HomeMy WebLinkAbout062626 Friday Staff Report
City Manager’s Office
215 E. McKinney St., Denton, TX 76201 (940) 349-8307
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MEMORANDUM
DATE: June 26, 2026
TO: The Honorable Mayor Watts and Council Members
FROM: Cassey Ogden, Interim City Manager
SUBJECT: Friday Staff Report
Upcoming Meetings
1. Agenda Committee on Wednesday, July 1, 2026, at 8:00 a.m. in the City Council Work Session Room. 2. Planning and Zoning Commission on Wednesday, July 1, 2026, at 5:00 p.m. in the City
Council Work Session Room & Council Chambers.
Please check the City of Denton website for final meeting days and times as information is subject
to change after the Friday Report is published.
Public Meetings & Agendas | Denton, TX (civicplus.com)
General Information & Status Updates
A.Friday Report Schedule – City facilities will be closed in observance of Independence Day
on Friday, July 3, 2026, and no Friday Staff Report will be published next week due to theholiday closure. Wishing you and yours a safe and happy 4th of July. Staff contact: KristiFogle, City Manager’s Office
B.City Text Messaging Service – The City of Denton has launched Text Denton, a new
communication tool that delivers timely updates about City programs and services to thecommunity via text message. Residents can subscribe to several categories of text alerts,including:
•Citywide Alerts: Updates on day-to-day City operations that affect the entire
community or a significant portion of Denton.
•Neighborhood Alerts: Information about City programs, services, or projects thatimpact specific neighborhoods, Homeowners Associations (HOAs), apartments,townhomes, universities, and other residential areas across Denton.
•Project-Based Alerts: Updates on major City initiatives.
To subscribe to Text Denton, visit www.cityofdenton.com/textdenton and follow the instructions to select the types of alerts you want to receive.
Text Denton is not an emergency alert system. To sign up for emergency notifications, such as severe weather alerts, be sure to sign up for Alert Denton at
www.cityofdenton.com/alertdenton.
Staff contact: Kayla Herrod, Marketing and Communications
C.Intelligent Transportation Transformation Grant Award – The U.S. Department of
Transportation's (USDOT) Build America Bureau has selected the City’s application for a
$1 million Innovative Finance and Asset Concession (IFAC) grant. T. Denton was one ofonly 19 recipients chosen from more than 100 applications nationwide, and no local matchis required.
This funding will support the development of the City's first comprehensive Intelligent
Transportation Systems (ITS) Master Plan, including an assessment of existing assets,identification of priority improvements, and a sustainability assessment aligned withfederal and state guidelines. It will also initiate Denton’s first Smart Mobility TransitionStrategy, outlining the phased deployment of smart mobility technologies. Staff will
collaborate with the USDOT to finalize the grant agreement and outline the next phases of
this project. Staff Contact: Farhan Butt, Transportation Services
D.DTV Video Highlights for June - DTV released several videos this month that raiseawareness, educate, and inform our community. The following are highlighted videos
Council is encouraged to share:
•Announcing a new Fuel Island for City Employees!
This fuel island allows employees who work in the southern part of the city to fuel up City vehicles without having to drive downtown.
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• Text Denton
A text messaging platform designed for getting non-emergency notifications directly on your cell phone.
• Swim Lessons in ASL
Swim lessons in American Sign Language are helping deaf and hard-of-
hearing children build lifesaving water safety skills.
• Farewell, Mayor Hudspeth
We celebrate Mayor Gerard Hudspeth’s historic three terms as Mayor of his
hometown - Denton, TX!
All videos air on DTV, are shared via social media channels, and are available on the City’s YouTube channel. Staff contact: Billy Matthews, Marketing and Communications
Responses to Council Member Requests for Information
A. Bradshaw Street Neighborhood Disruption – On June 1, Council Member Holland shared an inquiry from a resident regarding the potential unpermitted occupancy of an Accessory Dwelling Unit (ADU) and an RV in the backyards of two adjacent properties on North Bradshaw Street. On June 4, the staff inspected the property and found no violations. A
follow-up inspection on June 11 included contact with the tenants and access to both
properties.
Staff confirmed that one property had an occupied RV. While RVs can be stored in a
backyard behind a fence, they cannot be occupied as a dwelling. Staff informed the
occupant about the property maintenance code violation and that the occupant would need
to vacate the RV; the occupant understood and indicated they would vacate. On the
adjacent property, an unpermitted structure was being occupied, but staff received notice
that it was already being vacated. Additionally, staff spoke to the property owner of both
properties, who indicated the occupancy issue would be addressed immediately. Building
Safety staff have a scheduled reinspection to ensure all violations have been resolved. Staff
contact: Charlie Rosendahl, Development Services
B. Parking Space on Locust – On June 3, Council Member Holland requested information about a wide parking space located on South Locust Street near the East Hickory Street
intersection. Transportation staff audited the site and confirmed that the space is wider than
the others in the area, and two full-size parking spaces can fit safely. Traffic Operations staff updated the markings for the parking spots on June 25. Staff contact: Chandra Muruganandham, Transportation Services
C. Lake Forest Park Pond Maintenance – On June 24, Council Member Holland shared a
resident inquiry about vegetation and aerator operations at the Lake Forest Park pond. The City’s contractor is actively managing vegetation, with some intentionally preserved for water quality and habitat. Aerators operate from late afternoon through the morning to support oxygen levels. Staff contact: Allison Wing, Parks and Recreation.
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D.Skylark Drive Pavement Improvements – On June 24, Council Member Rumohr shared an
inquiry regarding the timeline for the pavement improvements of Skylark Drive inSouthridge. Skylark Drive is included in the 2019 Bond Program as part of theNeighborhood 7B and 8A project. The project design is nearing completion, andconstruction is anticipated to begin in 2027. Staff contact: Scott Fetig, Capital Projects
Upcoming Community Events and Public Meetings
Please visit the City of Denton website for upcoming community events and details.
Informal Staff Reports
A.2026-037 Opportunity Zones ...................................................................................................5
B.2026-038 Denton Firemen’s Retirement Fund .....................................................................14
A.2026 -039 AI Data Facility Process .......................................................................................57
Information
B.Council Requests for Information ..........................................................................................67
C.Public Meetings Calendar .....................................................................................................69 D.Future Work Session Items ...................................................................................................73 E.Street Closure Report .............................................................................................................74
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Date: June 26, 2026 Report No. 2026-037
INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL
SUBJECT: Opportunity Zones 2.0 Program Nominations
EXECUTIVE SUMMARY: This Informal Staff Report is staff initiated and was prepared to provide a summary of the current and new Opportunity Zone Programs and the Census tract nominations under the new Opportunity Zone 2.0 Program.
BACKGROUND:
Current Opportunity Zone 1.0 Program The Opportunity Zone Program, created in the Community Renewal Tax Cuts and Jobs Act of 2017, is a federal economic stimulus tool designed to assist distressed communities. This tool
offers a tax benefit of an investor’s capital gains into a Qualified Opportunity Fund. This program
provides a capital gains tax deferral, whereby 90% is taxed after a period of 5 years, 85% is taxable for 7 years and the gain is excluded after a 10-year period.1 Investment in Opportunity Zones is unlikely if additional funds, other than the “tax benefit” are not offered, according to Springsted.2 This makes this zone a prime location to look at incentivizing. The federal tax benefit, combined
with other funding sources and mechanisms, such as an economic development incentive or Tax
Increment Reinvestment Zones, may make the project feasible. The greatest benefit can be made by projects that are held for the entire 10-year period.
The zones are designated by the Governor of each state in the U.S. The State of Texas currently
has 628 designated Census tracts under the 1.0 Program. Two Opportunity Zones are located in
Denton County. A single Census tract, 206.02, is the zone identified in the City of Denton. The zone is generally located east of Bell Avenue, South of Mingo Road and University Drive, West of Mayhill Road, and North of McKinney Street (see Exhibit 1).
Opportunity Zones 2.0 Program
The Opportunity Zone 2.0 Program was created under the One Big Beautiful Bill Act (OBBA) of 2025 under the tax code, which also included ten-year designation cycles. The effective date of the new program is January 1, 2027. The 2.0 Program simplified the benefits for investors by offering a 5-year deferral, 30% basis step-ups and lower threshold for improvements from 100% to 50%.
The zones are still designated by the Governor of each state. Governors may nominate 25% of the eligible Census tracts in the state. There are a total of 2,420 eligible census tracts in the State of Texas, of which 605 (25%) can be designated under the 2.0 Program. The Texas Economic Development and Tourism Office (EDT), which falls under the Office of the Governor is leading
the nomination process for the Opportunity Zone 2.0 Program. The recommendations are due to
the state on June 26, 2026. State Opportunity Zone 2.0 designations are due to the U.S. Department of Treasury by August 3, 2026.
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Date: June 26, 2026 Report No. 2026-037
SUMMARY OF STAFF RECOMMENDATIONS: An interdepartmental team from Economic Development, Community Development,
Development Services and the City Manager’s Office was developed to review the eligible tracts
and make recommendations on tracts to be nominated for Opportunity Zones in the City of Denton. There are a total of 24 eligible Census tracts in Denton County, of which 12 are located in the City of Denton. Federal and state guidance prioritizes alignment with state and local economic policy, plans and goals; economic need and investment potential. At the state level, the EDT is also
specifically considering the following:
•Statutory Compliance: nomination of tracts that clearly meet federal eligibility
•Local Support: consideration for those tracts which the local community willsupport through Economic Development incentives and tools
•Project Viability: sites where private capital can realistically be initiated in 2-4years and where investments encourage inclusive growth (e.g. affordable housing,workforce initiatives, etc.).
•Geographic Balance: to help ensure representation across regions of the state;
leverage rural incentives and provide an additional incentive for tracts which havebeen affected by a declared disaster.
City staff have identified the following three Census tracts for possible designation, which are
presented in order of priority: 211, 212.03 and 208. Additional Information on the proposed Census
tracts is also provided in Exhibit 2. Staff will submit the nomination packet with the recommended Census tracts below by July 26, 2026.
Census Tract 211
This Census tract is located in the Downtown Tax Increment Reinvestment Zone (TIRZ) No. One.
Up Zoning has been conducted to help make the area more dense. An Opportunity Zone will encourage capital investment and redevelopment in the zone and will support the floodplain Pecan Creek Tributary PEC-4 reclamation project, fosters the consideration to help reduce urban sprawl in the Economic Development Chapter 380 and Tax Abatement policies and aligns with the Design
Denton Downtown Plan.
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Date: June 26, 2026 Report No. 2026-037
Census Tract 212.03 An opportunity zone will encourage capital investment and redevelopment in a low to moderate
income Census tract. The Novartis Innovative Technologies project is located in Census Tract 212.03. A designation will help recruitment efforts in one of the Economic Development Strategic Plan's Strategic Growth Areas, biomedical/life science industry.
Census Tract 208 The final Census tract includes the airport, most of the Westpark TIRZ No. Two and the industrial park; general office zoning, which aligns with the Economic Development Strategic Plan recruitment efforts and a site with significant infrastructure challenges along Westcourt Road, Springside Drive, and Corbin Road.
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Date: June 26, 2026 Report No. 2026-037
ATTACHMENTS: Exhibit 1: Current Opportunity Zone
Exhibit 2: Proposed Census Tracts for Nomination
STAFF CONTACT: Erica Sullivan
Economic Development Program Administrator Erica.Sullivan@cityofdenton.com (940) 349-7731
REQUESTOR: Staff initiated
STAFF TIME TO COMPLETE REPORT: 9 hours
PARTICIPTAING DEPARTMENTS: Economic Development, Development Services,
Community Development and City Manager’s Office
1 Certified Development Finance Agency’s Opportunity Zone Solutions, supported by Cohn Reznick, Online
internet: https://www.cdfa.net/cdfa/cdfaweb.nsf/resourcecenters/OZ.html
2 Springsted, “Being Opportunity Zone Investment Ready,” Jan. 17, 2019.
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Exhibit 1
Current Opportunity Zone
The current Opportunity Zone 206.02 is no longer eligible.
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Exhibit 2
Proposed Census Tracts for Nomination
Census Tract 211
This Census tract is located in the Downtown Tax increment Reinvestment Zone (TIRZ) No. One.
Up Zoning has been conducted to help make the area more dense. An opportunity zone will
encourage capital investment and redevelopment in the zone and will support the floodplain Pecan
Tributary PEC-4 reclamation project.
This is an eligible Opportunity Zone Tract
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Census Tract 212.03
An opportunity zone will encourage capital investment and redevelopment in a low to moderate
income Census tract. The Novartis project is located in this tract. A designation will help
recruitment efforts in one of the Economic Development Strategic Plan's Strategic Growth Areas,
biomedical/life science industry.
Please note that the City of Denton’s online map layer is outdated (2010), so the tract has been divided in the more
current 2.0 map. This is an eligible Opportunity Zone Tract.
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Census Tract 208
The tract includes most of the Denton airport; Westpark TIRZ No. Two and industrial park; and
general office zoning that aligns with the Economic Development Strategic Plan and highlighted
site with significant challenges.
Site: Westcourt Road, Springside Drive, and Corbin Road
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General Office along Fort Worth Drive
Both are located in an Eligible Opportunity Zone tract
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June 26, 2026 Report No. 2026-038
INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL
SUBJECT:
On June 2, 2026, Council Member Villarreal presented a two-minute pitch to consider a cost-of-living adjustment for retired firefighters and the transfer of public safety dispatchers from the Denton Firemen’s Relief and Retirement Fund (DFRRF) into the Texas Municipal Retirement
System (TMRS). Council provided consensus for an Informal Staff Report to provide financial information related to this topic.
EXECUTIVE SUMMARY:
Council Member Villarreal has requested a discussion of two retirement-related topics. The first item involves providing a cost-of-living adjustment for retired firefighters in the Denton Firemen’s Relief and Retirement Fund (DFRRF), and the second involves evaluating whether public safety dispatchers should move from DFRRF into the Texas Municipal Retirement System (TMRS). The
City of Denton participates in two separate pension plans. The DFRRF covers firefighters in the Denton Fire Department and public safety dispatchers. The TMRS plan covers all other City of Denton employees, with the exception of temporary positions. This summary provides a high-level overview of both plans, their current financial condition, and the potential impacts of these changes.
BACKGROUND:
TMRS Overview
TMRS was created in 1948 by the Texas Legislature. TMRS is a hybrid of a defined benefit and
defined contribution plan. Under this approach, contributions are defined until the date of retirement. Upon retirement, the value of these contributions and investment earnings define the benefits for the retiree (also known as a cash balance plan). In this way, the unfunded liabilities associated with many defined benefit plans are minimized.
While TMRS is a state-wide retirement system, the plan does not receive any state funding. Rather, all funding associated with TMRS is provided by employers, employees, and investment earnings of the system. Furthermore, individual cities determine the level of benefits provided to their retirees.
As of December 31, 2024, the TMRS system had 942 cities that participated in the plan. Collectively, these cities have 127,818 active members and 75,706 retired members. The market value of the assets in TMRS is approximately $43.4 billion.
TMRS Investment Performance
The TMRS plan assumes an annual investment return equal to 6.75% of plan assets. However,
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June 26, 2026 Report No. 2026-038
the actuarial valuation process utilizes asset smoothing techniques to “smooth out” the natural year-to-year fluctuations that are inherent in the investment markets. In 2024, the TMRS net investment return was 10.41%, which exceeded both the benchmark return of 9.82% and the target
return of 6.75%. However, over the 10-year period prior to 2024, TMRS achieved an average investment return of 6.62%, which is more closely aligned with the long-term target rate of 6.75%.
While TMRS has had strong investment returns in the past, there is no guarantee that the system will be able to achieve these rates in the future. It is also important to note that any one year, or
even a series of years, of below-average investment returns is not a cause for alarm. The TMRS plan is designed to provide benefits to employees and retirees over decades, and as such, a long-term view of investment performance assumptions is the proper way to evaluate the health of the plan.
TMRS Actuarial Information and Funding Progress
As of December 31, 2024, the City of Denton had an Actuarial Value of Assets (AVA) of $632.0 million and a Total Actuarial Accrued Liability (AAL) of $726.0 million for the TMRS plan. This
equates to an Unfunded Actuarial Accrued Liability (UAAL) of $93.9 million and a funded ratio of 87.1%. The UAAL is being amortized over a period of 12.2 years at our existing contribution rate, so assuming all assumptions are met, the TMRS plan for Denton will be 100% funded by 2037. However, if investment returns or other economic assumptions are not realized, the fund will amortize these actuarial differences over a longer period of time, and the full funding of the
plan may be extended.
Note: These figures are provided on an actuarial basis and will be different from the funding levels identified in the City’s Annual Comprehensive Financial Report (ACFR) which are prepared on an accounting basis.
DFRRF Overview
The Denton Firemen’s Relief and Retirement Fund (DFRRF) cover firefighters in the Denton Fire Department and public safety dispatchers, and the Board of Trustees is the administrator of the
pension plan. The plan provides service, death, and disability benefits to members, with retirement eligibility after 20 years of service. Participants are vested in the plan and eligible for benefits at retirement after 10 years. The normal service retirement benefit is equal to 2.59% of the highest 36-month average salary for each year of service under the plan.
As of December 31, 2023, the most recent biennial valuation, the plan served 236 active firefighters and 104 retirees or beneficiaries.
The TMRS plan experienced actuarial issues in 2008 related to TMRS miscalculating cost-of-living adjustments system-wide, and as a result, the City was required to increase its contribution
rate to the plan over time. There was, however, no increase in benefits provided in the plan.
Instead, the increase in contributions was intended to reduce liabilities and improve the overall financial health of the plan. Due to increases in the TMRS contribution rate, the Firefighters
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June 26, 2026 Report No. 2026-038
Association requested that the same contribution rate given to TMRS be provided to the DFRRF. In 2010, the City agreed to this arrangement.
While this funding methodology worked well from 2010 to 2017, this arrangement needed to be modified due to changing demographics and the investment climate. The primary reason for this change at the time was that the City’s TMRS contribution was declining as a percentage of payroll due to growth in the municipal workforce. As a result, it was determined that the DFRRF needed a contribution from the City, which is decoupled and independent of TMRS.
To address this, the City, the Firefighters Association, and the DFRRF entered into an agreement in 2017, to revise the funding formula and require that the City Council formally approve the actuarial study every two years, among other items. Beginning in 2019, based on the required
actuarial study, the actuarial determined contribution (ADC) required to fund the liabilities over
the amortization period was lower than the total contribution by the City. The ADC subsequently continued to decline in each progressive study, however the City contributions have remained at or near the TMRS contribution rate. This has effectively resulted in a planned overcontribution by the City to DFRRF. Below are two charts summarizing the ADC and contributions by DFRRF
participants (employees) and the City (employer), as well as distributions in comparison to
contributions.
Since the total contributions are sufficient to pay the fund’s normal cost and to amortize the fund’s UAAL in 6.5 years, the 2023 actuarial study noted the fund, based on present levels of benefits and assumed contributions, has an adequate contribution to meet the 100% funding target by 2030.
DFRRF Investment Performance
The annual investment return assumption is 6.75% of plan assets. Like TMRS, the actuarial valuation process utilizes asset smoothing techniques to “smooth out” the natural year-to-year
fluctuations that are inherent in the investment markets.
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June 26, 2026 Report No. 2026-038
The average annual rate of investment return, net of investment-related expenses, on the market value of assets during the two plan years 2022 and 2023 was 2.2%. However, the actuarial value of assets (AVA) used in the valuation and the determination of the amortization period is based on
an adjusted market value. The average annual rate of return on the AVA, net of investment-related expenses, for plan years 2022 and 2023 was 7.8% compared to the assumed rate of return for those years of 6.75%. This caused a decrease in the amortization period by 1.7 years.
However, there is no guarantee that the DFRRF will exceed the assumed rate of 6.75% in the
future. If they are not able to do so, the plan will need to alter the level of benefits or request a higher contribution rate from its members or the City. Similar to the TMRS plan, it is also important to note that any one year, or even a series of years, of below average investment returns is not a cause for alarm. The DFRRF is designed to provide benefits to employees and retirees
over decades, and as such, a long-term view of investment performance assumptions is the proper
way to evaluate the health of the plan.
DFRRF Actuarial Information and Funding Progress
As of December 31, 2023, the most recent actuarial valuation, the City of Denton had an Actuarial
Value of Assets (AVA) of $152.5 million and a Total Actuarial Accrued Liability (AAL) of $167.3 million for the DFRRF plan. This equates to an Unfunded Actuarial Accrued Liability (UAAL) of $14.8 million and a funded ratio of 91.1%, compared to 88.8% in 2021. The UAAL is being amortized over a period of 6.5 years in our existing contribution rate, so assuming all assumptions
are met, the DFRRF plan for Denton will be 100% funded by 2030 (if not prior). However, if
investment returns or other economic assumptions are not realized, the fund will amortize these actuarial differences over a longer period of time, and the full funding of the plan may be extended. The 2025 actuarial valuation is in process, and we expect to be able to present updated figures to the Council with the impact of contribution changes in the Fall of 2026.
Note: These figures are provided on an actuarial basis and will be different from the funding levels identified in the ACFR which are prepared on an accounting basis.
DFRRF Cost of Living Adjustment:
Cost of living adjustments are currently provided ad hoc based on the financial condition of the fund as determined by the fund actuary. The DFRRF Board of Trustees has expressed interest in implementing a cost-of-living adjustment (COLA) similar to the TMRS annually repeating COLA equal to 70% of the consumer price index (CPI). The funding policy in the current Meet and
Confer Agreement, effective October 1, 2023, does not provide for annual COLA adjustments. Prior action to provide an ad-hoc increase occurred in May 2022, when the City Council agreed to a set of tiered post-retirement increases of 4%, 3%, or 2%, depending on the length of time since the initial benefit commenced.
In December 2024 the DFRRF Board of Trustees requested an actuarial study on the effects of
adding an annual automatic cost-of-living adjustment to the Fund. The study was based on the actuarial valuations as of December 31, 2023. The information below utilizes the study
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June 26, 2026 Report No. 2026-038
contribution rates and applies them to the City’s FY 2025 actual contributions to provide a general estimate of the cost impact.
FY 2025 City’s Fire Pension Contribution $ 6,136,740.96
City’s Pension Contribution (No COLA) 18.50% City’s Pension Contribution (COLA @ 1.75%) 25.45% Increase in Contribution Rate 6.95%
The rate change from 18.50% to 25.45% represents a 37.5% increase in City-paid contributions. Therefore, the annual contribution of the City would increase as follows:
Increase in Annual Contribution $ 2,378,647.89 New Contribution Amount $ 8,515,388.85
Dispatcher Positions Moving From DFRRF to TMRS:
In 2005, the DFRRF and the City had a dispute regarding whether public safety dispatch employees
are required to be in the Fire Pension plan. This disagreement arose from differences in the interpretation of state statutes related to fire pension plans. A lawsuit was filed by the DFRRF (Denton Firefighters Relief and Retirement Fund v. City of Denton, Cause No. 2005 30380-211, in the 211th District Court of Denton County, Texas) and settled in 2006, whereby the DFRRF and
City agreed that all dispatchers be included in the Fire Pension plan unless the employees are:
•Over 35 years of age when beginning service.
•Any employee that participated in TMRS prior to June 20, 2006.
This approach has remained in place since the settlement of the lawsuit. However, this arrangement
has contributed to turnover and retention difficulties for many years with our public safety dispatch employees. The primary reasons for this are:
•The Fire Pension vesting period (10 years) is longer than TMRS.
•The Fire Pension is not portable to other positions or cities.
•The employee contribution rate to DFRRF is significantly higher than TMRS (12.6%versus 7%).
Summary of Plan Differences
Fire Pension Plan (DFRRF) TMRS
10 Year Vesting Period 5 Year Vesting Period
Employees Contribute 12.6% Employees Contribute 7%
Defined Benefit Plan – 2.59% per service year Cash Balance Plan
Not portable to other positions or cities Portable to other positions and cities
94.4% (as of 2024; estimated) 87.1% Funded (as of 2024)
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June 26, 2026 Report No. 2026-038
Beginning in 2018, and subsequently through various meet and confer negotiations, City staff have discussed with the Fire Association and the DFRRF Board of Trustees a potential agreement which would allow dispatch employees to choose between being a member of the DFRRF or TMRS plan.
The actuarial impact of these changes will need to be studied and presented to the City Council once the results are known. If directed to proceed, staff estimates the cost for the study is $5,000. The movement of personnel between plans will have an impact on both TMRS and DFRRF and the actuarily determined contribution rate (ADCR) for each.
The current meet and confer agreement specifically allows for the continued discussion of dispatcher membership in the DFRRF or TMRS. However, any agreement must be ratified by a majority vote of the Association membership and the City Council, using the ratification process
under Local Government Code Chapter 142.114, in order to take effect. In addition, the proposed
change must be submitted to the DFRRF and TMRS for their consideration and approval.
Financial Position of the City:
The beginning fund balance of the City as of 10/1/2025 was $42.6 million, which is 19.6% of
$218.8 million in budgeted expenses, below the policy target of 20% to 25%. GFOA recommends two months of reserves as a minimum level (16.67%), but any decrease materially below 20% risks a potential impact on the City’s AA+ bond rating and subsequent borrowing costs.
CONCLUSION:
The TMRS and DFRRF plans are well-funded and managed responsibly. Going forward, the funding ratios for these plans are expected to improve with their financially sustainable funding mechanisms. The implementation of an annual COLA in the DFRRF funded by an increase in City
contributions is a significant expense for the General Fund. Considerations for implementation
should be evaluated, including a phased approach or provided as a one-time ad-hoc increase.
The movement of dispatchers from DFRRF to TMRS would be less financially impactful, but staff will need time to engage the actuary and determine the specific impact. In addition, The Meet and
Confer agreement allows Article 12, Pension, to be reopened with the mutual consent of the
Association President and the City Manager
RECOMMENDATION:
The 2025 DFRRF biennial actuarial valuation will provide updated information and should serve
as the basis for any recommended changes. If the Council would like to proceed, an initial discussion can occur during the Budget Workshop using the 2023 actuary dispatcher analysis. If the Council decides to include an allocation in the FY 26–27 Budget, staff recommends waiting for the 2025 valuation report, which is expected to be completed by September 2026, followed by
staff evaluation in October and a Council Work Session in November.
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June 26, 2026 Report No. 2026-038
The Meet and Confer agreement allows Article 12, Pension, to be reopened with the mutual consent of the Association President and the City Manager. Any agreement reached by both parties must then be ratified by a majority vote of the Association membership and the City Council,
following the ratification process outlined in Local Government Code Chapter 142.114. In addition, the proposed change must be submitted to the DFRRF and TMRS for their consideration and approval.
ATTACHMENTS:
1. 2023 Denton Firemen's Relief and Retirement Fund Actuarial Valuation
STAFF CONTACT: Matt Hamilton
Chief Financial Officer
matthew.hamilton@cityofdenton.com (940) 349-8244
REQUESTOR: Council Member Villarreal
STAFF TIME TO COMPLETE REPORT: 3 Hours
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Denton Firemen’s
Relief and Retirement Fund
Actuarial Valuation
as of December 31, 2023
September 16, 2024
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W. Lee Bello, A.S.A.
Mitchell L. Bilbe, F.S.A.
Evan L. Dial, F.S.A.
Philip S. Dial, F.S.A.
Charles V. Faerber, F.S.A., A.C.A.S.
Mark R. Fenlaw, F.S.A.
Brandon L. Fuller, F.S.A.
Christopher S. Johnson, F.S.A.
Oliver B. Kiel, F.S.A.
Dustin J. Kim, F.S.A.
Edward A. Mire, F.S.A.
Rebecca B. Morris, A.S.A.
Amanda L. Murphy, F.S.A.
Michael J. Muth, F.S.A.
Khiem Ngo, F.S.A., A.C.A.S.
Timothy B. Seifert, F.S.A.
Raymond W. Tilotta
Ronald W. Tobleman, F.S.A.
David G. Wilkes, F.S.A.
9500 Arboretum Blvd., Suite 200 Austin, Texas 78759 www.ruddwisdom.com Phone: (512) 346-1590 Fax: (512) 345-7437
September 16, 2024 Board of Trustees Denton Firemen’s Relief and Retirement Fund
P.O. Box 2375 Denton, TX 76202 Members of the Board of Trustees: At the request of the Board of Trustees of the Denton Firemen’s Relief and Retirement Fund,
we have prepared this report of the results of the actuarial valuation of the fund as of December 31, 2023. This valuation was prepared (1) to determine the city’s contribution rate under its current funding policy, which is a modified actuarially determined contribution rate funding policy, (2) to recommend a city contribution rate for the next two years, and (3) to
highlight the fund’s actuarial condition. In a separate report dated July 26, 2024, we provided the necessary disclosures for the fund’s compliance with the Governmental Accounting Standards Board (GASB) Statement No. 67
for the plan year ending December 31, 2023. Similarly, we will provide a separate report later
in the year containing the pension expense, net pension liability, and disclosure information for the city’s compliance with GASB 68 for the fiscal year ending September 30, 2024. GASB 68 prescribes the city’s accounting for your fund, while this actuarial valuation report reflects the assumed continuation of the current funding policy, first adopted in December 2017.
We certify that we are members of the American Academy of Actuaries who meet Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained in this report.
Sincerely,
Mark R. Fenlaw, F.S.A.
Rebecca B. Morris, A.S.A.
i:\clients\fire\wd\vals\2024\denton\denton-12-31-23.docx
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DENTON FIREMEN’S RELIEF
AND RETIREMENT FUND ACTUARIAL VALUATION
AS OF DECEMBER 31, 2023
RUDD AND WISDOM, INC.
TABLE OF CONTENTS
Section I Valuation Summary..................................................................................... 1
Section II Key Results of the Actuarial Valuation ...................................................... 7
Section III Benefit Improvements .............................................................................. 10
Exhibit 1 Distribution of Firefighters by Age and Service ..................................... 11
Exhibit 2 Summary of Pensioner Data .................................................................... 12
Exhibit 3 Firefighter and Pensioner Reconciliation ............................................... 13
Exhibit 4 Breakdown of Pensioners by Monthly Benefit Amounts ....................... 14
Exhibit 5 Historical Comparison of Actuarial Accrued Liability and Actuarial Value of Assets ......................................................................... 15
Exhibit 6 Summary of Asset Data ............................................................................ 16
Exhibit 7 Statement of Changes in Assets ............................................................. 17
Exhibit 8 Development of Actuarial Value of Assets ............................................. 18
Exhibit 9 Historical Comparison of Market and Actuarial Value of Assets ........................................................................................................ 19
Exhibit 10 Comparison of Market Value Asset Allocation as of the Prior and Current Actuarial Valuation Dates .................................................... 20
Exhibit 11 Actuarial Methods and Assumptions ...................................................... 21
Exhibit 12 Disability Rates, Termination Rates, and Compensation
Increases ................................................................................................... 25
Exhibit 13 Definitions ................................................................................................. 26
Exhibit 14 Summary of Present Plan ......................................................................... 28
Appendix A Review of the Actuarial Economic Assumptions ................................... 30
Appendix B Other Disclosures as of December 31, 2023 ........................................... 33
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DENTON FIREMEN’S RELIEF
AND RETIREMENT FUND ACTUARIAL VALUATION
AS OF DECEMBER 31, 2023
RUDD AND WISDOM, INC. PAGE 1
Section I
Valuation Summary An actuarial valuation of the assets and liabilities of the Denton Firemen’s Relief and Retirement Fund as of December 31, 2023 has been completed. The valuation was based on the Present Plan (plan effective July 1, 2022) and the provisions of the Texas Local Fire
Fighters’ Retirement Act (TLFFRA) which were in effect on December 31, 2023. Section II shows the summary of key results of the actuarial valuation as of December 31, 2023 and discusses the significant changes since the prior valuation that we prepared as of December 31, 2021.
The city’s funding policy for the fund, first adopted in December 2017, has been a part of the Meet and Confer Agreements effective October 1, 2019 and October 1, 2023. The funding policy is a modified actuarially determined contribution rate (ADCR). Under that policy, the city’s initial contribution rate was set at 18.5% and is to be re-evaluated by the city council
following every actuarial valuation. The funding policy has the intent of paying off the unfunded actuarial accrued liability (UAAL) over a closed 25-year period or sooner. The policy language implies that the rate should stay at 18.5% for at least the first five years, even if the ADCR is less than 18.5%, in order to pay down the UAAL. A key requirement of the
policy is city approval of any change to the contribution level. The funding policy begins with the 18.5% city contribution rate, has an ADCR over a closed 25-year period we assume began January 1, 2018, but in no event will the city contribution
rate be less than the contribution rate to its TMRS plan for the other city employees. The ADCR over the 19 years remaining in the closed period as of December 31, 2023 is 13.33% based on this actuarial valuation. The TMRS rate for the year beginning January 1, 2024 is 18.94% and for the year beginning January 1, 2025 is 18.88%. In spite of the city contribution rate somewhat above 18.5% in 2024 and 2025, we assumed the city would contribute a level 18.5% each year to actuarially determined the UAAL amortization period. With the assumed continuous future 18.5% city contribution rate, there would be a total contribution rate each year of 31.1%, comprised of 12.6% by the firefighters and 18.5% by the city. The total contribution rate of 31.1% exceeds the normal
cost rate of 22.16%, leaving 8.94% available to amortize the UAAL of $14,816,720. Assuming that the total payroll increases at the rate of 3% per year in the future, the contributions in excess of the normal cost would be expected to amortize the UAAL in 6.5 years.
There are several reasons that support the city planning to keep its contribution rate at no less than 18.5%:
• Continuing to contribute at least 18.5% each year would continue to accelerate both the amortization of the UAAL and increasing the funded ratio.
• It would hedge against potential future adverse experience, such as the investment experience in 2018 and in 2022, as well as all other experience losses such as the ones that have occurred in the last three actuarial valuations.
• It would better position the fund to provide another ad hoc increase in the monthly benefit for retirees at some future date without a rate increase.
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DENTON FIREMEN’S RELIEF
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AS OF DECEMBER 31, 2023
RUDD AND WISDOM, INC. PAGE 2
The city should also consider contributing more to the retirement plan for its firefighters than to TMRS every year for these reasons:
1.Low firefighter turnover – Their lower turnover than other city employees means that ahigher percent of firefighters will ultimately qualify for a retirement benefit than other city
employees. As a result, their benefits cost more as a percent of pay.
2.Physical demands of the job – Because of this, firefighters tend to retire at earlier agesthan other city employees. As a result, their benefits cost more as a percent of paybecause they are paid over a longer period of retirement.
3.Post-retirement increases – Retirees in TMRS have for years been getting annualincreases in their monthly benefits based on 70% of the CPI while retired firefighters havehad only two increases since 2008, a modest 2% increase in 2008 and a modest tier ofincreases in 2022 (4% for those retired for 15 or more years, 3% for those retired for 10
to 15 years, and 2% for those retired 5 to 10 years).
4.Employee contribution rates – Firefighters contribute 12.6% of their pay to the fundwhile other city employees contribute only 7% to TMRS.
In order for a retirement plan to have an adequate contribution arrangement, contributions
must be made that are sufficient to pay the plan’s normal cost and to amortize the plan’s UAAL over a reasonable period of time. Based on the current Texas Pension Review Board (PRB) pension funding guidelines, our professional judgment, and the actuarial assumptions and methods used in making this valuation, we consider periods of 20 years or less to be
preferable and 30 years to be the maximum acceptable period. Since the total assumed
contributions are sufficient to pay the fund’s normal cost and to amortize the fund’s UAAL in 6.5 years, we are of the opinion that the fund, based on present levels of benefits and assumed contributions has an adequate contribution arrangement. Section III presents considerations for future benefit improvements.
Projected Actuarial Valuation Results
In addition to completing this actuarial valuation, we estimated the amortization periods as of December 31, 2025 and as of December 31, 2027 by making projections from the
December 31, 2023 actuarial valuation and assuming a fixed city contribution rate of 18.5% until the UAAL is amortized. These projections examine the effect on the amortization period in the next two actuarial valuations of the actuarial investment gains and losses that the fund experienced in the four years prior to the valuation date (loss in 2022 and gains in 2020, 2021,
and 2023) that have been only partially recognized as of December 31, 2023. As shown in Exhibit 8, a smoothing method is used to determine the actuarial value of assets (AVA) for this valuation. This method phases in over a five-year period any investment gains or losses (net actual investment return greater or less than the actuarially assumed investment return) that the fund has had. The AVA used in this current valuation is deferring recognition of
various portions of the gains and losses in 2020-2023 that the fund experienced. The AVA used in this valuation is $152,516,894. The market value of assets (MVA) is $152,072,995. The $443,899 difference between the MVA and the AVA is the deferred net loss over the past four years that will be recognized in the next two actuarial valuations.
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DENTON FIREMEN’S RELIEF
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AS OF DECEMBER 31, 2023
RUDD AND WISDOM, INC. PAGE 3
The theory behind the AVA method is to allow time for investment gains and losses to partially
offset each other and thereby dampen the volatility associated with the progression of the MVA over time. In practice, the timing and amounts of investment gains and losses can result in irregular effects on the AVA in a given year. However, as intended, the pattern of the AVA is smoother over time than the pattern of the MVA, as seen in Exhibit 9. That exhibit shows that the $14 million deferred net gain from two years ago greatly helped cushion the effect of
the large investment loss in 2022.
For the purpose of projecting the amortization period through 2027 we used six scenarios of various assumed annual rates of investment return, net of investment-related expenses, over
the 2024-2027 projection period. These projections show the expected effects over the next four years after the valuation date (1) of the recognition of the portions of the investment gains and losses over the past four years that are deferred as of December 31, 2023, and (2) of investment returns over the next four years different from the 6.75% assumption used in this valuation.
Scenario
1 2 3 4 5 6
Assumed Investment Return for Calendar Year 2024
2025 2026 2027
2028 and later
6.75%
6.75 6.75 6.75
6.75
4.00%
6.75 6.75 6.75
6.75
4.00%
4.00 10.00 10.00
6.75
10.00%
6.75 6.75 6.75
6.75
10.00%
10.00 6.75 6.75
6.75
0.00%
0.00 10.00 10.00
6.75
Amortization Period in Years
as of December 31: 2023 (actual) 2025 (projected) 2027 (projected)
6.5 4.0 2.7
6.5 4.8 4.4
6.5 5.2 4.2
6.5 3.0 0.9
6.5 2.5 0.0
6.5 7.4 9.1
The projected amortization period as of December 31, 2027 in Scenario 1 (no investment gains or losses) reveals that the expected decrease of four years from 6.5 years to 2.5 years is almost realized because of the very small effect of the $443,899 deferred net loss.
Scenarios 2 and 3 assume modestly adverse investment experience that would not cause an increase in the amortization period. Scenario 6 assumes fairly adverse investment experience in 2024 and 2025, but because of the very low 6.5-year amortization period in the December 31, 2023 actuarial valuation, the projected amortization periods stay under 10
years. The favorable investment experience in 2024 and 2025 of Scenario 5 would accelerate the amortization of the unfunded liability so that it would be fully amortized by December 31, 2027.
We do not know what the investment experience will be for each of the next four calendar years. Variations in experience from the underlying assumptions, other than investment return, will cause the actual amortization periods to be different from the periods shown above, but investment experience will be the biggest influence on future actuarial valuations. In addition, the future investment experience in each of the next four years could be better or
26
DENTON FIREMEN’S RELIEF
AND RETIREMENT FUND ACTUARIAL VALUATION
AS OF DECEMBER 31, 2023
RUDD AND WISDOM, INC. PAGE 4
worse than the assumed rates shown. These scenarios present a range of scenarios for the
next two valuations assuming no changes in contribution rates or benefits or assumptions. Participant and Asset Data
We have relied on and based our valuation on the active firefighter data, pensioner data, and asset data provided on behalf of the board of trustees by Gary Calmes, who provides
administrative services for the board of trustees. We have not audited the data provided but have reviewed it for reasonableness and consistency relative to the data provided for the December 31, 2021 actuarial valuation. Exhibit 1 is a distribution of the active firefighters by age and service. The assumed 2024 compensation used for projecting future contributions
and benefits for each active firefighter in the valuation was the actual compensation for calendar year 2023, adjusted by 6% to reflect the effect of the approximately 6% general pay increase effective in February 2024. The total of these assumed compensation amounts is our assumed annualized covered payroll for the plan year beginning January 1, 2024 and is used to determine the UAAL amortization period with the assumed 18.5% city contribution
rate. The averages of the assumed compensation amounts for the 2024 plan year are shown in Exhibit 1. Exhibit 2 contains summary information on the pensioners. The monthly benefit payments
are generally based on the amounts paid in January 2024. Exhibit 3 is a reconciliation of firefighters and pensioners from December 31, 2021 to December 31, 2023. Exhibit 4 shows a breakdown of the dollar amount of the monthly benefits for retirees and surviving spouses. Exhibit 5 shows a historical comparison of the actuarial accrued liability and the actuarial value of assets.
The summary of assets contained in Exhibit 6 is based on the December 31, 2023 market value of assets contained in the information received from the board. This exhibit also shows a comparison with the market values and actuarial values of assets as of December 31, 2021
and December 31, 2023. Exhibit 7 contains the statement of changes in assets for 2023 and 2022. Exhibit 8 shows the development of the actuarial value of assets. Exhibit 9 shows a historical comparison between the market value and actuarial value of assets. A comparison of the market value asset allocation by asset class as of December 31, 2021 and
December 31, 2023 is shown in Exhibit 10. Assumptions
As a part of each actuarial valuation, we review the actuarial assumptions used in the prior actuarial valuation. As a result of our review, we have selected and used actuarial
assumptions we consider to be reasonable and appropriate estimates of future experience for the fund for the long-term future. Their selection complies with the applicable actuarial standards of practice. Significant actuarial assumptions used in the valuation are:
1. 6.75% annual investment return net of investment-related expenses;
2. 3% annual general compensation increase combined with promotion, step, and longevity increases which average 1.98% per year over a 30-year career;
3. Retirement rates which result in an average expected age at retirement of 57.0; and
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DENTON FIREMEN’S RELIEF
AND RETIREMENT FUND ACTUARIAL VALUATION
AS OF DECEMBER 31, 2023
RUDD AND WISDOM, INC. PAGE 5
4.PubS-2010 (safety employees) total dataset mortality tables projected for mortality
improvement using scale MP-2019.
No changes in actuarial assumptions have been made compared to those used in the December 31, 2021 valuation. A summary of all the assumptions and methods used in the valuation is shown in Exhibits 11 and 12. In our opinion, the assumptions used, both in the
aggregate and individually, are reasonably related to the experience of the fund and to reasonable expectations.
Other Supporting Exhibits
Exhibit 13 contains definitions of terms used in this actuarial valuation report. Exhibit 14
summarizes the plan provisions of the Present Plan. Appendix A documents our review of the economic assumptions.
Funding Policy for the City
After negotiations in 2017 among representatives from the city manager’s office, the board of trustees, and the Denton Fire Fighters Association, an agreement was reached to amend the prior Meet and Confer Agreement. Final approval by the city council occurred in December
2017. The same language was included in the Meet and Confer Agreements effective October 1, 2019 and October 1, 2023. The city’s funding policy for the fund is a modified actuarially determined contribution rate (ADCR) policy summarized below.
•The funding policy is intended to fully pay off the UAAL over a closed 25-year
amortization period that we assume began January 1, 2018.
•The city began contributing 18.5% of compensation in late December 2017.
•Each subsequent actuarial valuation for the board will include the modified ADCR forthe city’s review.
•If the actuarial valuation and modified ADCR are determined to be reasonable by the
city, the city’s contribution rate will be adjusted to the new modified ADCR beginningon the next October 1st.
•Two minimum constraints for the modified ADCR are that it will not be less than thecity’s TMRS rate or the minimum rate under TLFFRA.
•Any change to the contribution level is subject to final approval by the city.
Variability in Future Actuarial Measurement
Future actuarial measurements may differ significantly from the current measurements
presented in this report due to such factors as the following:
•Plan experience differing from that anticipated by the current economic ordemographic assumptions;
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DENTON FIREMEN’S RELIEF
AND RETIREMENT FUND ACTUARIAL VALUATION
AS OF DECEMBER 31, 2023
RUDD AND WISDOM, INC. PAGE 6
•Increases or decreases expected as part of the natural operation of the methodologyused for these measurements;
•Changes in economic or demographic assumptions; and
•Changes in plan provisions.
Analysis of the potential range of such future measurements resulting from the possible sources of measurement variability was provided in the projected amortization periods for the next two biennial actuarial valuations under six scenarios. These projections were designed to assess the risk of variance of potential future investment rates of return in the four years
following the actuarial valuation date from the assumed 6.75% rate and the potential effect on the amortization period. Additional or other sensitivity analysis could be performed in a subsequent report if desired by the board of trustees.
Respectfully submitted, RUDD AND WISDOM, INC.
Mark R. Fenlaw Rebecca B. Morris Fellow, Society of Actuaries Associate, Society of Actuaries Member, American Academy of Actuaries Member, American Academy of Actuaries
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DENTON FIREMEN’S RELIEF
AND RETIREMENT FUND ACTUARIAL VALUATION
AS OF DECEMBER 31, 2023
RUDD AND WISDOM, INC. PAGE 7
Section II
Key Results of the Actuarial Valuation
December 31, December 31, 20211 2023 1.Actuarial present value of future benefitsa.Those now receiving benefits or formerfirefighters entitled to receive benefitsb. Firefightersc.Total
2.Actuarial present value of future normal costcontributions
3.Actuarial accrued liability (Item 1c – Item 2)
4.Actuarial value of assets
5. Unfunded actuarial accrued liability(UAAL) (Item 3 - Item 4)
6.Contributions (percent of pay)a. Firefightersb.City of Denton2
c. Total
7.Normal cost (percent of payroll)
8.Percent of payroll available to amortize the UAAL(Item 6c - Item 7)
9.Annualized covered payroll
10.Actuarially determined period to amortize theUAAL based on Item 6b continuing
11.Funded ratio (Item 4 ÷ Item 3)3
$ 50,741,710 149,133,377 $ 199,875,087
$ 57,435,441
$ 142,439,646
$ 126,483,819
$ 15,955,827
12.60% 18.50% 31.10%
22.23%
8.87%
$ 23,631,852
9.1 years
88.8%
$ 57,450,474 182,054,172 $ 239,504,646
$ 72,171,032
$ 167,333,614
$ 152,516,894
$ 14,816,720
12.60% 18.50% 31.10%
22.16%
8.94%
$ 28,955,532
6.5 years
91.1%
1 All items are from the December 31, 2021 actuarial valuation and reflect the Present Plan. 2 For both actuarial valuations, 18.5% is the initial contribution rate in the current city funding policy, and was assumed to continue. 3 The funded ratio is not appropriate for assessing either the need for or the amount of future contributions or the adequacy of the assumed contribution rates. Using the market value of assets instead of the actuarial value of assets for Item 11 would have resulted in funded ratios of 98.7% as of December 31, 2021 and 90.9% as of December 31, 2023. The best indicator of the fund’s health is Item 10.
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DENTON FIREMEN’S RELIEF
AND RETIREMENT FUND ACTUARIAL VALUATION
AS OF DECEMBER 31, 2023
RUDD AND WISDOM, INC. PAGE 8
Changes in the Unfunded Actuarial Accrued Liability
In comparing this actuarial valuation to the prior one, the UAAL decreased by $1,139,107 from $15,955,827 as of December 31, 2021 to $14,816,720 as of December 31, 2023. The table below summarizes the reasons for the decrease.
Reason for Change Amount
• Expected decrease (assumed amortization payments accumulated with interest exceeding interest on UAAL)
• Investment gain for the two years (based on the AVA average annual return of 7.8%)
• Experience loss (net difference between actual experience and assumed experience for contributions, pay increases, retirements,
mortality, and terminations, but primarily due to greater pay increases than expected)
Total
$ (2,310,995)
(2,887,166)
4,059,054
$ (1,139,107)
Changes in the Actuarially Determined Amortization Period
The amortization period, based on the Present Plan provisions, was determined in the actuarial valuation as of December 31, 2021, to be 9.1 years. Since two years have passed since that valuation date, a 7.1-year amortization period would be expected if all actuarial assumptions had been exactly met, no changes had occurred (other than those expected) in
the firefighter and pensioner data, and no changes in assumptions or benefits or funding policy had been made. The amortization period is now 6.5 years based on the same assumptions, funding policy and plan provisions. The actual experience occurring between December 31, 2021 and December 31, 2023 differed from the expected experience, and the resulting amortization period is 6.5 years, which is 0.6 of a year less than the expected 7.1-
year period for the following reasons: 1. The average annual rate of investment return, net of investment-related expenses, on the market value of assets during the two plan years 2022 and 2023 was 2.2%. However,
the actuarial value of assets (AVA) used in the valuation and the determination of the amortization period is based on an adjusted market value. The average annual rate of return on the AVA, net of investment-related expenses, for plan years 2022 and 2023 was 7.8% compared to the assumed rate of return for those years of 6.75%. This caused a decrease in the amortization period of 1.7 years.
2. The aggregate payroll increased at an average rate of 10.7% per year, compared to the assumed 3% per year rate, which caused the amortization period to decrease by 0.8 of a year.
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DENTON FIREMEN’S RELIEF
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AS OF DECEMBER 31, 2023
RUDD AND WISDOM, INC. PAGE 9
3. The net result of all experience other than the investment experience and the aggregate
payroll experience had the combined effect of increasing the amortization period by 1.9 years. This was the net result primarily of greater-than-expected pay increases in the last two years.
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DENTON FIREMEN’S RELIEF
AND RETIREMENT FUND ACTUARIAL VALUATION
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Section III
Benefit Improvements
The funding policy in the current Meet and Confer Agreement effective October 1, 2023 is silent on benefit improvements. The prior agreement effective October 1, 2019 said that there would be no benefit enhancements until after September 30, 2023. However, in May 2022, the city council agreed to a set of tiered post-retirement increases of 4%, 3%, or 2%,
depending on the length of time since the initial benefit commenced. Perhaps they were influenced by the fact that there had been no prior ad hoc increase for the retirees since a 2% increase in 2008. In contrast, the retirees in the TMRS plan have received an increase each January for many years based on 70% of the increase in the CPI.
We understand that there is interest in determining the cost to the fund of adding an automatic annual increase in benefits for retirees (current and future retirees) that would be comparable to the annually repeating cost-of-living adjustment (COLA) for retirees in the TMRS plan for other city employees. Separately, we will provide a description of a COLA special study and
fee quote.
In addition, the funding policy references the interest to place dispatchers in the TMRS plan. We have completed a special study report on the dispatchers dated December 9, 2021 and more recently November 29, 2023.
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DENTON FIREMEN’S RELIEF
AND RETIREMENT FUND ACTUARIAL VALUATION
AS OF DECEMBER 31, 2023
RUDD AND WISDOM, INC. PAGE 11
Exhibit 1
Distribution of Firefighters by Age and Service on December 31, 2023 with Average Annual Salary
Years of Service
Age
Total Average Salary Under 25 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60 or Over 0 1 2 3 4
5 6 7 8 9
10 11 12 13 14
15 16 17 18 19
20-2425-2930-3435+
Totals
5 5 3 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0
13
7 7 5 4 0
2 2 1 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0
28
5 5 4 4 0
3 4 3 3 0
4 2 1 0 0
0 0 0 0 0
0 0 0 0
38
0 2 4 5 1
3 4 5 3 0
4 1 4 1 0
0 0 2 0 0
0 0 0 0
39
0 0 0 0 0
1 0 2 3 2
0 7 2 1 1
3 1 5 4 1
4 0 0 0
37
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
1 1 4 5 2
13 1 0 0
27
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
1 0 4 2 1
15 7 4 0
34
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
6 9 4 1
20
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0
0
17 19 16 13 1
9 10 11 9 2
8 10 7 2 1
5 2 15 11 4
38 17 8 1
236
$ 82,824 83,044 93,747 99,922 117,009
108,073 114,497 121,204 118,886 149,033
129,559 123,692 122,811 152,499 170,312
128,266 131,210 132,746 144,043 149,411
141,077 156,468 170,516 164,391
$122,693
Average $86,363 $103,547 $134,283 $150,210 Salary $94,173 $115,328 $141,328 $143,597 $122,693
Average age 39.9 Average years of service 12.4 Average age at hire 27.5
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DENTON FIREMEN’S RELIEF
AND RETIREMENT FUND ACTUARIAL VALUATION
AS OF DECEMBER 31, 2023
RUDD AND WISDOM, INC. PAGE 12
Exhibit 2
Summary of Pensioner Data
Type of Benefit
Pensioner Data Used in December 31, 2023 Valuation
Number of Recipients
Total Monthly Benefit Payments
Service Retirement1
Disability Retirement Vested Terminated (Deferred)2
Surviving Spouse Surviving Child
Total
75
0 8 20 1
104
$ 350,850
0 20,392 62,060 1,028
$ 434,330
Type of Benefit
Comparison of Pensioner Count by Type as of
The Prior and Current Actuarial Valuations
December 31, 2021 New Ceased December 31, 2023
Service Retirement1 Disability Retirement
Vested Terminated (Deferred) Surviving Spouse Surviving Child
Total
75 0
7 15 2
99
+70
+1+50
+13
(7) 0
0 0 (1)
(8)
75 0
8 20 1
104
1 Includes three alternate payees receiving benefits according to the terms of a Qualified Domestic Relations Order. 2 Monthly benefit payments are deferred to begin at terminated firefighter’s future retirement date.
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DENTON FIREMEN’S RELIEF
AND RETIREMENT FUND ACTUARIAL VALUATION
AS OF DECEMBER 31, 2023
RUDD AND WISDOM, INC. PAGE 13
Exhibit 3
Firefighter and Pensioner Reconciliation
Firefighters
Current
Payment Status
Vested
Terminated Firefighters Total
1.As of December 31, 2021
2.Change of statusa. retirement
b. disabilityc.deathd.survivor payment beginse.withdrawalf.vested termination
g.completion of paymenth.QDRO alternate payeei.correctionj.net changes
3.New firefighters
4.As of December 31, 2023
211
(7)
0 0 0 (10) (1)
0 0 0 (18)
43
236
92 1
7
0 (7) 5 0 0
(1) 0 0 4
0
96 1
7
0
0 0 0 0 1
0 0 0 1
0
8
310
0
0 (7) 5 (10) 0
(1) 0 0 (13)
43
340
1 Includes three alternate payees receiving benefits according to the terms of a Qualified Domestic Relations Order (QDRO).
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DENTON FIREMEN’S RELIEF
AND RETIREMENT FUND ACTUARIAL VALUATION
AS OF DECEMBER 31, 2023
RUDD AND WISDOM, INC. PAGE 14
Exhibit 4
Breakdown of Pensioners by Monthly Benefit Amounts as of December 31, 2023
Under $2,00140%
$2,001-$4,00030%
$4,001-$6,00020%
Over $6,00010%
Retirees Surviving Spouses
Under $2,001 $2,001-$4,000 $4,001-$6,000 Over $6,000
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DENTON FIREMEN’S RELIEF
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AS OF DECEMBER 31, 2023
RUDD AND WISDOM, INC. PAGE 15
Exhibit 5
Historical Comparison of Actuarial Accrued Liability and Actuarial Value of Assets
(Present Plan Valuations as of December 31)
$ in Millions
81%
89%
91%
81%
82%
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DENTON FIREMEN’S RELIEF
AND RETIREMENT FUND ACTUARIAL VALUATION
AS OF DECEMBER 31, 2023
RUDD AND WISDOM, INC. PAGE 16
Exhibit 6
Summary of Asset Data
Asset Type
Market Value
as of December 31, 2023
Allocation
As a Percent of Grand Total
Equities U.S. Large Cap U.S. Small/Mid Cap International
Total
Alternatives Real Estate MLP’s/Royal Trusts
Total
Fixed Income U.S. Core
Cash Equivalents
Grand Total
$56,259,000 13,974,000 12,556,000
82,789,000
15,812,000 8,410,000
24,222,000
25,829,000
19,232,995
$152,072,9951
37.0% 9.2 8.2
54.4
10.4 5.5
15.9
17.2
12.7
100.0%
1 The grand total is the total in the audited financial report. All of the invested amounts were either from or estimated from the investment consultant’s report, except for an updated value of real estate in the audited financial report. The cash equivalents amount is the balancing item.
Comparison of Asset Values as of the Prior and Current Actuarial Valuation Dates
Market Value Actuarial Value
Actuarial Value as a Percent of Market Value
December 31, 2021 $140,537,577 $126,483,819
90.0%
December 31, 2023 $152,072,995 $152,516,894
100.3%
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DENTON FIREMEN’S RELIEF
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AS OF DECEMBER 31, 2023
RUDD AND WISDOM, INC. PAGE 17
Exhibit 7
Statement of Changes in Assets
for the Years Ended December 31, 2023 and 2022
12/31/20231 12/31/20221
Additions
1. Contributionsa. Employer $ 4,888,426 $ 4,545,905 b. Employees 3,329,414 3,096,130 c.Total $ 8,217,840 $ 7,642,035
2.Investment Incomea.Interest and dividends $ 4,985,104 $ 4,003,453 b.Net appreciation in fair value 8,251,204 (10,096,927) c.Total $ 13,236,308 $ (6,093,474)
3.Other Additions 0 0
Total Additions $ 21,454,148 $ 1,548,561
Deductions 4.Benefit Paymentsa.Monthly benefits $ 4,894,049 $ 4,565,500 b. Lump-sum benefits 815,516 250,972
c.Total $ 5,709,565 $ 4,816,472
5. Expensesa. Investment-related $ 386,740 $ 352,587
b.General administrative 87,648 114,279
c.Total $ 474,388 $ 466,866
Total Deductions $ 6,183,953 $ 5,283,338
Net Increase in Assets $ 15,270,195 $ (3,734,777)
Market Value of Assets (Fiduciary Net Position) Beginning of Year $ 136,802,800 $ 140,537,577
End of Year $ 152,072,995 $ 136,802,800
Rate of Return Net of All Expenses 9.24% (4.62)% Net of Investment-Related Expenses 9.31% (4.54)%
Gross 9.60% (4.30)%
Investment-Related Expenses (Direct) 0.29% 0.24%
1Audited
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DENTON FIREMEN’S RELIEF
AND RETIREMENT FUND ACTUARIAL VALUATION
AS OF DECEMBER 31, 2023
RUDD AND WISDOM, INC. PAGE 18
Exhibit 8
Development of Actuarial Value of Assets
Calculation of Actuarial Investment Gain/(Loss) Based on Market Value for Plan Years Ending December 31 2023 2022 2021 2020 1. Market Value of Assets as of Beginning of Year 2. Firefighter Contributions 3. City Contributions 4. Benefit Payments and Administrative Expenses1 5. Expected Investment Return2 6. Expected Market Value of Assets as of End of Year 7. Actual Market Value of Assets as of End of Year 8. Actuarial Investment Gain/(Loss) 9. Market Value Rate of Return Net of Expenses 10. Rate of Actuarial Investment Gain/(Loss)
$136,802,800 3,329,414 4,888,426 (5,797,213) 9,315,885 148,539,312 152,072,995 3,533,683 9.31% 2.56%
$140,537,577 3,096,130 4,545,905 (4,930,751) 9,577,792 152,826,653 136,802,800 (16,023,853) (4.54)% (11.29)%
$117,198,139 2,894,437 4,249,769 (5,011,139) 7,982,865 127,314,071 140,537,577 13,223,506 17.93% 11.18%
$103,815,795 2,771,532 4,069,311 (5,772,448) 7,043,624 111,927,814 117,198,139 5,270,325 11.80% 5.05%
1 Administrative expenses are included because the investment return assumption was net of investment-related expenses for those years. 2 Assuming uniform distribution of contributions and payments during the plan year; actuarially assumed investment return was 6.75%.
Deferred Actuarial Investment Gains/Losses to be Recognized in Future Years Plan Year Investment Gain/(Loss) Deferral Percentage Deferred Gain/(Loss) as of 12/31/2023
2023 2022 2021 2020 Total
$ 3,533,683 (16,023,853) 13,223,506 5,270,325
80% 60% 40% 20%
$ 2,826,946 (9,614,312) 5,289,402 1,054,065 $ (443,899)
Actuarial Value of Assets as of December 31, 2023
11. Market Value of Assets as of December 31, 2023 12. Deferred Gain/(Loss) to be Recognized in Future 13. Preliminary Value (Item 11 – Item 12) 14. Corridor for Actuarial Value of Assets
a. 90% of Market Value as of December 31, 2023 (minimum) b. 110% of Market Value as of December 31, 2023 (maximum) 15. Actuarial Value as of December 31, 2023
16. Write Up/(Down) of Assets (Item 15 – Item 11)
$ 152,072,995 (443,899) $ 152,516,894
$ 136,865,696 $ 167,280,295 $ 152,516,894
$ 443,899
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DENTON FIREMEN’S RELIEF
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AS OF DECEMBER 31, 2023
RUDD AND WISDOM, INC. PAGE 19
Exhibit 9
Historical Comparison of Market and Actuarial Value of Assets(Valuation as of December 31)
$ in Millions
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DENTON FIREMEN’S RELIEF
AND RETIREMENT FUND ACTUARIAL VALUATION
AS OF DECEMBER 31, 2023
RUDD AND WISDOM, INC. PAGE 20
Equities61%Cash & Equivalent11%
Fixed Income14%
Alternatives14%
December 31, 2021
Exhibit 10
Comparison of Market Value Asset Allocation as of the Prior and Current Actuarial
Valuation Dates
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DENTON FIREMEN’S RELIEF
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AS OF DECEMBER 31, 2023
RUDD AND WISDOM, INC. PAGE 21
Exhibit 11
Actuarial Methods and Assumptions
A.Actuarial Methods
1.Actuarial Cost Method
The Entry Age Actuarial Cost Method is an actuarial cost method in which the actuarialpresent value of projected benefits of each active firefighter included in the valuationis allocated as a level percentage of compensation over the period from age at hire tothe last age before 100% assumed retirement. Each active firefighter’s normal cost is
the current annual contribution in a series of annual contributions which, if madethroughout the firefighter’s total period of employment, would fund his expectedbenefits. Each firefighter’s normal cost is calculated to be a constant percentage ofhis expected compensation in each year of employment. The normal cost for the fundis the sum of the normal costs for each active firefighter for the year following the
valuation date. The normal cost as a percent of payroll reflects that contributions aremade biweekly.
The fund’s actuarial accrued liability is the excess of the actuarial present value of
projected benefits over the actuarial present value of all future remaining normal costcontributions. The unfunded actuarial accrued liability (UAAL) is the amount by whichthe actuarial accrued liability exceeds the actuarial value of assets. The UAAL isrecalculated each time a valuation is performed. Experience gains and losses, whichrepresent deviations of the UAAL from its expected value based on the prior valuation,
are determined at each valuation and are amortized as part of the newly calculatedUAAL.
2.Amortization Method
The UAAL is assumed to be amortized with level percentage of payroll contributions(total assumed contribution rate less normal cost contribution rate) based on assumedpayroll growth of 3% per year. The actuarial determination of the amortization periodreflects that contributions are made biweekly, as does the actuarially determinedUAAL amortization contribution rate with the closed amortization period.
3.Actuarial Value of Assets Method
All assets are valued at market value with an adjustment made to uniformly spreadactuarial gains or losses (as measured by actual market value investment return vs.
expected market value investment return) over a five-year period. The total adjustmentamount shall be limited as necessary such that the actuarial value of assets shall notbe less than 90% of market value nor greater than 110% of market value. SeeExhibit 8.
B.Actuarial Assumptions
As a part of each actuarial valuation, we review the actuarial assumptions used in theprior actuarial valuation. The investment return assumption is reviewed using the building
block approach that includes several asset allocations, assumed real rates of return foreach asset class, an assumed rate of investment-related expenses, and an assumed rate
44
DENTON FIREMEN’S RELIEF
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AS OF DECEMBER 31, 2023
RUDD AND WISDOM, INC. PAGE 22
of inflation, with all assumptions for the long-term future. Our economic assumptions are
influenced both by long-term historical experience and by future expectations of investment consultants and economists, but we select the economic assumptions and discuss them with the board as a part of the actuarial valuation. See our review of the economic assumptions in Appendix A.
We review the termination and retirement experience since the prior valuation and periodically look back more than two years. We also periodically review the average salaries by years of service to get insights into the promotion, step, and longevity compensation patterns for the purpose of reviewing our compensation increase
assumption. For the mortality assumptions, we use an appropriate published mortality table with projections for improvement beyond the valuation date. We are guided in our review and selection of assumptions by the relevant actuarial standards of practice. As a result of our review, we have selected actuarial assumptions we consider to be reasonable and appropriate for the fund for the long-term future.
1.Investment Return
6.75% per year net of investment-related expenses.
2.Inflation
2.5% per year included in compensation increases and investment returnassumptions.
3.Mortality Rates
PubS-2010 (public safety) total dataset mortality tables for employees and for retirees(sex distinct), projected for morality improvement generationally using the projectionscale MP-2019.
4.Compensation Increases
General increases of 3% per year (2.5% inflation plus 0.5% productivity) incombination with promotion, step, and longevity increases that average 1.98% peryear over a 30-year career. See Exhibit 12.
5.Retirement Rates
Age Rate per Year for Firefighters Eligible to Retire
50-5354-58
59-6162-6465
5% 15
30 50 100
The average expected retirement age for firefighters under age 50 based on these rates is 57.0.
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DENTON FIREMEN’S RELIEF
AND RETIREMENT FUND ACTUARIAL VALUATION
AS OF DECEMBER 31, 2023
RUDD AND WISDOM, INC. PAGE 23
6.RETRO DROP Election
a.Percent of firefighters eligible electing RETRO DROP: 100% of serviceretirements eligible to elect at least a 12-month lump sum.
b. Months assumed for lump sum: Maximum they are eligible for, up to 48 months.
7. Termination Rates
See Exhibit 12.
8.Disability Rates
See Exhibit 12.
9.Reduction in Benefit after 2½ Years of Disability Retirement
45% weighted average reduction in benefit.
10.Percent Married
90% of the firefighters are assumed to be married at retirement, disability, or deathwhile employed, with male firefighters having a spouse four years younger and femalefirefighters having a spouse four years older. We use actual spouse data once a
monthly benefit is being paid.
11.Payment Form for Retirement Benefits Due to Service Retirement, DisabilityRetirement, or Vested Termination
•Joint and 2/3 to surviving spouse for the 90% assumed to be married
•Life annuity for the 10% assumed to be single
To the extent optional forms of payment are elected and the amounts are determined
under an actuarial basis which differs from the basis used in the valuation, actuarial gains or losses will occur. These gains or losses are expected to be very small and will be recognized through the valuation process for those retiring since the prior valuation who made an optional election.
12.Surviving Child’s Death Benefit
None are assumed as a result of future deaths.
13.Firefighters’ Contribution Rate
12.60% of covered pay.
14.City’s Assumed Contribution Rate
For the scenarios with an actuarially determined amortization period for the UAAL,
18.50% of covered payroll for as long as the actuarially determined period.
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DENTON FIREMEN’S RELIEF
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15.Covered Payroll for First Year Following Valuation Date
Actual (or annualized) pay for 2023 with an adjustment of 6% for each firefighter toreflect the effect of the approximately 6% general pay increases effective in February2024.
16.Administrative Expenses
The expenses paid by fund assets for other than investment-related expenses areassumed to be 0.50% of payroll. The normal cost rate as a percent of payroll isassumed to be 0.50% of payroll higher to reflect these expenses.
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DENTON FIREMEN’S RELIEF
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AS OF DECEMBER 31, 2023
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Exhibit 12
Disability and Termination Rates per 1,000 Active Members Compensation Increases by Years of Service
Disability Rates Termination Rates Compensation Increases
Attained Age Rate Years of Service Rate Years of Service Increase Percent 20 21 22 23 24 25 26 27 28 29
30 31
32 33 34
35 36 37 38 39 40 41 42 43 44
45 46 47
48 49
50 51 52 53 54 55 & Over
0.14 0.15 0.16 0.17 0.18 0.19 0.21 0.23 0.25 0.28
0.31 0.35
0.40 0.45 0.49
0.52 0.54 0.57 0.62 0.73 0.92 1.14 1.32 1.48 1.73
2.09 2.55 2.98
3.34 3.62
3.79 3.92 4.04 4.24 4.56 0.00
0 1 2 3 4 5 6 7 8 9
10 11
12 13 14
15 16 17 18 19 20 & Over
60 54 48 42 37 32 27 24 21 19
17 14
12 11 10
9 9 8 8 8 0
1 2 3 4 5 6 7 8 9 10
11 12
13 14 15
16 17 18 19 20 21 22 23 24 25
26 27 28
29 30
31 & Over
9.18% 9.18 9.18 9.18 9.18 6.09 6.09 6.09 6.09 6.09
6.09 6.09
6.09 6.09 6.09
3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00
3.00 3.00 3.00
3.00 3.00
3.00
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DENTON FIREMEN’S RELIEF
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AS OF DECEMBER 31, 2023
RUDD AND WISDOM, INC. PAGE 26
Exhibit 13
Definitions
1.Actuarial Accrued Liability That portion, as determined by the particular actuarial cost method used, of the Actuarial Present Value of future pension plan benefits as of the Valuation Date that is not provided for by the Actuarial Present Value of future Normal Costs.
2.Actuarial Assumptions Assumptions as to the occurrence of future events affecting pension costs, such as: mortality, termination, disablement and retirement; changes in compensation; rates of investment earnings and asset appreciation; and other relevant items.
3.Actuarially Equivalent Of equal Actuarial Present Value, determined as of a given date with each value based on the same set of Actuarial Assumptions.
4.Actuarial Gain (Loss)A measure of the difference between actual experience and that expected based on the Actuarial Assumptions during the period between two Actuarial Valuation dates, as determined in accordance with the particular actuarial cost method used.
5.Actuarial Present Value The value of an amount or series of amounts payable or receivable at various times, determined as of a given date (the Valuation Date) by the application of the Actuarial Assumptions.
6.Actuarial Valuation The determination, as of a Valuation Date, of the Normal Cost, Actuarial Accrued Liability, Actuarial Value of Assets and related Actuarial Present Values for a pension plan.
7.Actuarial Value of Assets The value of cash, investments and other property belonging to a pension plan, as determined by a method and used by the actuary for the purpose of an Actuarial Valuation.
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DENTON FIREMEN’S RELIEF
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8. Entry Age Actuarial Cost
Method
An actuarial cost method under which the Actuarial Present Value of the Projected Benefits of each individual included in the Actuarial Valuation is allocated as a level percentage of compensation over the period from age at hire to the last age before 100% assumed retirement. The portion of this Actuarial Present Value allocated to a valuation year is called the Normal Cost. The portion of this Actuarial Present Value not provided for at a Valuation Date by the Actuarial Present Value of future Normal Costs is called the Actuarial Accrued Liability. Under this method, Actuarial Gains (Losses), as they occur, reduce (increase) the Unfunded Actuarial Accrued Liability.
9. Plan Year A 12-month period beginning January 1 and ending December 31.
10. Normal Cost That portion of the Actuarial Present Value of pension plan benefits that is allocated to a valuation year by the actuarial cost method. 11. Projected Benefits Those pension plan benefit amounts that are expected
to be paid at various future times according to the Actuarial Assumptions, taking into account such items as the effect of advancement in age and past and anticipated future qualified service.
12. Overfunded Actuarial Accrued Liability The excess, if any, of the Actuarial Value of Assets over the Actuarial Accrued Liability. 13. Unfunded Actuarial Accrued
Liability
The excess, if any, of the Actuarial Accrued Liability
over the Actuarial Value of Assets. 14. Valuation Date The date upon which the Normal Cost, Actuarial Accrued Liability and Actuarial Value of Assets are
determined. Generally, the Valuation Date will coincide with the end of a Plan Year. 15. Years to Amortize the Unfunded Actuarial Accrued
Liability
The period is determined in each Actuarial Valuation as the number of years, beginning with the Valuation Date,
to amortize the Unfunded Actuarial Accrued Liability with a level percent of payroll that is the difference between the expected total contribution rate and the Normal Cost contribution rate.
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Exhibit 14
Summary of Present Plan
1.Normal Service Retirement Monthly Benefit as a Percent ofHighest 36-Month Average Salary for Each Year of Service 2.59%
2.Normal Service Retirement Eligibility (Minimum)Age 50 and 20 Years
3.Retroactive Deferred Retirement Option Plan (RETRO DROP)(a)Earliest RETRO DROP benefit calculation date Age 52 and 22 Years (b)Maximum RETRO DROP benefit accumulation period 48 Months
(c)Earliest employment termination date withmaximum RETRO DROP accumulation period Age 56 and 26 Years (d)RETRO DROP lump sum includes(i)Monthly benefits that would have been receivedbetween RETRO DROP benefit calculation date
and end of month of termination of employment,(ii)accumulated contributions made by the firefighterafter the RETRO DROP benefit calculation date, and(iii)no interest
4.Initial Disability Retirement Monthly Benefit as a Percentageof Highest 36-Month Average Salary(a)Minimum percentage 51.80% (b)Additional percentage for each year of service in excess of 20 years 2.59%
5.Disability Retirement Monthly Benefit for Firefighters WhoBecome Totally Disabled while Employed(a)For initial 30-month period, is (i) plus (ii) if not able to
perform job in fire department(i)Minimum monthly amount based on 20 years(ii)Additional monthly amount per year of service inexcess of 20 years
(b)Following initial 30-month period, is the greater of (i) and (ii)(i)Initial benefit reduced by the portion of the initial benefitequal to estimated annual residual earning capacitydivided by annual base earnings(ii)Initial benefit multiplied by percentage of disability
(c)Upon attaining eligibility for normal retirement, the member’svested retirement benefit becomes payable if the disabilitybenefit has been reduced or terminated
6.Vested Terminated Benefit Eligibility
(Benefit Deferred to Normal Retirement Age)10 Years
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DENTON FIREMEN’S RELIEF
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7.Surviving Spouse’s Monthly Death Benefit as a Percent of
Highest 36-Month Average Salary for Each Year of Servicefor Death while an Active Firefighter(a)Minimum percentage 34.53% (b)Additional percentage for each year of service in excess of 20 years 1.73%
8.Surviving Spouse’s Monthly Death Benefit as a Percent ofHighest 36-Month Average Salary for Each Year of Servicefor Death while Eligible to Retire as an Active Firefighter 2.59% x 96%
9.Surviving Children’s Monthly Benefit as a Percent of SurvivingSpouse’s Benefit(a) When the spouse is receiving a benefit, for each child 20% (b) When the spouse is not receiving a benefit or there is no spouse 100%
10.Contributions as a Percent of Payroll by:(a) Firefighters 12.60% (b)City of Denton Funding Policy
11.The normal form of annuity payment at retirement is a Joint and Two-Thirds to SurvivingSpouse, and payment is the first day of each month.
12.A Social Security Leveling Option optional form of payment is available to firefighters
eligible for a service retirement benefit and to surviving spouses of firefighters who diewhile employed where the surviving spouse is between ages 45-60. A Joint and 100% toSurviving Spouse Optional form of payment and a Joint and 50% to Surviving Spouse arealso available to firefighters eligible for a service retirement benefit.
13.Salary used to determine the Highest 36-Month Average Salary includes all elements ofpay except for (a) lump sum distributions upon termination for unused sick leave orvacation and (b) overtime pay earned after June 13, 2007 for special deployments inexcess of $2,000 per biweekly pay period. The average is based on the highestconsecutive 78 biweekly pay periods during active participation in the fund.
14.Refund of firefighters’ accumulated contributions without interest will be made tofirefighters who terminate employment and either are not eligible for any other benefit fromthe fund or request a refund from the fund.
15.A lump sum death benefit will be payable upon the death of a participating member of thefund in an amount equal to the current annual salary of the participating member.
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Appendix A
Review of the Actuarial Economic Assumptions for the December 31, 2023 Actuarial Valuation Asset Allocation and Investment Return Assumption Development
Asset Class
Gross Annual Real Rate of Investment
Return (ROR)1
Asset Allocation
Actual 12/31/20212 Actual 12/31/20233 Current Target4 More Fixed Income Equities Domestic Large Cap Small/Mid Cap International
Fixed Income MPLs, Royalty Trusts Real Estate Cash Total
6.5 7.0 7.0
1.5 7.0 4.5 0.0
39% 9 13
61 14 4 10 11 100%
37% 9 8
54 17 6 10 13 100%
40% 10 10
60 15 8 15 2 100%
40% 8 7
55 20 5 10 10 100% Weighted Average Gross Real ROR Assumption 4.72% 5.46% 4.75% Weighted Average Net Real ROR Assumption5 4.22% 4.96% 4.25% Possible Theoretical Annual Investment Return Assumption: Net Real ROR Plus Assumed Annual Rate of Inflation
Assumed 2.50% Inflation 6.72% 7.46% 6.75% 1 A gross real rate of return is an assumed total annual rate of investment return, before expenses, that is in excess of the assumed annual inflation rate. These are long-term assumptions made by Rudd and Wisdom, Inc.
2 This allocation is from a combination of the investment consultant’s 12/31/2021 report and the auditor’s final 12/31/2021
draft.
3 This allocation is from a combination of the investment consultant’s 12/31/2023 report and the 12/31/2023 audited financial report.
4 This allocation is from the investment consultant’s 12/31/2023 report.
5 A weighted average Net Real ROR is an annual rate equal to the weighted average Gross Real ROR reduced by investment-related expenses of an assumed annual rate of 0.5%.
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AS OF DECEMBER 31, 2023
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Appendix A (continued)
Price Inflation in the USA Average Annual Rates of Increase in the CPI-U
Years Number Average (Dec. to Dec.) of Years Annual Increase
1958 – 2023 65 3.70% 1963 – 2023 60 3.90 1968 – 2023 55 4.00
1973 – 2023 50 3.86 1978 – 2023 45 3.41 1983 – 2023 40 2.81 1988 – 2023 35 2.71
1993 – 2023 30 2.51 1998 – 2023 25 2.54 2003 – 2023 20 2.58
Most inflation forecasts are for 10 years or less. For example, the average 10-year forecast in
the June 2024 Livingston Survey published by the Federal Reserve Bank of Philadelphia was 2.25%. However, 10 years is too short a forecast period for a public employee defined benefit pension plan. In the 2024 annual report of the OASDI Trust Funds (Social Security), the ultimate inflation assumptions for their 75-year projections are 3.0%, 2.4%, and 1.8% for the low-cost, intermediate, and high-cost assumptions, respectively. Looking at the average
annual increase in the CPI-U over historical periods of 30 to 65 years above and considering the Social Security forecasts, we believe that reasonable assumed rates of inflation for the long-term future would range from 2.25% to 3.00%.
Administrative Expenses Paid by the Fund
Plan Year Administrative % of Payroll
Ending 12/31 Expenses Paid by the Fund Covered Payroll (2) ÷ (3)
(1) (2) (3)(4)
2023 $ 87,648 $26,423,921 0.33%2022 114,279 24,572,460 0.472021 87,866 22,971,722 0.38
2020 116,909 21,996,287 0.53
2020-2023 $406,702 $95,964,390 0.42%
The administrative expenses are not reflected in the investment return assumption but are
reflected as a percent of payroll that is added to the normal cost contribution rate. For the December 31, 2023 actuarial valuation, we recommend 0.50%, the average developed above for the last four plan years, rounded up to a multiple of 0.10%. It is the same assumption we used for the December 31, 2021 actuarial valuation. (The covered payroll was determined as the firefighter contributions for the plan year divided by the firefighter contribution rate during
the plan year.)
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Comparison of 12/31/2021 Actuarial Economic Assumptions with 12/31/2023 Actuarial Economic Assumptions
Actuarial Assumption1
12/31/2021 Actuarial Economic Assumptions
12/31/2023 Actuarial Economic Assumptions
Inflation (Price) Net real rate of return2 Net total investment return2
Firefighter pay increase3
Aggregate payroll increase
Administrative expenses
2.50% 4.25 6.75%
4.98%
3.00%
0.50% of payroll
2.50% 4.25 6.75%
4.98%
3.00%
0.50% of payroll
1 All assumptions are annual rates. 2 Net of investment-related expenses. 3 The 4.98% for 12/31/2021 and 12/31/2023 is comprised of a 3.00% annual general compensation increase combined with annual promotion, step, and longevity pay increases that vary by length of service (highest in early years) and that average 1.98% over a 30-year career.
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AS OF DECEMBER 31, 2023
RUDD AND WISDOM, INC. PAGE 33
Appendix B Other Disclosures as of December 31, 2023
Negative Amortization
• As of this actuarial valuation, the fund has no negative amortization because the total contributions in each future year are expected to exceed the sum of the normal cost and
interest on the Unfunded Actuarial Accrued Liability (UAAL), with the UAAL expected to be fully amortized in less than seven years. Reasonable Actuarially Determined Contribution Rate
• The 2024 actuarially determined contribution (ADC) rate resulting from the city’s current funding policy on page 1 is a reasonable ADC rate consistent with actuarial standards of practice. Actuarial Valuation Software
• We have utilized software licensed from Winklevoss Technologies, LLC in the development of the liabilities summarized in the report. We have independently confirmed the model developed by Winklevoss and have sufficiently tested it to ensure the model is an accurate representation of the fund’s liabilities.
Low-Default-Risk Obligation Measure (LDROM)
• The LDROM is a new required disclosure calculated as of the date of the actuarial valuation using a discount rate based on high quality bond yields instead of the expected
return on the fund’s diversified investment portfolio.
Low-Default-Risk Obligation Measure $266,294,086
Actuarial Accrued Liability $167,333,614
• The difference between the LDROM and the actuarial accrued liability determined in this actuarial valuation could be viewed as the expected savings from investing in the fund’s diversified portfolio instead investing only in high quality bonds.
• For our calculation of the LDROM, we have used the same actuarial cost method and actuarial assumptions from this actuarial valuation summarized in Exhibits 11 and 12,
except for an assumed discount rate of 3.26% instead of the investment return assumption of 6.75%. To determine the assumed discount rate, we used the Bond Buyer Index of general obligation bonds with 20 years to maturity, which has an average rating roughly equivalent to Moody’s Investors Services’ Aa2 rating and Standard and Poor’s Corporation AA. The weekly index closest to the December 31, 2023 measurement date
was 3.26%.
• Because the fund’s assets are not invested only in high-quality bonds, the LDROM does not reflect the fund’s actuarial condition, nor does it offer insights into the total contribution required for an adequate contribution arrangement or the security of participant benefits.
56
June 26, 2026 Report No. 2026-039
INFORMAL STAFF REPORT TO AGENDA COMMITTEE
SUBJECT:
Data Center Developments
EXECUTIVE SUMMARY:
This ISR provides a review of departmental policies and processes related to data centers within the City of Denton. Each department has provided a summary of their current state and any staff recommendations that City Council may desire to consider in the future.
BACKGROUND:
On June 2, 2026, Council Member Stevens proposed a future work session to discuss the possibility of creating a policy on how the City of Denton approaches AI data center applications
moving forward. This would include, but is not limited to, a discussion on a temporary moratorium on future applications for the purpose of evaluating whether the projected infrastructure demand, environmental impact, and financial return associated with the two currently approved AI data facilities align with their projections once operational.
Given the confidential and proprietary nature of the City’s Power Purchase Agreements with both Core Scientific, Inc. and WAHA/Qumulus Ai, responsive information specific to these entities will be discussed with City Council in closed session as part of this year’s budget process. Electric and water usage data related to both entities is protected under federal and state law.
DISCUSSION:
What is a Data Center?
Data centers are generally classified into four types: (1) Enterprise – Internal IT operations; (2)
Colocation – Shared hosting for multiple clients; (3) Hyperscale – Cloud services and AI
workloads; and (4) Edge – Low latency local processing. These classifications are not mutually exclusive and overlapping commonly occurs. Over the last several years, there has been a significant decrease in internally hosted enterprise data centers due to increased reliance on cloud and collocated infrastructure. A High-Performance Computing (HPC) or AI data center may be
classified as a colocation and/or a hyperscale data center. A Crypto Mining data center does not
meet any of the above four categories.
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Data centers are further standardized by the following rating system:
The above rating system was developed for traditional data centers and is generally not applicable to HPC/AI or Crypto Mining data centers. An unofficial, but commonly used rating of Tier 0, is generally applied to HPC/AI or Crypto Mining data centers even though components of these data
centers may fall within the Tier I-IV ratings.
In the City of Denton (“the City”), the number of Enterprise data centers is unknown but are commonly found in organizations such as federal, state and local governments, and private companies operating in the city. The policies, processes or staff recommendations in this ISR do
not apply to these common and small data centers, which are essential for daily operations in these
organizations and incorporated into buildings already governed by other local regulations.
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June 26, 2026 Report No. 2026-039
For the types of data centers (Colocation and Hyperscale) addressed in this ISR, there are two within its city limits: (1) Core Scientific, Inc. – HPC/AI data center; and (2) WAHA/Qumulus Ai – Crypto Mining data center. Both data centers would be commonly referred to as Tier 0 data
centers although components may fall within the Tier I-IV ratings. Core Scientific, Inc. data center has entered into a Power Purchase Agreement (PPA) with the City for a peak load power capacity up to 391 MWs including the acquisition of Renewable Energy Credits (RECs) for the full annual power consumption and leased approximately 78 acres of city-owned property. Construction of this data center is nearing completion although maximum capacity available is 297 MWs until
local transmission overloads are resolved. The WAHA/Qulumus AI data center has entered into a PPA with the City for a peak load power capacity up to 20 MWs including the acquisition of RECs for the full annual power consumption and leased approximately 4 acres of city-owned property. Construction of this data center has not yet begun but is anticipated within 90 days. Both data
centers pay 100% of power and transmission costs, including any transmission interconnection
and improvement costs. Each data center has met all Denton Development Code requirements and has been classified as either a warehouse data center (Core Scientific, Inc.) or a modular data center (WAHA/Qumulus Ai). Additional information regarding DDC requirements will be covered in the Development Services section of this ISR.
Finally, in ERCOT, data centers for Crypto Mining and HPC/AI are generally considered Large Loads if they are one or more facilities at a single site with an aggregate peak demand of 75 MW or more behind one or more common points of interconnection. A Large Load could also be an industrial or manufacturing facility, a Hydrogen and Electrofuel production facility, an Oil and
Gas field electric infrastructure, and historical industrial loads like chemical plants and steel mills.
These Large Loads must apply to ERCOT for interconnection, but the process is initiated by the Transmission Service Provider (TSP). For Large Loads below 75 MWs, the interconnection process is handled by the TSP. In the majority of the City, DME is the TSP although Oncor and TMPA (Texas Municipal Power Agency) also own and operate transmission assets in the area.
DISCUSSION: Denton Municipal Electric
Beginning in 2021, data center development for Crypto Mining began in earnest in the United States due to prohibitions in China. Texas became an attractive location due to the availability of land, low electric prices, favorable business climate, and ample natural resources. For DME, like many other electric utilities (private and public), data center development had always been an attractive load due to their high load factors and stable power consumptions. In the case of Crypto
Mining data centers, these loads also offered the ability to “throttle down” during power scarcity periods due to their high price sensitivity and, in an “energy only” market like ERCOT, served as catalysts for further power generation development in the State. However, like other electric utilities, processes and rates/tariffs were not in place to systematically address these large loads so the use of PPAs became a strategic solution along with incorporating lessons learned by others
that were early implementers and the use of external legal advisers with experience in data center developments. Additionally, given DME’s must-serve obligation and, at that time, ample electric infrastructure capacity, the two current data centers were brought forward to City Council for
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consideration. Since that time, and certainly accelerated by these developments, known transmission system overloads have since posed a limitation to serving additional large loads. As of the writing of this ISR, DME has submitted to ERCOT proposed transmission projects totaling
$300 million to resolve these overload issues. If approved, DME and either TMPA or Oncor would jointly construct these projects with an anticipated completion date of 2031, at the earliest. The projects would be reimbursable under the Transmission Cost of Service (TCOS) Tariff, and would be socialized across all of ERCOT and the City would earn a 6.21% rate of return in TCOS revenue. These details have been communicated to large load prospects with loads above 20 MWs
and in most cases, interest by those prospects has all but disappeared. Lastly, ongoing state-wide and regional initiatives by ERCOT (known as the Batch Process) have further caused uncertainty in the data center market, along with generation supply considerations that would be required to meet these loads. According to ERCOT, there are currently over 410 GW of Large Loads (350
GW are data centers of which 80 GW in the DFW area) seeking interconnection and approximately
450 GW of active generation seeking interconnection (Battery, 177 GW; Solar, 162 GW; Wind, 48 GW; and Gas; 60 GW). Without additional generation, these large loads will not be interconnected.
Staff Recommendations (subject to legal review):
1.Formalized application process and the associated fees for data centers.2.Unless superseded by State Law, PUCT regulations or ERCOT protocols, require datacenters to pay 100% of all transmission and/or distribution interconnection costs and
engineering studies.
3.When interconnecting into the local transmission system, require data centers to constructand operate onsite substations for internal load management.4. Require that data center prospects provide evidence of site ownership or control.5.Require that data center prospects provide evidence of an end use customer and that the
development not be for speculation.
6.Require that data center prospects agree to a power security/collateral based on their MWhpower consumption.7.Require that data center prospects agree to make a one-time payment equal to one year’sestimated energy consumption to fund a dedicated and restricted energy reserve. Such
reserve will be created by the City Council and use restricted to protecting ratepayers in
the event of revenue shortfalls from data center customers. Data center customers will notbe entitled to this reserve, nor will payment be refundable.8.Require that data center prospects be subject to any power curtailment mandated byERCOT consistent with all other DME customers.
9.In conjunction with the FY 26/27 budget process, DME to propose a publicly available
base rate tariff(s) based on a cost-of-service study for HPC/AI data centers.10.For Crypto Mining data centers, if any, continue the use of a PPA to better negotiate mark-up costs but require that 100% of power and transmission costs be covered.11.Create a confidential developer agreement that will govern proprietary and critical
infrastructure operations between the developer and DME.
Economic Development
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Data center prospects are evaluated like any other development prospects and eligibility for city incentives are evaluated on a case-by-case basis.
Staff Recommendations:
None
Water & Wastewater
The two data centers currently approved
are projected to use water that is either less or similar to other comparable users. This is due to their use of a closed loop cooling system or an air cooling system. For wastewater discharge, both data centers are subject to all city requirements applicable to any other development.
Staff Recommendations:
To reduce water usage, a closed loop cooling system should be required of all HPC/AI data centers. An air-cooling system may be better suited for Crypto Mining data centers and uses little to no water.
Development Services
In the Spring of 2022, the Development Code Review Committee (DCRC) held discussions regarding proposed Code amendments related to data center uses. Following discussion, the DCRC
recommended the draft regulations be forwarded to the Planning and Zoning Commission and City
Council for consideration. On September 20, 2022, the City Council voted to approved amendments to the DDC, incorporating land use regulations related to data centers and establishing the following regulations.
Zoning Regulations
The Denton Development Code (DDC) classifies data centers into two categories: Modular data centers and warehouse data centers.
Modular data centers are generally defined as the long-term storage of specialized computing
systems and hardware within modular structure(s) including but not limited to pods, shipping containers, cargo containers, and similar storage containers that are used for the sole purpose of remote storing, gathering, processing, and/or analyzing large amounts of data information. Modular data centers are allowed with approval of a Specific Use Permit (SUP) in the Light
Industrial (LI), Heavy Industrial (HI) and Public Facilities (PF) Zoning Districts.
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Warehouse data centers are generally defined as a building or buildings intended for large-scale storage of specialized computing systems and hardware that are used for the sole purpose of remote storing, gathering, processing, and/or analyzing large amounts of data information. Warehouse
data centers are permitted by right in the General Office (GO), Light Industrial (LI), Heavy Industrial (HI) and Public Facilities (PF) Zoning Districts, and are allowed with approval of a SUP in the Mixed-Use Regional (MR), Suburban Corridor (SC) and Highway Corridor (HC) Zoning Districts.
Both modular and warehouse data centers are considered to be Industrial Uses and are subject to Use-Specific Standards in the DDC.
Table 5.2-A: Table of Allowed Uses
P = permitted S = specific use permit required Blank cell = use prohibited + = use-specific standards apply
Residential Mixed-Use Corridor Other
Nonresidential
Use-
Specific
Standards
RR R1 R2 R3 R4 R6 R7 MN MD MR SC HC GO LI HI PF
Industrial Uses
Data Center
Data Center,
Modular
S+ S+ S+ 5.3.6I
Data Center,
Warehouse
S+ S+ S+ P+ P+ P+ P+ 5.3.6J
Use-Specific Standards applicable to modular data centers include:
•Additional landscaping requirements, including at least two elements from DDC Table 7.E:Landscape Area Point System, Section A Right-of-Way Elements be provided along allpublic rights-of-way.
Use-Specific Standards applicable to warehouse data centers include:
•Limited building size to a maximum of 55,000 square feet of gross floor area per lot in theMixed-Use Regional and Suburban Corridor Zoning Districts.
•Requirements that all buildings comply with the design standards established in DDC
Section 7.10.5: Nonresidential and Mixed-Use Building Site and Building Design.
Use-Specific Standards applicable to all data center uses include:
•Requirements that any modular structures, on-site electrical equipment, and any associated
outdoor storage be screened from the public right-of-way and any adjacent residential useor zoning district.
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•Requirements that any modular structures, on-site electrical equipment, and any associatedoutdoor storage area be setback no less than 100 feet from an adjacent residential zoning
district or existing residential use, measured from the property line.
•Noise Regulations:o An environmental noise and vibration assessment is required with the initialapplication for all data center requests.
o Data center operations, including any on-site equipment, shall not cause any noisemore than 60 decibels measured at the property line or shall not cause an increasein the ambient noise level of the area more than 3 decibels.
•Any on-site electric substations are required to comply with DDC Section 7.13.7: Electric
Substation Design.
There are no lighting specific standards for data centers. DDC Section 7.11.3.C has lighting standards specific to developments and the impact to adjacent properties. New developments in the City shall not exceed one foot-candle of light past the property line except in a few specific instances.
Moratorium
House Bill 2559 took effect on September 1, 2025 and changes the rules regarding development moratoriums for cities. The Texas Municipal League stated in their Second-Called Special Session
Update published on August 29, 2025: “The effect of these changes is to make moratoria harder
to adopt and sustain. Cities must now prepare for a months-long process involving extended notice, two hearings, multiple ordinance readings, and a supermajority vote before development can be paused due to a shortage of essential public facilities. Even if adopted, moratoria are capped at 180 days and cannot be repeated in the same area for two years”. For data centers, , this means the City
would need to present evidence for a justification under Texas Government Code 212.135,
212.1351, or 212.1352 demonstrating a need to prevent the shortage of essential public facilities and follow the procedures for adopting the moratorium.
Staff Recommendations:
The City was proactive and adopted land use regulations around data centers in 2022 which was recommended by DCRC and P&Z and ultimately approved by City Council. Ft. Worth recently adopted regulations that increased landscaping requirements adjacent to residential neighborhoods, added regulations around lighting, and provide for distance requirements of
specific mechanical equipment. There are not many areas of the City where this land use would be
allowed with adjacency to residential, however, if City Council desired, City staff could add an item to the DCRC workplan to discuss additional changes to the use specific requirements for data centers.
Fire Inspections
The Denton Fire Department Fire Marshal’s Office (FMO) conducts plan reviews and inspections on all building permits issued for data centers. Additionally, the FMO reviews and issues fire permits, and conducts associated fire permit inspections. Fire permits that are typically required
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June 26, 2026 Report No. 2026-039
(depending on site configuration, water availability, and building size) include permits for fire alarms, fire suppression systems, a fire pump, standpipes, private fire hydrants, and emergency responder radio coverage. Chapter 12 of the 2021 International Fire Code specifically regulates
energy storage systems, fire suppression, and separation requirements for large battery banks, a critical component of data center infrastructure. Future iterations of the International Fire Code will include a specialized guideline (G12 – Data Center Guideline) for standardizing the design and construction practices of large data centers.
One of the most frequently documented challenges with data centers has been the lack of emergency apparatus access, particularly during construction. This challenge has also resulted in many staff hours conducting code checks that failed and subsequent follow-up inspections.
Staff Recommendations:
All City staff and community partners involved in data center projects should set clear expectations with developers that all adopted codes and ordinances shall be strictly followed. Developers should
create an access plan for each phase of construction to ensure emergency access will be provided.
Streets Department
Data centers follow the same process for right of way improvements and street impact fees as any
other development.
Staff Recommendations:
None.
Solid Waste
There is no significant impact to Solid Waste Operations. These facilities are consistent with other large commercial projects that during the construction phase utilize the roll-off service for
construction related debris. During operation, they generate very little solid waste.
Staff Recommendations:
None.
Finance
Data centers represent a significant investment of capital and provide an opportunity for increased revenues for all local taxing jurisdictions, including the City. Applications for new data centers
should include projected real and business property valuations, sales tax, land lease, franchise fee,
and other economic benefits reasonably expected. This information provides staff and City Council a foundation for fiscally responsible decision making. Information regarding the status of property
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June 26, 2026 Report No. 2026-039
tax assessments and projected revenues specific to the two existing data centers will be presented as part of the upcoming budget process. Preliminary assessed values have been provided by the Denton Central Appraisal District (DCAD), and staff are working to verify and analyze the data.
Staff Recommendations:
Finance recommends formalizing specific financial information requirements in the application process and explore thresholds for capital investment, job creation, and revenue expectations to
ensure the scale and economic benefit is aligned with the financial risk.
Environmental Services
Construction-Environmental
May create noise, traffic congestion, dust, loss of green space, and aesthetic changes to the area. These items may be associated with general construction and are not specific to data centers.
Operational-Environmental
May include energy demand, water demand, air emissions noise, and adjacent/nearby property
impacts. Energy and Water demand both are tied to overarching greenhouse gas emissions. Additionally, energy demand concerns include generation/distribution and water demand concerns include impacts on the local water supply. Air emission concerns include aesthetically matching the area and possible disruption of the natural areas. Cooling water system discharge to the sanitary
sewer after pressure test, possible system maintenance, and ultimate system decommissioning.
Business personal property (servers, batteries, etc.) reuse, recycling and disposal.
1.Air Emissions – The Texas Commission on Environmental Quality (TCEQ) regulationscover emergency power generators and include annual hour usage limitations and emission
standards. The City, as part of the DFW Metro Ozone Nonattainment Area is covered by
more stringent TCEQ regulations.2.Natural Areas – The City has ordinances that protect environmentally sensitive areas,protect existing trees, and require landscaping to enhance the natural area.3.Wastewater Discharge – The City has ordinances that regulate discharges to the wastewater
collection system according to Federal, State, and local requirements.
4.Electronic Waste – TCEQ regulations cover the recycling and disposal of electronic wasteand batteries.
Staff Recommendations
None.
CONCLUSION
At the direction of the Agenda Committee, staff will schedule a work session discussion with the
City Council to review the above information and staff recommendations.
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STAFF CONTACT: Tony Puente
DME General Manager
(940) 349-8487
REQUESTOR: Council Member Stevens
STAFF TIME TO COMPLETE REPORT:
Department Staff Time (Hours)
Electric 6.0
Economic Development 0.5
Water/Wastewater 0.5
Fire Inspections 0.5
Streets 0.5
Solid Waste 0.5
Development Services 3.0
Environmental Services 3.0 Finance 1.0
PARTICIPATING DEPARTMENTS: Electric, Economic Development, Water/Wastewater, Fire Inspections, Streets, Solid Waste, Development Services, Finance and Environmental Services.
66
Friday Report - Council Requests FY 25-26Summary of Request or ItemCouncil Member Requestor Date Received Staff AssignedDepartmentCommentsStatus1Speeding on Robinwood Lane andWilsonwood/EmersonCouncil Member Stevens 05/14/26 Farhan ButtDevelopment ServicesAudit scheduled for June 24.2DHA Public Notice Requirements Mayor Pro Tem Rumohr06/17/26 Charlie Rosendahl, Jesse Kent Community Services Development Services Referred to staff.3Baby Changing StationsCouncil Member Rumohr MayorPro Tem Stevens06/25/26 Christine TaylorCMOReferred to staff.4Data Centers State DirectiveMayor Hudspeth06/22/26 Antonio PuenteDMEResponse sent.5Pavement improvements on SkylarkDriveCouncil Member Rumohr 06/24/26 seth.garcia@cityofdenton.com Capital Projects/Engineering/Public Works Response sent.6Lake Forest LakeCouncil Member Holland 06/25/26 Allison WingParksResponse sent.7City text message service data Council Member Rumohr 06/24/26 kayla.herrod@cityofdenton.com Marketing and CommunicationResponse sent.8Chinn Rd Zoning InquiryCouncil Member Stevens 06/18/26 Charlie RosendahlDevelopment ServicesResponse sent.9Robin Circle code enforcement Mayor Pro Tem Stevens 06/24/26 Jesse KentCommunity ServicesResponse sent.10Flooding at Congress and Coit St. Mayor Hudspeth06/19/26 Charlie Rosendahl,seth.garcia@cityofdenton.com,stephen.gay@cityofdenton.comCapital Projects/Engineering/Public WorksDevelopment Services Public Works -StreetsResponse sent.11Wide parking spot on S. Locust atE.HickoryCouncil Member Holland 06/03/26 Charlie Rosendahl, Farhan Butt Development ServicesResponse sent.Page 1 of 1Exported on June 26, 2026 12:27:38 PM PDT67
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FY 25/26 Council Requests
Number of Requests Per Quarter Total Requests Made by Council Member Closed Requests by Department
Please Note: the total number of requests per council member or department may not match, as several council members and/ or departments may be associated with a single request.
Number of Pending Requests by Council Member
Council Requests
3
68
Meeting Calendar
City of Denton City Hall
215 E. McKinney St.
Denton, Texas 76201
www.cityofdenton.com
Criteria : Begin Date: 6/29/2026, End Date: 10/2/2026
Date Time Meeting LocationMeeting Body
July 2026
7/1/2026 8:00 AM Agenda Committee Council Work Session Room
7/1/2026 5:00 PM Planning and Zoning Commission Council Work Session Room
&
Council Chambers
7/2/2026 8:00 AM Agenda Committee CANCELLED
7/6/2026 6:00 PM Parks, Recreation and Beautification
Board
Civic Center Community Room
7/8/2026 11:00 AM Economic Development Partnership
Board
Cancelled
7/8/2026 1:00 PM Sustainability Framework Advisory
Committee
City Council Work Session Room
7/8/2026 3:00 PM Airport Advisory Board Airport Terminal Meeting Room
7/9/2026 3:00 PM Health & Building Standards
Commission
Cancelled
7/13/2026 9:00 AM Public Utilities Board Council Work Session Room
7/13/2026 5:30 PM Historic Landmark Commission Development Service Center
7/13/2026 5:30 PM Library Board South Branch Library
7/14/2026 2:00 PM City Council Council Work Session Room
&
Council Chambers
7/16/2026 9:00 AM Community Partnership Committee City Council Work Session Room
7/16/2026 3:00 PM Committee on Persons with Disabilities Development Service Center
7/17/2026 9:00 AM Community Partnership Committee City Council Work Session Room
7/17/2026 10:00 AM Community Services Advisory
Committee
Development Service Center
7/21/2026 2:00 PM City Council Council Work Session Room
&
Council Chambers
7/22/2026 10:00 AM Economic Development Partnership
Board
Development Service Center
Training Rooms
7/22/2026 12:00 PM Tax Increment Reinvestment Zone
Number One Board
Development Service Center
7/22/2026 12:00 PM Tax Increment Reinvestment Zone
Number One Board
Development Service Center
Page 1City of Denton Printed on 6/26/202669
Date Time Meeting LocationMeeting Body
Meeting Calendar continued...
7/22/2026 1:00 PM Civil Service Commission City Hall East
Human Resources Training
Room
7/24/2026 9:00 AM Community Partnership Committee Council Work Session Room
7/27/2026 9:00 AM Public Utilities Board Council Work Session Room
7/27/2026 5:30 PM Zoning Board of Adjustment Development Service Center
7/29/2026 10:00 AM Mobility Committee Council Work Session Room
August 2026
8/3/2026 6:00 PM Parks, Recreation and Beautification
Board
Civic Center Community Room
8/4/2026 2:00 PM City Council Council Work Session Room
&
Council Chambers
8/6/2026 8:00 AM Agenda Committee Council Work Session Room
8/6/2026 8:30 AM Downtown Economic Development
Committee
Development Service Center
8/6/2026 4:00 PM Public Art Committee Civic Center Community Room
8/8/2026 8:00 AM City Council Council Work Session Room
&
Council Chambers
8/10/2026 9:00 AM Public Utilities Board Council Work Session Room
8/10/2026 3:00 PM Development Code Review Committee Development Services Center
8/10/2026 5:30 PM Board of Ethics Council Work Session Room
8/10/2026 5:30 PM Historic Landmark Commission Development Service Center
8/10/2026 5:30 PM Library Board Emily Fowler Central Library
8/12/2026 11:00 AM Economic Development Partnership
Board
Development Service Center
8/12/2026 3:00 PM Airport Advisory Board Airport Terminal Meeting Room
8/12/2026 5:00 PM Planning and Zoning Commission Council Work Session Room
&
Council Chambers
8/13/2026 3:00 PM Health & Building Standards
Commission
Development Service Center
8/14/2026 10:00 AM Community Services Advisory
Committee
Development Service Center
8/18/2026 2:00 PM City Council Council Work Session Room
&
Council Chambers
8/21/2026 9:00 AM Community Partnership Committee Council Work Session Room
8/24/2026 9:00 AM Public Utilities Board Council Work Session Room
Page 2City of Denton Printed on 6/26/202670
Date Time Meeting LocationMeeting Body
Meeting Calendar continued...
8/24/2026 3:00 PM Development Code Review Committee Development Services Center
8/24/2026 5:30 PM Zoning Board of Adjustment Development Service Center
8/26/2026 10:00 AM Mobility Committee Council Work Session Room
8/26/2026 1:00 PM Civil Service Commission City Hall East
Human Resources Training
Room
8/26/2026 1:00 PM Sustainability Framework Advisory
Committee
City Council Work Session Room
8/26/2026 5:00 PM Planning and Zoning Commission Council Work Session Room
&
Council Chambers
September 2026
9/3/2026 8:00 AM Agenda Committee Council Work Session Room
9/3/2026 6:00 PM Denton Police Department Chief of
Police Advisory Board
Public Safety Training Center
719 E. Hickory Street
Denton, Texas 76205
9/9/2026 11:00 AM Economic Development Partnership
Board
Development Service Center
9/9/2026 3:00 PM Airport Advisory Board Airport Terminal Meeting Room
9/9/2026 5:00 PM Planning and Zoning Commission Council Work Session Room
&
Council Chambers
9/10/2026 12:00 PM Bond Oversight Committee Council Work Session Room
9/10/2026 3:00 PM Health & Building Standards
Commission
Development Service Center
9/11/2026 10:00 AM Community Services Advisory
Committee
Development Service Center
9/14/2026 9:00 AM Public Utilities Board Council Work Session Room
9/14/2026 3:00 PM Development Code Review Committee Development Services Center
9/14/2026 5:30 PM Historic Landmark Commission Development Service Center
9/14/2026 5:30 PM Library Board North Branch Library
9/14/2026 6:00 PM Parks, Recreation and Beautification
Board
Civic Center Community Room
9/15/2026 2:00 PM City Council Council Work Session Room
&
Council Chambers
9/17/2026 3:00 PM Committee on Persons with Disabilities Development Service Center
9/18/2026 9:00 AM Community Partnership Committee Council Work Session Room
9/22/2026 2:00 PM City Council Council Work Session Room
&
Council Chambers
Page 3City of Denton Printed on 6/26/2026
71
Date Time Meeting LocationMeeting Body
Meeting Calendar continued...
9/23/2026 12:00 PM Tax Increment Reinvestment Zone
Number One Board
Development Service Center
9/23/2026 12:00 PM Tax Increment Reinvestment Zone
Number One Board
Development Service Center
9/23/2026 1:00 PM Civil Service Commission City Hall East
Human Resources Training
Room
9/23/2026 1:00 PM Sustainability Framework Advisory
Committee
City Council Work Session Room
9/23/2026 5:00 PM Planning and Zoning Commission Council Work Session Room
&
Council Chambers
9/28/2026 9:00 AM Public Utilities Board Council Work Session Room
9/28/2026 3:00 PM Development Code Review Committee Development Services Center
9/28/2026 5:30 PM Zoning Board of Adjustment Development Service Center
9/30/2026 10:00 AM Mobility Committee Council Work Session Room
October 2026
10/1/2026 8:00 AM Agenda Committee Council Work Session Room
10/1/2026 8:30 AM Downtown Economic Development
Committee
Development Service Center
10/1/2026 4:00 PM Public Art Committee Civic Center Community Room
Page 4City of Denton Printed on 6/26/202672
Meeting Date Item Legistar ID Departments Involved Type Dry Run Date Estimated Time
A. Council Boards and Committees 26-0967 City Secretary's Office City Business 6/30/2026 0:30
B. Budget Update 26-0557 City Manager's Office City Business 7/1/2026 1:30
C. Bond Program Update 26-0968 Capital Projects City Business 7/1/2026 0:45
D. Two Minute Pitch:26-0626 City Manager's Office Council Request 0:30
Closed Meeting Item(s): Legal (if any)City Business 0:30
Total Est. Time: 3:45
Other Major Items for Meeting:
A. Budget Update 26-0558 City Manager's Office City Business 7/7/2026 1:00
B. Economic Development Update 26-0778 Economic Development City Business 7/7/2026 0:30
C. Two Minute Pitch:26-0627 City Manager's Office Council Request 0:30
Closed Meeting Item(s): Legal (if any)City Business 0:30
Total Est. Time: 2:30
Other Major Items for Meeting:
A. Citywide Parking Study 26-0698 Development Services City Business 7/21/2026 0:45
B. State Legislative Program 26-0969 City Manager's Office City Business 7/21/2026 1:00
C. City-Wide Overtime Audit 25-2152 Internal Audit City Business 7/21/2026 0:30
D. Denton Climate Action Plan Update 26-0855 Environmental Services City Business 0:30
E. Two Minute Pitch:26-0628 City Manager's Office Council Request 0:30
Closed Meeting Item(s): Legal (if any)City Business 0:30
Total Est. Time: 3:45
Other Major Items for Meeting:
A. Annual Ethics Training 26-0559 Internal Audit City Business 0:30
B. City Manager's Proposed Budget 26-0559 City Manager's Office City Business 7/21/2026 4:00
Closed Meeting Item(s): Legal (if any)City Business 0:30
Total Est. Time: 5:30
Other Major Items for Meeting:
A. DCTA Update 26-0970 DCTA City Business 0:30
B. Budget Update 26-0560 City Manager's Office City Business 1:00
C. Audit of Vehicle Management 26-0416 Internal Audit City Business 0:30
D. Annual Audit Plan TBD Internal Audit City Business 0:30
X. Two Minute Pitch:26-0630 City Manager's Office Council Request 0:30
Closed Meeting Item(s): Legal (if any)City Business 0:30
Total Est. Time: 3:30
Other Major Items for Meeting:
A. Emergency Response Service TBD DME City Business 0:30
B. Community Forever Village 26-2429 Development Services City Business 0:45
C. Boards and Commissions Update 26-0971 City Secretary's Office Council Request 1:00
X. Two Minute Pitch:26-0631 City Manager's Office Council Request 0:30
Closed Meeting Item(s): Legal (if any)City Business 0:30
Total Est. Time: 3:15
Other Major Items for Meeting:
A. TBD City Business 0:00
B.TBD City Business 0:00
C. TBD City Business 0:00
X. Two Minute Pitch:26-0633 City Manager's Office Council Request 0:30
Closed Meeting Item(s): Legal (if any)City Business 0:30
Total Est. Time: 1:00
Other Major Items for Meeting:
A. Federal Legislative Update 26-0972 City Manager's Office City Business 0:45
B. Audit of Financial Planning 25-2153 Internal Audit City Business 0:30
C. TBD City Business 0:00
X. Two Minute Pitch:26-0634 City Manager's Office Council Request 0:30
Closed Meeting Item(s): Legal (if any)City Business 0:30
Total Est. Time: 2:15
Other Major Items for Meeting:
A. TBD City Business 0:00
B.TBD City Business 0:00
C. TBD City Business 0:00
X. Two Minute Pitch:26-0635 City Manager's Office Council Request 0:30
Closed Meeting Item(s): Legal (if any)City Business 0:30
Total Est. Time: 1:00
Other Major Items for Meeting:
A. Council Priority Update (Affordable Housing)TBD City Business 0:00
B.TBD City Business 0:00
C. TBD City Business 0:00
X. Two Minute Pitch:26-0636 City Manager's Office Council Request 0:30
Closed Meeting Item(s): Legal (if any)City Business 0:30
Total Est. Time: 1:00
Other Major Items for Meeting:
Affordable Housing Update TBD Community Services City Business
Denton Housing Authority 26-1002 Community Services City Business 0:45
Item Date
Approved Department Next Step Requestor
Board of Ethics develop guidance for interactions with
external partners 6/18/2024 Internal Audit Work Session CM Beck
August 4
Work Session (@2:00 p.m.)
Regular Meeting (@ 6:30 p.m.)
Approved Council Pitches to be
Scheduled
July 14
Work Session (@2:00 p.m.)
Special Called Meeting (Upon
conclusion of the WS)
July 21
Work Session (@2:00 p.m.)
Regular Meeting (@ 6:30 p.m.)
August 8
Budget Workshop
@ 8:00 a.m.
August 18
Work Session (@2:00 p.m.)
Regular Meeting (@ 6:30 p.m.)
September 15
Work Session (@2:00 p.m.)
Regular Meeting (@ 6:30 p.m.)
September 22
Work Session (@2:00 p.m.)
Special Called Meeting (Upon
conclusion of the WS)
October 13
Work Session (@2:00 p.m.)
Special Called Meeting (Upon
conclusion of the WS)
October 27
Work Session (@2:00 p.m.)
Special Called Meeting (Upon
conclusion of the WS)
November 17
Work Session (@2:00 p.m.)
Special Called Meeting (Upon
conclusion of the WS)
Tentative Work Session Topics and Meeting Information
Updated: June 25, 2026
Council Priorities and Significant
Work Plan Items to be Scheduled
*This is for planning purposes only. Dates are subject to change.73
1 Street Closure Report: Upcoming ClosuresSCR Jun 29th - Jul 5thStreet/ IntersectionFromToClosure StartDateClosure EndDateDescriptionDepartmentDepartment Contact Closure Type1Bonnie Brae StUniversity DrSouth of Panhandle St 06/29/26 07/13/26 3" Millling of the street with new surface placed. EngineeringTaylor HoltRolling Closure2McKinney St800' West of Spring Tree St Spring Tree St06/29/26 07/10/26 Adding a new asphalt turn lanePublic Works Inspections Eder Talamantes JrLane ClosureExported on June 26, 2026 10:27:54 AM CDT74
2 Street Closure Report: Current ClosuresStreet/ IntersectionFromToClosure StartDateClosure EndDateDescriptionDepartmentDepartment Contact Closure Type1Bernard StHickory StChestnut St02/06/26 07/24/26 Utility installations and pavement replacementEngineeringMegan DavidsonFull Closure2Bonnie Brae StUniversity Dr (US 380)Elm St (US77)05/11/26 07/13/26 Contractor will continue to demolish and install infrastructure along thewhole length of the project. At times Contractor will need the use of anadditional lane.EngineeringJesus PerezRolling Closure3Bonnie Brae StRiney Rd / Bronco WayElm Street (US77)05/22/26 07/31/26 Contractor to construct the new concrete southbound lanes.EngineeringJesus PerezFull Closure4Buckingham DrHercules LnSherman Dr11/17/25 07/03/26 Utilities and Pavement replacementEngineeringDante HaleFull Closure5Carril Al Lago DrAurora LnBonnie Brae St05/25/26 07/15/26 Contractor will be demolishing the street intersection and median to thenew right of way line.EngineeringJesus PerezFull Closure6Dawnlight DrWaterside PlNightfall Dr06/22/26 07/10/26 Mill and overlayStreetsJesus RodriguezRolling Closure7Donna RdElm StEnd11/17/25 07/31/26 Utilities and Pavement replacementEngineeringDante HaleFull Closure8Eagle DrAve CAve A03/17/25 07/10/26 Using it for an entrance due to elevation changes in the jobsite it is theonly way to get into the sitePublic Works Inspections Stephany TrammellLane Closure9Fishtrap Rd5501 Fishtrap Rd (Fishtrap BusinessCenter)Greenleaf Cir06/22/26 07/24/26 Fink Construction extending waterline on Fishtrap for Riviera MobileHome Park.Public Works Inspections Eder TalamantesLane Closure10Hickory Creek RdRiverpass DrWaterside Pl04/27/26 07/31/26 1) Intersection of Riverpass Drive and Hickory Creek Road will bereconstructed. 2) Hickory Creek Road from Riverpass Drive toWaterside Place will be reconstructedOtherTracy BeckFull Closure11Hickory Creek RdRiverpass DrCountry Club Rd (FM 1830) 03/13/23 12/31/26 Bridge InstallationEngineeringTracy BeckFull Closure12Hobson LnFort Worth DrSanta Monica Dr06/22/26 07/10/26 Paving repairs/replacements for Storage 365Public Works Inspections Stephany TrammellFull Closure13Jupiter DrRedstone RdSelene Dr02/02/26 07/31/26 Utilities and Pavement replacementEngineeringDante HaleFull Closure14Mayhill Rd S600ft North of Edwards Rd400ft South of Edwards Rd 10/20/25 07/30/26 Waterline tap being installed on Mayhill EasmentPublic Works Inspections Alexander CervantesRolling Closure15Meadow StInman StI-35 Service Rd06/08/26 07/17/26 Road Repair / Base failure repairsStreetsRoy San MiguelLane Closure16Neptune DrRedstone RdSelene Dr11/24/25 07/31/26 Utilities and Pavement replacementEngineeringDante HaleFull Closure17Oak StCarroll BlvdFry St05/08/26 07/10/26 A&D completing restoration for gas workPublic Works Inspections Stephany TrammellRolling Closure18Oak StWelch StAve C05/08/26 07/10/26 A&D completing restoration for gas workPublic Works Inspections Stephany TrammellRolling Closure19Paisley StPace DrOak Valley01/05/26 07/17/26 awaiting asphalt restorationsPublic Works Inspections Ryan DonaldsonLane Closure20Pershing DrAtlas DrStuart Rd05/08/25 07/31/26 Utilities and Pavement replacementEngineeringDante HaleFull Closure21Quail Creek DrStockbridge RdBerry Down Ln05/04/26 07/20/26 Replacing water linesPrivate Development PublicWorks InspectionsAlexander CervantesFull Closure22Redstone RdHercules LnNeptune Dr05/05/25 10/31/26 Utilities and Pavement replacementEngineeringDante HaleFull Closure23Riney RdDiscovery BlvdElm St. (US77)06/08/26 07/15/26 Contractor to install storm drain laterals needed to increase the width ofRiney Road. Contractor will also demolish the concrete street sectionadjacent to US77 in order to construct the street as per plan.EngineeringJesus PerezFull Closure24Riverchase TrlCreekdale DrWaterside Pl06/22/26 07/10/26 Mill and overlayStreetsJesus RodriguezRolling Closure25Riverpass DrHickory Creek RdRiverchase Trl04/27/26 07/31/26 Full Closure of Riverpass between RIverchase Trail and Hickory CreekRoad and Hickory Creek Road at Riverpass.OtherTracy BeckFull Closure26Royal Acres DrHercules LnSherman Dr02/16/26 07/31/26 Utilities and Pavement replacementEngineeringDante HaleFull Closure27Scripture StJagoe StPonder St03/04/25 07/03/26 Utility installations and pavement replacement.EngineeringScott FettigFull Closure28Stockbridge DrHudsonwood DrQuail Creek Dr03/30/26 07/13/26 Contractor replacing water lines for Providence Place ProjectPrivate Development PublicWorks InspectionsAlexander Cervantes29Stuart RdHercules LnNorth Loop 28805/11/26 07/10/26 SPS to use TCP on Stuard Road for their relocation of their gas main. Public Works Inspections Zabdiel MotaLane Closure30Stuart RdSun Valley DrImperial Dr05/15/26 07/17/26 Utility WorkPublic Works Inspections Armando BeltranLane Closure31Sunset St ECarroll BlvdBolivar St07/07/25 06/30/26 Utility installations and pavement replacement.EngineeringScott FettigFull Closure32Swisher RdEdwards RdSwisher Rd (4312)06/23/26 07/09/26 Small base failure starting at Edwards and ending at 4312 Swisher StreetsMarlon HarrisonLane Closure33Vintage BlvdIH 35w service RdProvence Dr04/20/26 06/30/26 To install Deacceleration Lane and Modifying the medianPublic Works Inspections JDLane Closure34Waterside PlRiverchase TrlHickory Creek Rd06/22/26 07/10/26 Mill and overlayStreetsJesus RodriguezRolling Closure35Windsor DrNorthwayParkside Dr04/22/26 07/15/26 The Contractor will be demolishing the asphalt roadway that form the (2)west bound lanes West of the Windsor/Bonnie Brae intersection.EngineeringJesus PerezLane Closure36Windsor DrBonnie Brae StWestgate Dr03/26/26 07/17/26 Water Tap and Tie in. Closure will be active from 9am-3pmPublic Works Inspections Armando BeltranLane Closure37Yellowstone PlImperial DrSun Valley Dr05/15/26 07/17/26 Utility WorkPublic Works Inspections Armando BeltranLane Closure Exported on June 26, 2026 10:28:06 AM CDT75
3 Street Closure Report: Completed ClosuresStreet/ IntersectionFromToClosure StartDateClosure EndDateDescriptionDepartmentDepartment Contact Closure Type1Apollo DrRedstone RdSelene Dr07/24/25 06/12/26 Utility installations andpavement replacement.EngineeringScott FettigFull Closure2Creekdale DrRiverpass DrRaintree Way05/18/26 05/29/26 Mill and OverlayStreetsJesus RodriguezRolling Closure3Hickory StLocust StAustin St06/08/26 06/09/26 Repair work on Wells FargoSignPublic Works InspectionsOtherRyan DromgooleFull Closure4Linden DrO'Reilly AveHeritage Tr04/13/26 06/05/26 restoration of road - weatherpermittingPublic Works Inspections Ryan DonaldsonFull Closure5Malone StCongress StEgan St06/01/26 06/12/26 Road Repair / Mill and overlay StreetsMarlon HarrisonLane Closure6McKinney StNorth Cedar StOakland St05/21/26 06/22/26 Water to replace valve at theintersection of North Locust andMcKinney Street.Public Works Inspections Zabdiel MotaLane Closure7Montecito DrSwan Park DrSettlement Dr04/27/26 06/12/26 Concrete panel replacement StreetsJordan PorterLane Closure8Mulberry StCarroll BlvdLocust St04/08/26 06/19/26 Contractor extending waterlineon Mulberry.Public Works Inspections Stephany TrammellFull Closure9O'Reilly AveLinden DrPanhandle St04/20/26 06/05/26 restoration of road weatherpermittingPublic Works Inspections Ryan DonaldsonFull Closure10Roselawn DrBernard StRoselawn Cir04/20/26 05/29/26 Stamped concrete, driveapproach, Concrete curb andgutter (new) Asphalt paving,excavation, base and asphaltpaving, Sawcut and remove,Asphalt Demo, Signage andstriping for the NewROSELAWNPublic Works Inspections Kent Bull RiversFull Closure11Sherman Dr EWindsor DrLinwood06/01/26 06/02/26 Gas Main repairOtherSheldon GatewoodFull Closure12Thistle HillBlackberry WayCul-de-sac05/18/26 05/27/26 Mill and overlayStreetsJesus RodriguezRolling Closure13Wainwright StHighland StBell Ave06/15/26 06/19/26 Mill and OverlayStreetsJesus RodriguezFull Closure14Wellington DrSherman DrHercules Ln02/16/26 06/26/26 Utilities and PavementreplacementEngineeringDante HaleFull Closure15Willowwood StHighland Park RdWisteria St06/01/26 06/12/26 Road street repairStreetsMarlon HarrisonFull Closure16Willowwood StHighland Park RdWisteria St06/22/26 06/22/26 Road street repairStreetsMarlon HarrisonLane Closure17Windsor Dr WWindsor Dr W (721)Windsor Dr W (709)06/02/26 06/19/26 Roadway base failure repair StreetsJesus RodriguezLane Closure Exported on June 26, 2026 10:28:13 AM CDT76