DeSoto presents proposed FY2026 budget; ARC operations, staffing and tax rate key issues

Mayor Rachel Proctor on July 24 convened a DeSoto City Council workshop where staff presented the proposed fiscal year 2026 budget, highlighting personnel changes, capital priorities and the anticipated operating impact of the new ARC (aquatic and recreation center).

Lakita Sutton, interim director and the city's budget presenter, told the council the proposal maintains the existing tax rate of 0.684934 per $100 of assessed valuation and presents a balanced general fund for FY2026. "We are looking at maintaining the existing tax rate of 0.684934 per $100 of assessed valuation," Sutton said during her presentation.

Why it matters: The ARC and other new commitments are driving notable changes in personnel and operating costs across departments. Council members questioned the timing, cost assumptions and how reclassifications and freezes on typical pay increases would affect retention and service delivery.

Top-line figures and major drivers - General fund revenue and proposed appropriations are roughly $71.5 million for FY2026, according to the presentation. - Personnel costs increased citywide; staff said the ARC adds 53 positions that, as staffed in-house, produce an estimated personnel cost of about $1.8 million. City staff estimated total ARC operating costs (personnel, utilities, chemicals, insurance, cleaning and other operating costs) could be about $4 million if the city runs it in-house. - Sutton told the council the 53 ARC positions were budgeted to start when the ARC opens (staff said they budgeted…