Metro governments are forging new alliances in a scramble for cash

Des Moines city and school governments have vowed to work more closely to tackle upcoming budget pressures.

Why it matters: Cost sharing could help both governments avoid harsher future cuts.

• Plus, some of the biggest pieces of recent state legislation to limit local government tax growth go into effect next year.

Driving the news: The full City Council and Des Moines Public Schools (DMPS) board met jointly last week for the first time since 2016 to discuss ways to save money.

• The 90-minute meeting included conversation about parks, preschool, libraries and housing initiatives.

Catch up quick: A bipartisan bill approved by Iowa lawmakers last year limits how much local governments can grow their budgets based on total assessed property value.

• Lawmakers' intent was to prevent residents and businesses from seeing huge jumps in taxes of higher properties assessments.
• Home values in Polk County, for example, jumped a record 22% last year.

By the numbers: Once fully implemented in the fiscal year beginning July 2027, the changes amount to an estimated annual loss of $100 million revenue statewide for local governments.

State of play: Even before the tax changes, the city government was nearing its self-imposed debt ceiling and facing a budget crisis.

• DMPS, meanwhile, was also preparing to deal with millions in annual shortfalls in upcoming years due to a dwindling number of students.

Zoom in: Last week's joint meeting was intended to start conversations, but some collaborations are already in progress.

• DMPS has for years shared city facilities like the James W. Cownie Soccer Park, for example.
• Meanwhile, a recent agreement opened up playgrounds at five schools to their surrounding neighborhoods.
• That means 14,000 more residents are within a 10-minute walk of a park, Parks and Recreation director Ben Page said during last week's meeting.

What they're saying: The Taxpayers Association of Central Iowa, a non-partisan membership group that advocates for government efficiency, in a memo last week gave kudos to the governments for meeting.

• Other types of tax increases or reduced services could result if efficiencies are not found, the group noted.

Reality check: The new budget restraints likely won't allow cities to keep up with inflation.

• Cuts remain almost unavoidable unless new legislation can keep them financially afloat, DSM city manager Scott Sanders said in a council meeting last year.

What's next: Collaborations between other area governments are also in the works.

• The Metropolitan Advisory Committee — a group that includes council members from multiple cities in the region — will meet for a special two-hour session Tuesday to discuss their own cost-sharing possibilities.