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DENTON – The Denton Town Council has introduced ordinances that will raise water and sewer rates beginning in 2026. The proposed increases, discussed and approved for introduction during the Council’s November 6 meeting, are part of a three-year plan designed to stabilize the town’s utility funds and address upcoming infrastructure costs.
According to Denton Town Manager Scott Getchell, the new rates will take effect on January 1, 2026, and will first appear on quarterly bills distributed in April of that year. The increases will apply to all properties served by Denton’s municipal water and sewer systems, both within and outside town limits, while new connection fees will affect only new construction.
The changes mark the first adjustments since 2022 for water and 2023 for sewer. Under the new ordinances, sewer rates for in-town customers will rise from a $50 base fee to $60.50 in 2026, with the per-1,000-gallon charge increasing from $8 to $9.68. That rate will continue to rise gradually through 2028, reaching a $65.44 base and $10.47 per 1,000 gallons.
Residents outside Denton’s municipal boundaries will see their base sewer fee rise from $100 to $121 in 2026, with the per-1,000-gallon rate increasing from $16 to $19.36. By 2028, those rates will reach $130.87 and $20.94, respectively.
Water rates will follow a similar gradual rise. For in-town users, the current $25 base fee will increase to $26 in 2026, then to $28.12 by 2028. The per-1,000-gallon charge will increase from $3.45 to $3.59 in 2026 and reach $3.88 by 2028. For customers outside town limits, base fees will go from $50 to $52 in 2026 and reach $56.24 by 2028. The per-1,000-gallon rate will rise from $6.90 to $7.18 in 2026 and to $7.76 by 2028.
Connection fees, which apply to new construction, will also increase. The single-family residential water capacity charge will rise from $4,000 to $5,000 per Equivalent Residential Unit (ERU). The ERU standard equates to 225 gallons of water usage per day.
Getchell explained that the Denton Utility Commission (UC) has been studying the town’s rate structure for more than a year using a new financial modeling system called Waterworth. The software allows the Town to continuously track revenue and expenses and simulate future rate impacts in real time. In the past, such financial analyses were conducted every three to five years.
“At the recommendation of the Waterworth analysts, the UC recommended annual increases rather than large one-time increases every 3–5 years,” Getchell said. The goal is to provide smaller, predictable adjustments that help the town maintain financial stability without placing an immediate heavy burden on residents.
It was recommended that the commission raise rates enough to build a larger operating cash reserve, but they opted for a smaller one to keep rates manageable for residents. “The UC would prefer a six-month operating cash reserve; however, based on the modeling completed, having such a reserve put in place right now increases the rates much higher than what’s currently proposed,” Getchell said. Instead, the town will maintain a three-month reserve.
Overall, the water rate increases represent about a 4% annual rise, while sewer rates will see a larger jump in 2026, followed by two years of smaller 4% increases. The steep initial increase, Getchell said, is necessary to help rebuild the sewer fund, which currently lacks reserve funds and will need to support future debt as Denton prepares to update its wastewater treatment plant’s sludge management system.
In addition to the financial adjustments, the town has rewritten its use table, which determines how new connections are calculated and billed. The updated version, according to Getchell, “reflects a modern approach to allocating water and sewer uses,” replacing an outdated system that some UC members believed overcharged new developments.
