Denton officials unveil $7.1M in proposed cuts as city seeks to close $14M budget gap

Denton city staff presented a midyear budget update Tuesday that shows revenues slowing and a preliminary $14 million gap for the 2025–26 fiscal year, and proposed about $7.1 million in reductions that city managers say close roughly half that shortfall.

The city’s chief financial officer, Jessica Williams, told the City Council the city is forecasting slower growth in property valuations and weaker sales tax collections and that the council should expect a “structurally balanced budget” but one that requires continued cost control. "We are right now projecting net income of $264,000 at the end of the year," Williams said.

Williams and Assistant City Manager Christine Taylor outlined the staff package of proposed reductions targeted at the general fund. The largest category is personnel: about $3 million from holding vacant positions through a managed-vacancy program. Other proposed savings include roughly $2 million from program efficiencies, about $1 million from reductions in contracted services and roughly $600,000 from equipment and supplies.

Taylor said the personnel savings rely entirely on positions already vacant. "All of these represent existing vacancies," she…