2025-024 Budget-In-Brief January 24,2025 Report No. 2025-024
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
Budget In Brief Document
EXECUTIVE SUMMARY:
To complement the existing Annual Program of Services, staff has produced a"Budget-in-Brief"
document which summarizes the budget and highlights its main points.
DISCUSSION:
The Government Finance Officers Association(GFOA) recommends producing a budget-in-brief
document as a best practice. The budget document is very important, since it identifies the services
to be provided, funding sources, and the rationale behind key decisions. Due to the time required
to read and understand the entire budget document,a concise summary that captures these elements
is helpful to readers. The budget-in-brief document is an additional tool to help promote enhanced
financial transparency.
The Budget-in-Brief is available on the Finance page of the City's website.
h!Ltps://www.cilyofdenton.com/402/Finance
ATTACHMENTS:
1. Fiscal Year 2024-25 Budget-In-Brief
STAFF CONTACT:
Jessica Williams
Chief Financial Officer
jessica.jwilliams@cityofdenton.com
(940) 349-8244
REOUESTOR: Staff Initiated
STAFF TIME TO COMPLETE REPORT: 30 Minutes
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FY 2024-25 Budget in Brief
City of Denton, Texas
FY 2024-25 Budget in Brief
CityLeadership.......................................................................................................................... 4
CityManager's Message........................................................................................................... 5
CityFinance............................................................................................................................... 6
BudgetOverview....................................................................................................................... 8
BudgetHighlights...................................................................................................................... 12
OperatingFunds........................................................................................................................ 14
GeneralFund............................................................................................................................. 18
Water / Waste Water................................................................................................................. 22
SolidWaste................................................................................................................................ 26
Electric....................................................................................................................................... 28
Gra nts........................................................................................................................................ 30
Core Values: Inclusion,Collaboration, Quality Service,Strategic Focus, Fiscal Responsibility Page:3
FY 2024-25 Budget in Brief
rCITY OF •
City Leadership -
YE
FISCAL AR 2024-25
The City of Denton has a Mayor and six-member Council elected in non-partisan elections.Their terms of service
are for two years.
t
GERARD HUDSPETH
MAYOR
A'
VICKI BYRD BRIAN BECK PAUL MELTZER JOE HOLLAND BRANDON CHASE MCGEE )ILLJESTER
DISTRICT 1 DISTRICT 2 DISTRICT 3 DISTRICT 4 AT LARGE, AT LARGE,
DISTRICT 5 DISTRICT 6
SARA HENSLEY
CITY MANAGER
Page:4 Core Values: Inclusion, Collaboration,Quality Service,Strategic Focus, Fiscal Responsibility
FY 2024-25 Budget in Brief
CITY OF •
— City Manager's Message —
FISCAL YEAR 2024-25
It is my pleasure to present to you this Budget in Brief document, which offers a condensed summary of the FY
2024-25 Adopted Annual Program of Services (Budget), as adopted by the City Council on September 17, 2024.
This budget was prepared with a focus on the City's adopted strategic goals: inclusion, collaboration, quality
service, strategic focus, and fiscal responsibility.
The City's annual budget process begins in February and ends in September with the adoption of the budget
by the City Council. The process includes opportunities for City Council and public involvement through public
meetings and workshops.The adopted budget includes a tax rate of$0.585420 per$100 of valuation, an increase
over the previous year attributed to the voter-approved 2023 Bond Program.The adopted budget was developed
to meet the City Council's strategic goals and the needs of our growing community.The City of Denton continues
to experience population growth, creating opportunities and challenges. I am committed to strategically and
responsibly planning for future generations while simultaneously making strides in necessary infrastructure
replacement and enhancements. The adopted FY 2024-25 budget continues to emphasize resources for public
safety to support a healthy and safe community. The City continues to see a competitive labor market and
inflationary pressure on operating expenses including contract pricing increases, as reflected in the adopted
budget.
The adopted FY 2024-25 budget was developed within the context of a five-year financial plan and the long-term
infrastructure needs of the community. This approach aims to provide a long-term and financially sustainable
perspective for decisions in the coming fiscal years. The FY 2024-25 budget for all funds is $2.35 billion and
includes 1,982 full-time equivalent (FTE) positions.
This document is prepared to provide a simplified view of the City's adopted budget. The full budget, the City's
financial transparency program and the City's audited financial statements may be found on the City's website.
I sincerely thank the members of the Denton City Council for their hard work and dedication to the residents
of Denton. With your support, and the dedication of our capable staff, we will ensure that quality services are
provided to the City.
Sincerely,
*t__
Sara Hensley
City Manager
Core Values: Inclusion,Collaboration, Quality Service,Strategic Focus, Fiscal Responsibility Page:5
FY 2024-25 Budget in Brief
CITY OF •
r0ty Finance — Ad
The City's Finance Department consists of the following divisions: Finance, Accounting, Treasury, Grants and
Other Funding Sources, Enterprise Resource Management, Procurement and Budget. The Department works
year-round to manage all financial transactions of the City. Notably,the Department publishes the City's audited
financial statements in the form of the Annual Comprehensive Financial Report and the City's Budget. The
Department also manages the City's annual budget cycle, producing the Annual Program of Services and the City's
Capital Improvement Program. The City has received national recognition for both its Annual Comprehensive
Financial Report and its Adopted Budget from the Government Finance Officers Association of the United States
and Canada.
The Department manages the City's financial transparency program and participates in the State of Texas
Comptroller's Financial Transparency Stars Program. Annually the program evaluates whether the City has
published data in a manner consistent with the requirements. Additional information on the program may be
found here.
The Government Finance Officers Association of DISTINGUISHED BUDGET AWARD
the United States and Canada (GFOA) presented a CITY OF DENTON
2023 BUDGET
Distinguished Budget Presentation Award to the City
of Denton, Texas for its annual budget for the fiscal
year beginning October 1, 2023.
GOVERNMENT FINANCE OFFICERS ASSOCIATION
This award highlights the City's commitment to fiscal Distinguished
responsibility and quality service. It is intended to be a Budget Presentation
guide for City spending and should be used as a policy Award
document, as an operations guide, as a financial plan, PRFsevEDTO
and as a communications device. City of Denton
Texas
For the Fiscal Year Beginning
October 1,2023
This Budget in Brief highlights portions of the City's
budget, however the document, in its entirety may be Cage.- Pt,�u
found here. Executive Director
Page:6 Core Values: Inclusion, Collaboration,Quality Service,Strategic Focus, Fiscal Responsibility
FY rBudget
The City's budget process begins in FebruaryDENTON'S
completes with Budget Adoption in September.
For - - the City followedthe BVDGET CYCLE
incorporatesschedule to the right. This schedule
internal • external stakeholdersand createsKICKOFF ---- ' FISCAL YEAR
time and '• - for public feedbackFEBRUARY , OCTOBER 1 TO
proposed •_ Budget Process j SEPTEMBER 30
Kickoff �
Core Values: Inclusion,Collaboration, Quality Service,Strategic Focus, Fiscal Responsibility Page:7
2 --- REQUESTS SUBMITTED
MARCH
I All Department Budget
I Requests Received
CITY MANAGER MEETINGS-- 3
MARCH - MAY
Intention setting, I
internal work product I
L� ----• PUBLIC MEETINGS
MAY - SEPTEMBER
I Review of all requests,
I Public Utilities Board
TAX RATE SETTING ----•
S &City Council
Certified Property I
Values received from �
County
-- BUDGET WORK SESSION
, AucusT
I Saturday Public Work
I
I Session of the City
Council
ADOPTION --------
SEPTEMBER
Adoption of the tax
rate and budget by
City Council � -----
-- PUBLICATION
DECEMBER
I Publication of the
� Adopted Budget,
Capital Improvement
SUBMISSION ------- 9 Plan &Budget in Brief
DECEMBER
Submission of I
adopted budget to I
the GFOA for review
'O --- RESTART
FEBRUARY
Internal start of the
process for the next
year
FY 2024-25 Budget in Brief
CITY OF •
- Budget Overview
FISCAL YEAR 2024-25
The Adopted Budget serves as the legal framework that allows the City to levy and collect taxes. State law
mandates that the City must adopt a budget and set a property tax rate annually, no later than September
30. Additionally, the City is required to adopt a balanced budget, which ensures that total operating revenues,
combined with other funding sources, are equal to or exceed total expenditures.
Operating Other Total
Revenues Funding Sources Expenditures*
The City's total adopted budget for FY 2024-25, including the capital improvement program, totals $2.35 billion.
$ 2m35B
City funds: Revenues are collected by the City from property taxes, sales tax, user fees, fines and other sources.
These revenues are then deposited into a series of funds. City funds are regulated based on the source of funding
received.
The City complies with all required accounting rules,
regulations, statutes and funding restrictions.
Major funds (governmental and business type):
General Fund, Debt Service Fund, Electric Fund, Water
Fund, Wastewater Fund, Solid Waste Fund, Airporttr ' _
Fund.
Special revenue funds:Community Development Block
IF
r
Grant (CDBG), Catalyst, Sustainability Framework,
Police Confiscation, Tourist and Convention, Street
Improvement,Gas Well Revenues,Citizens' ParkTrusts,
Roadway Impact Fees, Tax Increment Reinvestment P
Zones (TIRZs), Donations.
Internal service funds: Technology Services, Materials
Management, Fleet Services Facilities Services Risk
g I, nu ,III
110iBII11111111N1Y
Retention Health Insurance Engineering Services
II�NI I
Environmental Services, and Customer Service.
Page:8 Core Values: Inclusion, Collaboration,Quality Service,Strategic Focus, Fiscal Responsibility
FY 2024-25 Budget in Brief
Property Taxes: Property Taxes in Texas are collected by counties, cities, and school districts. In Denton,
property taxes are levied by the City and collected by the County on the City's behalf. These taxes are calculated
based on every $100 of appraised property value and are used to fund essential services such as police and fire
departments, as well as to cover portions of general obligation and certificate of obligation debt.
The property tax rate is designed to collect funding for maintenance and operations and for debt service
payments, referred to as interest and sinking. Below you will see the City of Denton's tax rate from 2019-2025.
Fiscal Year Operations • Maintenance interest and Sinking IF Total I
00 00 Tax Rate %Change
2019-20 $0.385360 $0.205090 $0.590450 -4.84%
2020-21 0.380360 0.210090 0.590450 0.00%
2021-22 0.350440 0.215370 0.565810 -4.17%
2022-23 0.356432 0.204250 0.560682 -0.91%
2023-24 0.354780 0.205902 0.560682 0.00%
2024-25 0.334780 0.250640 0.585420 4.41%
In Texas, municipal tax rates are made up of two parts. The Operations and Maintenance portion of the rate and
the I&S portion of the rate. The Operations and Maintenance portion of the rate is designed to provide for the
general operations of the City. The I&S portion of the rate is designed to provide for the City's payment for tax
supported debt during the year.
Debt Rate O&M Rate City's Rate
.250640 :0 i
Core Values: Inclusion,Collaboration, Quality Service,Strategic Focus, Fiscal Responsibility Page:9
FY 2024-25 Budget in Brief
CITY OF •
- Budget Overview
FISCAL YEAR 2024-25
Municipal Debt Obligations- Principal and Interest
Tax Supported Revenue Supported Totai—C
r
"
-
$676,438,136 $1,699,507,772 $2,375,945,908
Capital Improvement Program: The Capital Improvement Program (CIP) represents the City's plan for
infrastructure and equipment funding. The CIP is reviewed each year to reflect changing priorities, as well as to
assess the impact of capital projects on operating budgets and for project scheduling and coordination.
The CIP adopted budget appropriates all available programmed funds and planned issuances of new General
Obligation Bonds (GOs) and Certificates of Obligation (COs). Total existing appropriated funds in the amount
of $661.21 million include unspent bond proceeds, internal revenue transfers and outside contributions which
may be encumbered but not yet expended. Proposed planned new funding for FY 2024-25 is $494.90 million,
which includes cost participation. Debt service payments are budgeted for both the actual expense and the
appropriation needed to accommodate the transfer of the funds, for payment, between funds. The City's total
annual debt service payment is $160,797,856. This payment covers both principal and interest. More
information on the City's debt may be found on the City's website and in the City's Annual Comprehensive
Financial Report.
Page: 10 Core Values: Inclusion, Collaboration,Quality Service,Strategic Focus, Fiscal Responsibility
FY 2024-25 Budget in Brief
Capital Improvement Program: The funding for the capital improvement program comes from several sources.
In the table below, these sources and the totals for the year are listed in '$000.
Municipal Bond Types
Existing External Revenue Impact Fee General Certificates Revenue New FY 2024-25
Division
Funding Funding Funding Funding Obligation of Obligation
General
$345,841 $5,000 $7,064 $3,675 $74,103 $91,166 - $180,918 $526,759
Government
Electric 143,109 - 45 - - 74,978 - 75,023 218,132
Water 68,838 - 431 - - 58,897 71,099 130,426 199,265
Wastewater 70,751 - 1,226 - - 71,673 27,576 100,475 171,227
Solid Waste 31,890 - 1,870 - - 11,126 - 12,996 44,885
Airport 1,900 855 95 - - - - 950 2,850
TOTAL $662,329 $5,855 $10,731 $3,675 $74,013 $307,840 $98,675 $500,788 $1,163,117
• Existing Funding:The amount of existing funding set aside for a specific and particular purpose
in projects which may be encumbered, but not yet expended.
• External Funding: Funding received from outside agencies.
• Revenue Funding: City funding available for projects.
• Impact Fee Funding: Funding collected to offset the impact of new development.
• General Obligation: Voter Approved Bonds issued by the City.
•Certificates of Obligation: Bonds issued by the City for infrastructure projects that are restricted
but do not require voter approval.
• Revenue Bonds: Bonds issued by the City for the utilities. These bonds are paid for with utility
revenues.
• Total New Funding:Total newly requested funding in the current year (External Funding to
Revenue Bonds).
• FY 2024-25 Total : Total new and existing funding.
When reviewing capital projects, the Finance Department reviews
options, determines timing of sales and completes ongoing •
forecasting in alignment with the City's debt and investment
policies. The issuance of debt for the City is in compliance with all
state, federal and regulatory requirements.
More detail on the Capital Improvement Program may be found at •• •
the City's website, www.cityofdenton.com.
As one of the 2,000 community-owned and not-for-profit public power utilities in the country, DME provides service to 56,395 residential and
commercial customers with Annual System Energy Sales of 1,469,144 Megawatt Hours(MWH).-City of Denton website 12.9.24
Core Values: Inclusion,Collaboration, Quality Service,Strategic Focus, Fiscal Responsibility Page: 11
FY 2024-25 Budget in Brief
CITY OF •
- Budget • •
FISCAL YEAR 2024-25
This budget enables the City Council to continue advancing the City's goals while addressing necessary
adjustments driven by rising costs, growth, and inflation. It also allocates funding for public safety initiatives and
voter-approved general obligation bonds. Key priorities for this budget include:
• A continued focus on Public Safety staffing
• Pay adjustments for Police and Fire civil service employees
• A 3% cost of living adjustment (COLA) and 2.50% average merit supplemental
• General Fund funding enhancements of$5.11 million
• Needed utility rate increases to address inflation and growth, after years of utility rate
decreases
History of City of Denton . . Increases/Decreases
Utility FY 1 1 1 FY 2020-211 1 12024-25
Electric -3.50% - - - - 3.00% 1.50%
Water - - -2.00% - - - 3.00%
Wastewater -5.00% - - - - 11.00% 11.00%
Solid Waste -12.00% -12.00% -5.00% - - - 1.50%
Budget Process Discussions: National Inflation
June/June 2019-2024
10.00%
During the creation of this budget, the City completed multiple
cost of service studies, revenue analytics,and five year forecasts.
8.00%
In discussions with the City Council, the Finance team laid
out economic challenges and considerations that the team is
tracking. As the economy continues to change, the City is seeing 6.00%
changes as well. Growth at record numbers drives expenses, as
do pressures from inflation. Over the past several years, cities 4.00%
nationwide have benefited from federal programs that are
now wrapping up, requiring discussion about what services will
2.00%
remain and which will change. The table on the right was shared
with Council during these budget discussion. When viewed in
conjuncture with the rate information table, the reader may see 0.00% -
that while rates were decreasing, inflation was increasing. Total Compounded Change:
21 .01 %
*Inflation June 19 to June 24,as of year end,total compounded inflation is closer to 23.40%(bls.gov/data/inflation)
Page: 12 Core Values: Inclusion, Collaboration,Quality Service,Strategic Focus, Fiscal Responsibility
FY 2024-25 Budget in Brief
Financial Assumptions: During the creation of this budget process, the following assumptions were made.
Population growth:
• FY 2024/25 - 2.94% increase from previous year
• FY 2025/26 - 2.85% estimated growth
Sales Tax:
• FY 2024/25 - Estimated 5.26% over collection estimate for FY 2023/24
• FY 2025/26 - 7.06% average growth
Assessed Values:
• FY 2024/25 -Total Certified Appraised Value is $21.2 Billion.
• 10.16% increase over the prior tax year.
• FY 2025/26 and future -Assumes a reduced M&O tax rate to correspond with AV increases.
• 99.5% collection rate
• Total tax rate of$0.585420/$100 valuation
Other highlights include:
Due to the health of the City's Employee Benefit Fund, the City was able to absorb a 10% increase in health
insurance premiums rather than passing this cost on to employees.
A decrease of$0.02 cents to the operations and maintenance portion of the tax rate. This allows for a smaller
increase in the overall tax rate due to the passage of the voter approved 2023 Bond Package.
The 2023 Voter Approved Bond Program Projects are listed below, in thousands.
Project Prior FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 TOTAL
Issued
GENERAL OBLIGATION BOND PROGRAM
Ruddell/Mingo Roadway&Quiet Zones $ 5,000 $ 12,000 $ 28,125 - $ 45,125
Oakland Drainage&Upstream Detention 5,000 8,000 19,595 - - 32,595
PEC 4 Phases 3&4 5,000 6,265 15,000 - 26,265
Inclusive Playground 3,450 - - - - 3,450
Trail Development 4,000 - - 5,000 3,000 3,000 15,000
Aquatic Improvements 2,000 13,000 - - - 15,000
Fire Station#5 10,000 15,342 - - - 25,342
Linda McNatt Animal Care&Adoption Center 15,850 - - - - - 15,850
Public Art-Public Safety 320 503 - - - - 823
Affordable Housing - 5,000 5,000 5,000 - - 15,000
Active Adult Center - - 5,000 25,000 16,430 - 46,430
Public Art-Public Safety - - - 930 - - 930
South Branch Library 2,500 - - 5,000 18,000 23,076 48,576
Public Art-South Branch Library - - - - - 969 969
TOTAL 2023 BOND PROGRAM ISSUANCE $ 53,120 $ 60,110 $ 72,720 $ 40,930 $ 37,430 $ 27,045 $ 291,355
Core Values: Inclusion,Collaboration, Quality Service,Strategic Focus, Fiscal Responsibility Page: 13
FY 2024-25 Budget in Brief
CITY OF •
Operating •
FISCAL YEAR 2024-25
REVENUE - ALL FUNDS
The City's total budget is $2.35B. This includes all operating and capital costs for this fiscal year. The budget
should be reviewed both in totality and in relationship to the differences between operating and capital cost.
This breakdown of the budget shows the Operating Revenues and the Operating Expenses. These are the funds
needed to complete day to day operations like paying police officers and fire fighters, and providing water and
electric services.
The chart below shows the breakdown of the City's revenue and resources by category. Revenues are generated
annually and brought into the City through the property tax levy,sales taxes,fees, permitting and other activities.
Resources are existing funding being used to fund current year expenses, such as fund balance. Resources are
also transfered from one fund to another. For example, all of the City's funds benefit from the services provided
by the General Fund, so each fund transferring funding into the General Fund to account for services like payroll
processing, human resources and accounts payable. This resource, transfers from other funds, accounts for
20.9% of the City's total revenue and resource budget.
FY 2024-25 Adopted Operating Revenue and Resources
Ad Valorem Taxes
Sales Tax
Franchise Agreements
Other Taxes
Service Fees
Fines and Fees
Licenses and Permits
Return on Investment
Utilities Operating
Miscellaneous
Transfers from other funds
O O O O O O O
0�0000 0 0�0000 10000 010000 0�0000 0�0000
y0 ,LO 03 O 1-3 00
The City's largest revenue source is operating revenues generated by its Utilities, accounting for 48.4% of all
revenue and resources. As a full-service city, Denton provides Water/Wastewater, Solid Waste, Drainage, and
Electric services.The second-largest revenue source is Ad Valorem (property)taxes,which contribute 11%of the
total City revenues and resources for the 2024-25 fiscal year.
Page: 14 Core Values: Inclusion, Collaboration,Quality Service,Strategic Focus, Fiscal Responsibility
FY 2024-25 Budget in Brief
Adopted Adopted %Change
Ad Valorem (Property)Taxes $106,163,128 $120,972,352 $14,809,224 13.95%
Sales Tax 57,545,000 60,841,793 3,296,793 5.73%
Franchise Agreements 23,007,690 25,444,537 2,436,847 10.59%
Other Taxes & Fees 4,414,554 5,881,064 1,466,510 33.22%
Service Fees 14,279,745 17,724,103 3,444,358 24.12%
Fines and Fees 6,393,586 6,106,531 (287,055) -4.49%
Licenses and Permits 8,184,673 6,990,806 (1,193,867) -14.59%
Return on Investment 15,732,014 20,909,106 5,177,092 32.91%
Utilities Operating 432,704,564 533,047,504 100,342,940 23.19%
Miscellaneous 58,204,219 86,759,050 28,554,831 49.06%
Subtotal Revenues 726,629,173 884,676,846 158,047,673 21.75%
Transfers from Other Funds 177,955,969 215,887,716 37,931,747 21.32%
TOTAL OPERATING REVENUES $904,585,142 $1,100,564,562 $195,979,420 21.67%
City-wide Operating Budget Changes:
• Property Taxes increased $14,809,224 or 13.95%, primarily due to an increase in property valuations
and the passage of the voter approved 2023 Bond Program.
• Sales Tax increased $3,296,793 or 5.73% primarily due to increases in spending and community
events.
• Franchise Agreements increased $2,436,847 or 10.59%, primarily due to increases in utility rates.
• Other Taxes & Fees increased $1,466,510 or 33.22%, primarily due to creation of the TDIP fee and
associated board.
• Service Fees increased $3,444,358 or 24.12%, primarily due to the creation of two new municipal
utility districts and the Public Finance Housing Corporation.
• Fines and Fees decreased -287,055 or-4.49%, primarily due to redistribution of the budgets for the
Park Development Trust and Land Dedication Trust.
• Licenses and permits decreased -$1,193,867 or-14.59%. primarily due to decreases in building
permits during the prior year.
• Return on investment (ROI) increased $5,177,092 or 32.91% primarily due to increases in investment
returns and utility rates. The Utilities transfer to the General Fund an ROI based upon three and one-
half percent (3.5%) of utility revenues, not to exceed six percent (6.00%).
• Utilities Operating revenues increased due to implementation of rate changes in DME, increases in
the sale of energy and data centers.
• Miscellaneous revenues increased due to increases in the internal service funds, inter-local
agreements and grant revenue received, such as revenues received for the SAFER grants.
Core Values: Inclusion,Collaboration, Quality Service,Strategic Focus, Fiscal Responsibility Page: 15
FY 2024-25 Budget in Brief
CITY OF •
Operating •
FISCAL YEAR 2024-25
EXPENDITURES -ALL FUNDS
As mentioned, the City's total budget is $2.35B. This includes all operating and capital costs for this fiscal year.
The City's total operating expenditures total $1.087B. This is an increase of $154,523,924 or 16.56% over the
prior year. These costs pay for operations like paying police officers and fire fighters, and providing water and
electric services.
As shown here, the largest annual expenditure the City pays is for personnel services. Personnel services include
the cost of salaries, special pay, overtime, healthcare and taxes for all City employees. This includes full-time,
part-time and seasonal part-time employees.
FY 2024-25 Adopted Operating Expendi-
Personnel Services
Purchased Power
Material and Supplies
Maintenance and Repair
Insurance
Miscellaneous
Operations
Fixed Assets
Return on Investment
Franchise Fees
Debt Service
Inventory Purchases
Capital Outlay
Transfers to other funds
0 50,000,000 100,000,000 1S0,000,000 200,000,000 2S0,000,000 300,000,000
As shown here, the City's second and third largest expenses go to paying for purchase power and for municipal
debt. Purchase power is the cost of power Denton Municipal Electric buys from the ERCOT market to provide
power to residents. The City's capital program is primarily debt funded and is included in the total adopted
budget.This program totals over$113 in the current fiscal year. The cost listed here is the annual amount of debt
service (payment) the City makes on existing debt. That is debt that has already been issued to fund projects
in past years. This includes voter approved general obligation bond programs and revenue bonds issued in the
aftermath of winter storm Uri. Municipalities throughout the nation utilize debt issuances for large infrastructure
projects and in the case of emergencies, for more detail see page 10.
Page: 16 Core Values: Inclusion, Collaboration,Quality Service,Strategic Focus, Fiscal Responsibility
FY 2024-25 Budget in Brief
Adopted Adopted FY 2024-25 less FY 2023-24 %Change
Personnel Services $232,475,191 $256,304,776 $23,829,585 10.25%
Purchased Power 143,552,502 211,488,976 67,936,474 47.33%
Material and Supplies 20,843,722 26,020,488 5,176,766 24.84%
Maintenance and Repair 18,003,093 18,323,955 320,862 1.78%
Insurance 48,073,646 54,720,867 6,647,221 13.83%
Miscellaneous 8,361,617 7,343,437 (1,018,180) -12.18%
Operations 80,151,123 86,590,215 6,439,092 8.03%
Fixed Assets 757,967 1,890,620 1,132,653 149.43%
Return on Investment 15,732,014 24,232,738 8,500,724 54.03%
Franchise Fees 17,849,430 21,584,537 3,735,107 20.93%
Debt Service 198,694,938 242,649,269 43,954,331 22.12%
Inventory Purchases 12,600,000 14,600,000 2,000,000 15.87%
Capital Outlay 58,806,147 35,005,307 (23,800,840) -40.47%
Transfers from Other Funds 77,066,630 86,736,758 9,670,128 12.55%
TOTAL OPERATING EXPENDITURES $ 932,968,019 $1,087,491,943 $154,523,924 16.56%
City-wide Operating Budget Changes:
• Personnel services increased $23,829,585 or 10.25%, due to increases in civil service salaries in alignment with
Meet and Confer agreements. Implementation of a 3.00% cost of living adjustment and a possible 2.50% merit
increase. Increases in health care costs covered by the City and increased personnel city-wide.
• Purchased power increased $67,936,474 or 47.33% due primarily to increases in electric sales, data centers
and growth in the community.
• Materials and supplies increased $5,176,766 or 24.84% due primarily to increased cost of good.
• Maintenance and repair costs held steady, while insurance costs increased for City buildings and risk
insurance.
• Miscellaneous costs decreased -$1,018,180 or -12.18% due primarily to bringing convention and visitors
bureau activity in house.
• Operations costs increased $6,439,092 or 8.03% primarily due to the addition of the K-9 program, incentive
payments, contract changes and vehicle maintenance.
• Fixed asset costs are determined by depreciated calculated at year end. This is the total depreciation for all
city fixed assets.
• Returns on investments and franchise fees increased due to increases in investment returns and increased
utility rates.
• Debt Service payments,the payments the city makes annually on its outstanding debt, increased $43,954,331
or 22.12% due to increases in debt service requirements and issuance for the 2023 Bond Program. This line
includes actual expense and all related transfers between funds, as discussed on page 10.
• Inventory purchases increased $2,000,000 or 15.87%to allow for receipt of generators for the electric system,
while capital outlay decreased -$23,800,840 or-40.47% due to movement of water and wastewater impact fees
to a separate fund.
Core Values: Inclusion,Collaboration, Quality Service,Strategic Focus, Fiscal Responsibility Page: 17
FY 2024-25 Budget in Brief
CITY OF •
Fund -
FISCAL
REVENUE - GENERAL FUND
The City's General Fund adopted budget for FY 2024-25 totals $207,579,152. This is $18,509,588 higher than
the prior year. The General Fund provides services to the public. These services include fire protection, police
protection,parks services,general administrative services,library services,permitting,planning and development
services.
The largest sources of revenue in this fund are Property and Sales Taxes.
Property Tax General Fund Revenue
$70,000,000
$60,000,000
Estimated increase: $50,000,000
6.04%over prior year budget
$40,000,000
Revenue Collection:
FY 2022-23 Actual: $57.07 M $30,000,000
FY 2023-24 Budget: $64.51 M
FY 2024-25: $68.43 M $20,000,000
$10,000,000
$0
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5.73%over prior year budget
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Revenue Collection:
$20,000,000 FY 2022-23 Actual: $55.9 M
FY 2023-24 Budget: $57.54 M
$10,000,000 FY 2024-25: $60.84 M
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Page: 18 Core Values: Inclusion, Collaboration,Quality Service,Strategic Focus, Fiscal Responsibility
FY 2024-25 Budget in Brief
�z
FY
'i
I IFY 2024-25
Adopted Adopted Variance %Change
Property Taxes $64,966,348 $68,879,918 $3,913,570 6.02%
Sales Tax 57,545,000 60,841,793 3,296,793 5.73%
Franchise Agreements 4,644,220 9,144,537 4,500,317 96.90%
Other Taxes 456,554 608,330 151,776 33.24%
Service Fees 12,009,745 12,097,103 87,358 0.73%
Fines and Fees 1,893,586 2,106,531 212,945 11.25%
Licenses and Permits 7,934,673 6,415,806 (1,518,867) -19.14%
Return on Investment 15,732,014 20,909,106 5,177,092 32.91%
Miscellaneous 6,900,114 5,865,977 (1,034,137) -14.99%
Transfers from other funds 16,987,310 20,710,051 3,722,741 21.91%
TOTAL REVENUES $189,069,564 $207,579,152 $18,509,588 9.79%
General Fund Highlights:
• 3% cost of living adjustment
• Possible 2.5% Merit Increase
• Operations and Maintenance tax rate reduced $0.02/$100 AV
• Total Tax Rate = 0.585420
• Focus on public safety and continuation of employer of choice
Core Values: Inclusion,Collaboration, Quality Service,Strategic Focus, Fiscal Responsibility Page: 19
FY 2024-25 Budget in Brief
CITY OF •
Fund -
FISCAL
EXPENDITURES- GENERAL FUND
The City's General Fund adopted budget for FY 2024-25 totals $207,579,152. This is $18,509,588 higher than
the prior year. The General Fund provides services to the public. These services include fire protection, police
protection,parks services,general administrative services,library services,permitting,planning and development
services.
The City of Denton strives to be an employer of choice. This year, the City was able to further that mission by
providing 3.0% cost of living increases and possible 2.5% merit increases. In the General Fund, the City also
maintained its commitment to police and fire civil service personnel in alignment with their Meet and Confer
Agreements. This budget also contains expenditures in personnel to continue working toward pay equity. The
City was able to absorb the cost of all health care increases without passing additional cost on to employees.
• Materials and Supplies cost increased $795,717, primarily due to increases in the cost of uniforms,
equipment, medical supplies and chemicals.
• Insurance cost increased $399,235 or 9.68%, primarily due to inflation and claims cost.
• Miscellaneous cost increased $638,460 or 20.51%, primarily due to community services initiatives.
• Operations costs increased $1,112,610 or 5.07%, primarily due to addition of the K-9 program,
utilities, mowing and vehicle maintenance.
• Fixed asset costs are calculated at year end and account for the increase in asset depreciation. While
this is shows as a budgeted expense, it is often better reflected in post year end projections.
• Transfer out to other funds have increase $1,007,003 or 4.59%, primarily due to increased internal
services costs.
Adopted
Personnel Services $ 128,113,196 $140,013,012 $11,899,816 9.29%
Materials & Supplies 4,385,794 5,181,511 795,717 18.14%
Maintenance & Repair 2,347,304 2,333,586 (13,718) -0.58%
Insurance 4,122,531 4,521,766 399,235 9.68%
Miscellaneous 3,113,469 3,751,929 638,460 20.51%
Operations 22,121,361 23,243,971 1,122,610 5.07%
Fixed Assets 601,967 704,483 102,516 17.03%
Other Expenses - 3,323,632 3,323,632 100.00%
Capital Outlay 2,338,626 1,573,142 (765,484) -32.73%
Transfers 21,925,317 22,932,320 1,007,003 4.59%
Total Expenditures $189,069,565 $207,579,352 $18,509,787 9.79%
Page:20 Core Values: Inclusion, Collaboration,Quality Service,Strategic Focus, Fiscal Responsibility
FY 2024-25 Budget in Brief
General Fund Reserve Requirements: The City of Denton maintains a General Fund reserve balance for
unanticipated expenditures, unforeseen revenue fluctuations, or other adverse circumstances. To ensure that
resources are available for these types of issues, the City of Denton targets a fund balance equivalent to 20 to
25% of budgeted expenditures, which includes a resiliency reserve up to 5%. The resiliency reserve will only be
utilized in cases of economic distress. As such, the purpose of the resiliency reserve is to minimize budget and
service fluctuations due to economic conditions.
The estimated ending reserve balance of $44,472,882 at the end of FY 2024 represents approximately 23.66%
of estimated expenditures and is within the targeted goal of 20 to 25%. The chart below provides a listing of the
ending fund balances for the past two years, an estimated balance for the fiscal year ending September 30, 2024,
and the projected balance for the fiscal year ending September 30, 2025.
Fund Balance Reserve As of Adopte
Ending Balance $44,749,871 $44,472,882 $44,472,882
% of Expenditures 25.67% 23.66% 21.42%
Target % 20%-25% 20%-25% 20%-25%
Cost of General Fund City Services: The total cost of General Fund services for a property owner who's home's
assessed valuation is $100,000 is $585.42 per year, or $48.79 per month. The below chart outlines where
property taxes in this scenario go.
-�__rYOUR TPROP7ERTY O.
IN YOUR :• - •• .
Mll" * BUILDING INSPECTIONS •
.31
0 .
DEVELOPMENT
RECREATIONo PARKS AND
* TRAFFIC OPERATIONS $6.99
e STREET LIGHTING $2.20
FOR YOUR
POLICE* FIRE DEPARTMENT $102.29
o ANIMAL SERVICES $9.67
1 * PUBLIC SAFETY COMMUNICATION $12.59
F—FOR OUR -•
ANNUALVOT ER APPROVED BOND PROGRAMS $115.68
• OF •
' . ,
MONTHLY • OF
Core Values: Inclusion,Collaboration, Quality Service,Strategic Focus, Fiscal Responsibility Page:21
FY 2024-25 Budget in Brief
CITY OF •
Water/Wastewater
FISCAL YEAR 2024-25
WATER FUND REVENUE
The FY 2025 Water Fund budget includes $55,635,824 in revenues, $55,635,824 in expenditures, and no use of
reserves. The Water Utility ensures customers have access to a reliable supply of high-quality drinking water by
adhering to all federal and state regulations related to water treatment, distribution, and metering. In addition
to water delivery, the fund oversees the development of water system capital improvement plans, coordinates
development projects, and serves as a liaison with local, state, and federal regulatory authorities. The City of
Denton holds water rights at Lake Lewisville and Lake Ray Roberts. These sources of water are treated and
provided by the Water Fund.
FY 2023-24 FY 2024-25
Adopted Adopted Variance %Change
Residential Water Sales $23,839,938 $23,684,799 ($155,139) -0.65%
Commercial Water Sales 19,858,347 23,472,151 3,613,804 18.20%
Resale - Raw Water 2,164,644 1,688,223 (476,421) -22.01%
Resale -Treated Water 541,654 665,946 124,292 22.95%
Non-rate Revenues 16,450,861 4,897,741 (11,553,120) -70.23%
Interest Income 300,000 1,226,964 926,964 308.99%
Total Revenue $63,155,444 $55,635,824 ($7,519,620) -11.91%
The decline in revenue seen above is due to a change in the way the City budgets water and wastewater impact
fees. Impact fees are fees paid by developers due to their "impacts" on existing infrastructure. The water and
wastewater funds maintain separate impact fee funds and development plan line reserves. The planned use of
these fees are illustrated in the capital improvement program.
The FY 2025 budget contemplates the following rate assumptions.
• An increased rate change of 3.00%for residential and commercial customers in FY 2025. This
is the first rate increase since FY 2018. There was a rate decrease in FY 2021.
• The Water Impact Fee Study is currently pending. The results will be incorporated into future
budgets.
Personnel Changes
The positions in FY 2025 increased by seven net positions. This change reflects nine new positions
and two positions moving to another fund.
Page:22 Core Values: Inclusion, Collaboration,Quality Service,Strategic Focus, Fiscal Responsibility
FY 2024-25 Budget in Brief
Utility Reserve Levels: The Utility Departments and the Public Utilities Board have developed financial strategies
and objectives to maintain financial stability and resiliency. One objective is to achieve and maintain reserve
balances that provide adequate working capital and operating reserve levels. These reserve targets are based
primarily on the Government Finance Officers Association's(GFOA)best practices for enterprise funds. In general,
"Reserves" are divided into two components: working capital and operating reserves. Working capital provides
a minimum unrestricted fund balance to provide the liquidity needed to allow regular management of payables
and payment cycles.The working capital target for each utility is 30 days (8%) of average budgeted expenditures.
The operating reserve funds provide a means of managing expense and demand volatility, ensuring that funding
is available for emergencies such as equipment or infrastructure failure,and serving to improve overall resiliency.
Actual Percentage ,77.9%
FY 2025 Target 25-42%
Equivalent Days of Operating Expenses 90-150
WATER FUND EXPENSES
Adopted Adopted Variance %Change
Purchased Power $1,481,328 $1,481,328 - 0.00%
Purchase of Water 3,000 3,000 - 0.00%
Personnel Services 11,458,321 13,144,979 1,686,658 14.72%
O&M 7,794,903 11,137,793 3,342,890 42.89%
Materials and Supplies 2,040,004 4,676,464 2,636,460 129.24%
Maintenance and Repair 2,066,512 2,250,512 184,000 8.90%
Insurance 465,105 519,789 54,684 11.76%
Administrative Cost 3,944,389 4,208,445 264,056 6.69%
Miscellaneous Expense 107,865 107,865 - 0.00%
Operations 31218,282 3,686,028 467,746 14.53%
Interest Expenses 5,000 5,000 - 0.00%
Debt Service Transfers 11,849,983 14,571,614 2,721,631 22.97%
Capital Transfers 13,722,000 430,562 (13,291,438) -96.86%
Interfund Transfers 8,312,192 10,514,188 2,201,996 26.49%
Fixed Assets 35,000 36,052 1,052 3.01%
Total Expenses $66,503,884 $66,773,619 $269,735 0.41%
Core Values: Inclusion,Collaboration, Quality Service,Strategic Focus, Fiscal Responsibility Page:23
FY 2024-25 Budget in Brief
CITY OF •
— Wate r/Wa stewate r
FISCAL YEAR 2024-25
61 Mod
WASTEWATER FUND REVENUE
The FY 2025 Wastewater budget includes $45,411,976 in revenues, $45,662,165 in expenditures, and $250,189
in use of reserves to balance the budget. One of the primary functions of the wastewater Fund is to provide
its customers with an environmentally responsible means of conveying, treating, and recycling wastewater.
This is accomplished though compliance with all federal and state regulations governing the service include:
administration, wastewater collection, water reclamation, effluent reuse program, composting operations,
wastewater system capital planning, and storm water drainage.
7 FY 2023-24 FY 2024-25
Adopted Adopted Variance %Change
Interest Operating $399,514 $523,269 $123,755 30.98%
Residential Wastewater 13,726,979 17,083,964 3,356,985 24.46%
Commercial Wastewater 16,473,258 18,487,168 2,013,910 12.23%
Effluent Irrigation 89,902 75,417 (14,485) -16.11%
Wastewater Wholesale 1,212,248 862,521 (349,727) -28.85%
Other Revenues 2,032,729 2,668,038 635,309 31.25%
Drainage Fees 4,960,002 5,072,777 112,775 2.27%
Transfers In 634,561 638,822 4,261 0.67%
Impact Fee Transfer 4,270,000 - (4,270,000) -100.00%
Use of Reserves 1,531,066 250,189 (1,280,877) -83.66%
Total Resources $45,330,259 $45,662,165 $331,906 0.73%
Increases in wastewater revenues are predicated on increased rates and community-wide growth.The wastewater
fund impact fees have moved in the same manner as the water impact fees. The funds FY 2024-25 initiatives
include:
• Construct Granada Lift Station Conversion to Gravity
• Expand Pecan Creek Water Reclamation Plant Headworks and Capacity
• Improve Cooper Creek Lift Station
• Construct Robson Ranch Lift Station Conversion Phase 1
• Accelerate the Clear Creek Wastewater Solution
Page:24 Core Values: Inclusion, Collaboration,Quality Service,Strategic Focus, Fiscal Responsibility
FY 2024-25 Budget in Brief
Utility Reserve Levels: The reserve information listed in the water fund also apply to the wastewater fund.
Wastewater Actual Percentage 29.3%
FY 2025 Target 20-31%
Equivalent Days of Operating Expenses 75-110
WASTEWATER FUND EXPENSES
FY 2023-24 FY 2024-25
Adopted Adopted Variance %Change
Purchased Power $1,221,000 $1,221,000 - 0.00%
Personnel Services 9,142,344 10,343,892 1,201,548 13.14%
Materials and Supplies 1,349,117 2,014,500 665,383 49.32%
Maintenance and Repair 2,655,672 2,914,872 259,200 9.76%
Insurance 429,237 463,483 34,246 7.98%
Other Expenses 26,248 26,098 (150) -0.57%
Operations 2,408,183 2,310,264 (97,919) -4.07%
Return on Investment 1,078,437 1,244,990 166,553 15.44%
Franchise Fee 1,540,624 1,778,557 237,933 15.44%
Debt Service 8,713,745 9,785,287 1,071,542 12.30%
Cost of Service - General Fund 1,841,838 2,536,127 694,289 37.70%
Cost of Service - Other 8,015,650 9,098,100 1,082,450 13.50%
Capital Outlay 6,905,164 1,924,995 (4,980,169) -72.12%
Total Expenditures $45,327,259 $45,662,165 $334,906 0.74%
The FY 2025 budget contemplates the following rate assumptions.
• An increased rate change of 11.00%for residential and commercial customers in FY 2025.
This represents a consecutive rate increase since the prior decrease in FY 2019.
• The Wastewater Impact Fee Study is currently pending. The results will be incorporated into
future budgets.
Core Values: Inclusion,Collaboration, Quality Service,Strategic Focus, Fiscal Responsibility Page:25
FY 2024-25 Budget in Brief
CITY OF •
• • Waste —
FISCAL YEAR 2024-25
SOLID WASTE FUND REVENUE
The FY 2025 Solid Waste and Recycling Fund Budget totals $43,519,287 in revenues and $43,519,287 in
expense.This budget does not include the use of reserves.The Solid Waste Utility is responsible for resident and
commercial customers with dependable, efficient, and cost-effective solid waste and recycling collection and
disposal services to customers with sustainable, reliable, and competitive electric services. This is accomplished
through compliance with all federal and state regulations governing the collection, disposal, and recycling of
refuse, debris, yard waste, home chemicals, and large household items including electronics. This fund is also
responsible for developing solid waste and recycling capital improvements, development coordination, and
liaising with local, state, and federal regulatory authorities. The City of Denton owns and operates the City's
landfill in compliance with local, state, and federal regulations.
Rate Revenues $33,984,882 $36,255,666 $2,270,784 6.68%
Wholesale Agreements 4,033,433 5,296,940 1,263,507 31.33%
Non-rate Revenues 1,277,588 1,966,681 689,093 53.94%
Use of Reserves 2,074,934 (2,074,934) -100.00%
Total Resources $41,370,837 $43,519,288 $2,148,451 5.19%
Rates:
The FY 2025 budget contemplates the following rate assumptions:
• An increased base rate change of 1.5%for residential and commercial customers in FY 2025.This is first
rate increase since FY 2018. The last rate was reduced annually from FY 2019 to FY 2021.
• Solid Waste completed a cost-of-service study.The results included the 1.5%rate increase implemented
in the FY 2025 budget.
Personnel Changes:
The positions in FY 2025 decreased by two positions, which moved to another fund.
Page:26 Core Values: Inclusion, Collaboration,Quality Service,Strategic Focus, Fiscal Responsibility
FY 2024-25 Budget in Brief
SOLID WASTE FUND EXPENDITURES
Adopted Adopted Variance %Change
Personnel Services $13,858,641 $14,333,760 $475,119 3.43%
Materials&Supplies 734,267 688,667 (45,600) -6.21%
Maintenance and Repair 238,516 239,516 1,000 0.42%
Insurance 754,473 696,804 (57,669) -7.64%
Miscellaneous Expense 39,820 43,320 3,500 8.79%
Operations 7,287,341 7,785,415 498,074 6.83%
Cost of Service Transfers 6,531,546 8,442,354 1,910,808 29.26%
Fixed Assets 904,007 1,121,087 217,080 24.01%
Vehicle Replacement 2,575,000 1,870,000 (705,000) -27.38%
Revenue Funded Capital 1,000,000 - (1,000,000) -100.00%
Closure/Post Closure 752,631 752,631 - 0.00%
Debt Service 4,817,837 5,404,904 587,067 12.19%
Franchise Fees 1,876,755 2,140,829 264,074 14.07%
Total Expenditures $41,370,834 $43,519,287 $2,148,453 5.19%
s.
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1
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Core Values: Inclusion,Collaboration, Quality Service,Strategic Focus, Fiscal Responsibility Page:27
FY 2024-25 Budget in Brief
IT •lectric
LY
RSTCYAL . R
ELECTRIC FUND REVENUE
The FY 2025 Denton Municipal Electric Fund Budget includes $392,485,775 in revenues, $393,997,690 in
expenditures, and a use of reserves of $1,493,915. The Electric Utility is designed to provide customers with
sustainable, reliable, and competitive electric services. This is accomplished through compliance with all federal
and state regulations governing the creation, purchase, and distribution of energy to customers.This fund is also
responsible for developing electric system capital improvements, coordination, and liaising with local, state, and
federal regulatory authorities. The City of Denton provides energy services to residents from the Denton Energy
Center, and manages the purchase and distribution of energy from the state.
FY 2023-24 FY 2024-25
Adopted Adopted Variance %Change
Base Rate Revenues $104,394,786 $124,913,472 $20,518,686 19.65%
TCRF Revenue - 30,286,099 30,286,099 100.00%
ECA Revenues 66,916,984 86,122,202 19,205,218 28.70%
Non-rate Revenues 119,085,425 151,162,001 32,076,576 26.94%
Use of Reserves 17,756,400 1,493,916 (16,262,484) -91.59%
Total Resources $308,153,595 $393,977,690 $85,824,095 27.85%
Rates:
The FY 2025 budget contemplates the following rate assumptions.
• An increased base rate change of 1.5%for residents and commercial customers in FY 2025. This is first
base rate increase since FY 2018. The last base rate decreased in FY 2019.
• The cost-of-service study results are pending final revisions.The results will be incorporated into future
budgets.
Personnel Changes:
The positions in FY 2025 increased by one net positions. This change reflects nine new positions and eight
existing positions moving to other funds. 4 positions are moving to the Customer Services Fund and 4 positions
are moving to the General Fund.
Page:28 Core Values: Inclusion, Collaboration,Quality Service,Strategic Focus, Fiscal Responsibility
FY 2024-25 Budget in Brief
ELECTRIC FUND EXPENDITURES
FY 2023-24 FY 2024-25
Adopted Adopted Variance %Change
Purchase Power $116,110,083 $181,498,875 $65,388,792 56.32%
Transmission of Power 24,737,092 27,284,774 21547,682 10.30%
Personnel 26,090,466 27,343,676 1,253,210 4.80%
O&M 23,969,028 24,592,404 623,376 2.60%
Cost of Service Transfers 19,943,469 19,170,589 (772,880) -3.88%
ROI & Franchise Fee 25,141,239 33,120,822 7,979,583 31.74%
NON DEC Debt Service 47,185,218 49,860,621 2,675,403 5.67%
DEC Debt 18,077,000 18,077,125 125 0.00%
Revenue Funded Capital 6,900,000 2,064,079 (4,835,921) -70.09%
2024 Purchase Power Securitization - 8,221,772 81221,772 100.00%
Supplementals - 1,871,252 1,871,252 100.00%
Baseline Adjustments - 871,702 871,702 100.00%
Total Expenditures $308,153,595 $393,977,690 $85,824,095 27.85%
Return on Investment (ROI) and Franchise Fees:
The ROI for the Electric Fund was increased from 3.50%to 6.00%in FY 2022 and will remain at 6.00%for FY 2025.
Major Capital Improvement Projects:
The Electric Fund CIP budget includes funding for the following major capital projects in FY 2025:
• Debt: $74.97 million
• Revenue: $450k
Including the improvements discussed above, the FY 2025-29 five-year capital improvement program is $385.55
million. The program is necessary to meet the expected growth in demand for electric services, improve the
reliability of the electric system, replace aging infrastructure, and comply with new regulatory requirements.
Core Values: Inclusion,Collaboration, Quality Service,Strategic Focus, Fiscal Responsibility Page:29
FY 2024-25 Budget in Brief
Grants
FISCAL YEAR CITY OF DENTON
Grants playa vital role in enhancing the quality of life for our community by providing critical funding for programs
and projects that directly benefit residents. These funds, sourced from federal, state, and local agencies, allow
us to address pressing community needs without relying solely on city revenues. By leveraging grants, we are
able to support initiatives that promote economic growth, strengthen public safety, improve infrastructure, and
foster inclusivity across all neighborhoods.
Grants are transformative tools that empower our city to drive meaningful change and growth. Recently, Denton
Parks was awarded the NRPA's Supporting Healthy Aging Through Parks and Recreation 4.0(SHAPR 4.0) instructor
training grant, a program that enhances recreational opportunities for our aging population. This grant not only
provides vital resources for training but also reaffirms our commitment to inclusivity and the well-being of all
residents.
The City of Denton is also pursuing funding through the Transportation Alternatives(TA) Program with a resolution
to submit an application for up to $10 million in grant support. This initiative focuses on enhancing pedestrian
and bicycle infrastructure, promoting sustainable and safe transit options throughout the community. These
grants exemplify how strategic funding partnerships can help us address current challenges while building a
brighter, healthier future for our city.
The impact of grants extends far beyond financial support. They enable innovation, collaboration, and strategic
partnerships with local organizations, non-profits, and state and federal agencies. Through these partnerships,
we can expand resources for vulnerable populations, create opportunities for growth, and build a more resilient
community. Every grant secured represents an investment in the future of our city and underscores our
commitment to strategic and fiscally responsible stewardship for the benefit of all citizens.
The City Finance Department,through its Grants and Other Funding Sources Division, manages an active portfolio
of over $105M in grant funding. This division works diligently to identify grant opportunities, manage grant
applications and supports programs like the City's application for loan funding from State and Federal sources.
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Page:30 Core Values: Inclusion, Collaboration,Quality Service,Strategic Focus, Fiscal Responsibility
FY 2024-25 Budget in Brief
GRANTSBUDGET
EXPENDITURE SUMMARY
1
DESCRIPTION
The grants budget is a summary of local,state and federal grants awarded to the City of Denton. Grants are awarded to support programs in the City and are not funded with City
resources.Miscellaneous new grants are potential awards anticipated during the fiscal year.
GRANT EXPIRATION Grant Available
GRANT NAME YEAR DATE Amount Type Grant Award
Community Development Block Grant 2019-20 993,188 Federal 67,416
Community Development Block Grant 2020-21 1,485,440 Federal 10,453
Community Development Block Grant 2021-22 1,031,032 Federal 190,996
Community Development Block Grant 2022-23 925,725 Federal 100,000
Community Development Block Grant 2023-24 964,531 Federal 457,487
Community Development Block Grant 2024-25 - 1,015,047 Federal 1,015,047
Sub-Total CDBG $ 6,414,963 $ 1,841,399
HOME Investment Partnership Grant 2020-21 9/1/2028 505,355 Federal 120,634
HOME Investment Partnership Grant 2021-22 9/1/2029 487,076 Federal 13,478
HOME Investment Partnership Grant 2022-23 9/1/2030 503,797 Federal 260,815
HOME Investment Partnership Grant 2023-24 9/1/2031 513,327 Federal 501,627
HOME Investment Partnership Grant 2024-25 9/1/3032 471,992 Federal 471,992
HOME-American Rescue Plan(ARP)Act of 2021 2021-22 9/30/2030 1,763,622 Federal 1,564,961
Sub-Total HOME $ 4,245,169 $ 2,933,507
TOTAL COMMUNITY DEVELOPMENT $ 10,660,132 $ 4,774,906
FY2023 Patrick Leahy Bulletproof Vest Partnership Program 2023-25 9/30/2025 4,200 Federal 4,200
FY2023 Edward Bryne Memorial Justice Assistance Grant 2022-23 9/30/2026 71,615 Federal 70,098
FY2022 Edward Byrne Memorial Justice Assistance Grant 2021-25 9/30/2025 53,999 Federal 53,999
FY2021 Improving Criminal Justice Responses 2021-25 9/30/2025 376,782 Federal 288,647
Assistance to Firefighters Grant 2023-25 8/13/2025 30,136 Federal 30,136
2020 Staffing for Adequate Fire&Emergency Response(SAFER)Grant 2022-25 2/17/2025 989,136 Federal 309,444
2021 Staffing for Adequate Fire&Emergency Response(SAFER)Grant 2023-26 5/31/2026 3,731,892 Federal 2,726,774
2022 Staffing for Adequate Fire&Emergency Response(SAFER)Grant 2023-26 5/31/2026 2,178,000 Federal 2,052,884
Urban Search&Rescue Response System(TEEX) 2024-25 9/30/2025 400,000 Federal/State 400,000
Texas Intrastate Fire Mutual Aid System-Emergency Response 2024-25 9/30/2025 200,000 Federal 200,000
TOTAL PUBLIC SAFETY $ 8,035,760 $ 6,136,182
Airport RAMP Grant 2024-25 8/31/2025 100,000 State 100,000
Mayhill Road IH35 East to US 380 2018 Upon Completion 62,388,452 State 3,067,231
Mayhill Road South of Spencer Road to IH35 East2 2022 Upon Completion 4,000,000 State -
Bonnie Brae Road IH35 East to US 377 2018 Upon Completion 46,151,351 State 9,517,581
RTR McKinney Street 2016 1/5/2027 18,267,303 State 1,020,888
Hickory Creek FM2181-FM2499 2015 1/26/2026 2,400,000 State 675,992
Hickory Creek FM 1830 to Riverpass Drive 2022 Upon Completion 10,000,000 State 3,536,046
North Texas Boulevard Roundabout 2015 Upon Completion 2,000,000 State 731,378
Sycamore-Welch Bike&Pedestrian 2017 Upon Completion 762,508 State 635,948
CMAQ-School Connection Sidewalks 2018 Upon Completion 438,820 State 363,300
Safe Routes to School-Ginnings&Lee Elementary Schools 2018 Upon Completion 762,311 State 653,911
Airport Coronavirus Relief Grant Program 2021-25 6/6/2025 34,162 Federal 34,162
Safe Streets and Roads for All 2024-25 12/31/2025 576,000 Federal 576,000
Transportation Alternatives 2023-26 TBD 10,971,904 State 10,971,904
TXDOT Federally Assisted Airport Development Grant 2024-25 Upon Completion 709,780 Federal 709,780
TOTAL TRANSPORTATION $ 159,562,591 $ 32,594,121
Interlibrary Loan Program(ILL) 2024-25 7/31/2025 35,000 State 35,000
Governors Community Acheivemet Award 2021-26 8/30/2026 290,000 State 290,000
Green Ribbon Grant-FM 2499 2021 Upon Competion 773,666 State 159,462
Green Ribbon Grant-HWY 377 2022 Upon Competion 420,000 State 420,000
TPWD Local Parks Grant 2022-Villages of Carmel 2023-27 3/31/2027 621,562 State 621,562
TPWD Local Parks Grant 2023-Bowling Green 2024-28 TBD 598,532 State 598,532
TPWD Local Parks Grant 2024-Briercliff 2024-28 TBD 750,000 State 750,000
TPWD Boating Access 2024-27 6/30/2027 97,500 Federal 97,500
Community Forestry Grant Program 2024-25 5/31/2025 20,000 Federal 20,000
American Rescue Plan(ARP)Act of 2021 2021-26 12/31/2026 23,290,438 Federal 6,644,645
TSLAC Special Projects Grant 2024-25 6/30/2025 74,742 State 74,742
ICMA Economic Mobility 2024-25 1/31/2025 24,000 Foundation 24,000
Miscellaneous New Grants 2024-25 TBD 51,912,986 Federal and/or State 51,912,986
TOTAL OTHER $ 78,908,426 $ 61,648,429
GRAND TOTAL $ 257,166,909 $ 105,153,638
Non-Capital Grants 97,604,318 72,559,517
Capital Grants 159,562,591 32,594,121
Grant Total $ 257,166,909 $ 105,153,638
Core Values: Inclusion,Collaboration,Quality Service,Strategic Focus, Fiscal Responsibility Page:31
FY 2024-25 Budget in Brief
DEFINITIONS:
CDBG: Community Development Block Grant— A federal program administered by the U.S. Department of
Housing and Urban Development (HUD) that provides funding to the City of Denton for projects aimed at
improving community infrastructure, expanding affordable housing, supporting economic development, and
enhancing public services to benefit low- and moderate-income residents.
Certificates of Obligation (COs): Bonds issued by the City for infrastructure projects without requiring voter
approval but restricted to specific uses.
CIP: Capital Improvement Program -A long-term plan that outlines funding for major infrastructure projects,
including streets, facilities, water and wastewater systems, and other capital assets.
COLA: Cost of Living Adjustment -An adjustment to employee salaries or benefits to account for inflation and
rising living costs.
DEC Debt: Debt incurred to finance the construction and operation of the Denton Energy Center, a natural gas-
fired power plant.
DME: Denton Municipal Electric-The City of Denton's municipally owned electric utility, responsible for providing
electricity to residents and businesses.
ECA Revenues: Revenues from the Energy Cost Adjustment, a mechanism that adjusts utility bills based on
fluctuations in wholesale energy costs.
ERCOT Market:The Electric Reliability Council of Texas,which manages the electric grid and wholesale electricity
market for much of Texas, including Denton.
FY 2025/26 and Future Assumptions: Assumes a reduced Maintenance and Operations (M&O) tax rate to
balance increases in Appraised Value (AV) of properties.
General Obligation Bonds (GOs): Voter-approved bonds issued by the City to fund infrastructure projects such
as roads and public facilities.
Government Finance Officers Association(GFOA):A professional association representing public finance officials
throughout the United States and Canada. GFOA promotes best practices in budgeting, financial management,
and transparency in government.
NON-DEC Debt Service: Debt service payments not related to the Denton Energy Center (DEC).
NRPA: National Recreation and Park Association -A national organization that sets standards and provides
support for parks and recreation services, often referenced in Denton's park-related initiatives.
Revenue Bonds: Bonds issued for utility-related projects (e.g., water,wastewater, or electric services) and repaid
through utility revenues.
TCRF Revenues: Revenues from the Transmission Cost Recovery Factor, which allows DME to recover the cost of
building and maintaining transmission infrastructure.
TIRZs: Tax Increment Reinvestment Zones— Designated areas where property tax revenue growth funds
infrastructure and redevelopment projects.
Page:32 Core Values: Inclusion, Collaboration,Quality Service,Strategic Focus, Fiscal Responsibility
This report was prepared and presented by the City of Denton, Texas
Finance Department.
Copies of the City's Annual Operating Budget and Annual
Comprehensive Financial Report may be found on the City's website
at www.cityofdenton.com