

Ames City Council

The governing body of the City of Ames, Iowa, responsible for approving the municipal budget and setting utility rates.

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What’s next

The new budget and utility rates will be implemented starting July 1, 2026, the beginning of the next fiscal year.

The takeaway

As cities like Ames face rising costs, local governments must balance the need for essential service funding with the impact on residents' pocketbooks. This budget reflects the tradeoffs involved in maintaining infrastructure and operations while keeping utility rates affordable.