DeSoto officials review June 2025 financial report; property tax nearly collected, sales tax lags
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Summary
Interim finance director Lakita Sutton told the council the city has collected about 86.7% of general-fund revenue through June, driven by property-tax receipts, while sales-tax receipts trail budget. Council members pressed staff on higher police overtime and how SRO revenues are shown in the general fund.
Interim Finance Director Lakita Sutton presented the City of DeSoto’s June 2025 financial report to the City Council at a special meeting Monday, saying the city is about three quarters through the fiscal year and has collected most property-tax revenue but is tracking below budget on sales tax.
Sutton said the general fund’s adopted revenue budget is $64.3 million and year‑to‑date actual receipts are $55.7 million (86.7% collected at roughly 75% of the fiscal year). Property taxes accounted for $39.5 million year‑to‑date, or roughly 98.6% of the property‑tax budget. Sales tax receipts were $6.6 million, about 57.2% of the budgeted amount, she said. Total budgeted expenditures for the general fund are $63.9 million and year‑to‑date spending is $44.8 million, about 70.2% of the annual budget.
Sutton briefed the council on other funds as well: the public utility fund budgeted $30.4 million in revenue and has collected $23.3 million year‑to‑date (about 76.5%), while sanitation fund revenues are at $5.6 million of a $7.3 million budget (about 76%). She said the packet also includes capital-project and special‑revenue fund reports, the property‑tax report and overtime by department.
Council members asked about the sales‑tax shortfall and higher police overtime. Sutton and city staff attributed the sales‑tax softness to broader economic trends and seasonal variation; Sutton said the preliminary plan for the upcoming budget is to leave the sales‑tax estimate unchanged rather than propose an increase. Parks staff said two local items — lower revenue from youth‑tournament security (about $14,000 collected vs. $60,000 projected) and a weaker‑than‑expected season at the ice rink — reduced anticipated recreation receipts.
Councilmembers pressed staff about police overtime levels. Sutton said the police department has spent about $651,000 year‑to‑date compared with about $578,000 at the same point last year; some offsetting revenues (such as SRO — school resource officer — fees) flow to the general fund rather than directly to the department. City Manager Del Gaffrey said the city capped overtime last year and is reviewing whether to budget more overtime next fiscal year or to account for special events differently. He said unpredictable events (chases, mutual‑aid responses, attrition and leave) also drive overtime.
Sutton said staff will list SRO revenue on the financial‑report memo so council can more easily see the offset month to month. Council directed staff to include more detail and to provide quarterly updates that include staffing and vacancy information for public‑safety departments.
The finance presentation concluded with staff offering to answer follow‑up questions and to include additional detail in future reports.
