Denton Council reviews proposed rate increases for water and wastewater services

The Denton Public Utilities Board convened on July 14, 2025, to discuss significant infrastructure projects and the anticipated rate adjustments for water and wastewater services. The meeting highlighted the necessity of these changes in light of Denton's ongoing growth and the associated demands on public utilities.

A key focus of the discussion was the projected increases in water and wastewater rates, which are expected to rise by approximately 311% over the next five years. This increase is primarily driven by a substantial capital improvement plan, estimated at $1.5 billion, aimed at expanding treatment facilities and maintaining existing infrastructure. The board anticipates that these rate adjustments will ultimately lead to a decrease in rates as projects progress and impact fees are utilized to offset costs.

The financial strategy includes leveraging funding options such as the Water Infrastructure Finance and Innovation Act (WIFIA), which allows for deferred payments, enabling the city to manage its financial obligations more effectively as growth occurs. The board noted that while the proposed rate increases may seem steep, they are essential for ensuring that the utility services can meet the needs of a growing population.

In addition to water and wastewater rates, the board addressed the drainage fund, which has not seen a rate increase since 2002. The current budget for drainage projects includes a net income of $1.3 million, which is planned to be allocated towards channel rehabilitation projects. A cost of service study is underway to evaluate drainage fees, with potential adjustments expected in 2027.

The meeting concluded with a call for feedback on the proposed rate increases and a timeline for upcoming budget discussions. The board emphasized the importance of these adjustments in maintaining the quality and reliability of utility services in Denton, as the city continues to expand. The next steps include further discussions with the city council and a budget workshop scheduled for August 9, 2025.