Des Moines City Council approves two-year budget, raises city property tax levy, increases gambling tax & more

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The Des Moines City Council approved a two-year balanced budget, raised the city property tax levy to $541 average, increased the gambling tax to 11%, and approved removing two dilapidated Beach Park buildings.

Summary

The Des Moines City Council met on Nov. 12, 2026, to address financial planning and city infrastructure. The council gave final approval to a property tax levy; the city receives 6.89% of total property taxes, and with a 1% increase to the city portion, the average homeowner will pay $541 to the city in 2027. The council unanimously approved 2026 budget amendments, including increasing public defense costs from $55,000 to $280,000 due to new state laws, and $60,000 for Redondo concession stand improvements. The 2027-2028 balanced budget was also unanimously approved, with councilmembers expressing appreciation for achieving balance amid regional deficits. An increase to the city's gambling tax from 9% to 11% was approved, affecting a new gambling establishment but not pull-tabs, which are already taxed at the maximum. The council unanimously approved removal of two buildings at Des Moines Beach Park—the Founders' Lodge (built in 1967 over the creek) and the Caretakers Residence (built in the 1980s into the hillside)—both structurally deficient with mold and rot, at a cost of $220,000, with work to start early next year and complete by spring wedding rental season. The council heard a presentation on possible incentives for vacant properties, discussing policies in other cities like Renton and Seattle, with councilmembers emphasizing enforcement feasibility and starting with the downtown core. Additionally, Rich Shockley of Highline College Business Development Center shared free small business development services, and Deputy Mayor Gene Achziger warned of a major king tide event around Thanksgiving.

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