After one of the most difficult budget years in memory, the Ames City Council has proposed a spending plan that includes a 2.8 percent increase in the property tax rate — from $9.68 for 2003-04 to $9.95 (per $1,000 of taxable valuation) for the 2004-05 budget.

And in spite of this small increase, the Council has managed to keep the high quality of services to citizens while still taking action on numerous projects that will benefit our community. Only one service, public access TV16, will be eliminated in 2004-05.

This feat is to be applauded, especially in light of the many cuts as part of the state of Iowa’s “reinvention” plan. The state cut $645,000 from our current budget, with plans to make these reduction permanent. In addition, another $136,000 from other state receipts are expected to dry up.

On top of these losses in revenue, the city is facing unavoidable increases in our health insurance and increases in the state-mandated fire and police retirement systems.

The local option sales tax was passed in 1986 by more than 55 percent of the Ames voters.

The intent of the tax was that at least 60 percent of the tax receipts would be property tax relief. The City Council has remained true to the original intention. Today, without this property tax relief, the property tax rate would be $1.93 more than requested.

The other 40 percent of the local option sales tax receipts are designated for community betterment.

The term “community betterment” was originally intended to be very broad in scope, so that all communities in Story County could apply these funds to priorities for their operating or capital improvement budgets.

Traditionally we have used these monies to fund arts, human service agencies and other community betterment project, predominantly for the park system and the Ames Public Library. This tradition will continue in the proposed budget currently being completed.

In addition, the Council approved $25,000 from other revenues to find a pilot program to support a Sustainable Neighborhoods Program.

The Ames City Council will hold a final public hearing on the 2004-05 budget on Tuesday, March 2, at 7 p.m. in the City Council Chambers.

It has been another difficult budget process.

However, even in the face of these financial challenges, the Ames City Council has taken steps to maintain the quality of life for our citizens.

Ted Tedesco

Mayor of Ames