The Des Moines City Council held a significant meeting on December 5, 2024, focusing on the city's budget and financial stability. City officials discussed the importance of maintaining healthy cash reserves to protect against financial risks. The city aims to have at least 60 days of cash on hand, which translates to approximately $4.2 million. Currently, the city has about $2.3 million, indicating a shortfall of around $2 million.

City Manager Catherine Caffrey and Finance Director Jeff Friend presented a budget that is structurally balanced, a goal that has not been achieved in recent years. They emphasized the need for a budget that not only balances income and expenses but also ensures that one-time revenues do not cover ongoing costs. This approach aims to create fiscal sustainability for the city.

The council was informed about the challenges facing the budget, including rising inflation, increased operational costs, and revenue shortfalls due to economic conditions. These factors have contributed to a structural deficit, where one-time funds have been used to fill ongoing budget gaps.

Caffrey and Friend highlighted the importance of transparency in financial reporting and the need for better communication with the community regarding how the general fund operates. They explained that the general fund is primarily supported by property taxes, sales taxes, utility taxes, and fees, which fund essential services like police, recreation, and maintenance.

The meeting concluded with a commitment to continue refining the budget process and improving financial reporting for the public. The council is set to review a budget amendment next week, which will include moving American Rescue Plan Act (ARPA) funds into the general fund to support these financial goals.