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DeSoto council reviews preliminary FY2026 budget; proposes keeping tax rate flat
Summary
City staff presented the proposed fiscal year 2026 budget to the DeSoto City Council on July 24, outlining a balanced general fund, a proposed maintenance-and-operations tax rate of 0.684934 per $100 of assessed valuation and an overall general-fund plan that includes a 1% COLA proposal and a $500 one‑time stipend for employees.
City staff presented the proposed fiscal year 2026 budget to the DeSoto City Council on July 24 and recommended maintaining the city's proposed tax rate at 0.684934 per $100 of assessed valuation. Interim budget director Lakita Sutton told the council the presentation reflects updated numbers that remain subject to change when Dallas County delivers final certified values.
Sutton said the proposed general fund is balanced on paper, with roughly $71.5 million in both proposed revenues and appropriations. She told council the picture still depends on final property appraisals and other revenue fluctuations. "We are presenting a balanced budget in the general fund," she said.
The package includes personnel changes across departments, as well as line-item adjustments for professional services and capital priorities. City staff and the city manager framed the budget as conservative on several fronts: they proposed a 1% cost-of-living adjustment (COLA) for civilian employees rather than the typical 2% and recommended holding step increases for civilian employees until the city can assess midyear revenue, while police and fire contractual increases were preserved.
City staff also proposed a $500 net one-time stipend for employees. The city manager said the stipend is not intended to replace future COLA or step increases but to provide some relief while the council evaluates the ARC (aquatic and recreation complex) operational options.
Council members pressed staff for clarity on revenue assumptions, the treatment of personnel costs, and the timing of decisions tied to the ARC. Sutton said the city will receive final taxable values from Dallas County within days and will update figures as needed.
Votes at the end of the meeting were limited to procedural matters; the council moved and unanimously passed a motion to adjourn at the end of the session.
Financial staff said more detailed line-item backup for professional services, capital outlay and department-level benefits impacts is available in the budget book and will be provided in follow-up materials and subsequent meetings.
