At a recent budget workshop, Denton city officials gathered to discuss the proposed budget for the fiscal years 2024-2025, presented by Chief Financial Officer Jessica Williams. The city is facing a significant budget of $2.35 billion, marking a 20.26% increase from the previous year. This budget must be balanced, adhering to state law, and is set to be adopted on September 17, 2023.

Williams highlighted the economic challenges influencing the budget, particularly inflation, which has surged by approximately 21% since the pandemic began. While there was a slight decrease in inflation recently, the overall economic conditions remain tight, with the Federal Reserve maintaining interest rates at 5.33%. The city is preparing for potential economic constriction, which could impact future funding and spending.

The budget process involves multiple stages, including public hearings and workshops, with the aim of finalizing the budget by the end of September. Williams emphasized the importance of maintaining a fund balance target of 20% for the general fund, which is crucial for managing unforeseen economic challenges.

Denton's growth is a positive factor in the budget, with an anticipated population increase of 2.9% for 2024-2025. This growth is expected to boost sales tax revenues, projected to rise by 5.26% compared to the previous year. The city has also seen a 10.16% increase in certified appraised value, which will influence future tax rates.

The proposed budget includes cost-of-living adjustments and merit increases for city employees, reflecting the city's commitment to being an employer of choice. However, rising medical costs pose additional challenges, with a 10% increase anticipated in healthcare expenses.

As the city prepares for the upcoming fiscal year, officials are keenly aware of the economic landscape and its implications for Denton's financial future. The discussions at the workshop set the stage for critical decisions that will shape the city's budget and services in the years to come.