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 fo