Des Moines staff review $663.8M in outstanding debt, propose raising general fund reserve to 20%

Des Moines city staff outlined the city's long-term debt obligations and proposed raising the council-directed general fund unassigned reserve from 15% to 20% during a work session on Monday, April 7.

City Manager Scott Sanders and a staff presenter identified the most immediate items: approximately $663.84 million in outstanding long-term debt, a recent bond issuance in November 2024 (2024 A and B), and planned general obligation (GO) bond issuances tied to the capital improvement plan (CIP). Nick, a city staff member who led the presentation, said the proposed policy change would show a “commitment to a strong, unassigned fund balance.”

The recommendation matters because reserve policy and debt plans affect the city's ability to pay for capital projects, the tax levy used to service debt, and how rating agencies view Des Moines' fiscal position. Staff said the city has been using a combination of tools — local option sales tax earmarks, tax increment financing (TIF) abatements and other revenue sources — to keep annual GO issuance near a targeted $40 million and to limit upward pressure on the debt-service levy.

Staff summarized outstanding debt and payment schedules. The…