COVID-19 Affects Des Moines Budget

     I sent some questions to City Councilor Bill Gray, who represents Ward 1 in Des Moines, Iowa. The following questions and answers have been edited and condensed for clarity.

Frank Bowers (FB): Did anything unexpected happen this (FY19-20) year, and if so, what?

Bill Gray (BG): Shutting down the state impacted us greatly. Just in reduction of LOSST (Local Option Sales and Service Tax) income, Des Moines resulted in a decrease of 18 million in revenue through the end of May. Some taxes and fees have decreased, such as hotel/motel taxes, storm water management and sanitary management, and parking fees. Up until mid-March, we had a good budget- both operational and CIP (Capital Improvement Program)- for FY19-20 and FY 20-21 going forward.

FB: What changes are expected between Fiscal Year 19-20 and Fiscal Year 20-21?

BG: Our operational budget is going to be fine for the time being. The only furloughed staff are at libraries, which have been closed during the lockdown. However, the CIP portion of the budget, due to the reduction in anticipated income, will cause some projects to be delayed.

FB: Are there any expected changes to the FY20-21 budget because of the coronavirus, and if so what are they?

BG: I will defer to Finance and get back to you.


Useful terms to understand the questions and answers:

The Des Moines fiscal year runs July 1st to June 30th, so the Des Moines fiscal year 2019-2020 (FY19-20) runs from July 1st 2019 to June 30th, 2020.

     According the website of the City of Des Moines, the Capital Improvement Program (CIP) includes all capital improvement projects for the current year and the next five years. The capital budget is the first year of the CIP, includes detailed sources of funding for each project, is formally adopted on March 15th of every year in conjunction with the Operating Budget, and since the CIP often affects operating costs, the two are tied together. A capital improvement project is a major project involving construction, renovation, or repair of a city-owned building or infrastructure. Additionally, a capital improvement project must cost at least $10,000 and is funded in whole or in part from bonds, federal funds, state funds, or user fees generated for that purpose.

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