Southaven Mayor Presents FY26 Budget Proposal, Highlights Reassessment Impact on Property Taxes

Key Points:

• Proposed millage cut from 46.78 to 40.45 mills, a 13.5 percent reduction, the largest among DeSoto County cities.
• General fund spending of $83.3 million, with more than half going to police and fire.
• Police officers to receive five percent pay raises, firefighters four percent raises, plus new vehicles and ambulance.
• Property reassessment required by state raises taxable home values, offset by millage cuts.
• Net effect for an average homeowner: about $31 more per month in city and county property taxes
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SOUTHAVEN, Miss. – Mayor Darren Musselwhite on Tuesday, Sept. 2, unveiled Southaven’s proposed fiscal year 2026 budget before the Board of Aldermen, outlining a spending plan that prioritizes public safety while addressing the effects of a county-wide property reassessment on local tax bills.

The proposed budget sets the city’s total spending at $125.6 million, with the general fund climbing to $83.3 million. Musselwhite noted that more than half of the general fund is dedicated to public safety, with $27.2 million for police and $16.4 million for fire services. Together, the departments account for 52% of Southaven’s budget and employ more than 60% of the city’s workforce.

“This shows our commitment to public safety,” Musselwhite said. “It has to be that way, and it needs to be that way.”

Key Department Funding

The budget includes:

• Police pay raises of 5%, with funds for open positions and dispatchers.
• Increased overtime and vehicle purchases, doubling the police fleet allocation from $300,000 to $600,000.
• Fire department raises of 4% and the purchase of a new ambulance.
• $5 million dedicated to street resurfacing from the general fund.
• Facility renovations, including Fire Station 3 improvements and a new roof for Fire Station 2.
• Higher insurance and landscaping costs due to market changes.

Impact of Property Reassessment

A major topic Tuesday was how new property tax assessments will affect Southaven residents. The Mississippi Department of Revenue ordered DeSoto County to raise assessments from 54% to at least 85% of market value, a first-time requirement that dramatically altered property values.

To soften the blow, the city is proposing a millage cut from 46.78 to 40.45 mills, a 13.5% reduction – the largest among DeSoto County cities. Still, most homeowners will see some increase.

Musselwhite illustrated with an example: A home once valued at $360,000 will now be taxed at the higher assessed value. Even after Southaven’s millage rollback, that household would see a $341 increase in city property taxes, while also receiving reductions on auto tag fees due to countywide millage cuts. The net effect, he said, would be about $379 more annually, or $31.62 per month for the average family.

“We didn’t ask for this reassessment, but it was laid in our lap to fix,” Musselwhite said. “We’ve crunched the numbers and dealt with it the best way possible.”

Other Concerns Raised

Board members also discussed challenges posed by inflation and the Public Employees’ Retirement System (PERS) obligations. The city’s contribution rate has nearly doubled since 2009, now at 18.4 percent, and is scheduled to increase again next year. Officials said the burden of pension costs and inflation limits the city’s ability to expand staff, particularly in police and fire.

Next Steps

After a brief public hearing in which no residents spoke, aldermen voted to close discussion. The final vote on adopting the budget is scheduled for Tuesday, Sept. 9.