Denton residents would face water and trash rate hikes and builders would pay higher permit fees under the city’s proposed budget for the next fiscal year.

The city also plans to charge higher franchise fees to natural gas companies — a cost the companies will likely pass on to customers.

In exchange, residents would get a steady tax rate and a government better equipped to handle a growing city, officials say. The city would add the equivalent of about 31 full-time positions across its departments.

“The city’s experienced a tremendous amount of growth,” Finance Director Bryan Langley said. “These positions are needed to respond to the service needs related to that growth.”

Reserve funds are expected to cover a projected $3.4 million shortfall for the fiscal year that starts Oct. 1. Revenues are expected to fall short of the proposed $89.5 million in spending. Those figures don’t include city utilities, which have their own budgets.

Officials blame the projected shortfall on lower-than-expected growth in property values and sales tax receipts.

Langley presented highlights of the proposed budget to the City Council Audit and Finance Committee on Tuesday. The report included more details than one the committee looked at last month, but it’s still preliminary.

The budget won’t go to the full council until July 31, after the Central Appraisal District releases its certified appraised values for the year. A vote is expected Sept. 23.

The proposed budget would:

• Keep the property tax rate steady, although residents would still pay higher taxes if their property values increase

• Increase water rates by 3 percent

• Raise the monthly cost of trash service by $1 for large carts, 75 cents for medium carts and 50 cents for small carts

• Raise commercial trash rates by 4.5 percent for large bin service and 6.8 percent for roll-off service

• Raise the monthly curbside recycling rate by 30 cents to $4.30

• Increase permit fees for residential and multifamily construction, certificates of occupancy and irrigation

• Provide pay raises, at varying levels, for city workers

• Boost the city’s contribution rate to the Texas Municipal Retirement System, which manages workers’ pensions

• Provide money to cover the increased cost of fuel ($649,000), road materials ($500,000) and concrete ($100,000)

Also, the gas franchise fee — charged to Atmos and CoServe in exchange for the use of public rights of way — would increase from 4 percent to 5 percent of gross revenues. The change would generate about $260,000 more income for the city, but the companies would likely pass the cost onto customers, Langley said.

Many city departments would gain at least one new position, including planning, code enforcement, building inspections, parks, animal services, police, fire, traffic, electric and solid waste.

Finance committee chairman Joe Mulroy said the city should consider adding more code enforcement workers as part of its ongoing effort to bolster the department.

The proposal showed the addition of one officer and one manager, but the manager is an existing position that was previously funded through another department.

Mulroy said one new code worker might not be enough to satisfy the public. City Manager George Campbell said he would consider Mulroy’s suggestion as budget planning continued.

LOWELL BROWN can be reached at 940-566-6882. His e-mail address is lmbrown@dentonrc.com .