De Soto Council Approves $20.4 Million Budget, Joins Annexation Lawsuit and Advances Major Infrastructure Projects
City leaders outline plans for street and bridge improvements, approve a floodplain property purchase and pursue funding for wastewater upgrades.
By The Jefferson Review
DE SOTO, Mo. — The De Soto City Council approved its 2026–2027 fiscal year budget, formally supported the city's participation in a legal challenge over Missouri's annexation laws and took action on several property, infrastructure and community event matters during its Monday, October 19 meeting.
The meeting featured a detailed review of the city's financial position, including plans for millions of dollars in street improvements, bridge construction and other capital projects. Council members also approved an additional liquor license, a rezoning request and the purchase of a flood-prone property.
Council Approves $20.4 Million Budget
City Manager Todd Melkus presented the city's new fiscal year budget, which projects approximately $17.07 million in revenue and $20.40 million in expenditures.
Although the spending plan exceeds anticipated revenue by more than $3.3 million, Melkus explained that much of the difference reflects infrastructure projects carried forward from previous years and the use of reserves accumulated over several budget cycles.
The largest planned projects include $2.2 million for improvements to St. Louis Street, approximately $1.3 million for Miller Street and an estimated $800,000 for the DeWitt Street Bridge.
Both the Miller Street and DeWitt Street projects have received funding through East-West Gateway grants, with the city responsible for approximately 20 percent of their costs.
Another significant expense involves replacing a failing culvert on Coachlight Drive with a box culvert, a project estimated at $350,000.
Melkus emphasized that the city's finances remain strong despite the planned expenditures. He said De Soto expects to finish the fiscal year with more than $9.8 million in reserves.
He also credited Finance Director Tasha Dennis and city staff for their conservative budgeting practices.
Melkus noted that sales tax revenue has remained relatively flat, running approximately one percent below the previous year's level, while the costs of materials and services continue to increase.
The council approved both an amendment to the previous fiscal year's budget and the new spending plan.
De Soto Joins Lawsuit Challenging Missouri Annexation Law
The council also voted to formally authorize the city's participation in litigation challenging changes to Missouri's municipal annexation laws.
Melkus explained that House Bill 2818 introduced new restrictions affecting annexation in Jefferson County and certain other Missouri jurisdictions.
According to Melkus, the changes could prevent property owners who voluntarily wish to become part of De Soto from doing so, depending on how their properties connect to existing city boundaries.
He expressed concern that the legislation places restrictions on certain communities rather than establishing uniform statewide requirements.
Crystal City initiated the legal challenge, and De Soto has joined the litigation alongside other municipalities.
During the meeting, the council formally authorized the city's attorney to pursue the necessary legal filings, confirming the city's support for participating in the case.
City Moves Forward With Floodplain Property Purchase
Council members approved an ordinance authorizing the purchase of property at 106 East Third Street for $5,000.
Melkus explained that the property is located in an area where the city has been purchasing flood-prone buildings as part of a continuing effort to reduce future flood damage.
The property had been purchased by an individual who initially intended to renovate it. However, after learning about the applicable floodplain requirements, including the need to elevate the structure above the required flood level, the purchaser determined that renovation would not be financially practical.
Following negotiations, the city and property owner agreed on the $5,000 purchase price.
Melkus said the city intends to demolish the existing structure and leave the property as open space, continuing a strategy that has been pursued over the past several years.
Additional Liquor License and Rezoning Approved
The council voted to increase the maximum number of permitted liquor-licensed establishments from 15 to 16.
The change was necessary to accommodate an application from Seven Hills of De Soto LLC.
Melkus informed council members that the police chief had completed the required background investigation and found no reason to recommend denying the application.
Following approval of the ordinance increasing the license limit, the council also approved the company's liquor license application.
In a separate action, council members approved rezoning a parcel from R-2 single-family residential to R-4 multifamily residential.
The change was recommended unanimously by the Planning and Zoning Commission and was requested primarily to accommodate different setback requirements.
The council also approved a minor subdivision of the same property, allowing one parcel to be divided into three lots.
Public hearings were held on both requests, with no public comments recorded during the council meeting.
Wastewater Facility Planning Grant Pursued
The council authorized city staff to apply for a Missouri Department of Natural Resources grant of up to $50,000 to help fund a wastewater facility plan.
Melkus explained that upcoming regulatory requirements will require wastewater treatment facilities to develop detailed plans outlining improvements needed to meet future discharge standards.
He emphasized that De Soto's wastewater treatment system currently meets its applicable requirements but must prepare for additional regulations.
The planning work must be completed by qualified professionals, such as engineers, and the grant could cover approximately two-thirds of the anticipated cost.
The funding is available on a continuing basis until the state's allocated funds are exhausted. Melkus said city staff intends to submit the application as soon as practical.
Mel Bay Foundation Event Receives Council Approval
The council revisited a special event request from the Mel Bay Foundation involving a temporary closure of Boyd Street between Fourth and Fifth streets.
Foundation representative Jim Thomas explained that the upcoming fundraising event will feature a performance by St. Louis musician and radio personality Moon Valjean and his band.
Thomas said the event is the foundation's first major fundraiser and is expected to attract attention to De Soto through regional media appearances and promotion.
The discussion centered on pedestrian safety, particularly for attendees needing accessible parking and entrance accommodations.
Representatives explained that the Mel Bay family, including elderly relatives traveling to the event, will be attending.
City officials and event organizers discussed limiting the street closure to the period before the event begins, rather than closing the street throughout the evening. Organizers requested a closure extending from 5 to 7 p.m., with provisions for emergency vehicle access.
The council approved the event request following discussion of the traffic and safety arrangements.
Street Improvements and Amtrak Station Update
During his city manager's report, Melkus provided updates on several ongoing infrastructure projects.
He reported that recent concrete improvement projects had been completed by Times Contracting and that McCulloch Custom Concrete was finishing work in the Hickory Hills area.
The newly approved budget also includes approximately $300,000 for asphalt overlays and concrete street repairs in the coming fiscal year.
Melkus also discussed the planned improvements to De Soto's Amtrak station.
City officials were preparing to meet with Amtrak and begin the process of soliciting construction bids.
Melkus said the city might need to call a special council meeting to approve a contractor rather than delay the project until its next regularly scheduled meeting.
While the state funding deadline has been extended until June 2027, Melkus explained that county funding must be used before the end of 2026 to avoid losing those funds.
The city is working to move the project forward while meeting the funding requirements.
With a new budget approved and several major projects approaching construction, the council's October meeting reflected a continued emphasis on infrastructure investment, fiscal reserves and long-term planning for De Soto.
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