The Des Moines City Council voted unanimously at their Oct. 8 meeting to oppose Initiative 1033 on the November ballot.

I-1033 would limit the annual growth in revenue that cities, counties and the state could use to provide services under a formula based on inflation and population growth.

Revenue from both taxes and fees above that limit would be used to reduce property taxes the following year.

The resolution adopted by the Council said "the initiative will undermine the ability of the state, counties and cities to provide services to constituents."

It continued, "the effect of the limitation is exacerbated during the recession, as the Initiative does not address the impacts of a recovery following and an economic downturn."

City Manager Tony Piasecki said a fiscal analysis indicates that under I-1033, Des Moines would lose almost $1 million over the next four to five years.

In less than two years, the City already has experienced a decline in revenue of almost $3 million, Piasecki noted. As a result, Council reduced 2009 general fund expenditures by over $1 million. Another round of cuts totaling about $2 million now must be made to balance the 2010 budget.

Mayor Bob Sheckler said, "Typically as a Council we don't take positions on ballot issues, but we made an exception in this instance.

"One of our greatest concerns is that I-1033 doesn't take into account the fluctuations in revenue that smaller cities experience," he said.

"For example, revenue from a large development, including permit fees, sales taxes and utility taxes, may have to be used to reduce property taxes citywide rather than to pay for the additional services required by that development."