Denton's Public Utilities Board has approved a significant five-year capital plan, earmarking nearly $1 billion for essential infrastructure improvements. During the meeting on July 28, 2025, board members discussed a proposed budget of $94.9 million for fiscal year 2026, with funding sources including $37.9 million from the Water Infrastructure Finance and Innovation Act (WIFIA) and $55.6 million from a combination of the Texas Water Development Board and other sources.

The board noted that development activity in Denton remains robust, with no decline in requests for hydrants and meters. This sustained growth is crucial as the city prepares to meet increasing demands for water and wastewater services. The proposed budget for the wastewater fund includes an 11% rate increase for both residential and commercial services, reflecting the need to finance ongoing capital improvements and operational costs.

In addition to the wastewater fund, the drainage budget for fiscal year 2026 is set at $5.8 million, with a 3.6% increase over the previous year. Notably, there will be no proposed rate increase for drainage services, as the board is currently conducting a cost of service study to inform future rate adjustments.

The wastewater capital plan for fiscal year 2026 anticipates $242.9 million in improvements, primarily for plant upgrades. The board emphasized the importance of planning for contingencies due to rising construction costs, which have led to adjustments in project budgets.

Overall, the board's decisions reflect a proactive approach to managing Denton's growing utility needs while ensuring that the community is prepared for future demands. The anticipated rate increases, while substantial, are seen as necessary investments in the city's infrastructure. As the board moves forward, they expect rate increases to stabilize in subsequent years, aligning with inflation and operational needs.