COVID to Cost City $25 Million in Lost Revenue


DES MOINES, IOWA – Wednesday, Dec. 2, 2020 – Due to the coronavirus (COVID-19) pandemic, the City of Des Moines this fiscal year is estimated to lose $25 million dollars in revenue. In releasing loss estimates today, City Manager Scott Sanders said the coronavirus outbreak has severely affected City revenues and will continue well into next year. 

“While the health and safety of residents is our greatest priority, we must also be mindful of the financial impact the pandemic is having on City revenues,” Sanders said. “Now that we have determined the extent of the impact into mid-2022, our next step is to implement a plan that best serves Des Moines residents.”

Sanders and the City’s Finance Department are currently working on the amended fiscal year 2021 budget and the recommended fiscal year 2022 financial plan. 

“As we begin the budget process, we’re taking into account the COVID-related impact so that we can address both short-term and long-term financial concerns,” Sanders added.

On December 22 (5:30 p.m. - 7 p.m.), Sanders and Finance Director Nick Schaul will conduct via Zoom a Budget Education and Engagement Workshop for residents. A webpage has been developed to provide informational videos and details about the City’s budget process. The City is also seeking comments and questions from residents prior to the online budget presentation. Details of that workshop may be found at

Sanders said he estimates that revenue loss could diminish by about half, or to $12.7 million for the fiscal year beginning July 2021.

A detailed report of estimated revenue loss is available here.

Estimated Revenue Loss Totals

General Fund $7,289,000 $4,688,000
Local Option Sales & Service Tax Fund $9,930,000 $5,930,000
Road Use Tax Fund $1,300,000 $305,000
Capital Improvement Projects Fund $1,125,000 $195,000
Parking Fund $3,250,000 $1,600,000
Sanitary Sewer Fund $2,200,000 $0
TOTAL $25,094,000 $12,718,000

Al Setka
Chief Communications Officer, City Manager’s Office
(515) 283-4057

About the City of Des Moines
The City of Des Moines: Iowa’s capital city and local government servicing more than 217,000 residents, 52 neighborhoods, over 4,000 acres of parkland and 81 miles of trails. The City of Des Moines stands to be a financially strong city with exceptional city services, fostering an involved community in a customer friendly atmosphere. Visit DSM.cityFacebook and Twitter for more information.