Council approves Atmos settlement and E-911 amendment

October 09, 2026

Lancaster — Rising utility costs and alcohol-sales rules near schools took center stage at the Lancaster City Council’s Sept. 14 meeting, where members approved an Atmos Energy rate settlement and an E-911 Fund amendment while postponing a variance request for a North Dallas Avenue business.

The council also held and closed public hearings on proposed fiscal year 2026-27 service-and-assessment plans for 10 public improvement districts, with staff saying final consideration would move to a Sept. 21 special meeting. 

Alcohol variance tabled 

Council members voted to table until their Sept. 28 regular meeting a variance request tied to a new alcoholic-beverage permit for Whippen at 2601 N. Dallas Ave.

A business representative said beer and wine have been sold at the location for seven years under an earlier variance. He said the current request is needed because the permit would be reissued in the name of a new management company, while ownership of the property would remain unchanged. 

The central issue was the property’s proximity to school property.

Alcohol-Sales Distance Issue


 | Issue | Meeting record | Buffer standard | City code generally prohibits alcohol sales within 300 feet of a school, church or hospital unless a variance is approved
| City measurement | Staff said the property measured 180.94 feet from a school
| Business position | The representative said the athletic-complex driveway created the 300-foot issue and that the store was more than 1,000 feet from the school building

Council members also questioned whether property upgrades discussed during the prior variance request had been completed. City staff said there was no record of permits for improvements or renovations at the address.

Members asked the representative to return Sept. 28 with any available records of earlier improvements and information about possible future upgrades. 

Gas utility rates 

Lancaster, one of 181 cities represented by the Atmos Cities Steering Committee, approved a negotiated settlement with Atmos Energy Corp.’s Mid-Tex Division.

City staff said Atmos initially submitted a rate request that municipal representatives considered greater than reasonable. The negotiated settlement reduced the company’s requested increase, according to staff, but it will raise average residential customer’s bills by 14.15% and the average commercial customer’s bills by 9.9%. 

Individual customer bills can vary based on usage and rate classification. 

E-911 budget amendment 

Council members approved an amendment to the fiscal year 2025-26 E-911 Fund budget to purchase radio equipment for newly purchased apparatus and additional firefighters.

The equipment purchase will be paid from the existing E-911 Fund balance, which staff said is adequate to cover the expenses. 

Public hearings 

The council formally held and closed public hearings on proposed fiscal year 2026-27 service-and-assessment plans for 10 public improvement districts, or PIDs.

No final votes were taken on the PID items during the Sept. 14 session. Staff said the proposed rate changes would be placed on the Sept. 2 special meeting agenda.

Proposed Assessment-Rate Changes


 | Public improvement district | Proposed action | Boardwalk PID | Increase from 20 cents to 23 cents per $100 of assessed value
| Millbrook East PID | Increase from 15 cents to 18 cents per $100 of assessed value
| Rolling Meadows PID | Decrease from 30 cents to 25 cents per $100 of assessed value
| Beltline-Ashmore PID | Maintain 15 cents per $100 of assessed value
| Glendover Estates PID | Maintain 25 cents per $100 of assessed value
| Lancaster Mills PID | Maintain $0 assessment while undeveloped
| Meadowview Estates PID | Maintain 10 cents per $100 of assessed value
| Pleasant Run Estates PID | Maintain 22 cents per $100 of assessed value
| Tribute at Mills Branch PID | Maintain 36 cents per $100 of assessed value
| Wellington Park North Phase III PID | Maintain $0 assessment while under construction

This article was created with artificial intelligence using public meeting materials and edited by staff.