Katy's ban on rapidly changing digital signs may be headed for its first update since 2008 after a Sept. 23 council workshop.

No decisions were made at the special session, but Mayor Pro Tem Gina Hicks said the sign ordinance is expected to return to Katy City Council within one to two months as a discussion or action item, Community Impact reported.

American Furniture Warehouse, at 500 Pin Oak Road near Interstate 10, triggered the review. The retailer wants to install a digital sign that can rotate product photos and pricing. Under Katy's current rules, electronic sign messages must stay static for at least four hours. Signs that change more frequently are classified as prohibited "spectacular signs."

Jacob Colby, the company's Houston-based regional manager, told council members the Katy store "does dramatically underperform compared to all of our other 17 locations," according to Covering Katy.

Hicks and Councilmember Paul Follis requested the workshop on Aug. 20. Hicks said the issue has grown beyond one retailer, with schools, churches and the Katy Area Chamber of Commerce expressing interest in updated rules. She said at the Sept. 23 workshop that she sees room to balance Katy's small-town charm with reasonable standards for modern signage, Covering Katy reported.

Mayor Dusty Thiele disagreed. He said he favors keeping the current restrictions, telling the workshop he believes Katy does not have to follow what other cities allow, according to Covering Katy.

The ordinance was last amended around 2008 to address electronic signs, including LED-backlit displays. Katy High School and First Baptist Church of Katy had digital signs before that amendment and are grandfathered in.

Lindsey Brown, a Robertson Elementary PTA board member, told the workshop she contacted 62 Katy ISD campuses and found 51 had digital marquees. None of the district's campuses inside Katy city limits have them under the current restrictions, the Katy Times reported.

City Attorney Bridgette Begle warned that any update must use neutral standards. She said the city cannot favor schools or churches while denying the same signage to other property owners. New rules could instead be based on zoning, road frontage or specific corridors.

Councilmember Ward A Paula Taylor, a Katy High School teacher, questioned whether digital signs even work. She said the school's grandfathered sign becomes "background noise" that drivers ignore.

Katy Area Chamber of Commerce President and CEO Matthew Ferraro sent a statement to the mayor and council on Sept. 23 supporting an update. He said the rules should include clear eligibility standards and operational requirements.

Budget adopted, tax rate drops

On Sept. 28, Katy City Council unanimously adopted a $90.5 million budget and set the property tax rate at 42 cents per $100 of assessed valuation, half a cent lower than the prior rate, Covering Katy reported.

The budget took effect Oct. 1. The general fund totals about $68.8 million, with $16.4 million going to the Katy Police Department and $11.7 million to the Katy Fire Department.

City Administrator Byron Hebert said Katy will continue to offer a 20% homestead exemption, the highest percentage allowed under state law. A lower tax rate does not guarantee a smaller bill for every homeowner; individual bills also depend on property values and rates set by other taxing entities.

Former mayoral candidate Michael Payne spoke during the budget hearing, welcoming the rate reduction but urging council to consider a deeper cut and look for ways to reduce spending.

No date has been set for the sign ordinance's return to the council agenda.