Denton staff outline FY 2025-26 budget preview and fee updates; utility rate changes proposed for next year

City staff presented the preliminary FY 2025-26 budget and a comprehensive package of proposed fee changes for many city services at the Aug. 19 council meeting, including public-safety charge updates, parks and rec price changes, and proposed adjustments in utility rates and impact-fee policy.

Key proposals and context

- Emergency Medical Services: Staff proposed changes to EMS billing to reflect higher supply and medication costs. Fire leadership also proposed new fire-related fees, including a "lift-assist" fee to discourage non-emergent calls to engines at nursing facilities; the intent is to reduce repeated responses for non-injury events and shift costs to facilities that request assistance. Chief Kenneth Hedges explained the lift-assist model and said the fee would be charged to facilities rather than individual residents.

- Police and training fees: The police academy basic peace officer course tuition was proposed to increase (staff said the city's fee still remained lower than some peer programs), and some records and permit fees were adjusted.

- Parks, recreation and library fees: Staff proposed incremental increases to facility rentals, aquatic passes and day admissions, picnic shelters and tournament fees. Library replacement and maker-space charges were also adjusted.

- Airport and enterprise funds: The airport fund reported stronger beginning balances and planned vehicle replacements funded through pro forma; the airport advisory board recommended approval of the proposed budget items.

- Utilities rates and long-term plans: The city proposed no electric base-rate increase for FY2025-26 (having previously considered a rate action), but the staff noted projected increases in later years and discussed an integrated resource plan and a cost-of-service study that will guide future electric rate design. Water was proposed to increase 3% and wastewater 11% for fiscal 2026 in the manager's proposal; staff said wastewater needs reflected substantial capital requirements and debt-coverage considerations. The council later approved revised water/wastewater impact fees (see companion article) with an implementation delay to 2026-06-01 to provide additional lead time for projects.

Public comment and council questions

Council members asked for clarity about who pays fees (residents vs. facilities vs. insurers), how the city calculates personnel hourly rates for special events and emergency standbys, and how new user fees (lift assists) would be billed and communicated to nursing facilities. Several council members urged additional transparency and earlier modeling of large utility rate pathways (e.g., integrated resource plan effects on electric rates).

Next steps

Staff will return for budget hearings in September. The city manager's proposed budget includes a preliminary tax-rate allowance and scheduled public hearings; council set the maximum proposed tax rate for the upcoming process and scheduled public hearings, to be finalized during budget adoption.

Speakers quoted: "We are proposing to dip into our fund balance slightly for next year," said Cassie Ogden, deputy city manager, presenting the enterprise fund outlook; "This fee will be assessed to the facility and not the resident," Chief Kenneth Hedges said about lift-assist proposals.

Ending note: Council asked staff for follow-ups on several items, including a deeper conversation about rate-design options and a request to consider a work session on fee and incentive alignment for housing and development.