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Adopted Budget FY2020-2021 DENTON County, Texas
OVERVIEW
1 Budget Calendar Overview
January Preparation for Budget Process Begins
February Budget Kickoff Meeting
March-April Departments Complete Requests
May-July Recommended Budget Prepared
July 25th Certified Roll from Appraisal District
August 11th Presentation of Recommended Budget
2 Initial Request Overview
Initial Budget Request = $327 million
Would have been an increase of $5.8m (or 1.81% above the FY2019-20 Adopted Budget)
A Tax rate of $0.263208 would have been required (or a 22.22% Tax Rate Increase)
3 Adopted Budget Overview
Adopted Budget = $319 million (a reduction of $8m from Initial Request)
Decrease of $2.7M (or 0.83% below the FY2019-20 Adopted Budget)
Tax rate of $0.224985 Adopted = 0.130062 % below Current Adopted Rate = 3.228589 % below No-New-Revenue Rate
4 Adopted Budget Overview – Summary by Fund
5 DENTON County, Texas
REVENUE ANALYSIS
Local Government Code 111.063 requires the County Auditor to provide estimates of funds available and funds expected to be received and submitted to the Budget Officer during the budget preparation process.
6 Eight Major Funding Sources
•Property Taxes •Motor Vehicle Registration •Intergovernmental Revenues •Fees of Office •Fines •Interest •Miscellaneous •Fund Balance /Reserve Funds
7 Eight Major Funding Sources
8 Property Taxes
Largest single source of revenue. 2020 fiscal year collections have been strong. Including penalty and interest payments as well as other adjustments to the tax levies, collections have exceeded 100% of the tax levies in prior years, and this is expected to continue in future years.
9 Vehicle Registration
An optional county vehicle registration fee is authorized by Chapter 502 of the Transportation Code. Denton County assesses the maximum additional registration fee of $10 per vehicle. Revenue from this fee, which must be deposited to the Road and Bridge Fund, is expected to generate $6.8M per year.
The 5% auto registration fee for collecting automobile sales taxes for the state is projected at $5.3M. This is primarily budgeted in the General fund.
Decrease of $230,000 from FY2020
10 Intergovernmental Primarily State and Federal Grants and payments from City and State Governments that may be statutory or contractual. A $4,269,097 decrease from FY2020. Many intergovernmental revenues will remain at current levels due to actions by State Legislature and Federal government. The revenues include lateral road funding, juror pay reimbursements, overweight vehicle fees, and Medicaid payments in the Health Department.
11 Fees
Fees for services provided to the public. Most are set by statute and budgeted in the General Fund. Fees are included at $20.3M or a increase of $209,461 from prior year.
12 Fines
Received from Justices of the Peace, County Criminal Courts and District Courts – deposited in General Fund.
Projected to generate $2.2M. All Courts have experienced a decrease the last several years.
Expected Revenue by Court: J.P. Courts $990,000 $90,000 reduction County Courts $700,000 $50,000 reduction District Courts $465,000 $35,000 reduction
13 Interest
Most volatile revenue source for the county for the last nine years. Interest revenues are projected to be $1.5M or a decrease of $1,143,165.
14 Miscellaneous
Primarily refunds/reimbursements for services not connected with a specific office and some fees for services not connected with a specific office. These revenue sources include inmate phone fees, Court- Appointed Attorney refunds, operating cost reimbursement for the Child Protective Services (CPS) building, Sheriff and District Attorney forfeiture revenues, and bail bond forfeitures, etc. Decrease of $290,800 from FY2020.
15 Fund Balance
Projected ending fund balance = $70M for all funds and should be exceeded since we historically spend approximately 96% of budget and collect more revenues than estimated. Our balances are adequate to protect the county in the event of unforeseen occurrences and complies with and exceeds Fund Balance Policy.
16 Revenue Summary
Taxes - We expect an approximate $4.8 million increase in available revenue on total taxable value of all property calculated.
Vehicle registration – we have budgeted a decrease of $230,000 below the 2020 budgeted amounts.
Intergovernmental revenue – We have budgeted a decrease of $4,269,097 in 2021 from the amended 2020 budget; increases in Mixed Beverage Tax and Medicaid DSRIP funding will offset some decreases in inter-local contract fees.
17 Revenue Summary (continued)
Fees – Fees in all funds are estimated to increase by $209,461 from 2020. Most of the increase is attributable to increases in records preservation fees and judicial service fees.
Fines – Fines are estimated to decrease by $175,000 from 2020. Most of the decrease is attributable to decreases in court collections in all courts, especially the misdemeanor courts.
Interest Revenue – The estimate for 2021 interest revenue is lower than 2020 by $1,143,165. Investment earnings are expected to start to decrease in 2020 compared to 2019.
Miscellaneous Revenues –basically unchanged from 2020.
18 DENTON County, Texas
Tax Rate
19 Tax Rates
No-New-Revenue Tax Rate = $0.232491 (rate that will generate the same tax revenue on existing property as the prior year) Adopted tax rate = $0.224985 Current Tax Rate = $0.225278 Variance (Current vs. Adopted) = -$0.000293 3.228589% below the No-New-Revenue tax rate
20 Adopted Tax Rate
Current Tax Rate = $0.225278 Adopted Tax Rate = $0.224985 Variance (current vs. adopted) = -$0.000293
Calculated at: $0.140322 General Fund M&O $0.004501 Road & Bridge Fund $0.012114 Juvenile Probation Fund $0.005141 Public Health Fund $0.001085 Indigent Care Fund $0.056604 Debt Service Fund $0.005218 Permanent Improvement Fund
21 Adopted Tax Rate
Denton County continues to maintain a very conservative tax rate. This budget was prepared based on a rate of $0.224985, which is a reduction to the current rate.
The FY2021 Adopted Tax Rate is the lowest it has been since 1986!
22 Average Home Owner (Annual Property Taxes - Adopted tax rate)
Total Annual Taxes $7,795
School District* City of Denton $5,014 $2,014 or 26% or 64% Denton County $767 or 10%
Denton County: Using Adopted Rate of $0.224985 & Average Denton County Home Value of $341,090 (per the Denton Central Appraisal District)
* Uses FY2020 Current Tax Rates for Denton ISD $1.470000 / City of Denton $0.590454 23 Average Home Owner (Monthly Property Taxes - Adopted tax rate)
Total Monthly Taxes $650
450 418
400
350
300
250 168 200
150
100 64 50
0 Denton County School District* City of Denton*
Denton County: Using Adopted Rate + Average home value (per the Denton Central Appraisal District)
* Uses FY2020 Current Tax Rates for Denton ISD $1.470000 / City of Denton $0.590454 24 Average Home Owner (Property Tax Variance – Adopted Tax Rate)
Sample FY2020 FY2021 Annual Monthly Home Value Adopted Tax Adopted Tax Variance Variance Rate Rate Impact Impact Tax Rate per $100 Value: $0.225278 $0.224985 (Savings) (Savings)
$100,000 $225 $225 ($0.29) ($0.02)
$341,090* $768 $767 ($1.00) ($0.08)
• This chart assumes no increase in valuation. Changes in an individual taxpayer’s county taxes depend on the specific change in property valuation.
• *Average home value in Denton County for Tax Year 2020 (per the Denton Central Appraisal District)
25 Tax Rate Comparison (Top 15 Counties)
Denton County's tax rate is currently the second lowest County Tax Rate among the Top 15 Texas Counties by population.
26 Top 15 Texas Counties (County Tax Rate & County-Wide Tax Rate)
Top 15 Texas Counties 2019-2020 Survey
County Population Estimate Total County Tax Rate Total County-Wide Tax Rate Collin 1,005,146 0.174951 0.256173 Denton 901,120 0.224985 0.224985 Tarrant 2,024,030 0.234000 0.617299 Dallas 2,618,000 0.243100 0.646600 Bexar 1,986,049 0.277429 0.745062 Nueces 362,265 0.311588 0.424009 Travis 1,304,311 0.369293 0.579766 Harris 4,720,000 0.407130 0.611700 Brazoria 370,200 0.415233 0.415233 Cameron 423,908 0.436893 0.436893 Fort Bend 764,828 0.444700 0.460000 Montgomery 590,925 0.447500 0.614200 Williamson 633,783 0.458719 0.458719 El Paso 840,410 0.488997 0.897911 Hidalgo 865,939 0.575000 0.902600 Denton County: Adopted “County” Rate = 2nd Lowest & Adopted “County-Wide” Rate = Lowest
(County-Wide = tax rates for County, Hospital District, Community College, Flood Control & Port Authority) 27 Top 15 Texas Counties (by County Tax Rate)
0.700000
0.600000
0.500000
0.400000
Tax Rate in Cents Rate Tax 0.300000
0.200000
0.100000
Denton County: Adopted “County” Rate = 2nd Lowest
(County Rates & Population Estimates for other entities based on “Top 15 Texas Counties 2019-2020 Survey”) 28 Top 15 Texas Counties (by County-Wide Tax Rate)
1.000000
0.900000
0.800000
0.700000
0.600000
0.500000
Tax Rate Cents in Tax 0.400000
0.300000
0.200000
0.100000
Denton County: Adopted “County-Wide” Rate = Lowest Rate
(County-Wide = tax rates for County, Hospital District, Community College, Flood Control & Port Authority; County Rates & Population Estimates for other entities based on “Top 15 Texas Counties 2019-2020 Survey”) 29 Tax Rate Comparison (254 Texas Counties)
According to the Texas Comptroller’s website, out of the 254 Texas counties, Denton County’s Tax Rate was the 4th lowest in FY2019*
(FY2020 information will be released in the summer)
30 254 Texas Counties (by County Tax Rate) For FY2019, only 3 Texas counties had a county tax rate lower than our FY2021 Adopted tax rate:
Midland County $0.140000 Collin County $0.180785 Culberson County $0.185310
Texas county tax rates range from $0.140000 to $1.183009 Average rate of 254 counties = $0.579787
Denton County’s Adopted rate of $0.224985= the 4th lowest rate in the state of Texas!
Source – https://comptroller.texas.gov/taxes/property-tax/rates/index.php
31 DENTON County, Texas
SERVICE DELIVERY
32 Service Delivery
One of the challenges faced by Denton County includes the growth in population as Denton County continues to be one of the fastest growing counties in the state of Texas. Per the North Central Texas Council of Governments, the current population estimate as of January 1, 2020 is 901,120.
33 Service Delivery
Unincorporated Area Population 2020 Estimates –
- County Total Population: 901,120
- Cities Population: 758,985
- Unincorporated Population: 142,135
Denton County continues to re-engineer how it delivers services, so that services may be provided to a growing population in the face of declining state and federal assistance and more slowly growing local revenue
34 All Funds Summary
FY 2020-21 Adopted Budget
All Funds = $319 Million
• Operating Expenditures $241.8 Million • Other Funds $ 6.8 Million • Permanent Improvement $ 7.4 Million • Debt Service $ 62.9 Million • Reserves $ 70 Million
35 Program Changes New Positions – Total Adopted General Fund Requested Positions: Initial (33.65) 33.65 Added Positions: Recommended (19.375) Appeals (3) 22.375 Deleted (current) Positions: (1.00) Net Positions: 21.375
Other Funds Requested Positions: Initial (2) 2.00 Added Positions: Recommended (5), Appeals (0) 5.00 Deleted (current) Positions: (4.55) Net Positions: 0.45
Total 35.65 New Positions Requested (5.55) Positions deleted 27.375 New Positions Adopted
36 Program Changes New Positions – Breakdown by Need
JUSTIFICATION DEPARTMENT
5 – Administrative 1 Economic Development Reorganization 1 County Communications 3 County Administration
4 – Road and Bridge 1 Development Services Consolidation Reorg. 3 Dept. of Transportation and Engineering
1.375 – Workload .375 Magistrate Court 1 CSCD (General Fund)
37 Program Changes (New Positions - continued)
JUSTIFICATION DEPARTMENT
6 – New District Court 3 467th District Court 2 District Clerk 1 Sheriff-Justice Management Division
2 – Mental Health 2 Jail Health
2 – New Building 2 Sheriff-Justice Management Division
3 – Public Safety/Security 3 Sheriff–Justice Management Division
3 – Expiring Grant or 1 Sheriff Contract 2 Juvenile Probation
1 – Public Safety/Training 1 Sheriff
38 Program Changes (Salary Revisions/Title Changes Adopted)
General Fund Requested Adopted
Title Changes Only: 4 4 Reclassifications: 45 3 Market Salary Adjustments: 0 0 Market Reclassifications: 0 0 Equity Adjustments: 1 0
Other Funds Requested Adopted
Title Changes Only: 0 0 Reclassifications: 8 4 Market Salary Adjustments: 0 0 Market Reclassifications: 0 0 Equity Adjustments: 0 0
Total Requested Adopted
Job Title Changes: 4 4 Salary Revisions: 54 7
39 Adopted Internal Reorganizations
Over the last several years Denton County has experienced significant growth. As a result of this growth, the Commissioners Court span of control has simply gotten too large to effectively maintain. Ultimately, restructuring is a necessary process our entity will need to go through from time to time, in order to react and accommodate to changes in our growing county. In direct response to this growth, we are recommending two internal reorganizations:
Administrative Reorganization
Department of Transportation and Engineering
These reorganizations are being recommended in an effort to help streamline processes, while increasing productivity and efficiency. This will include rolling smaller departments under a new branch of the organization, County Administration, to help maintain alignment throughout our many divisions. By adopting theses recommended changes, operations as the County will remain or exceed the same level of exemplary service that the Denton County Commissioners Court expects.
It is the goal of Denton County to be able to plan, accommodate and react to change in our growing County.
40 Adopted Internal Reorganization County Administration Reorganization
New Positions Deleted Positions County Administration (New Department) County Judge -County Administrator-Administration, Grade BB2 -Director Of Administration, Grade 18 -County Administrator-Operations, Grade BB2 -Chief Administrator, Grade 15 County Communications -Communications Generalist, Grade 14 Eff. 1/1/2021 Economic Development -Grant Manager, Grade 14
Reclassifications County Judge -Assistant Director of Administration, Grade 14 to Chief Administrator, Grade 15-County Judge County Communications -Director of Community Relations, Grade 17 to Grade 20
41 Adopted Internal Reorganization (Road and Bridge Consolidation Reorganization) Department of Transportation & Engineering (DTE)
New Positions Deleted Positions Department of Transportation & Engineering Road and Bridge, Precinct #1 (New Department - DTE) -Equipment Operator III, Grade, 8 -Director of Transportation and Engineering, Grade BB1 -Equipment Operator I, Grade, 5 -Foreman, Grade 10 - Admin Specialist I (PT), Grade 4 -Office Administrator, Grade 11 Road and Bridge, Precinct #4 Development Services - Admin Specialist I (PT), Grade 4 -Construction Inspector, Grade 13 - Field Mechanic, Grade 9 Reclassifications Positions Transferred Road and Bridge Precinct #1 (DTE) RB, Precinct #1 to Development Services -Administrative Foreman, Grade 15 to Grade 16 -Construction Inspector, Grade 13 Road and Bridge Precinct #4 (DTE) -Senior Road Construction Inspector, Grade 15* -Administrative Foreman, Grade 15 to Grade 16 Road and Bridge, Precinct #1 to DTE -Project Coordinator, Grade 12 to Lead Project - Equipment Operator III, Grade 8 Coordinator, Grade 14 RB, Precinct #4 to Development Services Department Of Public Works (DTE) -Construction Inspector, Grade 13 -Director of Public Works BB2 to Lead Engineer, RB Engineering to Development Services Grade 20 -Senior Road Construction Inspector, Grade 15* Deletion of Department -Engineer in Training, Grade 16 Department of Public Works Department of Public Works to DTE Road and Bridge departments consolidated -Lead Engineer, Grade 20 into DTE *includes a job title change
42 Number of Employees Per Capita
950.0 5.00 901.1 874.2 844.3 850.0 814.6 4.50 758.4 734.9 750.0 713.2 662.6 683.0 694.1 673.8 4.00 650.0
3.50 550.0
450.0 3.00 in Thousands 350.0 2.50
250.0 2.32 2.30 2.27 2.23 2.23 2.27 2.25
2.00 Employees per Capita 2.12 2.13 2.10 150.0 2.02 Population 1.50 50.0
-50.0 1.00 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21
County Population # Employees Per Capita Fiscal Year
Denton County population based on 01-01-20 estimate; all others based on FY2019-20 Surveys 43 Contingency Summary (Non-Departmental)
Regular Unappropriated Contingency $ 5,819,469 Vehicle Contingency $ 150,000 Utility Contingency $ 100,000 Insurance Contingency $ 70,000 Lawsuit Settlement Contingency $ 100,000 Grant Contingency $ 400,000 Fuel Contingency $ 100,000 Fire Call Contingency $ 250,000 Out of County Prisoner Contingency $ 100,000 Homeless Funding Contingency $ 35,000 Personnel Contingency $ 480,524
Grand Total General Fund Contingencies $ 7,604,993
44 Contingency Summary (Permanent Improvement Fund)
Permanent Improvement Fund- Unappropriated Contingency = $3,500,000
45 Capital Summary (Capital Summary by Account Object)
46 Capital Summary (Vehicle Assessment Committee Recommendations)
$65,445 in direct savings recommended (vehicles and equipment) o Reviewed condition, mileage and usage o Transfer of vehicles within county as appropriate
Replacement Vehicles: 30 - Replacement Vehicles Requested 4 - Vehicles moved to Capital Equipment 24 - Replacement Vehicles Recommended by Committee 24 - Replacement Vehicles Included in Adopted Budget
New Vehicles: $521,783 is contingent on new employees 10 - New Vehicles Requested for New Hires 4 - New Vehicles Included in Adopted Budget for New Hires
47 467TH District Court New Court – January 2021
District Court
6 New Positions: 1 - State District Judge 1 - District Court Reporter 1- Court Administrator 1- Deputy Clerk III (District Clerk) 1 – Senior Clerk (District Clerk) 1 – Deputy Sheriff (Justice Management Division)
48 Social Service Agency Funding (Committee Recommendations)
Social Service Agencies requested funding at $521,419
Social Service Agency Committee recommended funding at $326,000 (which is near equal to revenue projection for FY2021 but less than current funding by $20,000)
Requests reduced by $195,419
Adopted Budget totals $326,000
Per the Public Health Department, agencies have been notified of the committee’s recommendation
49 Library Funding
FY2020 Adopted Budget = $376,400 (11 libraries)
FY2021 Library Board Request = $435,300
FY2021 Adopted Budget = $384,900
50 Permanent Improvement Fund
Architect Fees $ 50,000 Design Fees for Capital Projects
Repairs and Maintenance $ 1,000,000 Countywide Facility Repairs
Remodeling $ 800,000 County-wide Facility Remodeling
Unappropriated Contingency $ 3,500,000
Road Project Planning $ 2,000,000
GRAND TOTAL $7,350,000
51 FY 2020-2021 Expenditure Changes
Non-Departmental $ 3,892,504
Court Appointed Attorneys $ 2,586,500
Technology Software/Services $ 2,170,415
New Positions (27.375) $ 2,380,270
Deferred Hires (from FY2020) $ 337,931
New Loop 288 Admin Courthouse – Non-Personnel $ 337,175
Miscellaneous Services $ 283,857
Election Expenses $ 81,479
th New 467 District Court – $705,890 impact; Non-Personnel = $ 66,853
52 FY 2020-2021 Expenditure Changes (continued)
Permanent Improvement Fund $(9,039,875)
Administrative Equipment $(2,433,640)
Road & Bridge Materials $(1,439,500)
Repairs & Maintenance + Utilities $(1,000,754)
Miscellaneous Court Expenses $ (828,531)
Other Miscellaneous Reductions $ ( 78,177)
NET TOTAL CHANGES (reduction) $(2,683,493)
53 Additional Information
The FY2021 Adopted Budget is available on the Denton County Web-Site:
https://dentoncounty.gov/budget
54 Summary
This budget addresses service delivery and the future needs of County employees
Thanks to all County Offices and departments for their assistance.
Denton County Budget Office Staff County Auditor and Staff Tax Assessor-Collector and Staff Director of Purchasing and Staff Director of Human Resources and Staff Director of Technology Services and Staff County Treasurer Vehicle Assessment Committee Radio Systems Manager, Radio Information Department Heads and Elected Officials Commissioners Court and Staff
55