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HomeMy WebLinkAbout2026-034 DCAD FY2027 Proposed BudgetDate: June 1, 2026 Report No. 2026-034 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Denton Central Appraisal District (DCAD) 2027 Proposed Budget BACKGROUND: The City received notice of a public hearing on the 2027 Denton Central Appraisal District (DCAD) Proposed Budget. There will be a public hearing on the proposed budget on June 11, 2026, at 3 p.m. at 3901 Morse Street, Denton, TX. The public hearing notice will be published no later than 10 days before the hearing date per the TPTC Sec. 6.062(a). If any entity wishes to disapprove the budget, they must do so within 30 days of adoption by resolution filed with the Denton CAD board of directors secretary per TPTC Sec. 6.06(a). If the Council would like to take action on the DCAD Proposed Budget, staff needs to be notified by Tuesday, June 16, to determine if a special called meeting is needed. The total 2027 DCAD Proposed Budget is $25,380,559.54, an increase of $683,983.22, or approximately 2.77%, over last year’s budget of $24,696,576.32. ATTACHMENTS: 2027 DCAD Proposed Budget STAFF CONTACT: Aimée Kaslik, Chief Strategic Officer Aimee.Kaslik@cityofdenton.com STAFF CONTACT: Staff initiated. PARTICIPATING DEPARTMENTS: Office of Strategy, Budget, and Performance (City Manager’s Office) STAFF TIME TO COMPLETE REPORT: 0.5 hour Denton Central Appraisal District | FY 2027 Proposed Budget 2 DENTON CENTRAL APPRAISAL DISTRICT FY 2027 PROPOSED BUDGET Strategic Operations | Fiscal Stewardship | Public Service Denton Central Appraisal District | FY 2027 Proposed Budget 3 Our Mission To serve the taxpayers and taxing entities of Denton County through accurate, equitable, and uniform property appraisal, professional exemption administration, and responsive public service. Our Vision To be a trusted leader in property appraisal administration - recognized for operational excellence, transparency, innovation, and service-centered professionalism. Our Core Operating Values The following core operating values guide the culture, expectations, and public service responsibilities of Denton Central Appraisal District as a professional local government organization serving a rapidly growing county. Work Together: We promote collaboration, professional respect, and open communication. Ethics: We uphold integrity, objectivity, and public trust in every aspect of our work. Service: We serve citizens, taxing units, and one another with professionalism and responsiveness. Excellence: We pursue accuracy, uniformity, quality, and continuous improvement. Responsibility: We accept accountability for our decisions, work, and statutory obligations. Value People: We respect individual contributions and support an environment for success. Education: We remain committed to training, public understanding, and informed decision-making. Denton Central Appraisal District | FY 2027 Proposed Budget 4 Table of Contents Letter of Transmittal..............................................................................................................................................................................6 Organizational Chart .............................................................................................................................................................................7 Board of Directors.................................................................................................................................................................................8 Key Staff ...............................................................................................................................................................................................9 Budget Phases .................................................................................................................................................................................... 10 1. Planning and Priorities ................................................................................................................................................................ 10 2. Departmental Input .................................................................................................................................................................... 10 3. Executive Review ........................................................................................................................................................................ 10 4. Board Workshop ......................................................................................................................................................................... 10 5. Preliminary Budget...................................................................................................................................................................... 10 6. Public Hearing and Adoption ....................................................................................................................................................... 10 7. Allocation and Implementation ................................................................................................................................................... 10 FY 2027 Budget Calendar .................................................................................................................................................................... 11 Denton County ................................................................................................................................................................................... 12 Role of the Appraisal District ............................................................................................................................................................... 14 Core appraisal district responsibilities ............................................................................................................................................ 14 History and Background of Denton Central Appraisal District .............................................................................................................. 15 The Local Economy and Demographics............................................................................................................................................... 16 Economic Data ................................................................................................................................................................................... 16 Around Denton County ....................................................................................................................................................................... 17 Historic Denton and the Downtown Square .................................................................................................................................... 17 Higher Education ............................................................................................................................................................................ 17 Lake Lewisville and Lake Ray Roberts ............................................................................................................................................. 17 North Texas Growth Corridor .......................................................................................................................................................... 17 Regional Access ............................................................................................................................................................................. 17 Major Attractions and Community Life ............................................................................................................................................ 17 Denton Central Appraisal District Fact Sheet ...................................................................................................................................... 18 Organizational Strategic Plan .............................................................................................................................................................. 20 1. Operational Capacity and Service Delivery .................................................................................................................................. 20 2. Workforce Stability and Professional Development ..................................................................................................................... 20 3. Technology Modernization and Data Quality ............................................................................................................................... 20 4. Public Communication and Transparency ................................................................................................................................... 20 5. Facilities and Long-Term Infrastructure ....................................................................................................................................... 20 6. Compliance, Risk Management, and Governance ....................................................................................................................... 20 Reappraisal ........................................................................................................................................................................................ 21 Major reappraisal activities ............................................................................................................................................................. 21 Denton Central Appraisal District | FY 2027 Proposed Budget 5 Valuation methods by property type................................................................................................................................................ 21 Reappraisal Plan Calendar / Departmental Overview .......................................................................................................................... 21 Accounting Basis and Internal Controls .............................................................................................................................................. 22 Fund balance and reserve position ................................................................................................................................................. 22 Budget Surplus / Reserve Policy ...................................................................................................................................................... 22 Property Taxes in the State of Texas .................................................................................................................................................... 23 Role of the Appraisal District........................................................................................................................................................... 23 Property Taxes at Work ................................................................................................................................................................... 23 Property Tax Calendar .................................................................................................................................................................... 23 Total Expenditure Budget – Category Summary ................................................................................................................................... 25 Budget Summary - Category ............................................................................................................................................................... 26 Proposed Capital Expenditures and Technology Hardware.................................................................................................................. 28 Capital Outlay - 5500 ...................................................................................................................................................................... 28 Technology Hardware and Infrastructure - 5420 .............................................................................................................................. 28 Appraisal Value and Levy Historical Data ............................................................................................................................................ 29 Revenue Totals ................................................................................................................................................................................... 30 Revenue Sources ................................................................................................................................................................................ 30 Taxing Unit Allocations........................................................................................................................................................................ 31 County ........................................................................................................................................................................................... 31 School Districts .............................................................................................................................................................................. 31 Cities .............................................................................................................................................................................................. 31 Special Districts ............................................................................................................................................................................. 32 Personnel ........................................................................................................................................................................................... 35 Personnel Budget - By Department ..................................................................................................................................................... 36 Personnel Benefit Assumptions .......................................................................................................................................................... 37 Notice of Public Hearing ..................................................................................................................................................................... 38 Taxpayer Impact Statement ................................................................................................................................................................ 39 Budget Adoption Resolution ............................................................................................................................................................... 40 Certificate of Budget Adoption ............................................................................................................................................................ 41 Denton Central Appraisal District | FY 2027 Proposed Budget 6 Letter of Transmittal To: Presiding Officers of Participating Taxing Units and the DCAD Board of Directors From: Don Spencer, Chief Appraiser Subject: Fiscal Year 2027 Proposed Budget Attached for your review is the Denton Central Appraisal District FY 2027 Proposed Budget. The proposed budget totals $25,380,560, representing an increase of $683,983 over the FY 2026 budget. The proposed allocation pool for participating taxing units is $24,555,560 after applying a $500,000 reserve offset and $325,000 in projected other income. The development of this budget followed a deliberate and conservative approach. The Board of Directors and district leadership reviewed long-term staffing needs, public communication expectations, technology requirements, facility constraints, and the recommendations contained in the district’s strategic and operational planning work. This proposal does not attempt to implement every long-term recommendation in a single year; rather, it establishes a measured operating plan that supports current service levels while preparing the district for continued growth. A primary driver of the FY 2027 budget is personnel. The budget includes 128 budgeted FTEs and reflects targeted staffing changes designed to support statutory deadlines, taxpayer service, data quality, facilities support, and public-facing communication demands. This budget proposal includes two Residential Support positions, a Public Information/Data Support Analyst position within Information Technology, an E&A Database Coordinator position, and the transition of one existing E&A vacancy to Business Operations as an additional Building & Grounds Maintenance position. Personnel services remain the largest budget category at approximately $17.5 million. This includes salaries with 3% consideration for merit, payroll taxes, retirement, workers compensation, longevity, and group health insurance. Dental and vision assumptions have been annualized in the personnel model so that benefit costs are reflected consistently with the medical insurance assumption. Technology remains another important operational priority. The district continues to rely on CAMA, GIS, workflow, security, and public-facing technology systems to support appraisal operations, exemption administration, ARB support, public records, and taxing unit reporting. The budget continues to fund core maintenance and support while recognizing the growing importance of data integrity and digital service delivery. Facilities planning also remains an important future consideration. The district’s current operational footprint continues to experience pressure from staffing needs, public traffic, records retention, protest operations, and meeting/hearing requirements. While this budget does not commit the district to a specific facility solution, it recognizes the need for continued long-term facilities evaluation and planning. The FY 2027 proposal also recognizes the increasing importance of public communication. The appraisal district operates in a complex environment where taxpayers, taxing entities, elected officials, and the media need clear, timely, and accurate information. The addition of public information support is intended to strengthen communication capacity while remaining integrated with the district’s data and technology infrastructure. This budget strikes a responsible balance between effectiveness and efficiency. The Denton Central Appraisal District must maintain accurate and equitable appraisals, meet statutory deadlines, support taxpayers and taxing units, and prepare for continued growth while remaining mindful of the funding impact on participating jurisdictions. I appreciate the continued support, engagement, and input of the Board of Directors, participating taxing units, district leadership, and staff throughout this budget process. Respectfully submitted, Denton Central Appraisal District | FY 2027 Proposed Budget 7 Don Spencer, RPA, CCA Chief Appraiser Organizational Chart FY 2027 organizational structure. Detailed departmental positions are summarized later in this document. Denton Central Appraisal District | FY 2027 Proposed Budget 8 Board of Directors Alex Buck Chairman - Place 6 place6@dentoncad.com Angie Cox Vice Chairman - Place 1 place1@dentoncad.com Rick Guzman Secretary - Place 3 place3@dentoncad.com Rich Olson Member - Place 2 place2@dentoncad.com Buddy Bonner Member - Place 4 place4@dentoncad.com James Lawrence Member - Place 5 place5@dentoncad.com Mike Hennefer Member - Place 7 place7@dentoncad.com Charles Stafford Member - Place 8 place8@dentoncad.com Dawn Waye Member / Ex Officio - Place 9 place9@dentoncad.com Denton Central Appraisal District | FY 2027 Proposed Budget 9 Key Staff Don Spencer Chief Appraiser Administration Jeanne Ashlock Deputy of Administration Administration Chris Littrell Deputy of Appraisal Administration Bea Lorne Director of Appeals Appeals Michelle Landberg Director of BPP BPP Kim Collins Director of Business Operations Business Operations Chuck Saling Director of Commercial Commercial Rebecca Townsend Director of Exemptions & Assistance Exemptions & Assistance David Steele Director of Information Technology Information Technology Jonathan Martin Director of Mapping Mapping Matt Fitch Director of Residential Residential Mike Jones Director of Training & Development Training & Development Denton Central Appraisal District | FY 2027 Proposed Budget 10 Budget Phases 1. Planning and Priorities District leadership reviews statutory requirements, operational needs, Board priorities, strategic plan recommendations, and known cost drivers. 2. Departmental Input Departments identify staffing, technology, training, contract, and operating needs for the upcoming fiscal year. 3. Executive Review The Chief Appraiser, Administration and Business Operations review department requests, evaluate funding assumptions, and prepare a working proposal. 4. Board Workshop The Board of Directors reviews budget assumptions, major drivers, long-term planning issues, and potential funding strategies. 5. Preliminary Budget A preliminary budget is prepared for consideration and distribution to participating taxing units in accordance with statutory requirements. 6. Public Hearing and Adoption The Board conducts required budget proceedings and considers final adoption of the annual budget. 7. Allocation and Implementation After adoption, the budget is allocated among participating taxing units and implemented through the District’s financial controls and purchasing procedures. Denton Central Appraisal District | FY 2027 Proposed Budget 11 FY 2027 Budget Calendar Date / Timeframe Action Fall 2025 Long-range planning, strategic plan development, and operational needs assessment January - March 2026 Departmental budget review, staffing assumptions, and preliminary financial modeling April - May 2026 Budget workshop preparation; financial audit and prior-year results reviewed May 2026 Board Budget Workshop and direction on reserve offset, staffing, public communication consulting, and facility planning June 2026 FY 2027 Public hearing and budget adoption June / July 2026 Entity review period September / October 2026 Entity allocations finalized and distributed Denton Central Appraisal District | FY 2027 Proposed Budget 12 Denton County Denton Central Appraisal District | FY 2027 Proposed Budget 13 Denton County is one of the most dynamic growth areas in Texas, situated within the Dallas-Fort Worth metropolitan region and anchored by a diverse mix of established cities, growing towns, educational institutions, major transportation corridors, lakes, employment centers, and residential communities. The county includes rapidly growing suburban communities, historic town centers, major master-planned developments, agricultural and rural areas, commercial corridors, and regional destinations. This diversity of land use and property type directly affects the appraisal district’s operational environment and creates a tax base that includes residential, commercial, industrial, business personal property, mineral, utility, agricultural, and special inventory accounts. Denton County’s growth affects nearly every part of the appraisal cycle: parcel creation, deed processing, building permit review, field inspections, market analysis, exemption administration, protest volume, public assistance, and certification. As the county grows, DCAD’s workload expands not only in number of accounts, but also in complexity. Denton Central Appraisal District | FY 2027 Proposed Budget 14 Role of the Appraisal District Appraisal districts were created by the Texas Legislature to provide independent, centralized property appraisal for ad valorem taxation. The appraisal district’s responsibility is to determine market value and administer exemptions in accordance with the Texas Property Tax Code. The appraisal district does not set tax rates, collect taxes, or determine how tax revenue is spent. DCAD appraises property for participating taxing units throughout Denton County. Those taxing units use the certified appraisal roll to calculate taxes based on tax rates adopted by their governing bodies. The separation between appraisal and tax-rate adoption is an important part of the Texas property tax system. The Texas Constitution and Texas Property Tax Code require property to be appraised at market value unless otherwise provided by law. DCAD uses generally accepted mass appraisal methods, market data, property characteristics, and statistical testing to support equal and uniform appraisal outcomes. Core appraisal district responsibilities • Appraise taxable property at market value unless otherwise provided by law. • Administer exemptions and special valuations authorized by state law. • Maintain ownership, situs, mapping, and property characteristic records. • Support the Appraisal Review Board process. • Provide certified appraisal rolls and related data to taxing units. • Comply with statutory deadlines and oversight requirements. Denton Central Appraisal District | FY 2027 Proposed Budget 15 History and Background of Denton Central Appraisal District Denton Central Appraisal District was created as part of the statewide property tax reforms enacted by the Texas Legislature in 1979 and began operations in 1980. The district is a political subdivision of the State of Texas governed by the Texas Property Tax Code. The district is governed by a nine-member Board of Directors. The Chief Appraiser is appointed by the Board of Directors and serves as the chief administrator and chief executive officer of the appraisal district. DCAD’s responsibilities include local property tax appraisal, exemption administration, appraisal roll development, Appraisal Review Board support, and service to participating taxing units and property owners across Denton County. Over time, the district’s operating environment has changed substantially. Denton County’s population growth, development activity, protest volume, legislative changes, technology requirements, and service expectations have expanded the scale and complexity of appraisal district operations. Denton Central Appraisal District | FY 2027 Proposed Budget 16 The Local Economy and Demographics Denton County continues to experience sustained population growth, residential development, commercial expansion, and increasing demand for public infrastructure and services. Its location within the Dallas-Fort Worth region, access to major transportation corridors, higher education institutions, employment centers, healthcare, logistics, retail, and professional services contribute to a diverse and expanding local economy. These economic and demographic conditions directly affect the operating environment of the Denton Central Appraisal District. Growth in population, housing, business activity, and property development increases the volume and complexity of appraisal work, exemption administration, ownership records, mapping, data maintenance, protest activity, and taxpayer assistance. Economic Data Denton Central Appraisal District | FY 2027 Proposed Budget 17 Around Denton County Denton County’s identity is shaped by a mix of historic communities, fast-growing cities, regional destinations, higher education, lakes, entertainment venues, and major transportation corridors. This section should add community context and visual interest while reinforcing why the appraisal district serves a diverse and rapidly changing county. Historic Denton and the Downtown Square County seat, cultural center, historic courthouse square, restaurants, entertainment, and civic identity. Higher Education University of North Texas, Texas Woman’s University and North Central Texas College contribute to workforce, culture, housing demand, and regional identity. Lake Lewisville and Lake Ray Roberts Major recreational assets and waterfront communities that contribute to residential and commercial development patterns. North Texas Growth Corridor Communities such as Frisco, Little Elm, Prosper, Celina, Aubrey, and surrounding areas continue to experience major residential and commercial growth pressures. Regional Access Denton County benefits from proximity to Love Field, DFW and Alliance Airports, I-35E/I-35W, U.S. 380, and major employment centers across North Texas. Major Attractions and Community Life Texas Motor Speedway, parks, trails, festivals, town centers for shopping and entertainment, and master-planned communities help define the county’s quality of life. Denton Central Appraisal District | FY 2027 Proposed Budget 18 Denton Central Appraisal District Fact Sheet Denton Central Appraisal District | FY 2027 Proposed Budget 19 ORGANIZATIONAL PLANS Denton Central Appraisal District | FY 2027 Proposed Budget 20 Organizational Strategic Plan The FY 2027 Proposed Budget is presented in the context of the District’s broader strategic and operational planning work. DCAD’s planning efforts recognize that Denton County growth is increasing the scale, complexity, and public visibility of appraisal district operations. The budget does not attempt to implement every long-range initiative at once; rather, it supports near-term stabilization while keeping the District aligned with longer-term operational priorities. 1. Operational Capacity and Service Delivery Strengthen staffing, workflow, and service capacity to meet statutory deadlines and public expectations. 2. Workforce Stability and Professional Development Support recruitment, retention, training, leadership development, and a sustainable staffing model. 3. Technology Modernization and Data Quality Improve system reliability, data integrity, GIS capabilities, public access, cybersecurity readiness, and workflow automation. 4. Public Communication and Transparency Improve taxpayer education, entity communication, and public understanding of the appraisal district’s statutory role. 5. Facilities and Long-Term Infrastructure Evaluate long-term office, hearing, storage, technology, and public service space needs with a professional facility planning approach. 6. Compliance, Risk Management, and Governance Maintain strong statutory compliance, financial controls, audit readiness, PVS/MAP performance, and governance support. Denton Central Appraisal District | FY 2027 Proposed Budget 21 Reappraisal Texas Property Tax Code Sections 6.05(i) and 25.18 require appraisal districts to develop and implement a written plan for the periodic reappraisal of property within the district. DCAD’s 2025-2026 Reappraisal Plan describes the District’s statutory responsibilities, reappraisal activities, valuation methods, data collection practices, and performance analysis framework. DCAD’s current policy is to conduct a general reappraisal of real and business personal property annually. The District also conducts field review, office review, sales verification, market area analysis, ratio studies, valuation model updates, and final performance testing to support appraisal accuracy and uniformity. Major reappraisal activities • Identify properties through physical inspection or reliable sources such as deeds, plats, aerial imagery, maps, surveys, and property sketches. • Identify and update relevant property characteristics in the appraisal records. • Define market areas and evaluate whether market boundaries remain appropriate. • Identify property characteristics affecting value, including location, physical attributes, legal and economic attributes, and restrictions. • Develop and calibrate appraisal models reflecting market relationships. • Apply models to properties being appraised and review results for accuracy and uniformity. • Conduct ratio studies and performance analysis in accordance with applicable mass appraisal standards. Valuation methods by property type The Reappraisal Plan includes separate valuation discussions for residential property, commercial property, and business personal property. These sections describe appraisal resources, data collection, highest and best use analysis, sales verification, cost and income model review, depreciation, market adjustment, ratio studies, and management review procedures. Reappraisal Plan Calendar / Departmental Overview Denton Central Appraisal District | FY 2027 Proposed Budget 22 Accounting Basis and Internal Controls DCAD maintains its financial records and prepares its annual financial statements in accordance with generally accepted accounting principles applicable to governmental entities. The district maintains a single governmental fund - the General Fund - used to account for the acquisition and use of spendable financial resources and related liabilities. The district adopts an annual appropriated budget for the General Fund. The budget is legally adopted by the Board of Directors and serves as the basis for determining annual assessments to participating taxing jurisdictions. The Chief Appraiser is authorized to transfer amounts between departments within the General Fund; however, revisions that alter total General Fund expenditures require Board approval and applicable statutory procedures. The 2025 Annual Financial Report reported total general fund balance of $13,123,512 as of December 31, 2025, an increase of $2,865,103 over the prior year. The audit also reported actual 2025 expenditures of $19,846,402, which were $3,975,240 less than the 2025 budget, and actual 2025 revenues of $22,711,505, which were $450,991 more than budgeted revenues. The district’s governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this basis, revenues are recognized when they are both measurable and available, and expenditures are recorded when the related fund liability is incurred. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. These statements present information on all activities of the district and provide a broader view of assets, liabilities, deferred inflows/outflows, and net position. Fund balance and reserve position The district’s reserve position supports operational continuity, statutory responsibilities, unusual legal services, facility needs, entity allocation stabilization, future TCDRS payments, disaster recovery, and contingencies. The FY 2027 Proposed Budget includes a planned reserve offset of $500,000 to reduce the funding impact on participating taxing entities. Budget Surplus / Reserve Policy It is the policy of the Board of Directors of the Denton Central Appraisal District that if the total amount of payments made and/or due to be paid each year by the taxing units participating in a given fiscal year exceeds the amount actually spent or obligated to be spent during such fiscal year for which payments were made, such excess amount may be appropriated to a designated reserve and thereby obligated to be spent as approved by the Board of Directors. Should a designated reserve not be provided or the surplus funds otherwise not obligated, said surplus funds shall be refunded to the entities in accordance with state law. Denton Central Appraisal District | FY 2027 Proposed Budget 23 Property Taxes in the State of Texas Texas local governments rely on property taxes to fund public schools, cities, counties, community colleges, hospital districts, emergency service districts, and other local services. The property tax system separates valuation, rate-setting, tax collection, and budget decisions among different public bodies. Appraisal districts determine taxable property values and administer exemptions. Taxing units adopt budgets and tax rates. Tax assessor-collectors calculate, bill, and collect taxes. Property owners have statutory rights to receive notice, apply for exemptions, protest appraised values or exemption determinations, and appeal decisions through established procedures. Role of the Appraisal District The appraisal district’s role is to appraise property and administer exemptions in accordance with law. DCAD does not set tax rates or determine the amount of tax revenue collected by taxing units. Property Taxes at Work Property taxes fund local services such as public education, public safety, roads, libraries, parks, emergency services, healthcare districts, and other local government operations. Each taxing unit determines its own budget and tax rate through its governing body. Property Tax Calendar Denton Central Appraisal District | FY 2027 Proposed Budget 24 BUDGETED EXPENDITURES Denton Central Appraisal District | FY 2027 Proposed Budget 25 Total Expenditures – Category Summary The FY 2027 Proposed Budget totals $25,380,560. Personnel services is 69% of the budget, reflecting the labor- intensive nature of appraisal administration, taxpayer assistance, exemption processing, protest support, technology, and operational management. Category FY 2026 Budget FY 2027 Proposed $ Change % Change 5100 Personnel Services $16,818,502 $17,544,750 $726,248 4.3% 5200 Education & Training $295,530 $255,289 $-40,241 -13.6% 5300 Services Received $4,442,047 $4,407,984 $-34,063 -0.8% 5400 Utilities & Maintenance $2,233,038 $2,216,510 $-16,528 -0.7% 5500 Capital Outlay $325,850 $308,500 $-17,350 -5.3% 5600 Miscellaneous $469,458 $543,132 $73,674 15.7% 5900 Debt Service $112,151 $104,394 $-7,757 -6.9% TOTAL $24,696,576 $25,380,560 $683,983 2.8% FY 2027 proposed budget by major expenditure category. Denton Central Appraisal District | FY 2027 Proposed Budget 26 Budget Summary / Category Category FY 2026 Budget FY 2027 Proposed $ Change % Change 5100 Personnel Services $16,818,502 $17,544,750 $726,248 4.3% 5110 Salaries $11,537,300 $12,065,765 $528,465 4.6% 5120 Longevity Pay $102,175 $95,195 $-6,980 -6.8% 5130 Social Security (FICA) $928,419 $988,858 $60,440 6.5% 5140 Retirement (TCDRS) $1,718,032 $1,680,413 $-37,619 -2.2% 5150 Workers' Comp Insurance $93,976 $38,500 $-55,477 -59.0% 5160 Group Health Insurance $2,438,600 $2,676,019 $237,419 9.7% 5200 Education & Training $295,530 $255,289 $-40,241 -13.6% 5210 Memberships & Dues $42,530 $42,930 $400 0.9% 5220 Training - Schools, Conferences & Travel $253,000 $212,359 $-40,641 -16.1% 5300 Services Received $4,442,047 $4,407,984 $-34,063 -0.8% 5310 Appraisal Review Board $495,630 $495,630 $0 0.0% 5315 Oil, Gas, Heavy Industrial, and Utility (Wardlaw) $215,920 $236,716 $20,796 9.6% 5325 Legal Services $760,000 $1,260,000 $500,000 65.8% 5330 Audit & Payroll Services $53,900 $59,000 $5,100 9.5% 5340 Subscriptions & Contracts $1,385,018 $797,223 $-587,795 -42.4% 5345 Auto Expense Reimbursement $765,294 $765,294 $0 0.0% 5350 Auto General Insurance $55,785 $56,149 $364 0.7% 5360 Printing Service $221,800 $230,672 $8,872 4.0% 5370 Postage & Freight $423,000 $444,150 $21,150 5.0% 5380 Legal Notices & Advertising $6,000 $5,000 $-1,000 -16.7% 5390 Office Supplies $59,700 $58,150 $-1,550 -2.6% Denton Central Appraisal District | FY 2027 Proposed Budget 27 Category FY 2026 Budget FY 2027 Proposed $ Change % Change 5400 Utilities & Maintenance $2,233,038 $2,216,510 $-16,528 -0.7% 5410 Office Equipment & Maintenance $13,700 $11,200 $-2,500 -18.2% 5420 Information Technology Maintenance $1,844,178 $1,823,684 $-20,494 -1.1% 5430 Electricity, Water, Sewer & Solid Waste $87,115 $95,011 $7,896 9.1% 5440 Telephone $112,320 $118,622 $6,302 5.6% 5450 Building & Grounds Maintenance $175,725 $167,993 $-7,732 -4.4% 5500 Capital Outlay $325,850 $308,500 $-17,350 -5.3% 5510 Furniture & Equipment $75,850 $58,500 $-17,350 -22.9% 5520 Building & Land Improvements $250,000 $250,000 $0 0.0% 5600 Miscellaneous $469,458 $543,132 $73,674 15.7% 5610 Contingency $119,108 $123,482 $4,374 3.7% 5620 Miscellaneous $70,350 $74,650 $4,300 6.1% 5630 Seasonal Labor $280,000 $345,000 $65,000 23.2% 5900 Debt Service $112,151 $104,394 $-7,757 -6.9% 5920 Equipment Payments $112,151 $104,394 $-7,757 -6.9% TOTAL $24,696,576 $25,380,560 $683,983 2.8% Denton Central Appraisal District | FY 2027 Proposed Budget 28 Proposed Capital Expenditures and Technology Hardware Texas Property Tax Code Section 6.06 requires an appraisal district budget to include each proposed capital expenditure. The following schedules identify the FY 2027 capital outlay items and technology hardware/infrastructure items included in the proposed budget. Technology hardware is presented separately because several hardware purchases are budgeted within the Information Technology maintenance account rather than the formal 5500 Capital Outlay account. Capital Outlay - 5500 Budget Line Description FY 2027 Budget 5510 Furniture & Equipment $58,500 5520 Building & Land Imp. / Facility Planning $250,000 Total Capital Outlay $308,500 Note: The Building & Land Improvements / Facility Planning line reflects planning and facility-related capital needs currently budgeted within capital outlay. Detailed project scope may be refined as facility planning progresses. Technology Hardware and Infrastructure - 5420 The following hardware and infrastructure items are included within the Information Technology maintenance budget. They represent capital-type equipment, replacement, or infrastructure purchases supporting district operations. Description FY 2027 Budget Hardware Infrastructure - Firewalls & Switches $60,000 Hardware Power - Battery Backup Units (UPS) $7,000 Hardware Infrastructure - Cabling and Electrical $14,500 Hardware Backup - Backup & Storage Maintenance $40,000 Hardware Infrastructure - Server Hardware including Nutanix $4,500 Hardware Mobile - Field Device Maintenance $36,000 Hardware Desktop - Desktop & Laptop Replacements $51,000 Hardware Desktop - Monitor Replacements $50,000 Hardware Building - Video Surveillance $10,000 Hardware - New FTE Startup Equipment $44,000 Total Technology Hardware and Infrastructure $317,000 Denton Central Appraisal District | FY 2027 Proposed Budget 29 Appraisal Value and Levy Historical Data The historical data shown above reflects Denton County’s continued growth in both market value and taxable value over the last several appraisal years. Certified market value increased from approximately $142.1 billion in 2021 to approximately $251.7 billion in 2025, with the 2026 preliminary totals reflecting continued growth to approximately $277.7 billion. Taxable value followed a similar trend, increasing from approximately $122.1 billion in 2021 to approximately $207.4 billion in 2025, with 2026 preliminary taxable value currently estimated at approximately $238.4 billion. Parcel counts have increased reflecting ongoing residential, commercial, and business personal property growth throughout the county. While annual changes in certified levy do not always move in direct proportion to taxable value because levy is affected by adopted tax rates, exemptions, tax limitations, and other statutory adjustments, the overall trend demonstrates the increasing scale and complexity of the appraisal roll administered by the Denton Central Appraisal District. The 2026 figures are preliminary and remain subject to change prior to final certification. Certified levy information is shown only for completed tax years because levy calculations depend on adopted tax rates and final certified appraisal roll data for participating taxing units. Denton Central Appraisal District | FY 2027 Proposed Budget 30 Revenue Totals Funding Component Amount Gross FY 2027 Proposed Budget $25,380,560 Reserve Offset $500,000 Projected Other Income $325,000 Estimated Entity Allocation Pool $24,555,560 Revenue Sources Revenue Source Description Participating taxing units Primary operating revenue source used to fund the budget. Reserve offset FY 2027 proposed use of reserves: $500,000 Interest & Other income FY 2027 projected other income: $325,000 Denton Central Appraisal District | FY 2027 Proposed Budget 31 Taxing Unit Allocations Estimated allocations are calculated using current levy data and an FY 2027 allocation pool of $24,555,559.54. The allocation pool reflects the gross FY 2027 proposed budget less the reserve offset and projected other income. County Code Taxing Unit Type Current Approx. Levy % Levy Share FY 2027 Allocation G01 DENTON COUNTY County $421,851,359 11.4065% $2,800,921 School Districts Code Taxing Unit Type Current Approx. Levy % Levy Share FY 2027 Allocation S01 ARGYLE ISD School $78,312,507 2.1175% $519,963 S02 AUBREY ISD School $45,002,645 1.2168% $298,799 S03 CARROLLTON-FB ISD School $55,346,348 1.4965% $367,477 S04 CELINA ISD School $7,175,513 0.1940% $47,642 S05 DENTON ISD School $440,718,912 11.9166% $2,926,194 S06 FRISCO ISD School $220,987,300 5.9753% $1,467,266 S07 KRUM ISD School $28,161,199 0.7615% $186,979 S08 LAKE DALLAS ISD School $43,202,512 1.1682% $286,847 S09 LEWISVILLE ISD School $716,738,427 19.3799% $4,758,851 S10 LITTLE ELM ISD School $101,796,519 2.7525% $675,887 S11 NORTHWEST ISD School $300,337,932 8.1209% $1,994,121 S12 PILOT POINT ISD School $14,752,285 0.3989% $97,949 S13 PONDER ISD School $17,677,345 0.4780% $117,370 S14 SANGER ISD School $28,125,422 0.7605% $186,741 S15 ERA ISD School $46,328 0.0013% $308 S16 SLIDELL ISD School $1,117,297 0.0302% $7,418 S17 PROSPER ISD School $73,549,518 1.9887% $488,339 Cities Code Taxing Unit Type Current Approx. Levy % Levy Share FY 2027 Allocation C01 AUBREY CITY OF City $5,970,221 0.1614% $39,640 C02 CARROLLTON CITY OF City $72,982,417 1.9734% $484,573 C03 THE COLONY CITY OF City $57,202,055 1.5467% $379,798 C04 CORINTH CITY OF City $22,750,118 0.6151% $151,052 C05 DENTON CITY OF City $150,417,802 4.0672% $998,713 C07 FLOWER MOUND TOWN OF City $70,430,682 1.9044% $467,631 C08 HIGHLAND VILLAGE CITY OF City $17,902,963 0.4841% $118,868 C09 JUSTIN CITY OF City $9,876,843 0.2671% $65,578 C10 KRUM CITY OF City $5,478,019 0.1481% $36,372 C11 LAKE DALLAS CITY OF City $4,873,031 0.1318% $32,355 C12 LEWISVILLE CITY OF City $112,915,867 3.0531% $749,715 C13 LITTLE ELM TOWN OF City $51,769,118 1.3998% $343,726 C14 PILOT POINT CITY OF City $7,592,680 0.2053% $50,412 C15 PONDER TOWN OF City $2,429,396 0.0657% $16,130 C16 SANGER CITY OF City $11,293,021 0.3054% $74,981 Denton Central Appraisal District | FY 2027 Proposed Budget 32 Code Taxing Unit Type Current Approx. Levy % Levy Share FY 2027 Allocation C17 ROANOKE CITY OF City $15,129,064 0.4091% $100,451 C18 KRUGERVILLE CITY OF City $1,717,058 0.0464% $11,401 C19 HICKORY CREEK TOWN OF City $2,892,232 0.0782% $19,203 C20 DALLAS CITY OF City $17,667,271 0.4777% $117,303 C21 COPPELL CITY OF City $1,389,278 0.0376% $9,224 C22 HACKBERRY CITY OF City $211,350 0.0057% $1,403 C24 OAK POINT CITY OF City $5,950,880 0.1609% $39,511 C25 LAKEWOOD VILLAGE TOWN City $934,013 0.0253% $6,201 C26 ARGYLE TOWN OF City $6,063,498 0.1640% $40,259 C27 COPPER CANYON TOWN OF City $2,219,126 0.0600% $14,734 C28 TROPHY CLUB TOWN OF City $13,229,403 0.3577% $87,838 C29 PLANO CITY OF City $9,088,760 0.2458% $60,346 C30 DOUBLE OAK TOWN OF City $1,392,671 0.0377% $9,247 C31 BARTONVILLE TOWN OF City $1,682,972 0.0455% $11,174 C32 FRISCO CITY OF City $96,171,696 2.6004% $638,541 C33 NORTHLAKE TOWN OF City $15,278,437 0.4131% $101,443 C34 SHADY SHORES TOWN OF City $1,864,723 0.0504% $12,381 C36 FORT WORTH CITY OF City $74,106,421 2.0038% $492,036 C37 SOUTHLAKE CITY OF City $1,002,089 0.0271% $6,653 C38 HASLET CITY OF City $1,730 0.0000% $11 C39 GRAPEVINE CITY OF City $7 0.0000% $0 C42 DISH TOWN OF City $273,785 0.0074% $1,818 C44 WESTLAKE TOWN OF City $865,354 0.0234% $5,746 C45 NEW FAIRVIEW CITY OF City $281,013 0.0076% $1,866 C47 CORRAL CITY City $35,151 0.0010% $233 C48 PROSPER TOWN OF City $20,576,333 0.5564% $136,618 C49 CELINA CITY OF City $12,894,464 0.3487% $85,614 C51 PROVID. VILLAGE TOWN OF City $7,282,103 0.1969% $48,350 Special Districts Code Taxing Unit Type Current Approx. Levy % Levy Share FY 2027 Allocation DESD1 DENTON CO ESD 1 Emergency $9,533,195 0.2578% $63,297 DESD2 DENTON CO ESD 2 Emergency $15,914,848 0.4303% $105,668 L01 DENTON CO LEVY IMP DIST MUD $1,863,426 0.0504% $12,372 MMD1 HIGHWAY 380 MMD 1 Other $7,905,476 0.2138% $52,489 MMD3 NORTHLAKE MMD 1 Other $9,287,061 0.2511% $61,662 MMD4 NORTHLAKE MMD 2 Other $3,357,339 0.0908% $22,291 W03 TROPHY CLUB MUD 1 Water $2,366,116 0.0640% $15,710 W04 CLEARCREEK WTRSHD AUTH Water $585,734 0.0158% $3,889 W13 DENTON CO FWSD 6 Water $7,679,656 0.2077% $50,990 W17 ELM RIDGE WCID Water $24,357,011 0.6586% $161,721 W18 DENTON CO FWSD 8-A Water $3,035,638 0.0821% $20,155 W19 DENTON CO FWSD 8-B Water $1,686,020 0.0456% $11,194 W20 DENTON CO FWSD 11-A Water $4,035,557 0.1091% $26,794 W21 DENTON CO FWSD 7 Water $8,844,053 0.2391% $58,721 W22 DENTON CO MUD 4 Water $1,451,090 0.0392% $9,635 Denton Central Appraisal District | FY 2027 Proposed Budget 33 Code Taxing Unit Type Current Approx. Levy % Levy Share FY 2027 Allocation W23 DENTON CO MUD 5 Water $1,533,659 0.0415% $10,183 W24 FRISCO WEST WCID Water $5,080,216 0.1374% $33,731 W25 DENTON CO FWSD 11-B Water $4,071,538 0.1101% $27,033 W26 DENTON CO FWSD 4-A Water $834,833 0.0226% $5,543 W27 OAK POINT WCID 1 Water $790,484 0.0214% $5,248 W28 OAK POINT WCID 2 Water $505,527 0.0137% $3,356 W29 OAK POINT WCID 3 Water $655,942 0.0177% $4,355 W30 SMILEY ROAD WCID 1 Water $2,925,211 0.0791% $19,422 W32 DENTON CO FWSD 11-C Water $1,440,930 0.0390% $9,567 W33 NORTH FORT WORTH WCID 1 Water $506,591 0.0137% $3,364 W37 BROOKFIELD WCID 1 Water $2,885,142 0.0780% $19,156 W38 ALPHA RANCH WCID Water $1,609,154 0.0435% $10,684 W39 BELMONT FWSD 1 Water $8,384,357 0.2267% $55,669 W41 THE LAKES FWSD Water $14,678,308 0.3969% $97,458 W42 CANYON FALLS WCID 2 Water $3,491,874 0.0944% $23,185 W43 OAK POINT WCID 4 MUD $986,770 0.0267% $6,552 W44 CANYON FALLS MUD 1 MUD $1,987,898 0.0538% $13,199 W45 BELMONT FWSD 2 Water $5,102,932 0.1380% $33,881 W47 DENTON CO MUD 6 MUD $9,579,117 0.2590% $63,601 W49 DENTON CO MUD 9 MUD $710,474 0.0192% $4,717 W55 BIG SKY MUD MUD $1,904,665 0.0515% $12,646 W57 DENTON CO MUD 8 MUD $1,777,031 0.0480% $11,799 W59 TRADITION MUD 2B MUD $4,874,464 0.1318% $32,364 W63 CLEAR SKY MUD MUD $502,288 0.0136% $3,335 W66 TALLEY RANCH WCID 1 Water $14,805 0.0004% $98 W67 PRAIRIE OAKS MUD MUD $759,730 0.0205% $5,044 W68 DENTON CO MUD 16 MUD $1,804,761 0.0488% $11,983 W69 LEGENDS RANCH MUD MUD $1,544,221 0.0418% $10,253 W70 ROCKY TOP RANCH MUD MUD $487,863 0.0132% $3,239 W72 RIBBONWOOD MUD 1 MUD $205,934 0.0056% $1,367 W73 TRADITION MUD 1 MUD $1,849,324 0.0500% $12,279 W74 HIGH POINTE RANCH MUD 1 MUD $1,148,366 0.0311% $7,625 W77 TRADITION MUD 2C MUD $1,758,792 0.0476% $11,678 W80 DENTON CO MUD 11 MUD $98,930 0.0027% $657 W81 OLIVER CREEK RANCH MUD MUD $0 0.0000% $0 W82 TABOR RANCH MUD MUD $301,450 0.0082% $2,002 W83 FURST RANCH MUD 1 MUD $673,330 0.0182% $4,471 Note: Percentages are shown to four decimal places for transparency. Estimated allocations are calculated using the unrounded levy share percentages and the FY 2027 entity allocation pool of $24,555,559.54; totals may vary slightly due to rounding. Denton Central Appraisal District | FY 2027 Proposed Budget 34 PERSONNEL Denton Central Appraisal District | FY 2027 Proposed Budget 35 Personnel Department Position Administration #101 Chief Appraiser (5 Positions) (2) Deputy Chief Appraiser Director of Human Resources Human Resources Asst. Business Operations #100 Director of Business Operations (5 Positions) Executive Assistant Finance Assistant (2) Building & Grounds Maintenance Training & Development #106 (1) Director of Training & Development Exemptions & Assistance #102 Director of Exemptions & Assistance (23 Positions) Supervisor of Exemptions & Assistance (2) Team Lead (7) Exemptions Specialist (10) Taxpayer Assistance Specialist Mail Clerk E&A Database Coordinator Mapping #103 Director of GIS/Mapping (11 Positions) Supervisor of GIS/Mapping GIS Coordinator GIS Analyst Sr. Mapping Tech (6) Mapping Tech Information Technology #104 Director of Information Technology (9 Positions) (2) Supervisor of Information Technology System Administrator IT Technician II IT Technician I Database Administrator Database Support Analyst Public Information / Database Support Analyst Commercial #201 Director of Commercial Appraisal (12 Positions) Supervisor of Commercial Appraisal (2) Sr. Commercial Appraiser (6) Commercial Appraiser (2) Commercial Support Denton Central Appraisal District | FY 2027 Proposed Budget 36 Department Position Appeals #202 Director of Appeals (7 Positions) Taxpayer Liaison Officer ARB Coordinator (3) Appeals Support Legal Specialist Business Personal Property #203 Director of BPP Appraisal (13 Positions) BPP Supervisor (2) BPP Senior Appraiser (7) BPP Appraiser (2) BPP Appraisal Support Residential #204 Director of Residential Appraisal (42 Positions) Assistant Director of Residential (Res. Continued) (3) Residential Supervisor (8) Sr. Residential Appraiser (25) Residential Appraiser (2) Agriculture Appraiser (2) Residential Support Personnel Budget - By Department Department-level personnel information is presented using FTE counts, salary allocations, allocated benefit/overhead estimates, and total personnel costs. These amounts tie back to the overall personnel services category in the FY 2027 Proposed Budget. Department FTE Salaries Benefits Total Personnel Mapping 11 $923,247 $470,850 $1,394,097 BPP 13 $1,217,745 $556,459 $1,774,205 Commercial 12 $1,251,262 $513,655 $1,764,917 Residential 42 $3,801,303 $1,797,792 $5,599,095 Business Operations 5 $470,156 $214,023 $684,179 Training & Development 1 $131,615 $42,805 $174,420 Exemptions & Assistance 23 $1,618,108 $984,505 $2,602,614 Information Technology 9 $1,048,220 $385,241 $1,433,461 Appeals 7 $666,659 $299,632 $966,291 Administration 5 $937,450 $214,023 $1,151,473 TOTAL 128 $12,065,765 $5,478,985 $17,544,750 Denton Central Appraisal District | FY 2027 Proposed Budget 37 Personnel Benefit Assumptions Benefit Assumption 2027 Assumption Calculation Basis Retirement / TCDRS 13.00% Applied to 2027 salary + longevity + auto allowance Social Security / FICA 7.65% Applied to salary + longevity Medical Insurance / FTE $20,385 Annual medical insurance assumption per FTE Dental Insurance / FTE $452.40 $37.70 monthly premium x 12 Vision Insurance / FTE $69.00 $5.75 monthly premium x 12 Longevity Pay TTL $95,195 Total – varies by employee tenure Auto Allowance $11,100 Leadership and Appraisal Positions All Benefit Assumptions are annualized. Denton Central Appraisal District | FY 2027 Proposed Budget 38 Notice of Public Hearing NOTICE OF PUBLIC HEARING ON DENTON CENTRAL APPRAISAL DISTRICT 2027 BUDGET The Board of Directors of the Denton Central Appraisal District will hold a public hearing on a proposed budget for the 2027 fiscal year. The public hearing will be held on June 11, 2026, at 3:00 p.m. CST, at 3901 Morse Street, Denton, Texas 76208. A summary of the appraisal district budget follows: • The total amount of the proposed budget: $25,380,559.54 • The total amount of increase over the current year’s budget: $683,983.22 • The number of employees compensated under the proposed budget: 128 • The number of employees compensated under the current budget: 125 The appraisal district is supported solely by payments from the local taxing units served by the appraisal district. If approved by the Board of Directors at the public hearing, this proposed budget will take effect automatically unless disapproved by the governing bodies of the county, school districts, cities, and towns served by the appraisal district. A copy of the proposed budget is available for public inspection at the Denton Central Appraisal District office and the appraisal district website: www.dentoncad.com. Rick Guzman Secretary, Board of Directors Denton Central Appraisal District 3911 Morse Street Denton, Texas 76208 (940) 349-3800 Denton Central Appraisal District | FY 2027 Proposed Budget 39 Taxpayer Impact Statement House Bill 1522 amended Section 551.043 of the Texas Government Code to add new notice requirements under the Texas Open Meetings Act. Specifically, when a governmental body posts notice of a meeting at which it will discuss or adopt its budget, the notice must include a taxpayer impact statement. The taxpayer impact statement must show, for the median-valued homestead property within the governmental body’s jurisdiction: • the property tax bill in dollars for the current fiscal year; and • an estimate of the property tax bill in dollars for the upcoming fiscal year if the proposed budget is adopted and if a balanced budget funded at the no-new-revenue tax rate is adopted. The Denton Central Appraisal District has proposed a budget of $25,380,559.54 for the 2027 fiscal year. This is an increase of $683,983.22, or 2.77%, from the adopted 2026 budget of $24,696,576.32. The Appraisal District does not levy a property tax rate and, therefore, no estimate of impact for a property tax bill is provided. Budget Year Median Value of Homesteaded Property Tax Rate per $100 Taxes 2025 $458,573 $0.00 $0.00 2026 $454,000 $0.00 $0.00 Denton Central Appraisal District | FY 2027 Proposed Budget 40 Budget Adoption Resolution RESOLUTION ADOPTING THE FISCAL YEAR 2027 BUDGET OF THE DENTON CENTRAL APPRAISAL DISTRICT WHEREAS, the Denton Central Appraisal District is a political subdivision of the State of Texas charged with appraising property for ad valorem tax purposes within Denton County; and WHEREAS, the Chief Appraiser has prepared and submitted a proposed budget for Fiscal Year 2027 in accordance with applicable provisions of the Texas Property Tax Code; and WHEREAS, the Board of Directors has reviewed the proposed budget, considered the operational needs of the District, and provided notice and opportunity for public comment as required by law; and WHEREAS, the Board of Directors finds that the Fiscal Year 2027 budget is necessary and appropriate to support the lawful duties and responsibilities of the District; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE DENTON CENTRAL APPRAISAL DISTRICT THAT: • The Fiscal Year 2027 Budget in the amount of $25,380,560 is hereby adopted. • The budget incorporates the use of available reserves and projected other income as reflected in the adopted budget schedules. • The Chief Appraiser is authorized to administer the budget in accordance with applicable law, Board policy, and District financial controls. • This resolution shall be effective upon adoption by the Board of Directors. ADOPTED this ____ day of ____________________, 2026. ______________________________ Chairman, Board of Directors ATTEST: ______________________________ Secretary, Board of Directors Denton Central Appraisal District | FY 2027 Proposed Budget 41 Certificate of Budget Adoption I, the undersigned Secretary of the Board of Directors of the Denton Central Appraisal District, certify that the foregoing Fiscal Year 2027 Budget was duly considered and adopted by the Board of Directors at a meeting held in accordance with applicable law and that the adopted budget is on file with the Denton Central Appraisal District. Certified this ____ day of ____________________, 2026. ______________________________ Secretary, Board of Directors Denton Central Appraisal District Denton Central Appraisal District | FY 2027 Proposed Budget 42