DeSoto City Council Approves 2025 Tax Rate and Budget Amendments

During the recent DeSoto City Council meeting held on August 19, 2025, significant financial decisions were made that will impact the community's budget and services for the upcoming fiscal year. The council unanimously approved a proposed tax rate of 68.4934 cents per $100 valuation for the fiscal year 2025-2026, setting public hearings for both the budget and tax rate on September 2 and September 16, respectively.

One of the key discussions centered around the acceptance of the 2025 tax year appraisal roll from the Dallas Central Appraisal District, which reported a total appraised value of approximately $8 billion. This acceptance is crucial as it forms the basis for the city's revenue projections for the upcoming budget year.

The council also addressed the utilization of excess reserve funds, with a proposal to allocate $1.7 million from the general fund to capital improvement projects, including vehicle and equipment purchases. This move is intended to free up general fund revenue for other operational needs. However, concerns were raised by community members regarding the implications of using one-time revenues for ongoing expenses, such as employee cost-of-living adjustments (COLA). Residents emphasized the importance of adhering to financial policies that protect the city’s long-term fiscal health.

Public comments highlighted the need for transparency and proactive discussions regarding budget allocations, particularly concerning employee compensation. Residents urged the council to ensure that any increases in salaries are sustainable and not reliant on temporary funding sources, which could lead to future budgetary challenges.

In conclusion, the council's decisions reflect a commitment to maintaining fiscal responsibility while addressing immediate community needs. As the city prepares for public hearings, residents are encouraged to engage in the budget process to ensure their voices are heard in shaping DeSoto's financial future.