Keller leaders identify funding mix to close $10.4 million Elm Street reconstruction shortfall

City staff told the Keller City Council on Jan. 7 that bids for the Elm Street reconstruction project came in far above the city’s available budget, and presented a package of reallocations and scope options to close the shortfall.

“The bid came in at about 31.6,” staff said, noting the city had roughly $21.2 million in available funding. “That put us about 10.4 (million) over.”

The project covers Elm Street from Keller Parkway south to Bear Creek Parkway and includes stamped/colored pavement, scored sidewalks, marked crosswalks, parallel parking, required ADA work, landscaping consistent with other downtown improvements, a pedestrian and vehicle bridge at the south end and a new parking area adjacent to the roundabout.

Why it matters: Elm Street is a major Old Town connector and the city’s agreement with the county gives the project a hard completion window tied to that partnership. Staff said they must either add money, reallocate funds from other city projects or reduce Elm Street’s scope to proceed.

What staff presented: After rejecting an initial June 2024 bid and rebidding in November 2024, the city received lower prices but still faced a $10.4 million gap between the…