Denton City Council discusses budget reduction strategies to close $14 million gap

In a pivotal Denton City Council meeting held on June 17, 2025, city officials grappled with a projected budget deficit of $14 million for the upcoming fiscal year. The discussions centered on proposed budget reductions aimed at closing this gap while maintaining essential services for residents.

City Manager Seth McGowan opened the meeting by emphasizing the importance of a balanced budget, which is mandated by Texas state law. He highlighted the necessity of protecting the city's unrestricted fund balance, which serves as a financial buffer against unexpected expenses and supports long-term stability. McGowan noted that while property tax revenues are currently at 98% collection, overall revenue growth is slowing, prompting the need for budgetary adjustments.

Assistant City Manager Christine Taylor presented a detailed plan for proposed reductions, which would account for approximately half of the projected deficit. The largest savings would come from personnel costs, as the city plans to maintain a managed vacancy program, holding positions open to save funds. Taylor explained that the city would also reduce discretionary spending across various departments, including cuts to programming and services that have seen low participation rates.

Among the significant proposed cuts is the discontinuation of the ambassador program, which has provided support to downtown businesses but lacks a sustainable funding source. The council discussed the potential for using hotel occupancy tax funds to support a scaled-back version of the program, but concerns about the program's viability without business backing were raised.

The meeting also addressed the after-school program, which will shift to the Denton Independent School District (DISD). This transition is expected to maintain service levels for families, as DISD can absorb the participants without diminishing the quality of care.

Council members expressed a mix of support and concern regarding the proposed cuts, particularly in relation to community engagement and the potential impact on service levels. The discussions highlighted the delicate balance between fiscal responsibility and the need to provide essential services to residents.

As the council prepares for further budget discussions in the coming months, the focus remains on finding sustainable solutions to the city's financial challenges while ensuring that core services are preserved. The next meeting is scheduled for July 15, where the council will continue to refine the budget and explore additional strategies for revenue generation and cost savings.