DeSoto FY21----FY22-Approved-Budget

The number of new single family homes is a major indicator of growth. It provides insights about rate of potential growth in tax revenue and revenue from charges for services, franchise and utility fees. This number had declined during the recession period between 2007 and 2009. The number of single family homes permits issued has increased on average from 141 units in year 2010 to 153 in 2018. But in the year 2019 the number of permits dropped to 125. The City of DeSoto newhome construction has followed the Dallas County trend closely as demonstrated in the following chart. In 2019, 125 newhouses were permitted in the City, a decrease of 18% from the previous year’s figure. Texas Comptroller of Public Accounts' Texas Transparency website forecasts a growth in housing starts in Texas for the next five years. It expects a growth by 44% from the current figure of 122,099 single family homes in 2019 to 215,796 in 2025. The growth in the city is expected to continue derived by the overall expected growth in Texas. Another indicator, for expected growth in DeSoto, is the growth in number of water customers which has been in line with the increase in housing units and population growth.

# of Water Customers As of Fiscal Year End

14,500 15,000 15,500 16,000 16,500 17,000 17,500 18,000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

1.3 Tax Base Component: Growth in Ad Valorem tax is derived from commercial and residential property. The City of DeSoto experienced changes in its tax base components in the past ten years. Taxes from commercial property have increased over that period from 35 percent in 2009 to 38 percent in 2019. Growth in commercial property taxable value increased by 47 percent from 2009 compared to 58percent increase in taxable value of residential property over the same period.


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