The Mesquite City Council meeting on July 19, 2025, focused heavily on the upcoming budget and the challenges posed by new truth in taxation laws. City officials expressed concerns about the complexity of these laws and the impact they have on budget preparation. City Manager Cliff Kehili emphasized the need for accurate data before finalizing the budget, stating, "We did not feel comfortable today presenting these numbers like we normally do."

The council is tasked with setting a tax rate and allocating funds for the future, with a particular focus on addressing rising costs and competitive salaries for city staff. Kehili noted, "We have needs for more people, but more importantly, we have needs to pay our current staff more competitively." The budget discussions also highlighted the increasing costs of supplies and services, which have prompted department directors to seek cost reductions or alternative solutions.

Finance Director Ted Chin presented an overview of the city's financial health, indicating that property tax revenue is projected to increase by 3.5%, while sales tax collections have exceeded expectations, showing a robust growth trend. Chin remarked, "We are very insulated... we are fortunate to be located in the Dallas Fort Worth metropolitan area."

The meeting also touched on proposed increases in water and sewer rates, with a recommendation for a 7% increase in water rates and a 6% increase for sewer services. These adjustments are necessary to cover rising operational costs and maintain infrastructure.

As the council prepares to finalize the budget, they will reconvene on August 4 to review updated financial data and set a ceiling for the tax rate. The decisions made in the coming weeks will significantly impact city services and the community's financial landscape.