Des Moines council adopts mid‑biennium budget amendments, adds $50,000 contingency

The Des Moines City Council on Dec. 11 voted to enact ordinance 25-092 to amend the 2025–26 biennial budget, following a detailed presentation by Finance Director Jeff Friend.

Friend told the council the mid‑biennium review resulted in modest 2025 revenue increases (about $95,000) and reduced 2026 expectations (about $317,000), driven largely by adjustments to onetime sales and B&O receipts and a slower-than-anticipated rollout of the new square footage tax. "If it comes in higher, that's great, but we didn't want to rely on revenue that might not be there," Friend said, explaining the administration reclassified certain taxes as onetime and revised estimates downward to be conservative.

On the expenditure side, staff cited cost drivers including inflation, rising health insurance premiums, bargaining agreements, and an unanticipated shortfall at SCORE Jail that reduced shared revenue. Friend also explained that some 2025 expenditures — such as homeless encampment cleanup and a body-camera refresh — required budget amendments, with grant offset where applicable.

As part of the package, the administration proposed building a contingency line of $50,000 to provide a small buffer for unexpected items, with council authorization required before expenditures may be made from that line. Council member Harris moved (without a second) to require a supermajority for contingency use; the motion failed for lack of a second. Council then voted to adopt the ordinance; the motion passed.

Friend also reviewed the newly created public safety sales tax fund, projecting roughly $450,000 in annual revenue and planned outlays including approximately $240,000 for a sworn officer, $100,000 for animal control and $110,000 for public defenders. He said the public defenders' costs are rising because the state mandated reductions in caseloads will increase the number of defenders required.

Finance Director Friend said the mid‑biennium amendments reflect an administration strategy to stabilize long-term finances: ‘‘We targeted expense reductions with minimal service impact, and we introduced a contingency,’’ he said.

What happens next: Ordinance 25-092 amends the city’s adopted 2025–26 biennial budget (the prior ordinance reference was ordinance 18-13). Staff said they will return to council with further financial forecasting at a February study session that will model long-range scenarios to 2040.

Sources: Finance Director Jeff Friend presentation and council discussion during the Dec. 11 council meeting.