Douglas County sets 2027 budget hearings, keeps mill levy unchanged

Douglas County commissioners will open public hearings Monday on a proposed 2027 budget of $201.5 million that keeps the county’s mill levy at 40.669 mills. The plan also assumes a higher motor vehicle fee, moving the charge from $3 to $5 per transaction so more of those operating costs are paid by fees instead of property taxes.

Property taxes make up about 70% of county revenues, and the county is trying to hold down the tax rate while absorbing higher software costs and employee benefits. County officials also project sales tax revenue will stay flat in 2027 and interest income will fall because of lower rates and reserve spending on capital projects.

The proposal keeps $15.4 million in funding for more than 40 local agencies and nonprofits, including $8.9 million for behavioral health and substance use disorder, $2.3 million for at-risk and targeted populations, $2.2 million for health and human services, $1.4 million for heritage and land management, and $560,000 for economic development. It also includes money for a deputy sheriff and a deputy sheriff lieutenant to cover court security needs at the expanded Judicial and Law Enforcement Center.

Residents can weigh in at 9 a.m. Monday, July 6, in the commission meeting room on the second floor of the historic courthouse, 1100 Massachusetts St. Hearings will run from 9 a.m. to noon Monday through Thursday, July 6-9, with residents able to attend in person or through Zoom. The commission will begin budget deliberations at 9 a.m. Friday, July 10, and a separate hearing on the five-year Capital Improvement Plan is set for 4 p.m. Wednesday, July 22. Final adoption is expected at the regular business meeting on Wednesday, Aug. 26.

The hearing calendar comes after commissioners said in May that slower revenue growth could make the 2027 budget especially difficult and asked staff to look for cuts. The county’s assessed property valuation rose 4.9% in 2026, after a 5.7% increase the year before, and average annual growth from 2022 to 2026 was 8.2%.

Commissioners will also review more than 50 additional funding requests from county departments and agencies totaling $7 million that are not included in the proposed budget. In the last budget cycle, commissioners approved a 2026 budget with a maximum mill levy of 40.669 mills after about 21 hours of hearings and deliberations, voting 4-1 to exceed the revenue neutral rate, with Commissioner Gene Dorsey opposed.