Financial Policies
FY2024 Adopted Budget
Dallas County conducts its financial affairs pursuant to a policy statement that is approved by the Commissioners Court and reviewed periodically. The policies contained in this statement are carefully followed and are a key factor in the County's superior bond ratings. The full text of the policy statement is available in the sections below.
The Commissioner’s Court has approved the following Statement of Financial Policies to guide the County in Accounting, Auditing, Financial Planning, Investments, Budgeting, Revenue Estimating, Reserve Balances, and Debt Management. All major budget decisions are in the context of these policies.
Highlights
The maintenance of a reserve balance in excess of 10.5% of budgeted expenditures is the cornerstone of the County's financial policies and a key to retaining the AAA/Aaa ratings from two major bond rating companies. Other important policies are a limitation on debt service to 25% of resources and a limitation on the amount of reserves that can be utilized to balance the budget in each year.
The overall financial and service goals of Dallas County are to provide the full range of statutorily required services to its citizens while maintaining the lowest prudent property tax rate. The County intends to continue to expand non-tax revenues to allow for budgetary growth as dictated both by the growth in the County's population and growth in demand for the County's services. The County will ensure that budgetary growth is balanced by increases in demand for services. Dallas County will provide for the expansion and renewal of it infrastructure through the use of long-term debt when it is considered appropriate and fiscally responsible.
The County maintains an aggressive investment policy of all funds. The County Treasurer is the designated investment officer of the Court and is the presiding officer of the Financial Review Committee who advises the Commissioners Court on all matters of financial policy.
Dallas County remains extremely strong financially as reflected AAA long-term credit rating from Moody's Investor Services, Inc. The County maintained its bond rating throughout this difficult year. Standard and Poor's and Moody's Investor Services attributed the County's top rating to its large corporate tax base, strong financial management policies, formal investment and reserve policies, and healthy reserves in the General Fund and Debt Service Fund. The operating impact of maintaining a AAA rating has resulted in significant savings of interest costs related to debt issued by the County. New debt in the amount of $150,000,000 was issued in FY2022, which provides funding primarily needed for planned capital projects.