15 July Agenda Questions and Responses 15 July Agenda Questions and Responses smartsheet
domm A ponse
7/13/2025 Mayor Hudspeth Public Comment A ID 25-1181 Parks and Recreation After school program:Please provide a FAQ that addresses key facts vs.some of the miss information DISD-Offers the Extended School Day(ESD)program at every elementary approx.1,200 students)DISD also offers and ACE
that has been shared. (Afterschool Centers on Education)After-School Program at select locations—This program is at no cost to qualifying students.
City of Denton—Had a maximum capacity of 100 students. (We have served an average of 92 students(81 families)over the past 3
year.
DISD—No Additional Transportation Needed to Attend
1 City of Denton—Transported from most of the elementary schools with the city limits(Averaging 5 children pickup per 15 vans)
DISD-Current Registration Fee: $250 per month(Registration is open now)
City of Denton-City of Denton fee last year was$170. The fee was proposed to increase to to$250 to match DISD.
DISD—Is currently hiring for After-school staff(Information has been shared with DPARD Camp Staff)
City of Denton—The City will still have seasonal positions for Summer Camp,School-Days Out Camps,Special Events and other
select outreach programs.
7/13/2025 Mayor Hudspeth Public Comment C ID 25-1252 DME Please provide a list of FAQs that address some of the miss information that has been shared.Please On May 19,June 3,June 17,and July 14,DME held work sessions with the Public Utilities Board and City Council regarding an
provide a time line that shows we are in the process of evaluating additional power generation. update to the 2018 Denton Renewable Resources Plan and Potential Acquisition of an Existing Dispatchable Generation Facility.
Staff was directed to create a City Renewable Energy Policy(6-9 months),to create an Integrated Resource Plan(18-24 months),
and explore opportunities to acquire an existing Dispatchable Generation Facility with 300-600 MW capacity.Both bodies directed
2 that staff provide the public with an opportunity to give feedback on these initiatives.As of today,staff has not yet moved forward with
any of these initiatives pending the rejection of proposals regarding the Denton Renewable Resource Plan on the July 15 agenda.To
clarify,the City Council only directed staff to research the acquisition of a facility,not to make an actual purchase.Furthermore,there
are currently no plans to build a new greenfield natural gas generation facility.The recommended mix of generation to meet DME's
mission of providing safe,reliable,and affordable power will be borne out of the adopted Integrated Resource Plan.
3 7/13/2025 Mayor Hudspeth Consent Agenda H ID 25-1251 City Secretary's Office Please send me the application for the nominee.I intend to pull this for a separate vote. Please see attached.Staff will prepare to pull the item for separate vote.
7/13/2025 Mayor Hudspeth Consent Agenda W ID 25-1192 Parks and Recreation Please provide an image to remind me what the park will look like after completion.Thank you for the Please see attached for preliminary renderings,subject to change.Funding for the project is from park dedication and development
4 cost break out...I was just unclear how much of the cost will come from the General budget versus the fees,a Texas Parks and Wildlife Department grant,trail bonds,park interest,and gas wells. No general funds are being used for this
other funding sources? project.
5 7/13/2025 Mayor Hudspeth Consent Agenda Z ID 25-1195 Finance-Procurement FYI:I will take some time to share my support for this contractor. No staff response.
6 7/13/2025 Mayor Hudspeth Public Hearing B S25-0002a Development Services Does this applicant have any other projects in Denton? Staff is aware of one other Palladium multifamily project in Denton:Palladium Denton,a 5-Building Multifamily development
completed in 2019.Location:1255 Poinsettia Blvd.
7 7/13/2025 Mayor Hudspeth Public Hearing C PDA25-0003b Development Services Please provide planning and zoning transcript. Staff has requested the P&Z transcript and will have it to Council by Tuesday morning. In the meantime,discussion of the request
begins at 1 hour:40 minutes of the video which can be viewed here:https://dentontx.new.swagit.com/videos/346760
7/1 312 0 2 5 Mayor Hudspeth Individual Consideration C ID 25-1117 DME I will nominate Jesse Davis.Please confirm Jesse is currently serving as the secretary of this board.I will Mr.Davis is currently the Board Secretary and,based on past Board practices,is scheduled to become the Vice President in
comment of the benefit of that,if confirmed.Please contact Jesse Davis and ask if he wants to submit September 2026,provided he continues to serve on the Board.Additionally,Mr.Davis serves on the agency's Personnel Committee,
comments supporting his nomination. overseeing all matters related to agency employees.
Below is Mr.Davis's response to the Mayor's final inquiry:
"Mayor and Council Members,
Thank you for the opportunity to have represented Denton on the Texas Municipal Power Agency board these last four years,and for
8 the opportunity to be re-appointed.I'm honored to serve in a leadership role on the board,and I believe I advocate well for our
ratepayers.
I've had conversations with each of you about TMPA(even if some of those conversations were more than a year ago!),and I am
happy to answer any questions you may have in advance of the re-appointment vote tomorrow evening.
Please email back,or call my cell any time.You know I'm always ready to talk about public power.
All the best,
JLD"
7/13/2025 Mayor Hudspeth Work Session A ID 24-2618 Finance/Solid Waste Solid waste-How much would it cost to secure lids of downtown carts?Or create an after business Solid Waste currently provides four collections per day of all carts downtown,and two of these cycles fall after typical business hours.
hours last collection(nightly)? The collection cycles are typically from 6 am to 10 am,2 pm to 4:30 pm,6 pm to 8 pm,and final collection from 10 pm to 12 am. On
Sunday,three collection cycles are provided between 10 am and 8 pm. Straps can be purchased and installed on carts to secure the
lids in a closed position,but staff do not currently utilize them in our operation. They also require the customer to pull the strap down
to secure the lid,so they would not likely be used 100%of the time.
7/13/2025 Mayor Hudspeth Work Session A ID 24-2618 Finance/DME Electric-We are budgeting for 60K new residential customers?What are the risk of terminating the Slide 14 represents an estimated energy demand(load)increase of 59,429 MWh,based on new and existing residential customers.
winter and summer outage insurance?Customer service-Re:Cost recovery-Please present Meter growth(new customers)is estimated at 4.5%based on an analysis of new meters over the past four years.There are currently
projections for a middle cost recovery option-$1.50 per transaction.Water-Please provide a similar 70,343 meters with 60,534 of those being residential meters,and we have added an average of approximately 2,777 annually,which
graphic to the one in the DME presentation(slide 14) we expect to continue next year.Regarding outage insurance,the risk is low.Following staff review,it was determined to be too
4 costly and doesn't kick in until we lose a 3rd engine.At the point we lose three engines,it's likely we would have more issues than
what the insurance would cover.The insurance market has seen a reduction of these carriers from 3 to only 2 and as such,pricing
has proven to be cost-prohibitive.DME has taken other measures to limit exposure,such as only forecasting based on 11 engines vs
12.Regarding Customer Service,cost recovery at$1.50 would result in approximately half of the expense being recovered($690,570
of revenue and$650,706 of remaining expense).Staff will update the Customer Service fee estimate to include a$1.50 option and
also develop a Water demand slide similar to DME.
7/13/2025 Mayor Hudspeth Work Session A ID 24-2618 FinanceNVater Growth projections Waste Water-Please explain the billing metering process,because as I understand it The City does not currently meter wastewater.The City uses a customer's average water consumption during the months of
is not metered every month.Please provide a diagram of each step/process that leads to waste water December,January,and February to determine billable wastewater volume.This approach is used in most cities to ensure that
being returned to the lake.Does the City of Denton receive water credit for the waste water returned to outside watering during the summer months does not increase a customer's wastewater bill.The 6,000 gallon assumptions shown on
the lake,if so what is that calculation(I hope you understand what I'm asking but if not call for the rate slides are an approximation based on winter usage.Through the Bed and Banks permit,the city receives a water rights credit
clarification). for a portion of the water volume discharged into the lake.That volume is measured from the metering on the discharge line of the
Pecan Creek Water Reclamation Plant.
7/13/2025 Mayor Hudspeth Work Session A ID 24-2618 Finance/Drainage Drainage-What is the estimated amount of money spent on construction for the additional inlets(if it is In 2002,the City maintained approximately 3,300 stormwater inlets.Due to development and annexation over the past 23 years,the
possible to calculate)? number of inlets has increased to 9,218,representing a 179%increase.The majority of these additional inlets were constructed as
part of private development projects such as new subdivisions.The City itself has installed very few of the total.Based on current
contract pricing,the average cost to construct a standard 10-foot inlet is approximately$9,500.If applied across the increase of 5,918
inlets since 2002,this represents a potential estimated construction value of$56.2 million(in today's dollars),though again,most of
this cost was borne by developers rather than the City.
7/13/2025 Mayor Hudspeth Work Session C ID 25-1139 Water Utilities City-wide rate versus Zones-Please explain the thinking,because some areas do not have as much Service areas are established to ensure that impact fees collected in that area can only be used for infrastructure projects directly
13I growth potential.How often are impact fees review? related to that service area.That is the most equitable solution to developing each area.Establishing multiple service areas is a best
practice,but not a requirement.
7/13/2025 Mayor Hudspeth Work Session C ID 25-1139 Water Utilities Construction-Please explain the evaluation on projects that are yet to be built.Is the fee collected The maximum fees are determined by the estimated project costs within the 10-year window outlined in the impact fee study.It is
before building or should it be collected once scoped and moving forward?What is going to construction assumed that fees could be collected at any time during the 10-year study period,which may be before,during,or after the project
and when...what is being calculated is it going to construction before next review?How is life of project& has been built(so long as the project still provides capacity to the development).If the fees are collected and the projects did not
14 re-coop via revenue accounted for(wholistic approach). move forward,the fees could be eligible to be refunded.However,based on the infrastructure required to support new developments,
including plant expansions,it would be unlikely the fees collected would be refunded.The major capacity projects in the impact fee
study align with the projects proposed in the 5-year CIP,and it is anticipated those projects will be constructed within the 10-year
impact fee study window.Impact fees are an important piece of the financing strategy to allow developments to help offset the
financial impact of capacity increases.
Exported on July 14,2025 4:09:55 PM PDT Page 1 of 2
Date Submitted By Type I Item I ID NumberDepartment • • Response
7/13/2025 Mayor Hudspeth Work Session C ID 25-1139 Water Utilities Treatment facilities-Are they projected to be activated when built or is that dependent on residential Treatment facilities are activated as soon as possible during the construction process.Due to the capacity needs of Denton's system,
growth?If we affect growth with fees,that may delay residential growth.What are North Texas Municipal no plants will be built and then idled until residential growth catches up.If facilities are not in place before the growth occurs,Denton
Water District's rates by comparison? risks violating TCEQ permit requirements and overloading the water reclamation plants.NTMWD operates on a subscription-based
15 system that is take-or-pay for member and customer cities.The cities project their water needs,and then the full cost(supply,
infrastructure,debt services)is divided into the rates.We are looking into what NTMWD base rate is set at.However,as stated
before,each contract is different and driven by the receiving city's needs.Since the rates differ per city,there is no way to accurately
compare their rates to Denton's system.
7/13/2025 Mayor Hudspeth Work Session C ID 25-1139 Water Utilities Are calculations accounting for population increase?Please add a slide/graphic. Yes,slide 3 of the presentation details the forecast population growth over the next 10 years.The base impact fee is calculated by
16 dividing the 10-year cost of the capital improvements required to support that growth by the 10-year population growth(in service
units)to create the impact fee as shown in slide 11 of the presentation.
7/13/2025 Mayor Hudspeth Work Session C ID 25-1139 Water Utilities Please contact a builder and ask for calculation of how the increase will affect the cost of the home.Then The Water and Wastewater Impact Fee study contemplates the estimated growth rate of the City,the capacity of the current
17 calculate that over the life of the loan...because the lost cost will be accounted for in advance of the infrastructure,and the required infrastructure improvements needed to support that growth.That cost is then divided among the
home being built...the buildings will have some sort of carry cost and then THAT number is billed to the expected service units to create the base impact fee.Due to many variables in home size,cost,build area,and loan terms,it is
person that buys the home.-Feel free to call me with questions to clarify. difficult to calculate the requested values accurately.
7/14/2025 Suzi Rumohr Work Session A ID 24-2618 Finance Slide 8-5 Year Preliminary Forecast-What is the ideal amount for the Fund Balance?I notice the The current fund balance policy of the City sets the target reserve for Solid Waste at 8%for working capital,plus an additional 6%
Beginning Fund Balance projected to get smaller year after year. (lower bound)and 10%(upper bound)for a total range of 14%to 18%of budgeted expenditures.The reduction in the fund balance is
o Under Expenditures,I notice nothing in Revenue Funded Capital.Are we moving these capital expenses planned,as the fund balance currently exceeds the upper bound of the target range.The funding is planned to be used to revenue
from revenue to debt?If yes,why are we moving all capital expenses to debt instead of revenue? fund one-time vehicle purchases.The line"Vehicle Replacement"is also a revenue funded capital line,specifically for vehicles.The
intent is to begin revenue funding vehicles 100%starting in FY 2027 and beyond,and move away from debt funding.
7/14/2025 Suzi Rumohr Work Session A ID 24-2618 Finance/Solid Waste Slide 9-5 Yr Capital Plan-What is the Organics Program?What type of infrastructure does it need?Is The Solid Waste&Recycling Department provides organics collections to any resident who either purchases an organics cart or uses
this new infrastructure or replacement of existing infrastructure? the"Kraft"paper bags for organics,all of the valet customers in the downtown area,and additional commercial customers who
19 request the service.The City currently services nearly 14,000 customers.All of the organics waste must be pre-consumer waste.
With the addition of the new digester,funded through this capital initiative,the City will be able to accept post-consumer organic
waste and process all of these materials through the digester.While this is new infrastructure,it is part of a large plant expansion.
7/14/2025 Suzi Rumohr Work Session A ID 24-2618 Finance/DME Slide 13-2025-26 DME Overview-Please define what"ECA"and"TCRF"are.How was the debt The ECA rate is the"Energy Cost Adjustment"which recovers the net cost of energy as a pass-through charge to customers.The
service reduced for the campus expansion? TCRF rate is the"Transmisison Cost Recovery Factor"which recovers transmission costs paid to others as a pass-through charge to
20 customers.Transmission costs are determined by the Public Utilities Commission of Texas(PUCT).Rate varies by customer class.
DME was able to identify current funding to pay the upfront costs of design associated with their planned campus expansion.This
resulted in not issuing debt in 2025,and thereby lowering their debt payment next fiscal year from what was previously planned.
7/14/2025 Suzi Rumohr Work Session A ID 24-2618 Finance/DME Slide 15-DME 5 Year Preliminary Forecast-What are some examples of non-rate revenue that DME Non-rate revenue includes transmission revenue,as well as connection/reconnection fees,permits,interest income,and sale of
21 generates?What is causing the big jump in purchase power expense between 2024-25 EOY estimate assets such as vehicle auctions.The increase in purchase power for fiscal year 2026 is due to an increase in the forecasted power
and 2025-26 Proposed? for the data center,with an increase in revenues forecasted related to the data center as well.
7/14/2025 Suzi Rumohr Work Session A ID 24-2618 Finance Slide 21-Online Payment Convenience fee-Is the city assessed a processor cost when a customer Yes,the City is charged a processing fee for all transactions(recurring and non-recurring),however a convenience fee can only be
sets up recurring transactions?Is it legal(and logistically possible)to charge customers different charged to non-recurring payments.The convenience fee is applicable to all forms of payments through the payment channel,so it
22 convenience fees based upon them using a credit card versus an e-check?The cost per transaction for would need to be assessed on both credit cards and eChecks.Staff will research alternative options based on different types of fees
an a-check substantially less than card.Is it possible to include information on itemized bills/receipts that and methods of payment.If changes are made,there will be a information campaign leading up to implementation to talk about each
notify customers that they can avoid convenience fees by setting up recurring payments? payment option available and if fees are or are not applicable.
7/14/2025 Suzi Rumohr Work Session A ID 24-2618 Finance/DME Slide 22-Customer Service 5 Year Preliminary Forecast-If we did not choose to charge convenience The utility departments currently transfer funding into the Customer Service fund to cover the cost of expenses.If the convenience
23 fees,which expenditures would likely be impacted the most in the Customer Service budget?Likewise, fee is not implemented,the transfers from the utility departments would remain the same.If the convenience fee is implemented,it
which expenditures would benefit most if we do charge the$2.90 flat fee? would result in a lower cost to the utilities and decrease their expense budget.
24 7/14/2025 Suzi Rumohr Work Session A ID 24-2618 Finance/Water Slide 27-Water 5 Year Preliminary Forecast-Who typically purchases raw wholesale water?Who The Upper Trinity Regional Water District purchases surplus raw water on a wholesale basis.Upper Trinity Regional Water District
typically purchases wholesale treated water? purchases wholesale treated water to serve the cities of Krum and Sanger.
25 7/14/2025 Suzi Rumohr Work Session A ID 24-2618 FinanceNVater Slide 32-Wastewater 5 Year Capital Plan-What is WIFIA funding? Water Infrastructure Funding and Innovation Act(WIFIA)is federal funding specific to water and wastewater projects.
Exported on July 14,2025 4:09:55 PM PDT Page 2 of 2
15 July Agenda Questions and Responses - Add. smartsheet
a 'Department— Question/Comment Staff Response
7/14/2025 Suzi Rumohr Work Session C ID 25-1139 Water Utilities Water and Wastewater Impact Fees-If new development pays 75%of the The remaining 25%of cost would be absorbed through future water sales and should not have an adverse
1 maximum fee to build water and wastewater infrastructure to serve them,who pays impact on current rate payers.
the remaining 25%of the cost to build the infrastructure for the new growth?
7/14/2025 Suzi Rumohr Work Session C ID 25-1139 Water Utilities CIAC recommended 100%of fees.What rationale did they provide?What is staffs Several factors influenced this recommendation:
rationale in recommending 75%? -Analysis of forecasted impact fee collection
-input from the development community
-Projected revenues from future water sales
-Requirement to revisit the impact fee study in three to five years
-input from development services verifying growth trends and interest
2 -Value of growth on local economy
-Further consultation with the budgeting and finance team to confirm this recommendation would not
negatively impact future rates.
-Comparison of cities experiencing similar growth trends and operational challenges.
Staff feels this balanced approach will ensure that development pays for development,Denton's fees
remain competitive with comparison cities and that future rate payers bare the cost of additional capacity.
7/14/2025 Suzi Rumohr Individual Consideration A ID 25-1037 Finance $142.6 M in GO refunding and improvement-Slide 8:Are the CO's supplementing Yes,the CO issuance is supplementing the original 2019 Bond Program's Street Improvement Proposition
original GO bond funding for Hickory Creek Rd,Bonnie Brae Phase 5,and 2019 A."Refunding"is the term used for bond issuances,but it's simply refinancing outstanding debt to obtain a
3 bond street reconstruction?Briefly explain how"refunding a bond"works.Are we lower interest rate.A refunding works by issuing new bonds at a lower interest rate,and using the proceeds
paying off the balance temporarily with the intent to sell them again at a different from the new bonds to retire the outstanding bonds which have a higher interest rate.The final maturity
interest rate?Does"refund"mean something else? dates of the bonds remain the same.
7/14/2025 Suzi Rumohr Individual Consideration B ID 25-1038 Finance $245 M COs-Slide 3:for partial bond sales,like only$1 million for aquatic Yes,the City will typically issue a smaller amount upfront for design,right-of-way acquisition,and
4 improvements,are those smaller amounts to begin things like planning prior to engineering services before issuing a larger amount for construction/completion of the project.By aligning
selling the remaining approved bond amount in a later year to fund the issuance with the cash flow needs of the project,we're able to reduce interest payments on the debt.
construction/completion of the project?
7/14/2025 Suzi Rumohr Individual Consideration F ID 25-1233 City Secretary's Office Appointing members to Community Partnership Committee-Are all three slots Yes,three City Council members must serve on this committee.Resolution 20-1471 Section 2.A.states in
5 required to be filled? relevant part,"The committee shall be composed of three(3)members of the City Council to be chosen
and approved annually by the City Council."
Exported on July 15,2025 9:17:23 AM PDT Page 1 of 1