1. Proposed Denton County Budget FY2017
Public Hearing
Proposed Denton County Budget FY2017
September 6, 2016 –7:00 p.m.

2. Denton County, Texas FY 2016-2017 Budget Calendar
Feb 16 Initial Budget Meeting
March 3 Budget Preparation Packets Distributed
April 15 and 22 Deadline for Budget Requests
July 19 Presentation of Recommended Budget
July 26 Budget Workshop for Appeals
August 2 Budget Workshop
August 9 Final Budget Workshop
September 1 Budget Filed for Public Inspection
September 6 Public Hearing on Proposed Budget
September 6 Adoption of Budget
September 6 Adoption of Tax Rate

3. Public Notices/Posting Requirements
Proposed Budget
Public Notices/Posting Requirements
Public Hearing Notice for the Proposed Budget was advertised in the Denton Record Chronicle according to the provisions in the Local Government Code on August 19th
Public Hearing Notice for the Proposed Budget was posted on the main page of the Denton County web-site on August 19th
A copy of the Proposed Budget was filed with the County Clerk, County Auditor and Budget Office on September 1st
The Proposed Budget was posted on the Denton County web-site on September 1st for public inspection and review

4. Initial Budget Requests Summary of Tax Levies & Projected Fund Balances
Initial Requests totaled $273 million
Increase of $18.1 million
Tax Rate of $ would be required
2.412% tax rate increase would have been required

5. Budget Comparison Summary
FY2016 Budget = $254,890,520
Proposed FY2017 Budget = $265,613,432
Proposed Increase = $ 10,722,912

6. Denton County, Texas Budget Summary for All Funds (in millions)
FY 2016
FY 2017
General Fund
$150.3
$159.2
Road & Bridge Fund
12.9
13.2
Juvenile Probation Fund
13.7
14.9
Debt Service Fund
52.3
53.8
Other Funds
25.7
24.5
TOTAL
$254.9
$265.6

7. Proposed Budget FY 2017
The County Budget is divided into 23 separate funds
6 are partially funded with property taxes
General Fund - Road and Bridge
Juvenile Probation - Public Health
Indigent Care - Debt Service
The remaining 17 are funded through special revenue or user fees.

8. Effective Tax Rate
The effective tax rate will provide the taxing unit with approximately the same amount of revenue it had the year before on properties taxed in both years.
Generally, if values increase, the effective tax rate goes down; if values decrease, the effective tax rate goes up.

9. New Property Value
New property value generates new revenue for a taxing unit. This helps offset property value losses for new exemptions and special appraisals granted for the first time in the current year.
The taxing unit deducts new property value from the appraised values in the effective tax rate calculation
New Property values total $7,158,210 in new funds used in the proposed FY2017 budget, an increase of $108,000.

10. History of New Property Values
Tax Year New Property Value Revenue
2007 $2.1 billion $5.0 million
2008 $2.1 billion $5.0 million
2009 $1.7 billion $4.3 million
2010 $1.1 billion $2.9 million
2011 $1.1 billion $3.0 million
2012 $1.1 billion $3.1 million
2013 $1.3 billion $3.7 million
2014 $1.8 billion $5.0 million
2015 $2.7 billion $7.1 million
2016 $2.9 billion $7.2 million

11. Summary of Current and Proposed County Tax Rate
Current Tax Rate = $
Effective Tax Rate = $
Rollback Tax Rate = $
Proposed Tax Rate = $
Variance (Current vs. Proposed) = ($ )
Variance (Effective vs. Proposed) = $
The Proposed Tax Rate is 0% above the effective tax rate.

12. Denton County, Texas Summary of Total Tax Levy
Total Taxable Value in Denton County = $ 77,171,230,232
Total Tax Levy on Effective Tax Rate = $ ,700,281
Total Tax Levy on Proposed Tax Rate = $ ,700,281
Actual Increase In Taxes Above the Effective Rate = $

13. Based on the Average $274,839 Denton County Home Value
Denton County, Texas Property Taxes for Average Home Owner City of Denton – Proposed Rates (Tax Year 2016)
Total Taxes
$6,798
City of Denton
$1,882 or 28%
School District*
$4,233 or
62%
Denton County
$683 or 10%
Based on the Average $274,839 Denton County Home Value
* Proposed Tax Rates: Denton County $ / Denton ISD $1.54 / City of Denton $

14. Denton County, Texas Average Home Value/Monthly Taxes
Based on the average Denton County Home Value of $274,839
Based on proposed tax rates for each entity

15. Denton County, Texas Current Tax Rate vs. Proposed Tax Rate
Sample
Home Value
FY2015
Current Tax Rate
FY2016
Proposed Tax Rate
Annual
Variance
Monthly
Tax Rate per $100 Value:
0.2620
$100,000
$262.00
$248.41
($13.59)
($1.13)
$274,839*
$720.08
$682.72
($37.36)
($3.11)
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 2016

16. Denton County, Texas Ten-Year Tax Rate History

17. Denton County, Texas Comparison of Top 10 Texas Counties Combined County-Wide Tax Rates
Denton County tax rate is the proposed rate for FY17. Other counties tax rates are the existing FY16 rates.
Includes tax rates assessed county-wide for the county including: Rates not only include the county tax rate but also includes any other tax rate that is levied county-wide which includes the following tax rates for a Hospital District, Community College District, Flood Control, Port Authority, etc.

18. Denton County, Texas Tax Bill Comparison
Based on Denton County’s average home value of $274,839
This chart reflects Denton County’s proposed tax rate for FY2017 while the other counties tax rates reflect their current FY2016 rates. The totals include tax rates assessed county-wide within each county including their County, Hospital District, Water District and Community College taxes.

19. Tax Rate Comparison / 254 Counties
Only 3 counties currently have a lower tax rate than we
are proposing
Rates range from $ to $
Average rate / 254 counties = $
Denton County’s proposed rate = $
Source – Texas State Comptroller

20. Ten Year Employee History

21. Ten Year Population History

22. Top 15 Counties Population/Employee
Denton County information is based on the proposed FY17 budget. Information for other counties is based on FY16 survey data.

23. Denton County, Texas Number of Employees per Capita
Population in Thousands
Fiscal Year

24. Denton County, Texas Revenue Changes
Taxes from New Property $ 7,158,210
Taxes from Additional Tax Roll $ ,654
Miscellaneous and Transfers $ (12,000)
Auto Registration $ ,000
Intergovernmental $ 1,704,807
Fees $ 1,161,000
Fines $ (160,000)
Interest Earnings $ ,850
Total Revenue Changes $11,285,521

25. Denton County, Texas Revenue Summary by Function
$265,613,432
Property Taxes 71%
Fees 8%
Fines 1%
Intergovernmental 5%
Interest <1%
Auto Registration 4%
Miscellaneous 3%
Fund Balance 8%

26. Denton County, Texas Property Tax Revenue by Category $188,824,777
Residential
76%
Mineral 1%
Commercial
23%

27. Functions of Denton County
Public Safety
County Jail and Jail Health
Sheriff’s Department
Adult and Juvenile Probation
(6) Constables
Fire and Ambulance Services
Emergency Management/Homeland Security
County Roads and Bridges
Judicial/Legal - Criminal Justice System
(22) District, County, & Justice of the Peace Courts
Criminal District Attorney
District Clerk and Jury Services
Medical Examiner Services
Security Services
Debt Service – Long Term Debt
Roads and Bridges
County Facilities
Capital Projects
Miscellaneous
Health and Welfare
Health Dept-Clinical & Environmental
Child Protective Services
Indigent Health Care
Financial
County Auditor
County Treasurer
Tax Assessor/Collector
Motor Vehicle Registration/Property Taxes
Budget Office
General Administration
County Clerk
Commissioners Court
Human Resources
Purchasing
Information Services
Elections
Veterans Service
Public Works
Economic Development
Facilities Management

28. Summary of Expenditure Changes
5% Pay Scale Adjustment for all employees/various Benefit Increases $ 4,681,000
Repairs/Maintenance (Buildings, Comp SW Maint., Audio Syst. Maint., Etc.) $ 2,059,000
New Hires (includes operating and capital expenses) $ 2,673,000
Increased Contingency (Capital Rplcmt. Fund, New Hires, Facility Contingency) $ 1,758,000
Debt Service Payments (Roads, Technology, Buildings) $ 1,474,000
Capital Replacement Fund (Road Project Planning Contingency funds) $ 1,000,000
Professional Services (Consultants, Architect Fees, Security Services, etc.) $ ,000
Transportation Consultant $ ,000
Miscellaneous Court Expenses (Ct Apptd Attys, Psychological, Placements, etc.) $ ,000
Communications (Phone Service, Radio Repairs, Wireless Service, etc.) $ ,000
Fire and Ambulance Funding (increased runs + fire call rate from $500 to $525) $ ,000
Tax Incentives (Tax Rebates) $ ,000
Capital Equipment (Various Increases and Decreases) $ ,000

29. Summary of Expenditure Changes (Cont.)
Reclassification Recommendations $ ,000
Prisoner Medical Expense $ ,000
Training and Education $ ,000
Insurance (Buildings, Fleet Liability, Professional Liability, etc.) $ ,000
Radio Purchases $ ($297,000)
Miscellaneous Supply / Equipment Reductions $ (265,000)
Rental Reductions (Computer Lease Payments & Misc. Office Rent) $ (796,000)
Buildings (Less Funds Budgeted in Capital Replacement Fund) $ (4,344,000)
GRAND TOTAL $10,723,000

30. Denton County, Texas Expense Summary by Function
$265,613,432

31. Expense Summary by Category

32. New Employees Proposed
# Requested by Departments =
# Included in Recommended Budget =
# Included in Proposed Budget =
(1) Economic Development (1) Criminal District Attorney
(5) County Clerk (10) Tax Assessor/Collector
(1) Purchasing (1) Budget Office
(3) Technology Services (1) Law Enforcement Facility
(1) Department of Public Works (1) Facilities Management
(1) Veteran’s Services (5) Sheriff Communications
(1) Probate Court (10) Juvenile Probation Departments
(.5) PT Death Investigations (2) Public Health - Clinical

33. 4 New Employees Included in Contingency
County Clerk – (Flower Mound & Frisco) 2
Tax Office – (Flower Mound & Frisco) 2

34. 19 New Employees for New Buildings
County Clerk *– (Flower Mound & Frisco eff Jan 1st) 5
Tax Office *– (Flower Mound & Frisco) 10
effective dates starting Jan. 15th – March 1st
Department gains 3 addnl positions from The Colony building
closure-needed in Denton, Lewisville and Carrollton
Veteran’s Service - (Lewisville) 1
(effective – building already open for business)
Law Enforcement Facility – (New Jail) 1
Facilities Mngmt. (Lewisville, Frisco and Flower Mound) 1
Juvenile Probation (Frisco & Crossroads) 1
* A total of (4) positions included in contingency as workload warrants

35. 13 New Employees for Workload Increases
Purchasing – (Sr. Buyer - Road/Bldg. Construction Projects) 1
Technology Services
(Database Administrator-large # of databases)
(Server Engineer – large increase in servers, applications and storage)
(Audio Visual Technician – manage projects, systems and productions)
Public Works-(Dvlpmt. Coord.- 81% increase in permits in 5 yrs) 1
Probate Ct-(Court Visitor Coord.–annual visits required/1200 wards) 1
Death Investigations-(PT Medical Invest/workload/coverage) .5
Criminal DA-(Felony Prosecutor I/needed for specialty courts) 1
SO Communications (Communications Officers for Fire/EMS) 5

36. 1 New Employees for Transition Period
Budget Office – (Asst. Budget Officer) 1
– Training for upcoming retirement of Budget Officer – position would
train for approximately 1 year and slot would either be
deleted or downgraded to a Budget Analyst position)

37. 1 New Employees for New Program
Economic Development–(Economic Development Coordinator) 1
– To assist Commissioners Court with Economic Development opportunities and prepares economic profile data for distribution to business, landowners and developers. Maintains reports and accounting of all current tax rebate agreements as well as tax abatement agreements, etc...

38. 9 New Employees for Juvenile Probation
Juvenile Probation Officer (Juvenile Mental Health Court)
ISP Officer (Juvenile Mental Health Court)
Juvenile Detention –
Juvenile Supervision Officers– (Current coverage needs and
compliance required for new PREA ratio to be in place by )
Grant A-Mental Health – 1
Counselor (PREA related position and new standards for safety
based seclusions)
* (1) addnl. ISP Officer for Juvenile Probation included on previous new buildings slide

39. 2 New Employees for Public Health/Clinical
Assistant Director of Public Health – 1
Assistant Directors are all included in the regular budget
Current position funded by 2 grants which will free up
funds for additional program funding
If grant funding is lost, we will not jeopardize losing this
position
License Vocational Nurse – 1
Growing primary care needs in Lewisville
Non-Profit (Christian Community Action closed its clinic
leaving 1900 patients without primary care services)

40. Employee Reclassification/Equity Adjustments/ Job Title Changes
34 Reclassifications Requested
22 Reclassifications Recommended
35 Reclassifications Approved
23 Job Title Changes Recommended

41. Employee Summary by Function Total # of Employees 1673

42. Summary of Non-Departmental Contingencies
Regular Unappropriated Contingency $ ,000
Vehicle Repair Contingency $ ,000
Court Ordered Contingency $ 2,106,000
Insurance Contingency $ ,000
Lawsuit Settlement Contingency $ ,000
Grant Contingency $ ,000
Utilities & Gasoline Contingency $ ,000
Fire Call Contingency $ ,000
Out of County Prisoner Contingency $ ,000
Possible Homeless Funding Contingency $ ,000
Personnel Contingency $ ,866
Grand Total General Fund Contingencies $ 4,552,866

43. Summary of Personnel Contingency
CSCD General Fund Employee (if needed) $ ,000
(2) Potential County Clerk Employees for New Bldgs. $ ,000
(2) Potential Tax Office Employees for New Bldgs. $ ,000
Possible Salary Adjustments Mid-Year after Surveys $ ,866
Payroll Shortages Due to Turnover, etc.. (small depts.) $ ,000
Grand Total Personnel Contingency $ ,866

44. Denton County, Texas Summary of Tax Note Projects
Approved Projects:
Storage Area Network $ 2,301,328
Lee Walker Government Center $ 2,500,000
Charlie Cole/Juvenile Svcs. Architect Fees $ 1,168,672
TOTAL TAX NOTE PROJECTS $ 5,970,000

45. Capital Replacement Fund Summary
Furniture (Lee Walker Govt. Ctr./SW Courthouse-Pct. #4) $815,900
Computers (replacement computers in lieu of leasing) $602,092
Architect Fees $334,086
Master Plan Update for Courts $284,086
CIP Architect Fees (if needed) $ 50,000
ADA Repairs (carry-over from FY2016) $603,050
Repairs and Maintenance $1,018,102
Paver Rplcmt Project/Roof Rep. $849,738
Historical Park Fence $168,364

46. Capital Replacement Fund Summary- (cont.)
Unappropriated Contingency $4,000,000
Road Project Planning $1,000,000
Computers $935,179
Network for New Facilities $75,480
County-Wide Network Telep. Proj. $859,699
GRAND TOTAL $9,308,409

47. Denton County’s Bond Rating
The fact that Denton County has the highest possible credit score given to governments, is a testament to the prudent financial management of the County.

48. What Does Bond Rating Mean?
This is a grade assigned by private rating services such as Standard & Poor's and Moody's where they evaluate a bond issuer's financial strength, or its ability to pay principal and interest in a timely fashion.
Bond ratings are expressed with letters ranging from AAA, which is the highest rating to a C, which is the lowest rating.

49. Denton County’s Bond Rating 2016 Outlook
Moody’s - Aaa
“The stable outlook reflects the county’s stable economy and conservative budgeting which will enable it to maintain solid financial performance and reserves.”
Standard & Poor’s – AAA
“The stable outlook reflects S & P’s opinion that Denton County will likely continue to benefit from its location in the Dallas-Fort Worth-Arlington MSA, allowing for continued tax base growth. The outlook also reflects an expectation that the county will likely maintain its very strong budgetary flexibility and strong budgetary performance.”

50. Proposed Budget Overview
Lowering the tax rate by over one penny ($ )
This budget is a very sound financial plan the next year
Continue to provide and improve services to our citizens
Rewarding employees for their hard work and dedication by including various reclassifications and a 5% pay scale adjustment to get employees closer to the market, also leaving us with a more competitive pay scale
Expenses included to bring new satellite government centers on-line in FY2017 in Flower Mound and Frisco
Includes additional staff to assist with increased workload in various departments
Reduced expenses when feasible
We are able to maintain sufficient reserves

51. County Budget Information Available
The FY2017 Proposed Budget is available on the Denton County Web-Site:
If approved today, you can click on the “Adopted Budget” link
Other budget-related data can also be found on our web site including prior year budgets, Operating Budgets, a copy of our Capital Improvement Program, various statistical charts, etc.

52. Questions / Comments
Invite public to participate in the Public Hearing on the Proposed Budget

53. Acknowledgements All Elected Officials and Department Heads and Staff
County Auditor James Wells and Staff
Purchasing Director Beth Fleming and Staff
Human Resources Director Gustavo Hernandez and Staff
Chief Information Officer Kevin Carr and Staff
Tax Assessor-Collector Michelle French and Stacey Dvoracek
Ashley D’Anna – County Clerk’s Office

54. Budget Office Staff Jona Macsas – Assistant Budget Officer
LaDawn Fitzgearld – Budget Analyst
Sherly Joseph – Budget Systems Analyst
Donna Henrikson – Financial Support Specialist

55. Thank you!