Randall County commissioners moved forward on a proposed budget and tax rate Tuesday for the 2026-27 fiscal year. Public hearings on both proposals will be held before commissioners take a final vote in September.

The proposed budget is a deficit budget, with expenses and transfers out exceeding projected revenues and transfers in by about $5.6 million.

County Auditor Ravonette Stacey said a large portion of that deficit is tied to a new fire station the county has been planning for.

“$5.6 million is the largest deficit we’ve ever budgeted; however, in that number, $3 million of that is for a new fire station that we have been saving for,” Stacey said.

County Judge Christy Dyer said $3 million for the new fire station will come out of the general fund, with the remainder coming from the assistance district.

The county is proposing to spend more than $1.36 million above projected revenue from the general fund. Transfers out to other funds will also exceed transfers into the general fund by about $4.275 million.

About 72% of the expenses paid through the county’s general fund go toward public safety and the justice system.

The county expects to raise 1.82% more in property taxes than it raised in last year’s budget.

Commissioners proposed a tax rate of $0.40093 per $100 of property valuation. The county’s calculated no-new-revenue rate for 2026 is $0.38921.

The no-new-revenue rate is the rate calculated to produce about the same amount of property tax revenue as the previous year. Because the proposed rate is above that amount, the proposal is considered a tax increase. However, the proposed rate itself is slightly lower than the county’s current property tax rate.

“When you compare the total rate for each year, the proposed tax rate is a slight decrease from the current rate, but because we are going over the no-new-revenue rate, it is considered a tax increase,” Stacey said.

The property tax rate has two parts — maintenance and operations, or M&O, and interest and sinking, or I&S.

The M&O portion pays for the county’s daily operations, including public safety, salaries and supplies. The I&S portion is used to make principal and interest payments on bonds and other county debt.

The voter-approved tax rate allows for a 3.5% increase on the M&O side, along with any unused increment available from the previous three years.

Commissioners also approved salaries and stipends for elected officials for the upcoming fiscal year. Those amounts include a slight increase for the coming year.

The public will have a chance to comment on the proposed budget at 9 a.m. Tuesday, Aug. 25, in the Commissioners’ chambers on the third floor of the Randall County Finance Building in Canyon.

A public hearing on the proposed tax rate is scheduled for 9 a.m. Tuesday, Sept. 8, at the same location.

Commissioners will vote on whether to adopt the budget and tax rate during the Sept. 8 meeting.