City council in Denton greenlights $2.5 billion spending plan featuring rises in property tax, utility costs, and fees
The City of Denton has unanimously approved a budget of approximately $2.55 billion for the fiscal year 2025-26, marking a proactive effort to manage resources, identify efficiencies, and innovate how to deliver services. City Manager Sara Hensley has implemented zero-based budgeting to address the budget deficit.
In the upcoming fiscal year, utility rates are projected to increase. Water rates will rise by 3% for residential and commercial accounts, while wastewater rates will increase by 11%. However, electric and solid waste rates will remain unchanged. For the total average utility bill in 2026, residents can expect an increase of $73, making the bill $3,143.
To offset these increases, strategic reductions in programming based on attendance have resulted in savings of $110,000. Reductions in equipment and supplies have saved $618,317, and reductions in travel and training have saved $197,155. Additionally, savings of $1.05 million have been made through reductions in contractual services.
The capital improvement program budget for fiscal 2025-26 will be $1.24 million. Approximately $599.6 million in new value was added to the property appraisal rolls due to new growth and construction in Denton. The property tax rate was increased from 58.542 cents per $100 property valuation to 59.542 cents, with 33.478 cents going towards operations and maintenance, and 26.064 cents towards debt service.
The budget cycle for fiscal year 2025-26 begins on October 1, 2025, and ends on September 30, 2026. The beginning fund balance for this period is $42.5 million.
In an effort to streamline operations, Hensley and her staff asked three questions: "Are we duplicating efforts already handled by others? Are there activities we should no longer be doing? Where can we improve our existing services?"
Unfortunately, some services have had to be discontinued. The police K9 program has been paused, costing $428,648, and the Denton Parks and Recreation's after-school program has been discontinued, costing $220,000.
Residents can expect utility rate increases of approximately 5-10% annually between 2026 and 2029 for electricity. The specific increases for each fiscal year are as follows: electric - 6.5% in 2026-27, 7% in 2027-28 and 2028-29, and 6.5% in 2029-30; water - 5% in 2026-27, 7% in 2027-28, and 2028-29, and 5% in 2029-30; wastewater - 9% in 2026-27, 8% in 2027-28, 7% in 2028-29, and 5% in 2029-30.
The total general fund revenue for fiscal 2025-26 will be $218.8 million. This budget is a testament to the City of Denton's commitment to providing essential services while striving for efficiency and fiscal responsibility.
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