During the DeSoto City Council Special Meeting on July 24, 2025, city officials engaged in a detailed discussion regarding the upcoming budget, focusing on priority-based budgeting and the implications of new liabilities. The council is navigating a complex financial landscape as they prepare for the fiscal year 2026 budget, which is projected at $71.4 million for the general fund.

A significant point of discussion was the impact of the Actuarial Required Contribution (ARC) on the budget, which has led to a reevaluation of staffing needs. City officials indicated that while some positions are deemed essential, others may be postponed due to budget constraints. This prioritization reflects a careful balancing act between maintaining necessary services and managing financial responsibilities.

Council members also highlighted additional liabilities that have emerged, such as the recent acquisition of the Thorn Tree property, which was not initially accounted for in the budget discussions. Despite concerns, officials clarified that this acquisition would not have a net effect on the budget.

The meeting also addressed the need for clarity regarding employee benefits and how changes in staffing classifications could affect costs. City staff assured council members that detailed breakdowns of benefits, including insurance and retirement contributions, are available for review, allowing for transparency in how these changes impact the overall budget.

As the council continues to refine the budget, they are also working on capital project priorities, with updates expected in the near future. The discussions from this meeting underscore the city's commitment to fiscal responsibility while striving to meet the needs of its residents. The council's ongoing efforts will be crucial in shaping DeSoto's financial landscape in the coming year.