Ames approves water and sewer rate hikes alongside $881,000 distribution contract

Ames approves water and sewer rate hikes alongside $881,000 distribution contractThe City of Ames will increase water and sanitary sewer rates starting July 2026 to support ongoing utility operations and capital programs, including a newly awarded water system improvement project.

City Council adopted an ordinance raising water rates by 3.5% and sanitary sewer rates by 5.5%, effective July 1, 2026.

Iowa Water & Waste Systems secured an $881,271 contract for the 2025/26 Water System Improvements Program.

The council formally accepted the completion of a $671,173 CDBG-funded project that reduced lead service lines and upgraded water mains.

The utility secured a slight cost reduction for sodium hypochlorite, locking in a $1.72 per gallon rate for FY27.

The Ames City Council finalized utility rate adjustments during its May 26, 2026, meeting, approving a third and final reading of an ordinance to increase municipal water and wastewater rates. Effective for charges billed on or after July 1, 2026, water rates will rise by 3.5% and sanitary sewer rates will increase by 5.5%. The ordinance passed unanimously via roll call vote without public comment. Alongside the revenue adjustments, the council advanced key capital distribution projects. Council members awarded an $881,271.90 contract to Boone, Iowa-based contractor Iowa Water & Waste Systems for the 2025/26 Water System Improvements Program. The project will target infrastructure upgrades along Barr Drive, Douglas Avenue, and 17th Street. The council also formally accepted the completion of the 2024/25 CDBG Infrastructure Program on South Riverside Drive. Also completed by Iowa Water & Waste Systems, the $671,173.31 project installed new water main infrastructure to improve water quality, increase firefighting capacity, and reduce the number of lead services in the city's water distribution system within a designated Low- and Moderate-Income (LMI) census tract. On the operational side, the city's Water and Pollution Control Department secured a cost reduction for essential disinfection chemicals. The council awarded a fiscal year 2026/27 contract to Rowell Chemical Corp. for the purchase of liquid sodium hypochlorite at $1.72 per gallon. The new rate represents an $0.11 per gallon decrease compared to the utility's current contract. According to city documents, the water treatment plant estimates using 68,000 gallons of the chemical in the coming fiscal year, keeping the $116,960 estimated cost well within the facility's $136,000 chemical budget. Separately, the council directed city staff to draft a memo regarding the formal adoption of the city's potable water plan. The action followed a communication from a resident, with council members noting that formal adoption of the existing plan could carry financial or staff time implications that require further analysis before moving forward.