HomeMy WebLinkAbout26-0561City of Denton
_____________________________________________________________________________________
AGENDA INFORMATION SHEET
DEPARTMENT: Office of Strategy, Budget, and Performance
ACM: Christine Taylor
DATE: August 18, 2026
SUBJECT
Consider approval of a resolution of the City Council of the City of Denton, Texas placing a proposal on
the September 22, 2026 City Council public meeting agenda to adopt a 2026 Tax Rate that will exceed the
lower of the no-new-revenue tax rate or the voter approval tax rate; calling a public hearing on the proposed
tax rate which will result in an increase in tax revenue to the City for fiscal year 2026-27, to be held on
September 15, 2026; calling a public hearing on the budget for the fiscal year 2026-27 Annual Program of
Services of the City of Denton to be held on September 15, 2026; requiring the publication and posting of
notices of the public hearings and meetings in accordance with the law; and providing an effective date.
BACKGROUND
The Texas Constitution and Texas Property Tax & Local Government Codes require taxing units to comply
with specific guidelines in adopting tax rates. The guidelines are related to a concept known as truth-in-
taxation. This concept is a way to make taxpayers aware of tax rate proposals and allow taxpayers to roll
back or limit a tax increase in certain circumstances.
The truth-in-taxation guidelines require taxing entities to calculate and publish their no-new-revenue and
voter-approval tax rates. The no-new-revenue rate is the calculated rate that would provide the taxing unit
approximately the same revenue it received in the previous year on properties taxed in both years. This rate
excludes taxes on properties no longer in the taxing unit and excludes any growth due to new property
values. Based on the certified values received from Denton Central Appraisal District (DCAD) on July 22,
the City of Denton’s 2027 no-new-revenue tax rate is $0.515958/$100 valuation.
The voter-approval rate divides the total property tax revenue into support for maintenance and operations
(M&O) taxes and debt service taxes. If a taxing unit adopts a tax rate higher than the voter-approval rate,
an election must be held to seek voter approval of the tax rate. Based on the certified values received from
DCAD on July 22, the City of Denton’s 2026 voter-approval tax rate is $0.553485/$100 valuation.
The City Manager’s FY 2026-27 Proposed Budget recommended a tax rate of $0.548485 per $100 of
valuation. To allow for flexibility during the budget process, staff recommends that the tax rate of
$0.553485 be used for publication purposes. One public hearing will be called on the proposed tax rate on
September 22, 2026. Publication of a quarter-page notice (“Notice of Meeting to Vote on Tax Rate”)
informing the public of the public hearing on the adoption of the tax rate will also be published.
In addition to the state requirements for the truth in taxation legislation, the City Charter and Chapter 102
of the Texas Local Government Code require the City Council to set a public hearing on the FY 2026-27
Annual Program of Services. In compliance with the City Charter and Chapter 102, the City is also required
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
to publish a notice of the public hearing in the Denton Record Chronicle not earlier than the 30th day or
later than the 10th day before the date of the public hearing on the budget. The “Notice of Public Hearing
on Budget” will be published in the Denton Record Chronicle. It will also be posted on the City of Denton’s
website, http://www.cityofdenton.com and air on the public access channel.
RECOMMENDATION
Staff recommends approval of the resolution.
ESTIMATED SCHEDULE
September 15, 2026 Public Hearing on Tax Rate
September 15, 2026 Public Hearing on Annual Program of Services
September 22, 2026 Adopt Tax Rate and Budget
EXHIBITS
Exhibit 1 - Agenda Information Sheet
Exhibit 2 - Resolution
Exhibit 3 - Presentation
Respectfully Submitted:
Aimee Kaslik
Chief Strategy Officer
Page 4
NOTICE OF PUBLIC HEARING ON BUDGET
The City Council for the City of Denton, Texas, will hold a public hearing on the Fiscal Year 2026-27
Annual Program of Services (“Budget”), on Tuesday, September 15, 2026 at 6:30 p.m. in the City
Council Chambers at City Hall, located at 215 East McKinney Street in Denton, Texas, 76201. The
meeting will be held for the purpose of receiving community input on the Budget. A public meeting to
vote on the Budget will be held on September 22, 2026 at 6:30pm at Denton City Hall 215 E.
McKinney Street Denton, TX 76201.
THIS BUDGET WILL RAISE MORE TOTAL PROPERTY
TAXES THAN LAST YEAR’S BUDGET BY $14,556,150 OR
11.38% AND OF THAT AMOUNT $10,281,198 IS TAX
REVENUE TO BE RAISED FROM NEW PROPERTY
ADDED TO THE TAX ROLL THIS YEAR.
All interested citizens are encouraged to attend and express their views. If members of the public are
not able to attend the hearings and meetings mentioned above in-person, members of the public will
be able to participate in the meetings pursuant to the processes outlined at
https://www.cityofdenton.com/242/Public-Meetings-Agendas
Page 5
NOTICE OF PUBLIC HEARING
ON TAX RATE
A tax rate of $0.548485 per $100 valuation has been proposed for adoption by the governing body of
the City of Denton.
PROPOSED TAX RATE $0.548485 per $100
NO-NEW-REVENUE TAX RATE $0.515958 per $100
VOTER-APPROVAL TAX RATE $0.553485 per $100
The no-new-revenue rate is the tax rate for the 2026 tax year that will raise the same amount of property
tax revenue for CITY OF DENTON from the same properties in both the 2025 and 2026 tax year.
The voter-approval rate is the highest tax rate that CITY OF DENTON may adopt without holding an
election to seek voter approval of the rate.
The proposed tax rate is greater than the no-new-revenue tax rate. This means that CITY OF DENTON
is proposing to increase property taxes for the 2026 tax year.
A PUBLIC HEARING ON THE PROPOSED TAX RATE WILL BE HELD ON SEPTEMBER 15,
2026 AT 6:30 PM AT DENTON CITY HALL 215 E. MCKINNEY STREET, DENTON, TX 76201.
A PUBLIC MEETING TO VOTE ON THE PROPOSED TAX RATE WILL BE HELD ON
SEPTEMBER 22, 2026 AT 6:30 PM AT DENTON CITY HALL 215 E. MCKINNEY STREET,
DENTON, TX 76201.
The proposed tax rate is not greater than the voter-approval tax rate. As a result, CITY OF DENTON
is not required to hold an election at which voters may accept or reject the proposed tax rate. However,
you may express your support or opposition to the proposed tax rate by contacting the members of the
City of Denton at their offices or by attending the public hearing mentioned above.
YOUR TAXES OWED UNDER ANY OF THE ABOVE RATES CAN BE CALCULATED AS
FOLLOWS:
Property Tax amount = (tax rate) x (taxable value of your property) / 100
Page 6
Names of all members of the governing body are below, showing how each voted on the proposal to
consider the tax increase or, if one or more were absent, indicating absences.
Aye Nay Abstain Absent
Mayor Chris Watts: ______ ______ ______ ______
Jordan Villarreal, District 1: ______ ______ ______ ______
Nick Stevens, District 2: ______ ______ ______ ______
Suzi Rumohr, District 3: ______ ______ ______ ______
Joe Holland, District 4: ______ ______ ______ ______
George Ferrie, At Large Place 5: ______ ______ ______ ______
Jill Jester, At Large Place 6: ______ ______ ______ ______
The 86th Texas Legislature modified the manner in which the voter-approval tax rate is calculated to
limit the rate of growth of property taxes in the state.
The following table compares the taxes imposed on the average residence homestead by the CITY OF
DENTON last year to the taxes proposed to be imposed on the average residence homestead by CITY
OF DENTON this year.
2025 2026 Change
Total tax rate
(per $100 of value)
$0.595420 $0.548485 Decrease of $0.046935,
or 7.88%
Average homestead
taxable value
$386,698 $382,832 Decrease of $3,866,
or 0.01%
Tax on average
homestead
$2,302 $2,100 Decrease of $203,
or 8.7%
Total tax levy on all
properties
$126,835,969 $140,634,225 Increase of $13,798,256,
or 10.87%
For assistance with tax calculations, please contact the tax assessor for CITY OF DENTON at (940)
349-3500 or tnt@dentoncounty.gov, or visit tax.dentoncounty.gov for more information.
If members of the public are not able to attend the hearings and meetings mentioned above in person,
members of the public will be able to participate in the meetings pursuant to the process outlined at
https://www.cityofdenton.com/242/Public-Meetings-Agendas.
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