Ames Community School District board previews budget under uncertain state aid, approves bond redemption and sets levy hearings

The Ames Community School District board on Monday approved a resolution to redeem a portion of its 2021 general obligation school bonds and set public hearings for the district's proposed 2026–27 tax levy and certified budget, as district staff warned that continued uncertainty about supplemental state aid will shape staffing and spending decisions.

Kelly, a district staff presenter, told the board the district is proposing a surplus levy of $6,680,000 to prepay part of the 2021 bond series; she said the single prepayment would yield approximately $1,455,620 in interest savings and that, once implemented, the district will have prepaid roughly $8,940,000 on the bond series with total estimated interest savings of about $1,908,000. "This surplus levy is for $6,680,000 and the interest savings on that, for this one prepayment, is $1,455,620," she said.

The board approved the redemption resolution by roll call and later approved a motion to publish the proposed tax levy and hold a public hearing at 5:30 p.m. on March 23, 2026; it also set a public hearing on the certified budget for 5:30 p.m. on April 20, 2026. Both motions passed by unanimous voice votes recorded in the meeting.

District staff anchored the budget discussion around an assumed 2% supplemental state aid (SSA) while warning that the actual SSA rate remains uncertain. Kelly said that uncertainty affects insurance renewals and other line items that typically are finalized closer to publication deadlines. "I've built it around 2% SSA," she said, adding that if SSA is confirmed before March 4 the district will update published materials accordingly.

Staff presented enrollment projections showing modest shifts in elementary sections (an added fifth-grade section at Meeker and Sawyer) and a projected middle-school decline of 62 students. Presenters said the district plans to use attrition and redistribution of staff across buildings to manage declines rather than immediate layoffs, and that preschool counts will be separated from K–12 totals in future reports to isolate PK funding for legislative conversations.

On solvency and reserve policy, staff recommended maintaining a larger cash reserve than some models suggest, citing lagged reimbursements on federal and state drawdown grants. Kelly said the district's solvency-ratio target reflects concerns about having sufficient cash on hand to cover multi-month outlays before reimbursements arrive.

Other items tied to the budget package moved on the consent or action portions of the agenda: the board approved school fees for 2026–27, including a higher driver’s education fee that reflects a vendor price increase; approved a package of policy updates; and accepted a series of community donations that staff said support programs like the Hope Pantry and school music programs.

The board adjourned at 6:41 p.m. The district will publish the levy notice and provide materials for the public hearings, where residents can comment before the board takes final budget action.