DES MOINES, Iowa — The City of Des Moines is facing a $17 million shortfall in the fiscal year 2026 budget.

According to Des Moines City Manager Scott Sanders, the several million dollar shortfall was caused by two things — a new state law resulting in reductions in property tax revenue growth and rising costs of services and materials.

“This budget presents an enormous challenge and many tough decisions,” Sanders said in a statement. “Our finance department and I have worked to find solutions to address this shortfall that minimize impact to our residents who depend on our services daily and to our city staff who provide those vital services.”

Sanders released several recommendations to address the shortfall on Monday. Those recommendations include:

• The use of city reserves.
• Attrition, department reorganization, and adjustment of service. The city would leave unfilled roles vacant and would adjust the hours that certain services are available.
• The reallocation of costs. Several departments and organizations, including the police and fire departments, library, and parks and recreation department, could face significant budget cuts.
• Changes to fees and revenue.

Sanders’ full proposed budget is expected to be released on February 5. Two public budget information sessions will be scheduled so residents can learn more about the budget challenges and proposed changes before the City Council’s first formal public budget hearing on March 24.

To read more about the recommendations addressing the budget shortfall click here.

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