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Update on the City’s 2026 Budget
At last night’s Council meeting, we presented proposed amendments to the 2026 budget. Council was supportive, and the final vote is scheduled for December 11, 2025.
These updates reflect the progress we’re making to strengthen Des Moines’ financial foundation and build long-term stability.
Planning Ahead, Not Year-to-Year
Last year, the City moved to a two-year (biennial) budget.
Updating the second year is considered a best practice. It allows us to adjust to real-world conditions and keep the budget accurate and transparent.
Building Reserves & Practicing Fiscal Discipline
One of our biggest accomplishments this year is strengthening the City’s cash reserves.
By tightening spending and updating revenues to more realistic levels, we’re building the financial cushion needed to weather economic changes, respond to emergencies, and maintain consistent services.
This is a multi-year effort, but our trajectory is much stronger than it was a year ago.
Smarter Revenue Forecasting
With support from City Council, staff are using more conservative forecasting practices.
This includes updating B&O and sales tax estimates based on actual performance and economic indicators. These changes make long-term planning more predictable and stable.
Targeted Cost Reductions
Every department completed a detailed review of their budget this summer.
The result: over $340,000 in General Fund savings for 2026—without major impacts to essential services.
These savings directly strengthen the City’s financial position.
Preparing for the Unexpected
For the first time, the 2026 budget includes a dedicated contingency appropriation.
This funding provides a safeguard for unexpected costs without disrupting services. It’s an important first step toward improving financial resilience.
Investing in Public Safety
With the new 0.1% Public Safety Sales Tax approved by Council, the City can:
- Restore animal control services
- Add a police officer
- Meet new state requirements for public defense
We know the community is especially interested in animal control—more updates coming soon.
In Summary
The 2026 budget updates show meaningful progress toward a more stable and sustainable future.
We still have long-term challenges, but we are taking disciplined steps—strengthening reserves, improving forecasting, reducing costs, and planning ahead—to ensure Des Moines can continue providing the services our community expects.
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