The Des Moines City Council held a meeting on December 5, 2024, where financial challenges and budgetary concerns were key topics of discussion. The general fund reported revenues of $18.9 million and expenditures of $19.2 million through September 30, resulting in an operating loss of approximately $361,000 for the third quarter.

City officials highlighted several revenue sources, including property taxes, utility taxes, and sales taxes. While property tax revenues remained stable compared to last year, sales tax revenues showed a decline. This drop is attributed to issues in the construction sector, particularly related to rising interest rates. The city noted that red light camera violations have decreased, indicating improved driving behavior among residents.

The council reviewed cash balances, revealing that the unrestricted cash in the general fund stood at just over $1.8 million. However, officials cautioned that this amount is not sufficient for the city's operational needs. They explained that two capital projects had closed, returning about $255,000 to the general fund, and additional ARPA funds of approximately $539,000 were redirected to help bolster the cash balance.

Looking ahead, the council is preparing for a budget amendment to remove ARPA funds from a specific project due to higher-than-expected bid costs. This adjustment is necessary to ensure the funds are available for the general fund, which is facing cash flow challenges.

The meeting also addressed the city's financial health as reported by the state of Washington's financial intelligence tool. In 2022, Des Moines had enough cash to cover expenses for 88 days, but this figure dropped to just 32 days by the end of 2023. City officials are investigating why other cities maintain higher cash balances, as the recommended threshold is 60 days of cash on hand.

Overall, the council's discussions underscored the need for careful financial management as the city navigates its budgetary constraints and prepares for future expenditures.