Ankeny City Council Adopts Next Year's Budget (and What That Means for Your Tax Bill)

The Ankeny City Council voted unanimously at a meeting Monday night to adopt a balanced 2013-14 budget, which includes no change to the city's portion of the property tax levy.

The adopted $101 million budget holds the property tax rate unchanged from last year at $12.03 per $1,000 of assessed valuation, according to a media release issued by the city. The new $22 million general fund budget – the city’s primary operating fund – is just 2 percent higher than last year’s budget, primarily due to increased wage and pension costs.

However, combined with the 2 percent change in the state residential rollback, taxpayers may still see an increase on their tax bills. The increase to a home assessed at $160,000 will be $126 annually, while a business valued at $1 million will see an increase of $663 annually.

The budget also includes increases in the utility rates to go into effective later this spring and summer.

“When we apply sound financial policies that support core services and reduce spending, we make Ankeny better,” Ankeny Mayor Gary Lorenz said in the release. “This budget reflects a city government that is efficient, effective and delivering service value to its citizens.”

The adopted budget includes a 3 percent increase in water rates, 8 percent increase in sewer rates and a proposed $1 per ERU increase in storm water rates.

According to the city, the recommended rate adjustments account for the following variables:

• Water – 10 percent increase in average purchased water rate due to exceeding purchase capacity and increased personnel costs.

• Sewer – Conversion to the Des Moines Wastewater Reclamation Authority (WRA) system; increased personnel costs and capital improvement projects.

• Stormwater – Increased personnel costs; repayment of general obligation debt for projects already completed including: Westwinds Ravine Project, Fourmile Creek stream bank stabilization and North Creek improvements and future CIP projects.

A Utility Enterprise Funds fact sheet is available online.

Other budget highlights include:

• Eliminates four full-time positions
• Downsizes the city manager’s office
• Advances important capital needs, including $2.7 million infrastructure for Elementary School No. 10 and the completion of Irvinedale Drive.
• Increases employee contribution to health insurance premiums from 4 percent to 10 percent in three years.
• Addresses 22 percent increase in police and fire pension costs by transferring $500,000 from the General Fund to the 411 Pension Fund.
• Fulfills all union contracts for a period of five years
• Increases utility rates to maintain financial integrity of the utility funds.

“Today, the city organization is leaner, more efficient and more agile, said City Manager Jim Spradling. “Although the City has fewer employees than in 2009 and combined with a growing population, by realigning resources and reorganizing services, we were able to add capacity where needed to maintain current service levels.”