Des Moines forecast: general fund likely needs $1M–$2M a year; council asks staff to analyze revenue options
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Summary
Outside consultants told the council a 15-year forecast shows the general fund will likely need $1–2 million in additional recurring revenue to maintain reserves. Staff presented a menu of options (utility franchise adjustments, cameras, car-tab increase, parking and transfers) and council asked staff to pursue further analysis, including an impact-fee study and marina parking-rate review.
Consultants from FCS told the Des Moines City Council on Feb. 5 that a conservative 15-year forecast indicates the general fund will require additional recurring revenue — roughly $1 million to $2 million per year — to meet reserve policy and sustain current service levels through the next decade.
Todd and Luke of FCS said the Surface Water Management and Marina enterprise funds appear healthy under current assumptions, but the general fund’s revenue mix (about one-third from sales and business taxes and a 1% cap on property-tax growth) leaves the city exposed to inflation and rising personnel costs. "An additional $1,000,000 to $2,000,000 annually would be needed to maintain your reserves and meet your reserve policies throughout the next 10 plus years," a consultant said during the presentation.
Finance Director Jeff Friend presented staff work on revenue options and a live model showing how different choices change the general-fund outlook. Staff estimates (model examples) included: $100,000 annually from open-space transfers, $900,000 from a 6% utility-franchise-rate adjustment, $1.2 million from 24-hour school-zone enforcement cameras, $2.0 million from additional traffic-safety cameras, $250,000 from increasing car-tab fees to $50, and $50,000 from marina/paid-parking rate changes. Staff warned some sources (camera revenue) typically decline over time as compliance improves.
Council discussed trade-offs — equity, administrative cost, legal constraints, and the need for required analyses — and gave general direction for follow-up: staff should pursue an impact-fee analysis (scope and firm cost to be provided), examine increases to Redondo Marina paid-parking rates (manager-set rates), continue utility franchise negotiations, and present a more detailed model of combined scenarios and costs.
Next steps: staff will return with detailed impact analyses and proposed ordinance language or administrative rate changes as needed for council consideration.