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Denton staff outline preliminary utility budgets; water, wastewater and electric rates eyed for increases
Summary
City staff presented preliminary FY27 utility budgets and assumptions: 3% water, 9% wastewater and a 3% electric base‑rate proposal (1.5% typical bill impact), plus solid‑waste staffing and transfer‑station planning; staff linked much of the electric forecast to data‑center load projections and recommended using reserves to smooth rate impacts.
City staff presented preliminary FY27 budgets for Denton’s enterprise utility funds and asked council for feedback ahead of upcoming PUB and budget workshops. Amy Kaslick, chief strategic officer, said the budgets are built around growth assumptions, capital needs and long‑term borrowing plans; for example, staff plans to pursue WIFIA funding and to begin repayment in the early 2030s for certain water projects.
Key rate proposals included a 3% water rate increase for 2027, a 9% wastewater increase, and a 3% electric base‑rate increase that would translate to roughly a 1.5% average bill impact once pass‑through charges are considered. DME staff cautioned that electric revenue projections are sensitive to power prices and expected data‑center load; Tony Buena said the city has become more conservative in base‑rate growth assumptions and uses an ECA reserve to reduce rate shock. Kaslick also said solid waste is not proposing a rate increase for FY27 but is seeking 7 additional FTEs and $1 million in land acquisition for a west‑side transfer station to reduce haul trips.
Council members pressed for details on debt service drivers, the composition of proposed capital projects (water treatment expansions, Clear Creek interceptor, Pecan Creek plant work), and how unmaterialized data‑center load affects general‑fund transfers; staff said larger capital and purchase‑power assumptions drive the need to rebuild reserve levels. The council scheduled PUB review and a detailed capital presentation for August.
