Budget update: property tax collections ahead of budget; county proposes assigned fund balance to build $10M economic‑impact reserve

Budget Director Carmen Candelaria briefed the Commissioners Court on March 19 with an update on FY26 revenues and a proposal for a two‑year strategy to build an economic‑impact fund.

Candelaria reported year‑to‑date general‑fund revenues through February at about $313.7M against a $495.5M budget. Property‑tax collections were especially strong, and the office projects roughly $4M more in levy receipts than the adopted budget. Sales‑tax recognition timing (a 13‑month recording in the prior year) complicates year‑over‑year comparisons, she said.

On the spending side, general‑fund expenditures and encumbrances were within expected seasonal ranges. The budget office recommended an approach to set aside assigned fund balance — rather than current operating appropriations — to accumulate a $10M economic‑impact reserve over two years. The approach would mark (assign) $6.4M now from fund balance so the money is visible and available for true economic development opportunities (infrastructure assistance, workforce incentives or other targeted investments) without distortions in the current‑year operating budget.

Candelaria explained the distinction between restricted, committed, assigned and unassigned fund balance and noted the county’s policy target of maintaining 10–15% of unassigned fund balance for fiscal flexibility and creditworthiness. She said auditors expect updated audited fund balance figures soon and that staff would present fee inventories and other revenue opportunities in June.

Why it matters: The proposed assigned‑fund strategy creates a transparent, committed pool for strategic economic investments while protecting operating budgets and the county’s reserve targets. The court will consider financing plans and budget actions in the FY27 process.