[2. CONSENT AGENDA]
[A. PUB26-099 Consider approval of the June 8, 2026 minutes.]
[B. PUB26-083 Consider recommending adoption of an ordinance considering all matters incident and related to the issuance, sale and delivery of up to $316,338,000 in principal amount of "City of Denton General Obligation refunding and improvement bonds, Series 2026"; authorizing the issuance of the bonds; delegating the authority to certain city officials to execute certain documents relating to the sale of the bonds; approving and authorizing instruments and procedures relating to said bonds; enacting other provisions relating to the subject; and providing an effective date.]
[C. PUB26-082 Consider recommending adoption of an ordinance considering all matters incident and related to the issuance, sale and delivery of up to $295,000,000 in principal amount of "City of Denton Certificates of Obligation, Series 2026"; authorizing the issuance of the certificates; delegating the authority to certain city officials to execute certain documents relating to the sale of the certificates; approving and authorizing instruments and procedures relating to said certificates; enacting other provisions relating to the subject; and providing an effective date.]
[00:03:51]
EASE SOME OF THE SHORT TERM RATE PRESSURE. THE ISSUING THE. THE DEBT WOULD POTENTIALLY BRING. AND SO WHAT WE FOUND IN OUR ANALYSIS OF THE CAPITALIZED INTEREST IS THAT OVER THE LIFE OF THE BOND, IT WOULD COST ABOUT $25 MILLION. AND SO WHAT WE DID IS WE WENT BACK AND WE WORKED WITH OUR INVESTMENT ADVISOR AND WORKED ON THE ISSUANCE AND AMORTIZATION SCHEDULE AND WAS ABLE TO MOVE THE PRINCIPAL AND INTEREST AROUND IN SUCH A WAY THAT IT DOES BALANCE EASING SOME OF THE SHORT TERM PRESSURE WITHOUT INCURRING THESE LONG TERM CAPITALIZED INTEREST COSTS. SO WE'RE NOT PROPOSING TO MOVE FORWARD WITH THE CAPITALIZED INTEREST. WE DIDN'T FEEL THAT THAT MADE THE MOST FINANCIAL SENSE, BUT WE DID WHAT WE COULD ON THE ISSUANCE SCHEDULE TO TO PROVIDE AS MUCH RELIEF ON THE ON THE SHORT TERM AS WE COULD.
AND SO IN TOTAL. AND NOW THIS LIST, WHICH IS A LITTLE DIFFERENT THAN WHAT WAS ON THE 27TH, BECAUSE IT DOES INCLUDE THE GENERAL GOVERNMENT AND SOLID WASTE IN THAT TOTAL THERE.
[00:05:01]
BUT THE TOTAL THAT WAS SHOWN FROM THE 27TH TO TODAY IS REDUCED BY THE 23 MILLION AND IN CAPITALIZED INTEREST. SO THIS TOTALED THE 295 MILLION. THAT DOES INCLUDE, AS I MENTIONED, THE GENERAL GOVERNMENT. THAT INCLUDES THE BOND PROGRAM. AND SO BECAUSE WE'RE BRINGING THE FULL ORDINANCE TO COUNCIL, WE'RE BRINGING WE'RE SHOWING ALL OF IT TO YOU TODAY JUST SO THAT WHAT'S WHAT YOU'RE SEEING AND WHAT'S GOING TO COUNCIL IS, IS THE SAME, BUT THAT DOES INCLUDE THINGS THAT ARE TYPICALLY OUTSIDE OF WHAT THE, THE PUB WOULD WOULD REVIEW. LET ME JUMP BACK TO THE 2026 DEBT REFUNDING. SO IN ADDITION TO ISSUING BONDS FOR NEW IMPROVEMENTS, WE ALSO HAVE AN OPPORTUNITY TO REFINANCE DEBT THAT IS ALREADY OUTSTANDING. AND SO THE AVERAGE INTEREST RATE OF OUR BONDS THAT ARE OUTSTANDING FROM 2016 AND 2017 IS AROUND 5%. THE CURRENT INTEREST RATE IS 3.65%. SO WE HAVE AN OPPORTUNITY WITH THESE ISSUANCES TO REFUND THEM AND REALIZE SOME PRETTY SUBSTANTIAL SAVINGS IN THE 2016 ISSUANCE, WE HAVE AN OPPORTUNITY TO REFUND $22 MILLION. AND IN THE 2017 SERIES, 142 MILLION, THAT 142 MILLION ARE THE REVENUE BONDS THAT WERE ISSUED FOR THE DEC. SO WITH THAT, WELL, WITH BOTH AT THE BOTTOM, YOU CAN SEE THE PROJECTED SAVINGS FOR ALL THE ALL THE DEPARTMENTS, MOST OF THE DEPARTMENTS REALIZE, YOU KNOW, MAYBE UP TO 100 TO $200,000 IN SAVINGS AND THAT SAVINGS IS OVER THE REMAINING LIFE OF THE BOND. SO EITHER 10 OR 20 YEARS, AS YOU'LL SEE FOR FOR DME, REFUNDING THE DEC BONDS PRODUCES A SAVINGS OF $13.7 MILLION. AND SO THAT EQUATES TO ABOUT $700,000 A YEAR. GOING FORWARD, THE DME WILL SAVE BY REFUNDING THEBONDS. SO NEXT STEPS. YES. SORRY. >> I'M SORRY. IF YOU GO BACK TO THE PREVIOUS SLIDE, THE PART. NOTE THAT THE NEXT ONE. I APOLOGIZE. GENERAL GOVERNMENT.
I MEAN, WE LOOK AT SOLID WASTE, WASTE WATER POWER. WHAT IS IN THE KIND OF GENERAL GOVERNMENT
LINE ITEM. >> YEAH. SO SO WHAT THIS IS THERE'S FOR THE CEOS THAT WOULD INCLUDE FACILITIES, TECH SERVICES, QUITE A BIT OF IT IS VEHICLES THAT ARE USED JUST WITHIN EITHER THE GENERAL FUND OR, OR OUR STREETS DEPARTMENT. SO THAT COMPRISES THE MAJORITY
OF THE 56 MILLION. >> OKAY. SO THE ONE THING WE'RE NOT SEEING HERE THAT I DON'T SEE IN THE BOND SALE IS ANYTHING HAVING TO DO WITH ROADS AND STREETS. IS THAT PART
OF GENERAL GOVERNMENT OR. >> IT IS. SO THERE IS A LITTLE BIT OF FUNDING IN THIS 56 MILLION FOR FOR STREETS. HOWEVER, THIS IS JUST SPECIFIC TO THE CERTIFICATES OF
OBLIGATION SALE. >> THE THE ONE THAT WE'RE TALKING ABOUT.
>> YEP. THE GEO SALE, WHICH INCLUDES THE 2023 BOND ELECTION THAT WOULD INCLUDE THE PROPOSITION FOR STREETS AND DRAINAGE, AS WELL AS SOME OF THE FACILITIES THAT WERE VOTER APPROVED. SO THAT IS NOT SHOWN IN THIS LIST HERE, BECAUSE THIS LIST IS ONLY THE CEOS.
>> THANK YOU. >> THANK YOU. THE 700 000 SAVINGS. WHAT IS THE LENGTH OF
TERM FOR THAT? >> YEAH. SO DME HAS TYPICALLY ISSUED 30 YEAR DEBT. AND SO WE'RE ABLE TO REFINANCE BONDS AT THE TEN YEAR MARK NINE, NINE AND A HALF YEAR MARK. SO. THAT SAVINGS WOULD BE ON THE REMAINING TERM. SO WHEN WE REFINANCE BONDS, WE KEEP THE SAME TERM LENGTH. IT WOULD JUST BE. SO WE'VE WE'RE TEN YEARS INTO THE BOND. WE HAVE 20 YEARS
REMAINING. IT WOULD BE OVER THAT 20 YEAR PERIOD. >> THE 700,000.
>> IT WOULD BE $700,000 APPROXIMATELY EVERY YEAR. THAT'S OKAY FOR THE NEXT 20
YEARS, WHICH WOULD BE A SAVINGS OF. >> A LOT.
>> ABOUT $13.7 MILLION. >> THAT'S WHERE THAT NUMBER IS. THANK YOU. YES.
>> SORRY. CONTINUE YOUR PRESENTATION. >> SO IN TERMS OF NEXT STEPS, ON JULY 14TH, COUNCIL WILL CONSIDER ADOPTION OF THE BOND ORDINANCES. ON JULY 22ND. WE
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ANTICIPATE TO HAVE THE GEO AND CO SALE ON AUGUST 6TH. WE ANTICIPATE TO HAVE THE THE GEO REFUNDING FOR THE UTILITY SYSTEM BONDS. AND THE REASON THAT WE'RE SEPARATING THIS FROM THE JULY 22ND ISSUANCE IS JUST TO KEEP THE BOOKS SEPARATE AND CLEAN. IN TERMS OF THE DEC, WHAT'S RELATED TO THE DEC AND THE DEC ISSUANCE, BECAUSE OTHERWISE WHAT HAPPENS IS ALL THE BONDS GET REFUNDED INTO ONE ISSUANCE, AND THEN IT BECOMES AN EXERCISE TO TRY AND PARSE THAT OUT POTENTIALLY IN THE FUTURE. SO SO THAT'S WHY YOU SEE TWO BOND SALE DATES ON AUGUST 20TH. WE ANTICIPATE CLOSING ON THE DELIVERY OF FUNDS FROM THE JULY 22ND SALE.AND THEN ON SEPTEMBER 3RD, CLOSING DELIVERY OF THE PROCEEDS RELATED TO THE UTILITY
SYSTEM REFUNDING BONDS. AND ANY QUESTIONS. >> DO WE HAVE ANY QUESTIONS? I JUST WANT TO COMMENT THAT THE THE BOND REFUNDING PROGRAM IS HAS OBVIOUSLY BEEN A GOOD WAY FOR THE CITY TO SAVE MONEY OVER THE YEARS. IT'S IT'S GOOD TO SEE INTEREST RATES ARE DOWN COMPARED TO 2016. AND YOU KNOW, THAT $700,000 A YEAR IN SAVINGS FOR DME AND, YOU KNOW, ADDITIONAL SMALL SAVINGS FOR ALL THE OTHER UTILITIES IS ALWAYS. THAT'S ALWAYS GOOD NEWS.
YOU KNOW, WE, I'M SURE YOU SEEK TO, TO SAVE AS MUCH MONEY AS POSSIBLE WHENEVER POSSIBLE.
WE'VE, WE'VE SEEN THIS, YOU KNOW, BEFORE. THIS IS KIND OF OUR, OUR STANDARD ANNUAL CERTIFICATES OF OBLIGATION. I DON'T HAVE ANY QUESTIONS. ARE THERE ANY OTHER COMMENTS OR QUESTIONS? THEN I, I THINK WE WILL ENTERTAIN A MOTION FOR EACH INDIVIDUAL ITEM. IF
ANYBODY WANTS TO. >> MOVE APPROVAL ON THE GENERAL OBLIGATION REFUNDING
IMPROVEMENT BONDS. SECOND, THAT WOULD BE BE. >> YEAH.
>> SECOND. >> WE HAVE A MOTION AND A SECOND. ALL IN FAVOR SAY AYE.
AYE. ANY OPPOSED. THE MOTION CARRIES UNANIMOUSLY. AND NOW CONSIDER A MOTION ON ITEM C. SO MOVED. WE HAVE A MOTION. SECOND AND A SECOND. ALL IN FAVOR. AYE. ANY OPPOSED. THE MOTION CARRIES UNANIMOUSLY. NOW BEFORE WE MOVE ON TO ITEM D. I. IF DO WE HAVE ANY QUESTIONS. I GUESS WE'LL GO AHEAD AND MOVE TO CLOSED SESSION. I'M ALMOST CERTAIN WE'LL HAVE SOME COMPETITIVE
[A. PUB26-090 Deliberations Regarding Certain Public Power Utilities: Competitive Matters - Under Texas Government Code Section 551.086 Receive information from staff regarding the energy cost adjustment schedule of rates for large load commercial customers that include public power utility competitive data; discuss, deliberate, and provide direction to staff regarding same. This agenda item is related to Individual Consideration Agenda item ID PUB26-084 and will be a placeholder if Public Utilities Board members have questions requiring confidential discussion as allowed by law.]
MATTER QUESTIONS. SO THE PUBLIC UTILITIES BOARD WILL NOW AT 9:12 A.M. CONVENE INTO A CLOSED MEETING TO DELIBERATE THE CLOSED MEETING ITEMS SET FORTH ON THE AGENDA PERTAINING TO DELIBERATIONS REGARDING CERTAIN PUBLIC UTILITY, PUBLIC POWER, UTILITIES, COMPETITIVE MATTERS UNDER TEXAS GOVERNMENT CODE SECTION THE PUBLIC UTILITIES BOAS NOW AT 9:31 A.M. RECONVENED FROM CLOSED SESSION AND NO[D. PUB26-084 Consider recommending adoption of an ordinance of the City of Denton, Texas, establishing the schedule of rates for Electric Service; providing for a repealer; providing for a severability clause; and providing for an effective date.]
OFFICIAL ACTION HAS BEEN TAKEN. WE WILL NOW MOVE ON TO ITEM FOR INDIVIDUAL CONSIDERATION. D CONSIDER RECOMMENDING ADOPTION OF AN ORDINANCE TO THE CITY OF THE CITY OF DENTON,ESTABLISHING THIS SCHEDULE OF RATES FOR ELECTRIC SERVICE. >> GOOD MORNING, CHAIR MEMBERS.
MELISSA CUEVAS WITH DME. AND TODAY WE HAVE OUR THIRD QUARTER REVIEW FOR ENERGY COST ADJUSTMENT AND OUR TRANSMISSION COST RECOVERY FACTOR. SO JUST A QUICK OVERVIEW OF WHAT OUR CURRENT RATES ARE. OUR NATIVE LOAD IS CURRENTLY SET AT 4.6 $0.02 PER KWH. AND WE'RE NOT RECOMMENDING ANY CHANGES THERE. OUR LARGE LOAD IS CURRENTLY AT 6.0 $0.06 PER KWH, AND WE ARE RECOMMENDING AN INCREASE TO 6.9 $0.06 PER KWH. AND WE ARE NOT RECOMMENDING ANY CHANGES FOR OUR TRANSMISSION COST RECOVERY FACTOR. SO FOR OUR NATIVE LOAD ECA, WE DO HAVE A BALANCED BUFFER OF -20 MILLION TO POSITIVE 20 MILLION. AS YOU CAN SEE, WE HAVE A HEALTHY BALANCE THERE. SO WE ARE RECOMMENDING THE RATE TO REMAIN THE SAME. THE LAST TIME WE MADE ANY CHANGES TO THE NATIVE LOAD ECA WAS DECEMBER OF 2020. FOR. OUR ACCOUNT FORECASTED ACCOUNT BALANCE. SO THIS HERE THIS TABLE SHOWS THE TOTAL AMOUNT THAT WE'LL HAVE OVER THE YEAR OF 2026. OUR CURRENT TRANSMISSION COSTS ARE ABOUT 26 MILLION OR A LITTLE UNDER 27
[00:15:01]
MILLION. SO THAT JUST SHOWS WE'LL RECOUP THE COST FOR FOR TRANSMISSION COST. THE LAST TIME WE HAD ANY CHANGE WAS APRIL OF 2026. SO OUR RECOMMENDATION IS KEEPING OUR NATIVE LOAD THE SAME, AS WELL AS OUR TCR AND INCREASING OUR LARGE LOAD ECA TO 6.9 $0.06,EFFECTIVE JULY 15TH. ANY QUESTIONS? >> GO AHEAD. YES, I HAVE A QUESTION. IF YOU COULD GO BACK TO THE SLIDE WITH THE ACCOUNT REVENUE FORECAST CHART.
>> FOR THE TCF. >> YES. >> THAT ONE. YES, SIR.
>> SMALL ITEM. BUT YOU DO HAVE THE YEAR 27 AND THE FINAL QUARTER OF 26.
>> SO FOR OUR TRANSMISSION COST WE DO PAY THAT FOR THE CALENDAR YEAR OF 2026. SO THAT'S WHY WE HAVE JANUARY THROUGH DECEMBER. BUT YES, FOR OCTOBER, TECHNICALLY THAT'S THE START OF
OUR FISCAL YEAR. >> OKAY. THANK YOU. >> YES, SIR.
>> ANY OTHER QUESTIONS? >> MR. CHAIR? JUST QUICKLY, I JUST WANT TO RECOGNIZE JOSE GAITAN AND TONY ROYBAL AND OUR EMO FOLKS THAT REALLY DO AN OUTSTANDING JOB AND HELPING MANAGE OUR COSTS FOR FOR THE UTILITY AND FOR CERTAINLY FOR OUR CUSTOMERS. AND SO A LOT OF CREDIT GOES TO THEM. THEY ARE A VERY CREATIVE BUNCH. THEY ARE QUICK ON THEIR FEET, SPEND A LOT OF HOURS STARING AT SCREENS AND SPREADSHEETS AND, AND CRUNCHING A LOT OF DATA. AND SO I JUST WANT TO JUST QUICKLY RECOGNIZE THEM. AGAIN, IT'S, IT'S, YOU SEE IN THE NEWS THAT UTILITIES ARE CONSTANTLY RAISING RATES FOR THEIR CUSTOMERS, AS YOU HAVE SEEN HERE, WE'VE ACTUALLY DECREASED RATES BY WAY OF THE E, C, A, AND ALSO THE TCF, WHICH REALLY FOR AN AVERAGE RESIDENTIAL CUSTOMER MAKES UP OVER 55% OF THEIR OF THEIR UTILITY BILL. SO CERTAINLY A LARGE CHUNK HERE AS WELL. AND AS, AS JUST A REMINDER, IN THE CURRENT FISCAL YEAR, WE DID NOT RAISE BASE RATES EITHER. RIGHT. SO CERTAINLY OUR CUSTOMERS ARE SEEING LOWER COSTS FOR POWER THAN THEY HAD OVER THE LAST COUPLE OF YEARS, WHERE WE WERE, WHERE WE WERE RAISING RATES. AND SO WE THINK AS THE MARKET CONTINUES TO TO SEE HIGHER AND HIGHER PRICES, OUR OUR RATE WILL CONTINUE TO BE VERY, VERY COMPETITIVE COMPARED TO OTHER AREAS AND CERTAINLY OTHER INVESTOR OWNED UTILITIES. SO BUT AGAIN, I WANT TO RECOGNIZE OUR FOLKS FOR JUST OUTSTANDING JOB THEY DO IN THIS AREA. TOUGH JOB THAT THEY HAVE.
>> THANK YOU. ANY OTHER QUESTIONS? CHAIR WOULD ENTERTAIN A MOTION.
>> I'LL MOVE APPROVAL. >> WE HAVE A MOTION AND A SECOND. ALL IN FAVOR, SAY AYE.
AYE. ANY OPPOSED? THE MOTION CARRIES UNANIMOUSLY. WE WILL MOVE ON TO ITEM E. MANAGEMENT
[E. PUB26-101 Management Reports 1. Future Agenda Items 2. New Business Action Items]
REPORTS. >> SO, MR. CHAIR, MEMBERS OF THE PUB. JUST A COUPLE OF QUICK ITEMS. THERE WAS A CHANGE IN THE BUDGET SCHEDULE. WE DID HAVE A LITTLE THING CALLED A RUNOFF. RIGHT. THAT THAT CAUSED US TO KIND OF MOVE SOME, SOME THINGS AROUND A LITTLE BIT. SO WE HAD TO POSTPONE. BUT BUT THE BUDGET WORKSHOP WILL STILL BE HELD ON, ON JULY 13TH. WHAT WE HAD PREVIOUSLY ON YOUR SCHEDULE WAS JUST A BUDGET UPDATE. THE BUDGET OFFICE IS GOING TO ROLL ALL THAT TOGETHER INTO THIS BUDGET WORKSHOP ON, ON THE 13TH. AND SO I WOULD ASK YOU TO PLEASE PLAN ACCORDINGLY. AND THEN AGAIN, THERE'LL BE A FINAL MEETING ON JULY 27TH WHERE YOU'LL BE ASKED TO MAKE A RECOMMENDATION TO THE COUNCIL FOR ALL THE VARIOUS BUDGETS.
AGAIN, JUST PART OF OUR NORMAL, NORMAL PROCESS. AND THEN THE NEXT ITEM IS ON NEW BUSINESS ACTION ITEMS. AGAIN, DON'T HAVE ANY ANY FOLLOW UP ITEMS OTHER THAN THE NEXT QUARTERLY UPDATE FROM THE WATER DEPARTMENT WILL BE ON JULY 13TH. SO WITH THAT, HAPPY TO ANSWER ANY QUESTIONS THAT YOU MAY HAVE OR IF THERE'S ANY NEW ITEMS THAT YOU'D LIKE US TO TO ADD.
>> ANYTHING FOR MANAGER REPORTS. ALL RIGHT THEN I BELIEVE WE ARE DONE AND THE
* This transcript was compiled from uncorrected Closed Captioning.