Des Moines council leans to shift lodging-tax dollars from single July 4 drone show to multiple signature events
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Summary
City staff proposed moving lodging-tax funding away from one large July 4 drone show toward two-to-three year-round signature events. Council members said the public wants more events and, citing an expected lodging-tax decrease, directed staff to explore alternatives and to not renew the current drone contract.
Assistant City Manager AJ Johnson Newton asked the Des Moines City Council on Feb. 5 whether the city should continue funding a single July 4 ‘‘signature’’ celebration or reallocate lodging-tax dollars across two to three year-round signature events.
Newton said the July 4 event has been treated as the city’s primary signature event because lodging-tax revenue is intended to attract visitors. ‘‘Last year the lodging-tax portion cost us $117,175,’’ she told the council, adding an estimated $5,900 in additional general-fund staff time. Newton said the city estimated about 2,000 people attended last year and calculated an approximate $61.50 per-person cost.
Council members discussed trade-offs between preserving a single, large community moment and spreading resources across multiple events. Several members cited survey results Newton presented showing residents want more opportunities to connect. Members also noted a scheduled lodging-tax rate reduction from 1% to 0.8% beginning April 2026, which staff said will reduce the funds available for tourism and signature events.
After extended discussion about attendance patterns, regional draw and cost, council members signaled support for the multi-event approach for future years and directed staff to pursue follow-up steps. Staff said the existing drone contract expires this year and that, if the council prefers, they will not renew it. Council asked staff to notify the vendor as needed, explore scaled alternatives for 2026 if a change is required, and return with a plan and public communication strategy.
City staff repeatedly emphasized the council was being asked only for directional guidance and that a final decision, including any contract action for 2026, would be returned to council with options and costed alternatives.
The council’s next procedural step is for staff to bring back detailed options on how lodging-tax funds could be reallocated, potential sponsorships, and any changes to the planned 2026 program. If the council requests cancellation of the drone contract, staff said they would proceed with vendor notification and provide options for a scaled or alternative event this year.