Preliminary FY27�28FY28 budget preview flags assessor reappraisal, housing pilot and capital asks

Doa1a Ana County finance staff presented preliminary revenue and expenditure forecasts for FY27 and FY28, alongside department requests and capital carryovers. The key takeaways:

- Revenues and reserves: Staff assume 6% GRT growth for FY27 and 7% for FY28 and project a preliminary FY27 adjusted surplus of about $5.7 million after restricted funds and one-time items. Cash reserves remain above the state-required minimum and currently exceed roughly four to six months of expenditures depending on which items are considered unrestricted. Finance emphasized the need to keep recurring revenues above recurring expenditures.

- Assessor reappraisal and the "1% fund": The assessor requested shifting positions and operating costs now paid from the assessors 1% reappraisal fund into the general fund. Staff estimated that moving eight appraiser-assistant positions and related operating costs would cost the general fund about $1.7 million in FY27; the assessors RFI for full reappraisal contractors ranges from about $2.5 million to $7.5 million depending on scope.

- Housing pilot (HCAP): County staff presented a proposed housing pilot and permanent housing program planning request totaling about $2 million for the initial pilot and planning costs; staff recommended evaluating a sustainable long-term funding source in subsequent cycles.

- Capital and vehicles: Departments submitted capital outlay and vehicle-replacement lists that, if all approved, would exceed available one-time funds. Staff flagged roughly $9.2 million in new unrestricted capital requests for FY27 (including detention and public-safety items) and large vehicle-replacement requests to be reprioritized.

Commissioners pressed for clarity on the assessors reappraisal plan and requested that the assessor present a specific, board-approved reappraisal timeline and scope. Staff noted the assessor had proposed meeting with commissioners on a one-to-one basis but that the board must ultimately approve any plan that uses 1% fund money for reappraisal. No final budget votes were taken; staff will revise the preliminary plan to reflect flood commission findings, pending grant awards and commissioner direction.