Des Moines posts a small 2024 general‑fund surplus; council warned cash reserves remain below policy

Des Moines City Council heard a year‑end and first‑quarter financial update showing a modest 2024 general‑fund operating surplus but a cash operating reserve below the city’s policy minimum.

Finance staff reported the city’s 2024 general fund operating income was $507,852 and the fund balance measured 16.72% of recurring operating expenditures—just above the municipal code threshold of 16.67%—but that the city’s operating cash reserve stood at about 11.39%, below the same policy level.

The numbers matter because city code requires an operating reserve of two months (16.67%) and the council was told the cash shortfall represents roughly $1.3 million the city would need to reach that target on the cash side. "We are on the positive side of the ledger, which is a good thing," finance staff noted, while also stressing that roughly $2.5 million of ARPA money plugged the 2024 gap and would not recur.

Council members heard details across funds: the marina reported net income of about $944,000 after debt and capital costs; the Surface Water Management fund generated roughly $500,000 net after capital; and Redondo speed‑camera collections totaled about…