The Tomball City Council voted to approve the fiscal year 2026 Tomball Economic Development Corporation (TEDC) budget on first reading, including line items for property acquisition and project funding that city staff said total $8.3 million in committed funds.

TEDC staff presented a budget that transitions accounting from QuickBooks to the ENCODE system, proposes a 3% cost‑of‑living adjustment, and budgets $93,000 for insurance related to the Tomball Legacy Square project. The package includes a $500,000 additional city debt service request toward the Southside Sewer Treatment Plant and shows a $1,500,000 line related to that plant in total debt-service request figures.

Key TEDC allocations noted by staff include $1,000,000 budgeted for property acquisition, $700,000 carried over for Old Town alleyway lighting and landscaping, $500,000 for South Live Oak maintenance or capital repairs, $3,000,000 for Tomball Legacy Square (the former First Baptist Church site) for final design, maintenance and operations, and $250,000 for a summer youth employment program. Staff reported roughly $5,000,000 in already committed project grants and about $1,000,000 in new project grants, for an aggregate of $8,318,381 in committed funds.

Councilmember discussion included a request that TEDC adopt the same merit‑raise process the city uses for other departments; staff said that suggestion would be for the next fiscal year and not included in the FY‑26 budget adopted at the meeting. A motion to approve the budget passed unanimously, 5-0.

Council approved the TEDC budget on first reading; final approval procedures and any adjustments will follow as provided under city policy.