Ames council offers phased tax transition to encourage annexation of Irons subdivision and Ames Golf & Country Club; orders study of sewer timing and financing

The City Council voted to offer a phased transition of the city portion of property taxes to owners in the Irons subdivision and Ames Golf & Country Club as an incentive to accept voluntary annexation and to begin the annexation process. The motion approved an offer of a three-year transition in which the city tax rate for qualifying properties would be phased in (75% abated in year one; 50% in year two; 25% in year three), with school and county levies unaffected.

Why it mattered to residents: Multiple residents of Irons Way and Irons Court told the council they oppose near-term annexation because their septic systems are new and functioning, and because the anticipated one-time cost to connect to city sanitary sewer could be substantial. Dr. Randy Braden (resident, 5407 Irons Way) said he could not “see an advantage” to annexation for existing residents and raised concern about a projected $1,500–$2,000 annual tax increase plus a large, one-time sewer-connection bill. Sam Easterling (resident, 5618 Irons Way) estimated the cost of installing sewer mains and later connecting all homes could be in the high hundreds of thousands or multiple millions of dollars — “you’re talking about $30,000 in one-time cost to each household,” he said.

Council’s action: Facing those objections and the developer’s prior agreements with the city, the council approved the tax-transition incentive (the “transition of imposition of taxes” schedule) to encourage signatures on annexation applications by April 30, 2025 and to allow staff to initiate annexation filings if a sufficient number of property owners agree. Council also adopted a separate resolution finding that annexation of the country club and Irons properties “would serve the best interests of the city.”

Sanitary sewer and financing study: Separately, the council directed staff to return with detailed options for sanitary sewer timing, construction and financing — specifically including (1) who would build the sewer main, (2) financing options such as special assessment programs, (3) likely schedules for when a trunk main could reach the Irons neighborhood, and (4) the expected approach for homeowner connections. The motion asked staff to bring cost estimates and sample implementation language so property owners can see potential timing and one-time costs before signing annexation agreements.

Resident concerns and developer history: Several residents said the developer and county previously allowed construction with on-site septic on the understanding annexation and connection would happen later; they called that an unfair surprise. City staff reminded the council that if they had not allowed sewer waivers earlier, the Irons subdivision likely would not have been built as it is. Council members acknowledged both the residents’ one-time cost concerns and that the city previously accepted development under those terms.

Votes and procedure: Council accepted the technical approach of alternative 2 (the tax transition incentive) and later adopted a resolution stating the annexation serves the city’s best interest; both measures carried. Separately, the council voted to direct staff to present options on sanitary sewer financing and timing as a follow-up item.

What’s next: Staff will return with cost and schedule options for sanitary sewer construction and homeowner connection assessments, and with details about the tax transition offer, ahead of any final annexation approvals. If property owners accept the city incentive and sign annexation applications by the April 30 timeline set in the motion, staff indicated it will proceed to initiate the annexation process.