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Denton CFO warns of $6.3M shortfall this year, $14M preliminary gap for FY 2025-26
Summary
City finance staff told the Denton City Council the general fund is forecast to close this fiscal year with a deficit (midpoint $6.3 million) and outlined steps — vacancy management, spending reductions and 0‑based budgeting — intended to close this year’s gap and narrow a preliminary $14 million shortfall next year.
Jessica Williams, Denton’s chief financial officer, told the City Council on May 20 that the city’s general fund is forecast to finish the current fiscal year with a net operating deficit and outlined mitigation steps and next‑steps for the council.
Williams, speaking at the work session, said the year‑to‑date position through March 31 shows revenue shortfalls and higher personnel costs. The city’s current forecast range for the fiscal year end deficit is $2 million to $8 million; the midpoint of the forecast reported to council was $6.3 million.
City staff said the shortfall is driven by revenue pressure and personnel costs. On the revenue side, property and sales taxes have softened: staff said property tax collections are running below budget partly because of levy adjustments and successful owner protests, and sales tax receipts have slowed over the last three months. Building permits, franchise fees and some intergovernmental reimbursements are also below earlier expectations.
On the expenditure side, Williams said the city is largely staffed across departments and is seeing reduced “salary savings”…
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