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Denton council adjusts nonprofit funding in proposed budget

The Denton City Council is set to vote on a $2.2 billion budget that includes increased sponsorship money for some local groups and utility rate hikes.

Isabel Abbott

September 18, 20262 min read

Civic Budgeting - illustration, Jake Team LLC

The Denton City Council will vote on the fiscal year 2026-27 budget during its Sept. 22 meeting, a package that includes additional sponsorship funding for certain local nonprofits alongside broader tax and utility adjustments.

Mayor Chris Watts stated on Sept. 15 that the council is providing extra sponsorship money to support organizations hosting events he described as integral to the community. The total sponsorship allocation now stands at $329,077, distributed among 24 local groups. However, this increase does not apply to all applicants; several organizations saw their requested amounts reduced.

Thirty-six groups applied for funding from the city for 2027. After reviewing these requests, the Community Partnership Committee determined that 11 organizations would receive no funds at all. One of those excluded is the Denton Community Market.

Watts emphasized that the additional sponsorship money is not a permanent shift in policy. He told council members on Tuesday that the council is handling these extra funds on a case-by-case, year-by-year basis and does not intend to set a precedent for future years.

The council will also consider restoring requested funding levels to three specific groups: the Texas Veterans Hall of Fame, the Denton County Office of History and Culture, and Discover Denton. Kayla Herrod, the director of marketing and communications, confirmed these potential restorations in an email on Sept. 16.

The overall budget for adoption totals approximately $2.2 billion and proposes a tax rate of $0.548 per $100 valuation. This rate is lower than the $0.595 rate from the previous year. City staff noted that certified assessed property values rose to $26.7 billion, which allowed for the tax reduction while still meeting city demands.

The budget also outlines utility rate increases: 3% for electric and water services, 9% for wastewater, and 5% for the drainage fund. Herrod confirmed the council will consider deferring the electric rate increase to January rather than implementing it next month.

During Tuesday’s meeting, one public speaker addressed the council. The speaker argued that while the property tax rate is decreasing, the rise in utility rates offsets that benefit for residents. The individual also suggested that apartment developers should pay more taxes because they are profiting from new construction and impacting property values.

Source: Denton Record-Chronicle.

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Denton Record-Chronicle

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Isabel Abbott

Isabel Abbott covers Denton city hall, the council, and county government.

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