The Finance Committee of Des Moines City, WA, met on December 5, 2024, to discuss the city's financial status and upcoming challenges. A key topic was the property tax revenue, which typically arrives in October. However, this year, a significant portion was delayed until November, resulting in a shortfall of approximately $1.2 million compared to the budgeted expectations.

The committee noted that the city had anticipated being ahead by $636,000 by the end of October, but actual revenues fell short by $315,000. This delay in property tax collection has also impacted the third-quarter financial reporting.

Sales tax revenues are another concern, as they continue to lag behind both budget projections and last year's totals. The committee discussed how the construction sector's downturn is contributing to this decline. Council members expressed uncertainty about when sales tax revenues might improve, with some suggesting that other sectors, like restaurants, have remained more stable.

Another point of discussion was the revenue from speed enforcement cameras. The committee clarified that funds from these cameras can be used for traffic safety projects, but not for police salaries. There was also a discussion about how broadly traffic safety can be defined, with potential uses including road improvements and crosswalks.

The committee highlighted the importance of cash flow management, especially as the city approaches the end of the year. They are under pressure to obligate American Rescue Plan Act (ARPA) funds by December 31. If these funds are not committed to a project by that date, they risk being returned to the federal government. The Marina Steps project, which is tied to these funds, is currently delayed, raising concerns about meeting the obligation deadline.

Overall, the meeting underscored the financial challenges facing Des Moines City, particularly regarding revenue collection and the need for careful management of funds to avoid losing federal support.