DeSoto finance director reports April and May finances; council seeks overtime and debt-service detail

Interim Finance Director Lakita Sutton presented the City of DeSoto's April and May 2025 financial reports, reporting year-to-date revenue and expenditure percentages for the general fund, public utility fund and sanitation fund and noting stronger-than-expected interest revenue.

Sutton said, "As of the May, we are 67% into the fiscal year," and reviewed key budget lines: the general-fund revenue budget of $64.3 million and a year-to-date collection rate of 84.5% for major sources including property taxes; water sales were budgeted at $13 million and sewer sales at $16 million. For April, Sutton reported the general fund was at 78.7% year-to-date compared with 82.5% at the same point last year; expenditures were 55.8% of budget in April and 61.5% in May. The public utility fund revenue was reported at about 60.4% year-to-date and expenses at roughly 58.4%.

Council Member Perrette Parker asked about the overtime report and whether a quarterly breakdown would be provided; Sutton replied the overtime report is produced quarterly and will be included with the June financials. Parker also asked about an expense line showing 88% for debt service; Sutton explained that the 88.2% reflects the timing of scheduled principal and interest bond payments.

City Manager Majid Al Gaffrey answered a separate question about a listed $1,600,000 federal grant, explaining that some grants are reimbursement-type: the city must expend funds first and then request reimbursement. He said the $1.6 million had not been expended and that the city is in the environmental phase of the project.

The May packet also included capital projects, internal service funds, other fund summaries, a property tax collection report and a HUB report, Sutton said. Council requested the quarterly overtime report and further detail on a few funds that exceed year-to-date percentages for follow-up.