Douglas County staff present proposed 2027 budget with flat mill levy and $201.5 million total

Douglas County staff on July 6 presented the recommended 2027 budget to the County Commission, outlining revenue forecasts, fund balances, staffing changes and next steps in the adoption process.

Sarah, a county budget staff member, opened the presentation by thanking the team and turning the overview to Brooke Sour, who walked commissioners through assessed values and revenue assumptions. Brooke said real estate accounts for roughly 91% of county assessed value, with state-assessed utilities and personal property making up the remainder, and noted the county’s 2026 assessed value rose about 4.9% over the prior year’s final value. She said staff used a 2% delinquency assumption for ad valorem collections in the 2027 estimate.

Brooke summarized how property-class assessment rates affect tax calculations (residential at roughly 11–12% of market value; most commercial at 25%) and reviewed tax-increment and special-district impacts, including a recent RHID in Baldwin that contributed about $1.5 million of increment value.

On tax rates, staff said the recommended 2027 mill levy was prepared flat at 40.669 mills. Staff calculated a revenue-neutral rate of 38.605 mills and advised commissioners that reaching revenue-neutral would require about $4.88 million in budget reductions. The presentation also described the county’s two sales-tax rates: a general 1% sales tax that is shared among jurisdictions and a dedicated 0.25% behavioral-health sales tax that the county retains in full to fund treatment and recovery center operations and related capital.

Brooke and Sarah reviewed non-property revenue sources, including investment earnings that spiked after a 2023 restructuring of county cash and investment accounts (interest earnings increased substantially in 2023–24) and a cautious forecast for lower interest income as large capital projects draw down cash balances. Staff estimated capital spending of roughly $30 million in 2026 and an additional $25 million in 2027 for facilities projects, excluding road-and-bridge projects.

On expenditures, staff proposed a market-based pay adjustment averaging about 3.4% across job families, a 1% merit pool, and several position changes: two previously grant-funded FTEs (a self-help district court navigator and an eviction-diversion coordinator) converted to ongoing county FTEs, two full-time deputies for courthouse security to support the expanded courthouse, and $700,000 for IT and software that staff said will be ongoing.

Staff outlined fund-balance targets (25% for the general fund, 25% for road & bridge and 20% for the employee benefits fund) and showed projected carryover into January 2027 (general fund ~26% of planned expenditures; road & bridge ~33%; employee benefits ~28%). The three levied funds together total $154.2 million in the recommended package; adding special-purpose funds brings the total recommended budget to roughly $201.5 million.

Staff also reviewed the calendar for adoption: budget deliberations running through the morning of July 15, an evening meeting on July 15 to establish a maximum levy rate, a CIP presentation July 22, taxpayer notice by Aug. 10 (required by law) if the county intends to exceed the revenue-neutral rate, and final budget adoption planned for Aug. 26.

The commission did not take formal votes during this hearing; staff said deliberations and formal action would follow the public hearings and the July 15 deliberations.