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Record of Proceedings

Denton City Council Meeting: July 15, 2025 - Budgets, Impact Fees, and Appointments

City Council — Tuesday, July 15, 2025
BodyAustin, Texas
SessionCity Council
DateTuesday, July 15, 2025
StatusFILED
Video Record
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Transcript — Verbatim
0:02

Good afternoon and welcome to this meeting of the Denton City Council.

0:05

Today is July 15th.

0:08

It is 201 p.m.

0:09

So call the meeting to order.

0:11

The first thing on the agenda citizens' comments on the consent agenda.

0:16

Seeing none.

0:18

That takes us to our next item request for clarification of the agenda listed in the agenda for public hearing or individual consideration.

0:28

Any requests for clarification on agenda items?

0:32

Representative from District 4.

0:34

Mr.

0:35

Mayor, item uh W as in William, please.

0:38

I'd like I'd like some clarification on that.

0:41

Okay.

0:54

Christine Taylor, Assistant City Manager.

0:56

I can hopefully answer your question.

0:58

Well help me with with what we're going, what the city is going to pay for this.

1:09

Uh there's a this is a neighborhood park.

1:12

It is predominantly well, it is paid for by development fees from the neighborhood when the neighborhood went in.

1:18

You pay a park development fee.

1:20

So the neighborhood park will be funded by development fees.

1:24

The city's received a grant, and there will be a trail through a portion of the property, so the bonds, a portion of it will come from the 2023 bond funding.

1:31

So there are no general funds being utilized towards this project.

1:36

It is predominantly the grant and development fees that would have been paid by the developer at the time that the homes went in.

1:42

So no taxpayer money going into this.

1:44

Correct.

1:44

I mean, there's a would be a debt payment on the small portion of the trail portion of it that was uh voter approved, but the majority of the funding is all coming from the development fees collected when the homes went in.

1:55

I see.

1:56

Okay, very good.

1:57

Very good.

1:57

Thank you.

1:58

Okay.

1:59

Any any other questions.

2:04

Um seeing none, I I just want to point out that uh in item Z.

2:14

On this is on this is not this is on just general comments on the uh consent and and just how appreciative I am of um staff working with Denton Freedom House basically is who it is, but from a contractor standpoint, so it's just great for the community, I believe, to have these uh people that are getting back on their feet and they're going through the process and getting back to work and serving the community the community and by way of this contract uh and helping us uh clean up areas and as needed.

2:50

And so I just think that's great for uh freedom commercial services to to be awarded to that.

2:55

So just wanted to highlight the great work that the community is doing and staff is doing to make sure we um bring in great people for that.

3:04

And then I also will note before we move on to our first work session that item H has been pulled for a separate vote.

3:12

Um so that you're aware that is everything.

3:21

I do believe yes.

3:28

Yes.

3:29

Okay, that takes us to our first work session.

3:40

Get there, and that is 3A ID 242618.

3:49

Receive report whole discussion, give staff direction regarding the fiscal year 2025-26 preliminary utility budgets rate and rates for solid waste, water, wastewater, drainage, electric, and customer service.

4:08

There it goes.

4:09

Good afternoon.

4:10

Uh Mr.

4:11

Mayor, members of the council, Jessica Williams, Chief Financial Officer.

4:14

I'm here today as part of our process through this summer for the budget to present uh the preliminary utility department budgets.

4:23

So today we'll be talking through the preliminary budgets for fiscal year 25-26 for solid waste, electric, customer service, water, wastewater, and drainage, and then we will go over the next steps as we continue to move through the summer.

4:38

We'll start this afternoon with solid waste and recycling.

4:42

The solid waste uh department has 130 FTE.

4:46

This is not changed from the prior year.

4:51

For the current year, we anticipate that the solid waste fund will end the year with a uh positive net income of 184,321.

5:05

For fiscal year 25-26, the budget will change from the current year to next year by 4.2%.

5:13

There's no requested base rate increase for fiscal year 25-26.

5:18

And as part of our line item budgeting this year, which we've talked about quite a bit this summer, the department has identified areas where they can save.

5:26

In total, their preliminary budget reductions are $980,000.

5:31

212 of that is from personnel, 209 from materials and services, 397 operations, and 144 for fixed assets.

5:44

The solid waste department's projections for growth, 3% growth in residential customers moving forward, 1.7% growth in commercial front front load and side load pools, and 3% growth in landfill customers.

6:01

Reviewing the five-year preliminary forecast for the solid waste fund, what I'd like to draw your attention to here is that in the next year, so for fiscal year 25-26, the department plans to increase its revenue funding for vehicle replacements and additions.

Discussion Breakdown — Share of Meeting
Water And Wastewater Management████████████████████████24%
Procedural██████████10%
Electric Utility Management█████████9%
Customer Service████████8%
Affordable Housing████████8%
Environmental Protection███████7%
Economic Development██████6%
Fiscal Sustainability█████5%
Engineering And Infrastructure███3%
Summary of Proceedings

Denton City Council Meeting: July 15, 2025 - Budgets, Impact Fees, and Appointments

The Denton City Council met on July 15, 2025, at 2:01 PM for a work session and convened a regular meeting at 6:30 PM. The meeting covered preliminary utility budgets for FY 2025-26, updates on the Climate Action Plan, water/wastewater impact fees, and several public hearings and appointments. Key decisions included approval of utility rate increases, direction to explore a convenience fee for credit card payments, and reappointments to boards.

Consent Calendar

  • Approved the consent agenda (excluding item H) unanimously 7-0. Items included routine approvals and a contract with Denton Freedom House.

Public Comments & Testimony

  • Prudence Sanchez: Urged council to support the afterschool program, citing benefits for children's safety and education. Council member clarified the program is not being cut, but restructured to avoid competing with DISD.
  • Lauren Inman: Described flooding on June 3rd in her neighborhood, with over $100,000 in damages. Complained about lack of city response, including no dumpster or resources. Asked for empathy and follow-up from city staff.
  • Dana Zoltner: Questioned the council's direction to explore a new gas plant, citing pollution and financial risks. Council members Jester and Byrd explained the vote was to explore options, not to build a plant. Mayor Hudsmith noted the plant saved over $200 million during Winter Storm Uri.
  • Gokan Saginsi: Raised concerns about $90 million transferred from DME to other funds without public vote, asked for full audit reports, and criticized solar payback cuts and discounts to data centers. Mayor cited the city's financial transparency rating and directed him to staff.
  • Vince Handler: Announced his campaign for Justice of the Peace, Precinct 5, highlighting his legal and military background.
  • Erica Garland: Presented context on the detention pond at Sherman and Hercules, which was drained by the HOA due to city fines. She described loss of wildlife (fish, beavers, geese) and asked for a solution that preserves the pond.

Discussion Items

Work Session: Preliminary Utility Budgets (FY 2025-26)

  • Solid Waste: No rate increase proposed. Budget change of 4.2%, with $21.7 million request. Identified $980,000 in reductions. Five-year forecast plans to fund vehicle replacements from revenue.
  • DME (Electric): No base rate increase. Budget increase of 34.2%. Revenue projections $526 million, expenses $509 million. ECA and TCRF adjustments continue. Staff identified $3.3 million in savings. Fund balance expected to grow, reaching targets by 2029-30.
  • Customer Service: Proposed a $2.90 flat convenience fee for online, phone, and kiosk payments to recover $1.3 million in credit card processing costs. Fee would not apply to recurring bank drafts or in-person payments. Direction: Council supported exploring a tiered fee structure; some members wanted full cost recovery, others wanted to encourage bank drafts.
  • Water: Proposed 3% residential/commercial rate increase and 297% wholesale treated water increase (from $1.25 to $4.96 per 1,000 gallons). Budget change 6.3%. Revenue $59.1 million, expenses $62.7 million.
  • Wastewater: Proposed 11% rate increase (same as last year). Budget change 12%. Revenue $44.5 million, expenses $44.1 million.
  • Drainage: No rate increase. Budget change 3.6% due to accounting adjustment for channel rehab. Cost of service study underway; future rate increases expected.

Work Session: Climate Action Plan Update

  • Presented by Michael Gagnier. Accomplishments included 100% renewable energy by DME, $1 million Green Sense program (issued 769 rebates), 24% waste diversion rate, increased EV charging, and LED lighting at 18 facilities. Dashboard and scorecard created. Council discussed barriers to EV adoption, development standards, and the Green Sense budget.

Work Session: Water/Wastewater Impact Fees

  • Presented by Stephen Gay. Proposed updated impact fees at 75% of maximum recoverable cost (staff recommendation). Water: $11,000 per service unit (maximum); wastewater: $13,000. Recommended fee varies by service area (1A, 1B, 2). Council direction: majority supported moving forward with public hearing on August 5, but some requested a comprehensive overview of all fees (road, park, etc.) before final decision.

Key Outcomes

  • Utility Rate Increases: Council gave preliminary direction to support proposed water (3%) and wastewater (11%) rate increases.
  • Convenience Fee: Directed staff to explore a tiered flat fee for credit card/e-check payments, with options to incentivize bank draft use.
  • Impact Fees: Directed staff to proceed with public hearing on August 5 for the 75% cost recovery proposal; staff will provide a full fee comparison for council.
  • Consent Agenda (except H): Approved 7-0.
  • Item H (Police Advisory Board): Approved nomination of Mr. Poor 7-0 after debate.
  • Public Hearing 5B (Multifamily SUP): Approved 7-0 for Palladium Denton West (120 units, 81 affordable).
  • Public Hearing 5C (Sign Standards): Approved 7-0 for travel center at Vintage/I-35W.
  • Bonds: Approved GO bonds ($142.565M) and CO bonds ($254.05M) both 7-0.
  • TMPA Board: Reappointed Jesse Davis 5-2 (Councilmember Beck voted no, interested in serving).
  • Economic Development Agreements: Approved US Cold Storage (6D) and Panel Ray (6E) both 7-0.
  • Committee Appointments: Approved appointments to Community Partnership Committee (Holland, Byrd, Beck), Development Code Review Committee (Beck, Rumore, Jester), and Economic Development Partnership Board (Byrd, Jester) – all 7-0.

Additional Note

  • The council held a closed session at 4:49 PM to discuss economic development (Chapter 551.087).
  • A proclamation declared July 2025 as Parks and Recreation Month.
  • Concluding remarks addressed flooding in Central Texas and city staff deployed to assist.

Meeting Transcript

Good afternoon and welcome to this meeting of the Denton City Council. Today is July 15th. It is 201 p.m. So call the meeting to order. The first thing on the agenda citizens' comments on the consent agenda. Seeing none. That takes us to our next item request for clarification of the agenda listed in the agenda for public hearing or individual consideration. Any requests for clarification on agenda items? Representative from District 4. Mr. Mayor, item uh W as in William, please. I'd like I'd like some clarification on that. Okay. Christine Taylor, Assistant City Manager. I can hopefully answer your question. Well help me with with what we're going, what the city is going to pay for this. Uh there's a this is a neighborhood park. It is predominantly well, it is paid for by development fees from the neighborhood when the neighborhood went in. You pay a park development fee. So the neighborhood park will be funded by development fees. The city's received a grant, and there will be a trail through a portion of the property, so the bonds, a portion of it will come from the 2023 bond funding. So there are no general funds being utilized towards this project. It is predominantly the grant and development fees that would have been paid by the developer at the time that the homes went in. So no taxpayer money going into this. Correct. I mean, there's a would be a debt payment on the small portion of the trail portion of it that was uh voter approved, but the majority of the funding is all coming from the development fees collected when the homes went in. I see. Okay, very good. Very good. Thank you. Okay. Any any other questions. Um seeing none, I I just want to point out that uh in item Z. On this is on this is not this is on just general comments on the uh consent and and just how appreciative I am of um staff working with Denton Freedom House basically is who it is, but from a contractor standpoint, so it's just great for the community, I believe, to have these uh people that are getting back on their feet and they're going through the process and getting back to work and serving the community the community and by way of this contract uh and helping us uh clean up areas and as needed. And so I just think that's great for uh freedom commercial services to to be awarded to that. So just wanted to highlight the great work that the community is doing and staff is doing to make sure we um bring in great people for that. And then I also will note before we move on to our first work session that item H has been pulled for a separate vote. Um so that you're aware that is everything. I do believe yes. Yes. Okay, that takes us to our first work session. Get there, and that is 3A ID 242618. Receive report whole discussion, give staff direction regarding the fiscal year 2025-26 preliminary utility budgets rate and rates for solid waste, water, wastewater, drainage, electric, and customer service. There it goes. Good afternoon. Uh Mr. Mayor, members of the council, Jessica Williams, Chief Financial Officer. I'm here today as part of our process through this summer for the budget to present uh the preliminary utility department budgets. So today we'll be talking through the preliminary budgets for fiscal year 25-26 for solid waste, electric, customer service, water, wastewater, and drainage, and then we will go over the next steps as we continue to move through the summer. We'll start this afternoon with solid waste and recycling.

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