DeSoto council adopts FY2026 budget, raises utility and sanitation fees and sets 2025 tax rate

The DeSoto City Council on Sept. 16 adopted the city’s fiscal year 2026 operating budget and set the 2025 tax rate at 0.684934 per $100 valuation, while approving a series of related fee and ordinance changes meant to fund operations and capital needs.

Interim Finance Director Lakita Sutton told council the tax rate “required to fund debt obligations and maintain a proposed level of operating services is 0.684934 per $100 of taxable value,” unchanged from the prior year. She said the adopted budget would raise about $5,093,723 more in property tax revenue than last year’s budget (a 10.17% increase), including $778,901 from new property added to the tax roll.

Why it matters: the budget funds public safety, capital projects and utility operations while preserving a city reserve that council members said provides multi-month stability. The council approved several fee adjustments intended to help cover utility and contract costs.

Key measures approved - Budget adoption (ordinance): Council adopted the FY2026 annual operating budget and capital improvement plan. Vote: 6–1 (Parett Parker voted no). Motion: “I move that we approve the budget as presented.” - Property tax rate ratification and adoption: Council ratified and adopted the tax rate of 0.684934 per $100 valuation. Motion language included: “I move that the property tax rate be increased by the adoption of the tax rate of 0.684934… this budget will raise more revenue from property taxes than last year's budget by $5,093,723 (10.17%).” Vote: unanimous. - Water and sewer fees: Council approved an average 9% increase in water base and volume rates (base to $12.64 from $11.60; volume to $4.37 from $4.03) and a 9% increase in the sewer base rate (to $15.29 from $14.03). Vote: unanimous. - Sanitation fee: Council approved a $2.83 monthly increase to the residential sanitation rate, from $31.47 to $34.30, effective Oct. 1, 2025. Vote: unanimous. - Candle Meadow Public Improvement District (PID) assessment: Council adopted the FY2026 assessment rate for Candle Meadow PID at 0.306661 cents (to fund a $560,600 PID budget). Vote: unanimous. - Stillwater Canyon PID assessment: Council adopted the FY2026 assessment plan for Stillwater Canyon PID; staff recorded a taxable value of $149,869,070 and a budget of $259,061 to support the PID maintenance plan. Vote: unanimous.

Other ordinance and operational approvals - Repeal of the city’s Fair Chance Hiring / “Ban the Box” ordinance (Code, article 4.21): Council approved removing the local ordinance after city legal staff cited state preemption under House Bill 2127 (effective Sept. 1, 2023), which limits local ordinances in areas regulated by state law. Vote on the pulled consent item: unanimous. - Approval of a settlement ordinance related to Atmos Energy Corporation’s 2025 rate review mechanism (administrative ordinance adopting negotiated tariffs). Vote: as recorded on consent (unanimous). - Confirmation of multiple appointments and reappointments to city boards and commissions (appointments to Citizens Police Advisory Committee, Domestic Violence Advisory Commission, etc.). Vote: unanimous on consent items. - Fire department civil-service positions: Council adopted an ordinance authorizing five funded firefighter positions (previously “over-hire” positions budgeted into FY2026). Vote: unanimous. - Firefighter cancer screening contract: Council authorized the city manager to negotiate and execute an agreement not to exceed $57,525 for the first three years with the existing screening vendor (On Duty Health) to provide mandated firefighter cancer screening and physicals. Vote: unanimous. - Public art at the Aquatics and Recreation Center (ARC): Council approved a contract not to exceed $70,000 for a commissioned mural to be installed on panels in the new ARC. Vote: unanimous.

What council and staff said Sutton explained that while the distribution between the city’s debt-service and maintenance-and-operations components shifted slightly, “the overall tax rate remains unchanged” and the increases in utility and sanitation fees are intended to cover contract water/wastewater treatment and operating expenses.

Deputy City Manager Isom Cameron described the PID process: PIDs submit budgets and the city uses taxable-value information from Dallas County to compute assessment rates to fund maintenance and operations for common areas.

Context and next steps Council recorded the budget vote as a hand roll-call; the budget passed 6–1 with Councilmember Parett Parker opposed. Councilmembers who spoke in favor praised staff work under an interim finance director and highlighted infrastructure items in the budget—including street and drainage work and expanded CARES team funding for behavioral-health responses.

Several adopted fees and rates take effect Oct. 1, 2025. Some items approved tonight (for example, PID assessment ordinances and sanitary rates) are implementation-level actions that will be reflected in billing and service contracts in the coming weeks.

Actions and documentation All formal votes and related ordinances are on file with the city secretary; the council’s motions were recorded by roll call or hand vote as noted above. Staff indicated the budget and supporting schedules are available for public inspection at the city secretary’s office and on the city website.