11-2-26 City Council Work Session

The City of Des Moines Council’s November 2, 2026 work session focused first on changes to tax increment financing (TIF) under Iowa Senate File 2472, enacted May 18, 2026, and then on possible regulation of private-property towing. Staff described the new 2% city general-fund growth cap, limits on TIF districts and eligible tax capture, and uncertainty awaiting state administrative guidance. The city manager cited a nearly $12 million current-year structural budget shortfall. Staff said the changes could constrain redevelopment and infrastructure financing, and outlined tighter internal review of TIF requests, a preference for project-generated pay-as-you-go rebates, and a proposed delayed-rebate approach to capture new valuation. Workforce housing was clarified as an eligible TIF use. Council approval of the annual TIF certification will be sought at a future meeting; no TIF project award or spending vote occurred during this session.

Council members debated possible rules for private-property towing, including credit-card acceptance, cameras, vehicle-release access and fees, licensing, inspections, and signage. One member cited a roughly $50 drop fee in a city towing-contract bid, compared with a $20 fee in Sioux City and a fee of about $90 discussed in the debate; no contract award or ordinance was approved. Members asked staff to gather council feedback by the end of the week and investigate other cities’ rules and the legal risks, including whether to seek an attorney general opinion. No vote was taken on the towing proposals.