Desoto — The DeSoto City Council held a public hearing Sept. 1 on a proposed FY 2026–27 financial plan that would keep the municipal property-tax rate unchanged while increasing water base and volume rates and the sewer base rate by 9%.
During the session, council members authorized a master service agreement for police-policy subscription and implementation services, and approved a suite of Next Generation 911 State Grant-funded technology upgrades for the region's 911 dispatch center.
Budget and tax rate overview
The proposed budget maintains DeSoto’s total property-tax rate at $0.684934 per $100 of taxable valuation, matching the rate set for the 2025 tax year. The rate breaks down into:
Despite the unchanged rate, the proposed budget is projected to raise approximately $3.2 million more in property-tax revenue than the prior year, a 5.94% increase. Staff said $695,286 of the increase would come from property added to the 2026 tax roll.
The general fund budget projects $74.3 million in revenue against $74.1 million in expenditures, leaving a projected general-fund surplus of $192,876. The general fund is expected to start the fiscal year with a balance of $32.1 million.
The Sept. 1 agenda included a public hearing on the proposed budget; council did not take a final budget-adoption vote that night.
Proposed Utility Rate Adjustments
To offset rising operational and wholesale utility costs, the proposed budget includes a 9% increase in water base and volume rates and a 9% increase in the sewer base rate. Sanitation rates would remain unchanged.
| Utility Charge | Current Rate | Proposed FY 2026–27 | Water Base Rate | $12.64 | $13.78
| Water Volume Rate | $4.37 | $4.76
| Sewer Base Rate | $15.29 | $16.67
| Sanitation Rate | $34.30 | $34.30
City staff explained that the self-supporting utility fund must account for wholesale treated water purchases from Dallas Water Utilities, regional wastewater treatment via the Trinity River Authority, and maintenance and investment in the city’s water and sewer system.
During public comments, residents Catherine Fisher and Daniel Cruz requested that the city consider adopting a general homestead exemption in future budget cycles, with Cruz also suggesting a phased-in approach to the utility increases. Staff said the city could revisit a general homestead exemption in a future budget cycle after it has a full year of financial data from The ARC and more clarity on other pending financial measures. DeSoto currently offers exemptions for residents aged 65 and older as well as disabled residents.
Police Policy Review Agreement Authorized
Council authorized the interim city manager to negotiate and execute a $49,614.95 Master Service Agreement with Lexipol LLC (under Sourcewell Contract No. 102325-LXP) for police-policy subscription, review and implementation services.
Addressing public questions regarding the service, city representatives said DeSoto would tailor recommended policies to local needs and subject them to review by police staff, the city attorney’s office and the Community Police Committee before implementation. The agreement will be funded using the Police Department's federal-forfeiture account rather than the general fund.
Consent agenda and upgrades
In a 7–0 vote, council approved its consent agenda, excluding the item on canceling the Oct. 6 council meeting.
The approved package authorized several infrastructure projects and Next Generation 911 State Grant-funded purchases for the Southwest Regional Communications Center:
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Signalization Construction: Acceptance of completed work on the East Parkerville Road and Academy Way intersection signal project.
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Engineering Contract Amendment: A $20,700 amendment with J. Richard Perkins for additional surveying, design and construction-phase assistance on the 2023 water and wastewater renovation and replacement project (bringing the amended contract total to $105,700).
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Recording System Upgrade: A $200,402 purchase of an upgraded Eventide 911 recording system from VistaCom.
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Network Maintenance: A $300,000 purchase for two additional years of AT&T maintenance and support for the regional 911 phone system.
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Backup Center Hardware: A $130,924.94 purchase and installation of a Motorola Command Central AXS dispatch console for the communications center's backup site.
Meeting Schedule Adjustments & Executive Session
Council later approved cancellation of its Oct. 6 regular meeting, with officials citing the opportunity for council and staff to participate in Texas Night Out. Staff said the city had moved agenda items to other meetings and did not anticipate critical deadline problems. An alternative proposal to move the meeting to Sept. 29 failed to pass.
Prior to public business, the council convened in executive session to discuss real property matters concerning 825 W. Wintergreen Road / Thorntree Golf Club; council reconvened into open session taking no formal action.
This article was created with artificial intelligence using public meeting materials and was edited by staff.
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