Des Moines City Council Approves Tax Levy, Budget Updates and Holiday Tree

Des Moines homeowners are facing a new property tax levy increase alongside a contentious local spending decision after the City Council voted 4–3 to approve a $126,500 artificial holiday tree for the upcoming Winter Waterland festival, waterlandblog.com reported.

At the October 29 meeting, city leaders weighed several pressing fiscal adjustments, public safety notices, and municipal tax updates. While the holiday tree purchase sparked division among councilmembers, the city also unanimously greenlit a councilmatic property tax levy increase of up to 1%. Finance Director Jeff Friend explained that Washington’s tax structure heavily favors the state, leaving Des Moines to receive just 6.89% of property tax dollars paid by residents. School districts capture the majority of those funds, with the remainder divided among the county, transit, libraries, and the fire district.

Weighing the Cost of Winter Waterland

The debate over the $126,500 pre-lit artificial tree centered on long-term fiscal planning versus immediate community tradition. Assistant City Manager AJ Johnson Newton outlined plans for the free family festival scheduled for December 4 from 5 to 8 p.m., which features Santa arriving by boat, a holiday market, live entertainment, and the tree lighting at 6 p.m.

City officials evaluated three distinct options for the display. Renting a tree would cost $32,000 annually, while decorating a live tree—as staff did last year—took five employees 60 hours of labor and cost $25,000. That live tree is currently slated for removal during the marina steps project but was left standing as a backup. Purchasing the pre-lit artificial tree breaks down to roughly $25,000 per year over a five-year span, with costs dropping further if the tree remains in use for a decade or more.

Funding for the purchase will draw from the waterfront zone fund, the marina fund, and the lodging tax. Despite the long-term projections, Councilmember Pierre Blosse argued for reusing the live tree, pointing to its success last year. Blosse, alongside Deputy Mayor Gene Achziger and Councilmember JC Harris, ultimately voted against the artificial tree purchase.

Adjusting Budgets and Closing Tax Loopholes

Beyond holiday planning, the council unanimously approved several 2026 budget amendments. These included a $55,000 bump in public defense costs driven by new statewide limitations on defender caseloads, alongside a decrease in traffic camera revenue as more motorists adapt to enforcement zones.

Lawmakers also tightened regulations on the warehouse square footage tax, which was initially launched in January 2025 to capture revenue from businesses exempt from traditional taxes. Because initial revenues fell short of projections and many companies reported large portions of their square footage as exempt, the updated rules aim to close those loopholes while keeping small businesses and gross-receipts taxpayers protected beneath a 4,000 square-foot threshold.

With flu season arriving earlier than usual, Councilmember Blosse urged residents to seek out the available vaccine.