Douglas County commission adopts 2026 operating and CIP budget; votes 4-1 to exceed revenue-neutral rate

The Douglas County Board of Commissioners on Aug. 27 adopted the countys 2026 operating and capital improvement budget and approved a separate resolution to levy property taxes exceeding the states revenue-neutral rate.

The commission approved a resolution (Res. No. 25-31) to levy a property tax rate exceeding the revenue-neutral rate by a 4-1 roll-call vote and later adopted the 2026 operating and CIP budget by a 5-0 voice vote. Finance staff told the commission the adopted budget totals approximately $202.6 million when non-appropriated funds are included; the budget authority for appropriated funds was described as about $184 million.

Brooke Sauer, Douglas County finance manager, described the totals during staffs presentation: "The proposed budget before you tonight includes approximately $184,000,000 in budget authority for fiscal year 2026 for those budgeted funds." Sauer also noted the $202.6 million figure excludes certain non-appropriated funds and a workers compensation fund that staff consider operational.

Why it matters: the adopted budget funds county services, capital projects and a sizable behavioral health fund. Commissioners and staff said the budget reflects months of review and more than 20 hours of public meetings and one-on-one sessions with community partners.

Key figures and program notes included in staff presentations and the adopted document: - Budget authority for appropriated funds: about $184,000,000. - Total including non-appropriated funds and select operating accounts: $202,600,000. - Certified mill levy shown in the adopted forms: a net reduction of 0.629 mills for an estimated total mill levy of 40.669 in 2026, subject to change when final assessed values are certified this fall. - Road & Bridge fund shows a mill-levy increase to support an additional $500,000 in contractual pavement maintenance work. - Employee Benefits fund shows an increase reflecting added positions and corresponding fringe costs. - Behavioral health fund: staff reported an estimated 66.1% fund balance going into 2027; commissioners directed staff to maintain that balance to provide flexibility for both operational and capital uses (treatment recovery center and transitional housing campus). - Contingency and CIP adjustments: staff reallocated $1.3 million from a previously earmarked project at 1242 Massachusetts Street to finish phase 2 of the Public Safety Building and used contingency adjustments to cover the remaining $1.4 million delta so the project could proceed in 2026 rather than wait until 2027.

Commission discussion and votes Commissioners debated the revenue-neutral-rate question before the budget vote. Chair Patrick Kelly said he supported exceeding the revenue-neutral rate, citing rising costs outside county control and the need to maintain services, adding, "Im satisfied with exceeding the revenue neutral rate." Commissioner Dorsey dissented on the revenue-neutral vote and described several reasons he would vote no, citing conservative staff revenue assumptions he considered too low and concerns about the tax burden on elderly homeowners. Dorsey said, "I think weve underestimated some of our other incomes" but indicated he would nonetheless oppose exceeding the revenue-neutral rate.

Roll-call for Res. No. 25-31 (intent to levy above the revenue-neutral rate): - Patrick Kelly: Yes - Commissioner Reed (vice chair): Yes - Commissioner Willie: Yes - Commissioner Dorsey: No - Commissioner Anderson: Yes Outcome: approved, 4-1.

Motion to adopt the 2026 Douglas County operating and capital improvement budget (voice vote): Passed 5-0.

Process notes and next steps Staff reminded the commission that the mill levy and final certified totals will be adjusted when the county receives final assessed values; if assessed values increase, the mill levy will fall when levies are set in November. Staff also noted some line-item updates to presentation slides that had differed from the agenda packet and described follow-up policy and fund-balance work planned in the fall, including the intended policy restatement regarding the behavioral health fund.

The commission flagged contingency line items for additional community conversation this fall and said some allocations remain subject to further public input and formal allocation decisions. The commission also thanked staff and community partners for more than 20 hours of hearings and review that informed the adopted budget.

A copy of the adopted budget and the certificate of levy will be certified to the state later this fall once final values are available.