Denton's Public Utilities Board has proposed a significant 3% rate increase for residential, commercial, and industrial water services, alongside a staggering 297% hike on wholesale treated water rates. This decision, discussed during the board's meeting on July 28, 2025, aims to address rising operational costs and align with revenue projections of $59 million against expenses of approximately $62.8 million for the upcoming fiscal year.

The proposed increases are part of a broader strategy to ensure the sustainability of Denton's water services while managing the city's growth and maintaining affordability for residents. The board noted that a retail and wholesale rate study conducted earlier this year informed these adjustments, highlighting that current rates were insufficient to cover the costs of providing treated water.

In addition to the rate increases, the board is also looking to clarify the language in the rate ordinance regarding wholesale raw water pricing. The proposed change would tie Denton's rates directly to 85% of the Dallas wholesale untreated water rate, allowing for more timely adjustments in response to Dallas's rate changes. This move is intended to prevent delays in implementing necessary rate adjustments, ensuring that Denton remains competitive and financially stable.

Other proposed changes include a 3% increase in meter fees and fire hydrant installation costs. The board emphasized that these adjustments are in line with rates in comparable cities such as Frisco, Plano, and McKinney, which have also been undergoing budget processes that may lead to their own rate increases.

As Denton prepares for these changes, the board is committed to balancing the financial health of the water fund with the needs of the community, ensuring that essential services continue to be delivered effectively. The next steps will involve finalizing the budget and implementing the proposed rate changes, which are expected to take effect in the coming fiscal year.