DeSoto City Council Passes New Fiscal Year Budget in 5 – 2 Vote

DESOTO— Two public hearings were for discussion only, including the FY 2025 Budget, as required by Article VII of the DeSoto City Charter. This budget was later passed during the regular agenda.

The discussion during this public hearing had staff explaining the proposed tax rate of .684934 to fund the debt service and general fund operations. This rate is higher than the no new revenue rate of .613457 and equal to the voter approval rate of .684934. With this rate being equal to the voter approval rate the city is not required to hold an election for approval.

A 2025 to 2029 capital improvement plan was also established – increases were discussed as recommended by staff with several nine percent increases for residents with a five percent increase also proposed to keep current services as they exist, among other areas discussed for increases in the upcoming fiscal year budget.

After all the increases were explained, Anna Williams made one public comment stating she is against the Hampton Road Project. She added, “We talk about the taxes, the 6.84, and we senior citizens on a fixed income, we have to deal with that.”

The second discussion-only item was a Public Hearing on the FY 2025 Budget. With the proposed budget, staff said again they were proposing a tax rate of .684934 to fund the debt service and general fund operations, which is higher than the no new revenue rate of .613457 and equal to the voter approval rate of .684934 with it highlighted a tax rate was necessary to pay debt obligations and provide the level of operating services as proposed in the budget is $0.684934/$100. This is $0.000158/$100 lower than Tax Year 2023.

The proposed rate comprises the debt service rate (I&S) and the maintenance and operations rate (M&O). The debt service rate is $0.181000/$100, a decrease from the Tax Year 2023 rate of $0.181607/$100. The maintenance and operations rate is $0.503934/$100 valuation, a decrease from the Tax Year 2023 amount of $0.503485/$100.

Adopting this tax rate enables the city to cover the additional personnel costs resulting from the recent compensation study, increased staffing and funding for public safety, and other operating expenses.

The tax rate will effectively raise by 7.2% and will raise taxes for maintenance and operations on a $100,000 home by approximately $0.45.

Council voted on the Ordinance, by record vote, to adopt the FY 2024-2025 Annual Operating Budget, Capital Improvement Plan (CIP), City Council Business Plan. Again, it was stated the budget will raise more revenue from property taxes than last year’s budget by $6,389,424, a 13.87% increase. The property tax revenue to be raised from new property added to the tax roll this year is $1,067,228.

Before the vote on this ordinance a secondary vote was held after some council members were still not okay with items not removed as suggested as well as positions being realigned, including a City Council Liaison.

In the end, majority ruled by only a 4 – 3 vote when councilmember Place 7 Letitia Hughes, with a second by Councilmember Place 4 Andre Byrd made a motion to approve the proposed budgeted position of Mayor and City Council Liaison as presented.
Raphiel was vocal before the vote on her concerns regarding staffing realignment, including the council liaison, so she voted against it.

Place Two Pierette Parker also spoke up about items being brought up and commented there were problems even though she said she believed there were “things in the budget that should have been removed” and discussed to bring items as noted.
A second vote passed 5 -2, also, with Hughes making the motion and Byrd seconding it to approve the budget as presented. Marks voted no after asking the City Attorney questions from the dais before voting.

An ordinance passed by record vote unanimously for an ordinance levying and assessing municipal ad valorem taxes for the City of DeSoto, for the fiscal year 2024–2025, at $0.503934 for Maintenance and Operations and $0.181000 for Interest and Sinking Funds, for a total of $0.684934, specifically for the purpose for which said taxes may be expended and directing the assessment and collection. It was noted this tax rate will raise more taxes for maintenance and operations than last year’s tax rate.

A separate vote ratifying a property tax revenue increase as reflected in the FY 2024-2025 Annual Operating Budget compared to the FY 2023-2024 Annual Operating Budget also passed unanimously.

Nine people signed up to speak during public comments at the mid-September City Council meeting in DeSoto.

It was not mentioned how many cards were considered “a number of,” but before comments began, DeSoto Mayor Rachel Proctor told those in the audience, “Due to the number of cards, to make sure we have an efficient flow of the meeting, we reduce that number from three to two minutes to speak.”

Seven of those nine spoke on the lithium battery storage facility.

The other two cards included one woman, Flora Levis, who spoke from the audience and could not be heard.

The other speaker, resident Jim White, also the HOA representative for the city’s cultural arts commended the city, particularly Place 3 Nicole Raphiel, for continuing to grow the art community. He also mentioned the Nance Farm masterplan and said, “It might be time to be proactive and make a department of cultural arts” and was cut off mid-sentence when his two minutes ended.

Speaking on the Vesper Lithium Battery facility, Linda Macafee said she was against it and mentioned its proximity to DeSoto High School.

She added, “DeSoto does not need this type of renewable energy. Lithium-ion batteries are dangerous to the citizens of DeSoto. This type of facility should not be in a residential area; lithium-ion batteries are prone to fires and explosions. This facility would house 100 shipping-size containers full of Lithium-Ion batteries to collect energy when the demand is slow and store it for when the demand is high.”

She added, “Extreme hazards of a facility like this totally outweigh the supposed benefit. Supposedly these ion batteries would provide two hours of electricity to the household that would need them due to the outage. Two hours, and we are risking our health and the lives of our citizens.”

Kelly Whitman said, “When I come out, it is important. We can’t have this, I heard through the grapevine ya’ll have voted down this lithium battery storage unit and I want to commend you for that. What really threw me, watch this, next to a school” she said with disgust. She added, “Children, do you know what lithium does to children and their intellectual development? If there is a gas leak it is not good. I thank you all sincerely for using good sense.”

She also suggested building something in that location that could be enjoyed as a community.

Tanya Evans said, “There are more cons than pros.” She said there is nothing positive about this in the community.

Sonia Parks spoke against Lithium Battery Storage and asked the council to continue to vote “no” as it is not good for the community. Why in a residential area near a school?
Chris Lane did not speak but asked for the names of the council members who agreed with the Lithium Battery Storage facility.

Robin Fahmi spoke again about Vesper and mentioned prayer and trusting the council in looking out for the citizens by voting “no” on this item.

Bernadine Harrison said “I am here to voice my concern on one of the numerous problems and challenges the city of DeSoto is currently facing. Unfortunately, the more I dig the more bewildered I become. The most recent turn of events is unconscionable by any standard of fairness. We the citizens of DeSoto made it abundantly clear awhile back that we reject Vesper Energies Lithium Battery proposal.”

She said it was rejected in its entirety so “With our unwavering vote of no, why does Vesper Energy continue beating what should be a dead horse? Why did they submit an application for a permit when we said no to their proposal?”

She said the company is disregarding the people’s will and moving forward with its own agenda. She concluded, “I smell a rat at city hall or maybe even on this city council.” She was about to explain, but her two minutes had expired.

Additional cards were also received for residents who wanted to speak, but it was noted that these cards were received after the cut-off time. The comments will be noted for the record.

All consent agenda items passed in one vote unanimously, including the approval of past city council meeting minutes as listed, a number of proclamations designating days such as Clean Energy Week or Constitution Week, and 11 reappointment confirmations on the city’s various boards, commissions, and foundations.

Also, the City Manager was authorized to renew employee medical, dental, life, and vision insurance products at the quoted rates for Plan Year 2025, to negotiate and execute a contract with On Duty Health for firefighter cancer screenings and physicals for $50,163, to negotiate and execute a contract with North Central Ford of Richardson for $82,425.92 to purchase a 2024 Ford F-450 Regular Cab truck with a 3-yard dump bed and to publish the required public notifications for a Public Hearing for the City Council to consider an ordinance adopting the updated Municipal Drainage Utility System Fees begin public outreach activities on same.

A Public Hearing to consider an Ordinance adopting the 2025 Assessment Rate for the Candle Meadow Public Improvement District and the FY 2024-2025 Budget, and levy a Special Assessment passed unanimously as well as a unanimous vote for an Ordinance adopting the 2025 Assessment Rate for the Stillwater Canyon Public Improvement District, and the FY 2024-2025 Budget and levy a Special Assessment.

There was a public hearing to discuss and consider the removal of Domestic Violence Advisory Commission Place 2 member Derryl Godfrey for being absent from three or more consecutive regular Domestic Violence Advisory Commission (DVAC) meetings without City Council approval. Godfrey was not there to speak on his behalf, and it was voted 6 -1 to remove him with Councilmember Place 2 Pierette Parker voting no concerning his removal.

The council did vote to reinstate Omer Siddiqui to the Citizens Police Advisory Committee – Place 7. Siddiqui was in attendance and explained he had been informed that the emails the city was sending him were from two jobs ago and that he did not have access to that email. He said he also has a phone setting that rejects calls from unrecognized numbers.

His mother, his emergency contact, told him about the situation and he came to speak on his behalf. He did say he had no excuse for not showing up at the meetings in the past and apologized.

The items that passed on the regular agenda included a Resolution approving the negotiated settlement between the Atmos Cities Steering Committee (ACSC) and Atmos Energy Corporation, Mid-Tex Division regarding the company’s 2024 Rate Review Mechanism (RRM) filing passed unanimously as did an ordinance defining the number of authorized Civil Service positions within the Fire Department.

An Ordinance establishing sanitation service fees effective October 1, 2024, passed as noted in the Sanitation Fund Budget for FY 2024-2025 where there was a proposed $1.40 per month increase in the sanitation rate from $29.97 to $31.47. The increase is proposed to cover the service above levels provided by Republic and the increased operating costs incurred by the City.

An Ordinance establishing water and sewer service fees effective October 1, 2024, passed. The Public Utility Fund Budget for FY 2024-25 had a proposed nine percent increase in the water base and volume rates from the current base rate of $10.64 to $11.60 and the current volume rate of $3.70 to $4.03. The Fund also proposed a nine percent increase in the sewer base rate from the current rate of $12.87 to $14.03 and a 9% increase in the sewer volume rate from the current rate of $12.87 to $14.03. The increase is proposed to cover the costs of contract water and wastewater treatment services, maintain current service levels, and continue capital improvements.

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