Denton City officials laid out at a city council work session Tuesday their plan for cutting over $7 million in city spending, which is around half of the $14.5 million they鈥檒l need to cut to balance the city鈥檚 2026 general fund budget.
The $14.5 million shortfall, which is over 6% of the estimated spending in 2026, is due to slowing property and sales tax growth in the city, according to the agenda information.
City Manager Sara Hensley spoke out about budget issues related to increasing city debt and a loss of federal grants.
鈥淲e owe it to our community and our citizens to do this 鈥� and we need to look at how we're doing business so that we never have to sit in this room again and do this 鈥� but we haven't,鈥� she said. 鈥淲e've charged a debt that we shouldn't have done.鈥�
She also said the city鈥檚 fund balance, a type of savings account the city has for emergencies, is too low and is putting the city at risk.
When that fund balance gets too low it can affect the city鈥檚 credit rating and their ability to get affordable loans, Hensley said.
鈥淚t would be irresponsible of us, any of us, to say that everything's going to be rosy,鈥� she said. 鈥淏ecause if we touch that fund balance, we will be at risk for any future loans. If we don't build our fund balance, we're going to be at risk anyway.鈥�
Hensley said the only way out of the debt is reducing spending, which means focusing on services that are 鈥渧alued most鈥� by the community like roads, parks and other core services.
鈥淎ny way we slice this pie it's not a pretty picture, but it is the truth,鈥� she said.
Hensley said it's not just Denton facing budget issues, but cities all across Texas. Some of that she attributed to a loss in federal funding.
"It's really a Rubik's Cube trying to make it work," she said. "And then hope and pray that in a year and a half we're not where we are, so that we can start slowly, strategically building back the right way 鈥� we got a little over our britches here, quite frankly."
Chief Financial Officer Jessica Williams also said over the past two years Denton has seen $1.1 billion and $1.2 billion in new growth to the city鈥檚 property tax valuation, but this year will only see an estimated $680 million added.
鈥淲e've had some reduced growth-related revenues because things are constricting,鈥� Williams said.
Mayor Gerard Hudspeth criticized the city for paying $200,000 in legal fees on over Denton's marijuana ordinance.
"That's $200,000 that could have gone to a lot of things," he said. "I think that's important to note as we as we go forward."
What's getting cut?
While the city won鈥檛 be laying off staff at the moment, they will freeze hiring on certain positions that are already vacant, saving the city about $3 million, according to Assistant City Manager Christine Taylor.
This includes not hiring five more police officers, a dispatcher, another assistant to the city manager and other analyst and supervisor positions. It will also cut $591,000 in overtime pay for fire, parks and municipal court employees.
Staff further suggested not funding the into next year to save about $530,000, pause the implementation of a planned K-9 unit to save about $428,000 and cut $200,000 in spending for special events that are organized with other organizations.
Hensley said spending for past events was wasteful and the city couldn鈥檛 afford to carry the cost.
鈥淭hey are relying on the city to pay for everything,鈥� she said. 鈥淎nd this is what has partially put us in a mess.鈥�
They鈥檒l also cut events held at and have Denton ISD take over an after school program the city was providing, saving the city $270,000 in total.
The city will host two budget workshops on Aug. 9 and Aug. 19 before having a hearing and a meeting to adopt the budget on Sept. 16.
Dylan Duke is 四虎影院's summer 2025 SPJ news intern. Got a tip? Email Dylan Duke at dduke@kera.org.
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