PUB approves budgets, rate changes and contract items in unanimous votes

The Denton Public Utility Board on July 28 approved multiple budget, rate and contract items in a series of unanimous voice votes.

Key board actions approved at the meeting included the consent agenda and July 14 minutes; a first amendment to the professional services agreement with Kimley‑Horn for the Pecan Creek Water Reclamation Plant design (see separate article); and a slate of fund budgets and rate recommendations for fiscal year 2025–26 covering solid waste, water, wastewater, electric and customer service operations.

Highlights and outcomes

- Solid waste fund (Item C): The board approved a fiscal 2026 operating and capital budget of $45,353,673 in proposed revenues and $44,949,845 in expenditures. Staff proposed no base rate increase for fiscal 2026 but recommended clarifying edits to the rate schedule, a new rate category for front‑load/side‑load/shared services, and reducing the bulk‑item collection limit from 10 items per collection to 5. Brenda Haney, Director of Solid Waste, presented the item. The motion passed unanimously.

- Water fund (Item D): The board approved the water fund budget for fiscal year 2025–26 and staff’s proposed rate adjustments, including a 3% retail rate increase for residential and commercial customers (inside and outside corporate limits) and a 297% increase on wholesale treated water (as reported in the staff presentation). Matt Hamilton (ADF Finance) and Stephen Gage (General Manager, Water Utilities) answered board questions on wholesale contract language; the budget includes anticipated WIFIA and Texas Water Development Board funding and a five‑year capital plan. The motion passed unanimously.

- Wastewater fund (Item F): The board approved a wastewater and drainage budget package that staff said would require an 11% rate increase for residential and commercial wastewater customers (inside and outside the city limits). The five‑year wastewater capital plan presented in the meeting totals approximately $242.9 million, largely for plant improvements. The motion passed unanimously.

- Electric fund (Item F/G): The board approved the electric fund budget with no base rate increase proposed for 2026 but noted a large projected change in purchased power costs in the forecast; staff said they would update purchase‑power forecasts before final Council adoption if needed. The motion passed unanimously.

- Customer service fund and convenience fee analysis: The board approved the customer service fund budget (revenues and expenditures both presented at about $11.8 million) and discussed options for cost recovery of approximately $1.3 million in card and e‑check processing fees. Staff will return with options including flat convenience fees, percentage fees, tiering or customer‑type fees. The motion to approve the budget passed unanimously.

Other items approved by unanimous voice votes included several routine contract and procurement items referenced in the agenda. Individual roll‑call tallies were not recorded in the meeting transcript provided to the board; each item passed by voice vote.

What the approvals mean: Board acceptance of the budgets and rate recommendations advances Denton’s utility funds into the city’s budget adoption process and authorizes staff to continue capital planning and financing work referenced in the presentations. Staff noted several large capital programs (water, wastewater, electric) will rely on a combination of debt, WIFIA/TWDB financing and developer contributions and that some projects may return for capital or rate adjustments as plans and external approvals evolve.