Denton County presents $273 million FY2026 recommended budget, proposes tax-rate cut and 6% pay adjustment

DENTON, Texas — Denton County presented its FY2026 recommended budget on Aug. 12, proposing a $273 million general fund within a countywide spending plan that would lower the county tax rate and include a 6% pay-structure adjustment for employees.

The budget presentation, led by staff identified in the meeting as Alejandro from the budget office and County Auditor Jeff (surname not specified in the record), emphasized population-driven demand, retention and recruitment through compensation adjustments, added public-safety funding and use of one-time funds for capital equipment. "We are lowering the tax rate by an even greater amounts than the prior year," Alejandro said during the presentation.

Why it matters: The recommended budget balances increases in personnel and operating costs against population growth and the county's stated priorities to invest in public safety and workforce compensation while reducing the tax rate. Staff said the plan meets rating-agency expectations for an ending fund balance and is intended to protect the county's AAA bond rating.

Key points

- Recommended tax rate: The recommended FY2026 rate used to balance the budget is 0.185938, a reduction from the FY2025 adopted rate of 0.187869. Staff said the recommended rate is below the voter-approval tax rate but above the no-new-revenue rate.

- Pay adjustment: The package includes a 6% pay-structure adjustment to shift minimums and maximums on county pay scales; staff described the change as both a market and cost-of-living response.

- Public safety investments: The budget includes expanded funding for detention officers (40 hires previously authorized and funded in FY2025 remain budgeted), additional sheriff's office positions, support for the fire marshal and Denton County Fire and Rescue, and funding for design work on a fire station as part of the county's fire-services plan.

- Permanent Improvement Fund (PIF): The PIF is budgeted at $34.4 million for FY2026, including $6.6 million for phase 2 of an electrical and generator upgrade and $4.7 million for preventative maintenance arising from a facilities condition assessment. Staff said $2.0 million of the PIF levy increase is new tax revenue; the remainder is fund-balance utilization for one-time projects.

- Staffing and positions: Departments requested 69.125 full-time-equivalent positions; the recommended budget includes 31.625 FTEs. After deletions and absorptions, staff reported a net addition of 26.625 positions with an estimated fiscal impact described in the presentation.

- Revenues and reserves: Property taxes were shown as the dominant revenue source (about 75% of budgeted revenues). Staff noted the county's high tax-collection rate (98.5% in 2024) and said an estimated $2.0 million of general-fund balance would be used in FY2026 for one-time technology equipment.

Discussion and next steps

Commissioners thanked budget staff and auditors for the presentation and noted the transparency and clarity of the slides. The court scheduled follow-up budget workshops and a vote to propose a tax rate at a subsequent meeting; staff said required public hearings are tentatively set for Sept. 9 and that the court will vote on adoption of a budget and tax rate at that hearing per the posted budget calendar.

No formal vote to adopt the budget or tax rate occurred at this presentation; commissioners were briefed and staff released detailed recommended budgets for public review.

Ending

Staff emphasized that the recommended budget is intended to be conservative, to protect fund balances and to invest in key priorities including public safety and workforce compensation. The court will consider formal action on the tax rate and adoption of the FY2026 budget at upcoming hearings and votes.