The city of College Station unveiled its proposed fiscal year 2026-27 budget July 6. (Karley Cross/Community Impact)
The city of College Station unveiled its proposed fiscal year 2026-27 budget July 6, outlining a $576.3 million spending plan that prioritizes capital improvements, public safety and employee retention while avoiding increases to electric, water and wastewater rates.
The big picture
City Manager Bryan Woods began the special meeting by explaining its purpose.
“It is the roadmap for what we’ll do operationally for the next year and, certainly, what we’ll do strategically over the next five years-plus,” he said.
The proposed budget totals $576.35 million, which is a 21.5% increase from the current fiscal year, according to city documents. Director of Fiscal Services Mary Ellen Leonard said a large portion of that growth comes from the capital budget, which would more than double to $181.6 million, while the city’s operating budget would increase by about 1.2%.
The details
The proposal includes $169.4 million in council-prioritized capital projects, which include:
Midtown Baseball and Business road and water utilities
Midtown signage
Phase 2 of Texas Independence Park
Upgrades to Wolf Pen Creek, Hensel Park and other neighborhood parks: $22 million
General street maintenance and upgrades: $51.5 million
On the operations side, the city proposes adding six police officers, as previously requested by the City Council, along with two additional police positions, four public works employees, engineering and parks staff, and other support positions. The budget also includes a 3% across-the-board pay increase for employees, a 1% market adjustment for eligible non-step employees and no increase in employee health insurance premiums for the seventh consecutive year.
Measuring the impact
Property tax revenue for operations is projected to increase to about $51.2 million, based on preliminary appraisal data and the state’s allowable 3.5% increase on existing properties, plus revenue generated by new development.
Leonard noted taxable values have continued to grow because of new construction, including Northgate high-rise developments and residential growth in south College Station.
The city also estimated the average residential utility bill may increase by about $1.88 per month because of inflationary adjustments to roadway maintenance, drainage and solid waste fees. No rate increases are proposed for metered electric, water or wastewater services.
Leonard said the city’s hotel occupancy tax fund is “looking rather healthy,” with revenues projected to grow 2% for the current fiscal year. She attributed the increase to major Texas A&M University events, including the return of the Lonestar Showdown football game against the University of Texas, as well as high-profile attractions such as the Savannah Bananas baseball games and an international soccer exhibition, which generated additional hotel stays and visitor spending.
Going forward
While water rates are expected to remain unchanged for FY27, Leonard said increases could be necessary in the future as the city begins repaying debt associated with the construction of three new municipal water wells.
City Council is scheduled to review the proposed budget during workshops July 13-15 before holding a public hearing July 23. Final budget and tax rate adoption is scheduled for Aug. 27, with the new fiscal year beginning Oct. 1.
The city of College Station created an animated video to explain the budget proposal. Watch it below.
College Station City Council approves $37M for new water wells
