After a brief discussion, the Ames City Council approved plans for a total budget adjustment of $739,423 Tuesday.

Following a state revenue cut of approximately $645,000, the city staff was forced to pinpoint areas in which the city could reduce expenses to make up for the deficit, said City Manager Steve Schainker.

Schainker told the City Council costs beyond the state cuts need to be covered by the budget adjustments, including self-insured health care costs.

Schainker said because of costs in healthcare expenditures in May, the city wanted to add a cushion to the 2003—04 budget. Health care expenditures that month totaled around $415,000, Schainker said, higher than the average of $250,000 to $275,000.

Because the city’s 2003—04 budget was already approved by the state, Schainker said property taxes could not be increased for the next year.

Due to the “unfortunate situation” of the 2003—04 budget, Schainker said this one-time budget adjustment could decrease the level of service.

“It will spread the work load so [services] may take longer, but it will get done,” Schainker said.

Other cities across the state are experiencing similar difficulties, Schainker said.

“This is less drastic on the [Ames] citizens than other cities in the state,” he said.

Councilman Russ Cross congratulated the city staff for creating a plan to reduce expenditures by half a million dollars.

The city council also approved the first passage of an ordinance to increase illegal parking tickets from $5 to $10.

Councilman Riad Mahayni suggested the fines be increased to $12 to be comparable to ISU parking violation fines.

Councilman Steve Goodhue said the council could increase the fine to $12 at a later date.

The fine increase is for illegal parking, not for parking meters that have expired, City Attorney John Klaus said.

The ordinance requires two more readings before it can be applied.

Councilwoman Judie Hoffman and Mayor Ted Tedesco were absent from the meeting.

Jon-Scott Johnson, city risk manager, asked the council to rescind the health care provider contract with John Deere and renew the current contract with Wellmark. The resolutions were approved unanimously.

At the May 27 meeting, the council approved a contract with John Deere Health Plan, ending their 12-year relationship with Wellmark.

“[John Deere] could not live up to terms,” Johnson said.

Johnson said he was glad the city had not burned bridges with Wellmark.

“I felt like the prodigal son being welcomed back by Wellmark,” he said.