As the City of Des Moines looks toward a future of fiscal sustainability, the Study Session and Committee of the Whole meeting on Thursday, Feb. 5, 2026, highlighted a critical turning point for municipal operations.
Facing a widening gap between rising inflation and capped property tax revenues, the City Council is weighing difficult trade-offs – from the high-profile cancellation of the signature July 4th drone show to the potential demolition of the historic Founders’ Lodge.
While a recent boost in county parks funding offers a silver lining, the overarching theme of the session was clear: to maintain essential services like public safety and infrastructure,
Des Moines must pivot toward more cost-effective community programming and explore aggressive new revenue streams, including utility fee adjustments and expanded traffic safety cameras.
4th of July Drone Show
Public feedback has been clear about the desire for community enrichment services, events that are open to the public in celebration of holidays or other festivities. By far, the most expensive event Des Moines puts on is the 4th of July drone show. This is considered Des Moines’ signature event. However, attendance has dropped while the cost has risen. It was calculated that for the 2,000 total attendees at the 2025 drone show, the cost to the city was $61.50 per person.
This discussion centered on a potential shift in focus, possibly spreading city resources to other events throughout the year. Part of the reason for the high cost of the 4th of July festival is that city staff must be paid holiday rates. Councilmember Robyn Desimone pointed out that the drone show itself costs $6,000 per minute.
The vast majority of the $123,075 for 2025’s 4th of July celebration came from the lodging tax, which is designated solely for things that attract people to the city. This tax has been at 1.0%, but is set to drop to .08% in April, greatly reducing this revenue. There is no data on how many attendees to city events come from beyond city borders. The costly celebration may be pulling people to town, but they are staying at the marina and not frequenting nearby businesses. Councilmember Desimone said that downtown Des Moines is a wasteland on July 4th.
The council was given the option of continuing with the drone show this year, or canceling it and pivoting to put more resources into other events. It was a hard decision for some, like Councilmember JC Harris, who felt that the public has come to expect the show and will be angered by a change. Deputy Mayor Gene Achziger said that since 2026 will be the country’s 250th centennial, the event should at least continue through this July. He mentioned that a pyrotechnics show would cost much less than drones. However, it was pointed out that a fireworks show now requires a barge to launch them from, and that barge rental increases the cost greatly. Councilmember Pierre Blosse said the drone shows were fine but too expensive. He thought an alternative event could still be organized for the holiday. Councilmember Harry Steinmetz said they should have been given more time to consider this huge decision, and there should have been time for the public to weigh in. However, if the drone show was going to be canceled, it had to be done without delay.
They decided to spread the city resources out to two or three other events throughout the year, and canceled the 2026 drone show. However, staff will be exploring another option for celebrating on July 4th. In addition, they will be communicating with the public about these changes, and working with the Citizen Advisory Board on ways to improve city events. For more info on the city sponsored events, see this link.
New Parks Dollars
In 2025, King County voters passed a parks levy which is now benefitting smaller cities. While Des Moines used to get $210,000 from King County property tax dollars for parks, that number will jump to $485,000 per year. The council heard an update on recent and future Parks projects.
Parks priorities were discussed, including major improvements at Midway Park & Soccer Field. In addition, safety issues need to be addressed regarding the Founders’ Lodge at Beach Park. This lodge, built in the 1960’s, is in the flood plain and its deficient structure is filled with asbestos. Rehab, including raising the structure out of the flood plain and asbestos remediation, would cost between $6 and $7 million. It is not predicted to generate a return on that investment. Demolition would be just $300,000 to $400,000, and in its place would be an open area of park space. Ideal demolition time is the end of summer, whether this year or in the future, when the creek level is at its lowest.
General Fund Forecast
The council also heard a presentation on the general fund forecast. This fund, which pays for police, parks, and basic city services, is rapidly reaching the time when expenses outpace revenue. This is happening because the state caps property tax increases to 1%, which does not keep up with inflation. So, expenses increase every year at a faster rate than income. According to expert predictions, the city needs to bring in an additional $1 to $2 million each year for the next ten years to keep the general fund solvent. Beyond ten years, that need is expected to grow even larger.
This was followed by a presentation and discussion on ways to increase revenue. The city has already implemented many measures meant to bridge that revenue gap; however those measures, such as the new warehouse tax, are not bringing in as much as anticipated. New or increased revenue sources are needed in order to maintain the status quo of basic city services. The city has already made many difficult decisions to cut costs. Every Washington city is facing the same issue, and many are pressuring the state to lift that 1% levy lid. In the meantime, the council will be considering other measures.
Car tab fees could increase by $50, potentially bringing in $250,000. The council could extend school zone camera operations to 24 hours per day, and new traffic cameras could be installed in other locations. These cameras are expected to bring in $1.2 and $2 million, respectively; however, that revenue tapers off as people get used to the cameras and learn to drive at safer speeds. Raising the utility fees could bring in an additional $900,000. Raising the parking rates at the Marina and Redondo waterfront lots could bring in $50,000. The new public safety sales tax is still awaiting state approval.
It was pointed out that even with all these changes, in the long term revenue will still not keep up with expenses. However, it’s a start. There will be a council presentation and discussion about additional traffic cameras in April.
