Denton City Council Work Session and Regular Meeting – August 4, 2026

The Denton City Council met on August 4, 2026, for an afternoon work session beginning at 2:02 p.m. and an evening regular meeting beginning at 6:30 p.m., adjourning at 8:19 p.m. The work session focused on a data center policy and possible moratorium, the 90th Texas legislative program, and the FY 2026-27 capital improvement program. The regular meeting included proclamations, public comments, consent agenda action, board nominations, approval of funding for a mental health jail diversion center plan, and a resignation announcement from Councilmember Jordan Villarreal.

Consent Calendar

• No citizen comments were offered on consent agenda items.
• During clarification, Councilmember Ferry asked about consent items Q (crossing guard program), S (apparel procurement RFP), and U (ratification of an emergency repair). Staff confirmed the city is committing to 35 crossing guards for the school year start, will consider local contract opportunities in future procurement, and explained the two-year delay in ratifying a turbine repair from late 2024.
• The consent agenda was approved 7-0 after items C, D, E, and G were pulled for individual consideration, and item X was removed entirely.

Public Comments & Testimony

• Pat Smith, CEO of Serve Denton, provided an update: after a $525,000 revenue loss in May 2025, the organization closed its Lewisville location, reduced staff from 9 to 2.5 FTEs, raised $178,000, refinanced debt, saw $6.5 million in new market tax credit financing forgiven, and ended 2025 with $102,000 net income and 52 days cash on hand. Serve Denton now consults with Plano and Garland and uses Toyota Production System methods.
• Tracy Duckworth, a homelessness advocate, described shortcomings in the continuum of care, including retaliation she says she experienced, and cited an audit report indicating the Our Daily Bread shelter has a punitive punishment system that likely bars people from services.
• Anna Taus, a stalking victim, asked the council to cancel and ban Flock surveillance cameras and ALPR contracts. She cited 60+ Flock cameras in Denton, ACLU reports of Flock deception, a 71% license plate misread rate in Roseville, California, 91 canceled contracts in 28 states, and privacy and Fourth Amendment concerns.
• Miles Bedlin, a Denton resident, asked the council to rescind an $870,000 incentive deal with Kratosky (also referred to as Credo Sky/Crater Sky), an AI drone manufacturer, citing environmental and ethical concerns. He requested an environmental review, a zoning reconsideration from light industrial to heavy industrial, and noted a petition with over 600 signatures. He referenced the CEO's statement that 60% of drones produced would be for military use.
• Larry Lawrence spoke in favor of removing the "interim" designation from City Manager Ms. Ogden, arguing that a permanent appointment would provide stability and avoid the cost of another search.
• Eva Greco (open mic) displayed photographs of hazardous road construction conditions near her home, including uncovered holes and debris, and asked for accountability and monitoring.
• Carly Walker (open mic) opposed data centers entirely, citing pollution, noise, and health risks, and asked the council to reject any future data center development in Denton.

Work Session: Data Centers and Moratorium

• Staff presented information on data center types, including enterprise, co-location, hyperscale, and edge. The two existing data centers in Denton—Core Scientific with up to 391 MW capacity, and Cumulus AI/Waha with 20 MW—were noted.
• Water impact statistics: evaporative cooling uses 3-5 billion gallons annually; closed-loop systems use 3-5 million gallons for startup and 60,000-100,000 gallons annually, compared to city-wide usage of approximately 7 billion gallons per year.
• Financial figures: data centers have paid $3.1 million in real property taxes (city portion cited as $380,000), almost $500,000 in sales tax, $8.8 million in electricity ROI revenue, and about $2 million in lease revenue. Fort Worth's data center property tax revenue was cited at over $83 million.
• Legal process: a moratorium could only be adopted after two public hearings, two readings, a supermajority vote, and written findings; the earliest possible adoption date would be December 2, 2026, with a maximum duration of 180 days. Development code amendments could be completed by October 27, 2026.
• Councilmembers discussed three options: Option 1 (moratorium only), Option 2 (development code amendments requiring SUP and new use standards), and Option 3 (both). Although several members initially favored Option 2, the consensus was to pursue Option 3.

Work Session: 90th Texas Legislative Program

• Christy Fogle, Chief of Staff and Interim City Secretary, explained the shift from a third-party lobbyist to an in-house legislative team of three staff members, supported by bill-tracking software.
• She recapped the 89th session: 8,731 bills filed, 1,222 passed (14% pass rate); of those, 262 directly impacted cities.
• The proposed legislative program includes priorities such as first responder retirement and property tax benefits, housing authority reform, and maintaining support/opposition positions on taxation, utilities, and city services.
• Councilmembers requested additions: local control for cannabis decriminalization, economic development corporation funding flexibility, opposition to bills harming marginalized communities, and attention to AI/data center legislation. They also emphasized work-life balance for the in-house team and made housing authority reform a top priority.

Work Session: FY 2026-27 Capital Improvement Program

• Staff presented the preliminary CIP: $49 million for general government, $108 million for water, $148 million for wastewater, $4 million for drainage, $12 million for solid waste, and $68 million for electric utilities.
• Debt issuances are planned for most programs, with WiFIA funding of about $30 million (water) and $44 million (wastewater). Impact fees offset $4.2 million in water and $11 million in wastewater debt service.
• Councilmembers asked for additional reporting on unfunded street and drainage needs, the proportion of utility projects serving areas outside city limits, lead and copper line replacement assistance for homeowners, and debt amortization details.

Work Session: Quakertown Memorial Fund

• Councilmember Rumore pitched a Quakertown Memorial Fund to help fund memorial elements in Quakertown Park, potentially using city lease revenue and profits from city-hosted ticketed events at the building.
• Council consensus was to move the item forward for an ISR and agenda committee scheduling, with priority ratings ranging from moderate to low. Councilmember Holland expressed concern about competing with the Women's Club revenue.

Board and Commission Nominations

• Item 4C (Airport Advisory Board nomination of Will Bass) failed 6-1, with only Councilmember Villarreal voting in favor.
• Item 4D (Board of Ethics nomination of Taylor Brown) was postponed indefinitely on a 7-0 vote.
• Item 4E (Planning and Zoning Commission nomination of Vicky Byrd) failed 6-1.
• Item 4G (Zoning Board of Adjustment nomination) was postponed indefinitely on a 7-0 vote.
• Councilmembers explaining opposition cited the outgoing council member's resignation and the desire to allow his successor to make appointments.

Regular Meeting Action: Meadows Mental Health Institute Funding

• Agenda item 5A: The council considered an ordinance authorizing $10,000 in general funds for the Meadows Mental Health Policy Institute to develop a strategic plan for a mental health jail diversion center in Denton County.
• The county committed $45,000 and United Way $10,000; other community partners include Denton County, Lewisville, Lakewood Village, Medical City Denton and Lewisville, Texas Health Resources, and others.
• The motion passed 7-0.

Closing Items and Resignation Announcement

• Councilmember Jordan Villarreal announced his resignation from the council, citing severe depression, suicidal ideation, and substance abuse. He described a week-long hospital stay in June and plans for further treatment, and thanked colleagues, staff, and residents. Many council members offered personal words of support and encouragement.
• Councilmember Holland honored Private First Class Isabella Gonzalez, a military service member killed in action on July 17, 2026.
• Councilmember Rumor announced the animal shelter groundbreaking on August 12, 2026, and thanked the finance department for a tour.

Key Outcomes

• Direction given to staff to pursue both data center development code amendments and a temporary moratorium (Option 3).
• Direction given to staff to incorporate council feedback into the 90th legislative program.
• Consent agenda approved 7-0.
• All four board/commission nominations failed or were postponed indefinitely; no appointments were made.
• Ordinance supporting the Meadows Mental Health Policy Institute passed 7-0.
• Councilmember Villarreal announced his resignation; a successor will be determined through the city's process.