<<

DENTON ,

Connecting Communities and Serving residents since 1846

Rooted in history, rich in culture, embracing the future

Photo provided courtesy of HDR Architects DENTON County, Texas

Adopted Budget FY2020-2021 DENTON County, Texas

OVERVIEW

1 Budget Calendar Overview

January Preparation for Budget Process Begins

February Budget Kickoff Meeting

March- 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 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 •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 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 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 and Federal government. The revenues include lateral road funding, juror pay reimbursements, overweight vehicle fees, and 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 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 * 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 ( 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 )

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 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 & 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 Council of Governments, the current population estimate as of 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) (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 3 467th District Court 2 District Clerk 1 Sheriff-Justice Management

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 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 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