The value of Denton County property has dropped by more than $3.5 billion since last year, according to the Denton Central Appraisal District, but many residents are still protesting increases to their property.

The appraisal district’s preliminary estimates value the property countywide at $55.4 billion, not including mineral property.

Last year at this time, the district listed a net taxable value for the county at $60.8 billion, including $1.9 billion in mineral values.

The appraisal district has received about 250 to 350 mailed protests a day since the notices went out May 6, said Rudy Durham, deputy chief appraiser for the district.

“It doesn’t appear to be any higher or lower than what we have had in the past,” he said.

Durham expects the values to be the same as last year once protests and exemptions are figured in.

The biggest effect on the appraisals will be Texas Health Presbyterian Hospital Denton, which is now filing to be exempt from taxes, Durham said. The hospital, which had been valued at a little more than $100 million, was recently transferred from Community Health Systems to Texas Health Resources. The transfer made the hospital a nonprofit, which means the facility is now tax-exempt.

Denton school district officials have said they anticipated some impact but that the district would adjust. The change also would affect city and county governments.

Some Denton residents have been surprised to see their property values increase significantly, considering the national housing market slump. Home values in Lewisville and Flower Mound fell 33 percent in the first quarter of 2009, to a median price of $91 per square foot, according to a Dallas Morning News report Tuesday of North Texas Real Estate Information Systems data. In the rest of Denton County, values went down 19 percent in the same time period, to a median price of $69 per square foot, according to the report.

Meanwhile, residents of the Shadowbrook Place development in south Denton are seeing increases of 10 percent or more over last year’s values, said Jim Strange, the developer and homeowners association president.

“I would anticipate most people would be questioning that,” he said.

The preliminary oil and gas appraisal figures won’t be released until mid-July, according to appraisal district officials.

County Judge Mary Horn said she has not looked at the preliminary estimates and won’t be concerned until the certified tax rolls are released.

“I can’t do anything with those numbers till they become certified. Any jurisdiction that takes those numbers and starts making plans with them is jumping the gun,” she said.

In Denton, preliminary net taxable values rose 3.16 percent compared with last year’s preliminary figures, according to the appraisal district.

“I am still cautious,” Mayor Pro Tem Pete Kamp said. “I still want to see where the numbers come in when they’re certified [in July], because it will change.”

Kamp said she’s talked with several residents who reported having flat or declining property values. Final values will have a profound impact on the city’s budget planning for next year, as officials get a clearer picture of how much property tax revenue they can expect.

Last year, property values increased much less than expected, causing city budget planners to slash their growth projections for 2009 and 2010. Last month, Finance Director Bryan Langley said the city now expects no growth in appraised values for the 2010 budget year, down from earlier projections of 4 percent.

Langley said Wednesday he had not yet received the preliminary estimates.

Sanger’s preliminary rolls show about a 1.2 percent decrease in valuations over last year.

City Manager Mike Brice said that since the numbers are about the same as last year, he’s not looking for any budget cuts right now.

“But if I had to do a budget today, I would cut it by about $100,000 — that’s about 4 or 5 percent,” Brice said.

He’s found it’s better to be on the conservative side and have a little more money at the end of the year, he said.

Each year, the Wal-Mart distribution center based in Sanger protests its personal property appraisal. Brice said he never knows that valuation in time to budget for it.

“It’s just something that we live with,” he said.

As of April 30, Sanger had collected more property tax penalties and interest this year, which means more property owners are having trouble paying taxes. But, at 96 percent, the city’s collection rate is still good, Brice said.

County residents can file for protest by mail or by visiting the district office for an informal meeting.

“They can talk to an appraiser,” Durham said. “If we can agree to a number between us, it’s done; they don’t have to file a protest and have a hearing.”

The district is starting a new process that allows homeowners to call the office and make an appointment for a face-to-face meeting.

To cut the wait time, the new system lets people call in and put their names on a list to speak to an appraiser, then come in later and talk to someone, Durham said.

The Denton Central Appraisal District protest line is 940-349-3850.

Staff writers Peggy Heinkel-Wolfe, Britney Tabor and Lowell Brown contributed to this report.

BJ LEWIS can be reached at 940-566-6875. His e-mail address is blewis@dentonrc.com .