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Denton County launches FY2027 budget process, auditor flags property tax dependence and revenue risks
Summary
County budget staff opened the FY2027 process with a calendar and guidance; County Auditor Jeff outlined that roughly 75% of the county's budget relies on property taxes, warned of shrinking investment income and fee volatility, and recommended reserve and documentation practices.
Denton County on Tuesday began its FY2027 budget process and approved a proposed calendar that would open departmental budget submissions in March and aim for a recommended budget presentation on Aug. 18, with final adoption and tax-rate action targeted for Sept. 22.
County budget staff Alejandro told the Commissioners Court that the new Workday-based budget application will open March 6 and departments will have about four to five weeks to submit requests. Staff asked departments to prioritize essential operations, provide supporting documentation for requests, and defer nonessential items and positions.
County Auditor Jeff presented the revenue picture the court will use in planning. He said property taxes account for about 75% of the county's budget and that the auditor's office plans to stop routing excess levy collections to many special funds once those levies are met, instead shifting those dollars to the general fund. Jeff warned that investment earnings peaked in 2024 and are likely to decline with projected interest-rate drops and the eventual spending down of ARPA balances. He told the court this could create budget pressure and said reserves above 25% of the budget remain a target.
Jeff also highlighted volatility from state-driven changes to fee and auto-registration structures that have reduced some collections; in tight years a $600,000 swing in auto-registration revenue can be significant, he said. He recommended that departments provide clear backup documentation so budget reviewers can judge whether requests are "essential" to core operations.
Commissioners pressed staff on scheduling flexibility after a member noted a conflicting conference date in August. Alejandro and the court agreed to review calendars and return a revised schedule if needed. The court approved the overall calendar and the procedural items presented for the budget kickoff by voice votes.
The next procedural step announced was the CIP submission window, opening Feb. 26 through March 26; the county retains a $500,000 threshold for CIP classification from last year.
The court did not adopt budget policy changes beyond the calendar and guidance; staff said they will return with any revised calendar for formal approval if necessary.
