Denton staff present preliminary utility budgets; council hears proposal for water, wastewater rate increases and new convenience fee

Jessica Williams, the city’s chief financial officer, presented Denton’s preliminary utility budgets for fiscal year 2025–26 to the City Council on July 15, laying out separate forecasts for solid waste, electric (DME), customer service, water, wastewater and drainage.

Williams said the utilities process is intended to look holistically at revenue, reserves and capital. “We are looking at what are we really spending and what do we really need,” she told council. The presentation emphasized efforts to shift more projects from debt funding to revenue funding, reduce discretionary spending and hit multi‑year fund balance targets.

Water and wastewater were the most closely watched items. Williams recommended a 3% retail rate increase for water (residential and commercial) and an 11% increase for wastewater for FY2025–26. She said the city had completed wholesale and retail rate studies, worked with consultant Raftelis and aligned water CIP timing with Texas Water Development Board financing and a pending WIFIA application. “We are going to be looking at tremendous outlays for the Water Fund as we build infrastructure,” she said, noting the water five‑year capital plan included $94.9 million in the current year and…