Council forwards 2025–26 biennial budget amendments, trims optimistic revenue assumptions

The Des Moines City Council voted Nov. 13 to forward draft ordinance amending the 2025–26 biennial budget to a second reading after a presentation by Finance Director Jeff Friend.

Friend said staff recommends a modest increase to general‑fund revenue in 2025 but a $317,000 reduction for 2026 and explained several conservative adjustments: lower projections for sales tax and B&O receipts, delayed large‑project tax receipts, and a revision of square‑footage tax estimates (noting initial assumptions were higher than current projections). He said general‑fund expenditure adjustments include one‑time costs this year (homeless‑encampment cleanup, increased costs for SCOR jail services, retroactive police overtime contingent on bargaining outcomes) and projected reductions in 2026.

Staff proposed a $50,000 contingency line that can only be spent with council approval and outlined a forthcoming ordinance to create a public‑safety sales tax fund (expected revenue about $450,000 from a 0.01% city sales‑tax increase). Proposed uses for that fund include a sworn police officer ($240,000), restored animal control ($100,000) and $110,000 for public‑defender expenses.

Council discussed contingency use, bargaining‑agreement timing and the sensitivity of square‑footage tax revenue to project timing. Councilmember Mahoney moved to forward the budget‑amendment ordinance to a second reading; the motion passed without objection and the ordinance will return for final action at a later meeting.

Why it matters: the amendments align near‑term budget assumptions with updated economic indicators and add a small contingency to reduce scrambling when unplanned expenses arise.