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Council signs off on sewer cost-sharing for Cole Ranch and approves notices for certificates of obligation
Summary
Council approved amendments and cost-sharing agreements to oversize a major sewer trunk to serve west Denton with the city covering roughly 59% of the oversizing cost; council also approved publication of notices of intent to issue certificates of obligation for capital projects (staff set ceilings and next steps for a July bond ordinance).
The City Council unanimously approved two infrastructure items on May 5 that the city attendant staff said will reduce long-term costs and advance planned growth in western Denton.
Charlie Rosenthal, director of development services, described a proposed cost-sharing arrangement with Cole Ranch and Hunter Ranch for an oversized interceptor sewer line. Rosenthal said the master plan calls for a larger trunk (36–42 inch) than the developer would have constructed (a 27-inch line), and that oversizing now avoids a later $17.7 million expenditure the city would otherwise face as development proceeds. Under the proposed split, the city would fund approximately 59 percent of the oversize ($8.6 million), Cole Ranch would cover about 40 percent ($5.8 million) and Hunter Ranch a smaller share; the agreements include an initial 50 percent payment and schedule out remaining payments across budgets in fiscal 2026–27.
"This cost participation is a unique opportunity for the city to oversize infrastructure that serves a majority of the western city," Rosenthal said.
Council approved the operating agreement amendments and the cost-sharing and escrow agreements by unanimous vote.
Separately the council approved staff's request to publish a statutorily required notice of intent to issue certificates of obligation for water, wastewater, electric and general-government capital projects. Chief Financial Officer Matt Hamilton explained staff reduced amounts from the earlier reimbursement ordinance where other funding sources or schedule changes emerged; the notice of intent includes an up-to-$243 million ceiling for utility-system certificates (water $44.9M; wastewater $113.9M; electric $58.4M; plus $23M ceiling for capitalized interest and $2.6M for pricing flexibility). Staff said the publication is procedural and that staff aims to bring a bond ordinance to the council in July and to execute the sale later in the summer.
Councilmembers who asked about the cost items were given follow-up detail (for example, the solid-waste reduction reflected deferring a vehicle replacement). The council voted to move forward with the agreements and the publication steps by unanimous votes.
What happens next: staff will place the bond notice in the newspaper as required, present a bond ordinance to the council in July and, if approved, proceed toward sale and receipt of proceeds later in the summer. The sewer cost-sharing will move into escrow and payment as specified in the agreements.
