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Home My WebLink About07/13/2026 - Special Minutes - City CouncilMINUTES OF THE CITY COUNCIL SPECIAL (BUDGET) MEETING IN -PERSON WITH TELECONFERENCE PARTICIPATION CITY OF COLLEGE STATION JULY 13, 2026 STATE OF TEXAS § § COUNTY OF BRAZOS § Present: John P. Nichols, Mayor Council: Mark Smith, Mayor ProTem William Wright David White Melissa Mcllhaney Bob Yancy Scott Shafer City Staff: Bryan Woods, City Manager Jeff Capps, Deputy City Manager Adam Falco, City Attorney Leslie Whitten, Deputy City Attorney Tanya Smith, City Secretary Ian Whittenton, Deputy City Secretary 1. Call to Order and Announce a Ouorum is Present. With a quorum present, the Special (Budget) Meeting of the College Station City Council was called to order by Mayor Nichols via In -Person and Teleconference at 1:00 p.m. on Monday, July 13, 2026, in the Council Chambers of the City of College Station City Hall, 1101 Texas Avenue, College Station, Texas 77840. 2. SPECIAL (BUDGET) ITEMS 2.1. Presentation, discussion, and possible action on the FY 2026-2027 Proposed Budget. Bryan Woods, City Manager, provided open remarks regarding the proposed budget being presented throughout this meeting. Mary Ellen Leonard, Finance Director, presented an overview of the proposed FY 2026-2027 budget, noting that a budget workshop meeting is scheduled for July 13th to review the proposed budget of $576,346,943. This amount includes $394,752,006 for the operations and maintenance budget and $181,594,937 for the capital budget. Compared to FY25, the operating and maintenance budget increased by approximately 1.20%, while the capital budget increased by 115.81 % and the total net budget decreased by 21.53%. SPM071326 Minutes Page 1 FY27 Proposed Net Budget Summary Fund Type Governmental Funds Proposed Net Budget $171,908,384 Enterprise Funds Special Revenue Funds Subtotal O&M Subtotal Capital 192,894,671 29,948,951 $394,752,006 $181,594,937 i otal Proposed Net Budget $576,346,943 Mrs. Leonard explained that the capital budget increased due to significant capital projects being appropriated in FY27 including: • Public Works Operations Center • Midtown Baseball/Business road and related utilities • Texas Independence Park construction • Wolf Pen Creek • Neighborhood Parks Improvements • Well #9 Rehab • Citywide signals and intersection improvements Fiscal and Budgetary Policy Revisions • Item 1 Statement of Purpose ✓ Clarifies that accounting and reporting practices will conform with the principles prescribed by the Government Accounting Standards Board (GASB) and where applicable the Financial Accounting Standards Board (FASB). • Item 4.3 Central Control ✓ Clarifies that funding for Outside Agencies or Sponsorship are maintained in the Miscellaneous Fiscal Services Policy_manual. • Item 17.1. Operating Reserves / Fund Balances ✓ Codified the reserve requirement of 25% for bond rating requirements. ✓ Codified the reserve for the internal service insurance funds should be based on industry norms. ✓ Codified the reserve for replacement funds will be based on the average useful life and replacement cost of the item. FY27 Preliminary Valuations Valuations Certified Taxable Values at 8/7/2025 16,261,176,452 New Values added in Current Year (2026) Prior Year Existing Value litigation and value loss in excess of reserve estimate Loss from Business Personal Property legislation enacted by State in 2025 Loss in valuation from 23.231 Cap loss, net New 2026 Exemptions to date (additional coming) Change in 2026 Existing Values 546,384,197 3.36% (714,978) (148,652,145) (156,866,963) (48,281,293) (354,515,379) -2.18% Existing Values at 4/30/2026 16,453,045,270 MEM SPM071326 Minutes Page 2 Mrs. Leonard reported that Property Tax valuations were given to the City on April 23, with final valuations due July 25. • The proposed budget uses the April figures, and further updates will occur in July. • The 3.36% increase is mainly from new high rises. • Preliminary valuations account for litigation adjustments, state business personal property exemptions, non-taxable amounts over 10%, and new exemptions. When property valuations decline, the No -New -Revenue rate rises. This benchmark tax rate represents the amount required to generate the same maintenance and operations property tax revenue from existing properties as in the previous year, reflecting changes in appraised values. Of the increase in revenue levy, $380,000 is attributable to net changes in existing property values. FY27 O&M Property Tax Revenue Estimate O&M Le FY26 O&M Property Tax Budgeted Revenue New Values added in Current Year (2026) 11 $ 47,447,545 1,689,442 3.56% Net change in 2026 Existing Values 387,289 0.82% Maximum additional revenue on existing prior year values (3.5% increase) 1,660,664 3.50% Total FY27 Revenue increase 3,737,395 7.88% Existing Values at 4/30/2026 $ 51,184,940 Actual Sales Tax vs. Inflation • Nominal sales tax is experiencing modest growth; however, inflation continues to erode purchasing power. Proposed sales tax revenues are projected to increase by 2.0% in the FY27 Budget. This anticipated growth equates to an estimated $535,000 increase in sales tax revenue compared to FY26 actuals. Fv27 Estimated CPI • The Consumer Price Index (CPI) rate projected for revenue and expense growth is set at 3.0%. Fire reimbursement from Texas A&M is expected to continue throughout the forecast period, although the current agreement concludes at the end of FY29. It is anticipated that two-thirds of investment income generated from the retained fund balance will support recurring expenditure. Additionally, utility transfer percentages to the General Fund remain consistent with last year's figures. SPM071326 Minutes Page 3 Impact of Fee Changes on Monthly Residential Utility Bill Residential Residential (w/Rate Increase) Difference Electric (Usage, Service Charge & TDA) Water Drainage Sanitation Roadway Sewer $ 174.97 39.90 7.42 26.99 10.24 34.88 $ 174.97 39.90 7.64 28.34 10.55 34.88 $ 0.00 0.00 0.22 4 1.35 0.31 0.00 AVERAGE BILL $ 294.40 $ 296.28 $ 1.88 Mrs. Leonard indicated that the anticipated overall increase in the monthly residential utility bill with the changes to the fee ordinance is estimated at $1.88. Fee Ordinance Changes • No rate increase for Electric, Water, or Wastewater; • Increase of 3.0% for fees tied to the Consumer Price Index - All Urban Consumers (CPI-U). ✓ Fees tied to the CPI-U include, Planning, Drainage and Roadway Maintenance. • There is a change of the CPI Index for Solid Waste from the CPI-U to the CPI- Water/Sewer/Trash. ✓ The CPI-WST increased by 5.0% Mrs. Leonard presented the compensation and benefits strategies, interim staffing additions, proposed future staffing plans, and FY26 Vacancy Rates and FY Hiring Strategy. Pay & Benefits Strategy • 3% across-the-board pay scale increase plus a 1% market adjustment for existing employees. • 3% across-the-board pay scale increase for public safety. • Annual step increases for eligible public safety personnel. • Considering a policy change related to FSLA overtime that may increase base pay. • Merit / other pay pool for top -performing non -step employees and specific adjustments. • Employee healthcare premiums remain flat for the seventh consecutive year. FY27 Proposed Staffing and Fleet Additions FUND/DEPARTMENT One Time Cost Recurring Cost Total Increase FTE Vehicle General Fund Police Fire Public Works Planning & Development Parks and Recreation Information Technology Capital Projects Operations Fiscal Services 649,825 95,581 109,384 409,000 4,214 97,885 1,137,217 327,743 207,689 192,855 142,873 107,412 1,787,042 423,324 317,073 601,855 147,087 205,297 8.0 4.0 2.0 1.0 1.0 1.0 4.0 1.0 2.0 6.0 2.0 General Government TOTAL General Fund SPM071326 Minutes 2,885 223,356 226,241 2,339,145 nimmusA 2.0 19.0 15.0 Page 4 • Police • 6 Patrol Officer Positions and 3 Patrol Vehicles • 1 Forensic Technician • 1 Volunteer Coordinator • CSTEP Prisoner Transportation Vehicle • Public Works • Concrete and ADA Compliance Crew • Planning & Development • Combination Building Inspector I/II • Engineering Technician • Parks and Recreation • Parks Operation Irrigation Crew Leader + Truck • Assistant Operations Manager Truck • Lincoln Recreation Center Van • Forklift • Pedestrian Mower and Trailer • Multi Pro Turf Sprayer with GPS Technology (SPLIT with HOT Fund) • Fraise Mower Koro Heavy Duty + Pronovost Turf Trailer (SPLIT with HOT Fund) • Information Technology • Information Security Analyst • Capital Projects Operations • Capital Projects Field Administrator • General Government • Human Resources Generalist/Employee Advisor • Internal Auditor FY27 Proposed Staffing and Fleet Additions FUND DEPARTMENT One Time Cost Recurring Cost Total Increase FTE Vehicle GENERAL FUND HOT FUND DRAINAGE FUND NORTHGATE PARKING FUND ELECTRIC FUND WATER FUND SOLID WASTE FUND 1,368,774 117,885 165,021 329,970 7,585 674,723 2,339,145 189,499 154,445 378,623 113,581 241,719 3,707,919 19.0 307,384 1.0 319,466 1.0 708,593 2.0 2.0 121,166 1.0 916,442 15.0 1.0 2.0 4.0 TOTAL - ALL FUNDS 2,663,958 3,417, 012 24.0 24.0 • HOT Fund • Parks & Recreation • Fraise Mower Koro Heavy Duty + Pronovost Turf Trailer (SPLIT) • Multi Pro Turf Sprayer with GPS Technology (SPLIT) • Economic Development/Tourism • Director of University Strategy & Partnerships • Drainage Fund • Public Works • Assistant Division Manager - Drainage Maintenance • Tree Chipper SPM071326 Minutes Page 5 • Electric Fund • Electric Safety/Training Coordinator Position • AMI Analyst position and service vehicle • One Small Bucket Truck • Water Fund • Water Resources Specialist • Solid Waste • Public Works • Solid Waste Mini Street Sweeper • Commercial Solid Waste Roll -off Collection Vehicle • Northgate District Self -Contained Compactors & Monitoring Units General Fund Operatint Department Service Level Increases for Major Operating Departments • Police • Electric O&M • Fire • Water O&M • Public Works • Solid Waste • Parks The City Manager's provided a brief overview of general fund operating departments request for funding. Police — Total One -Time and Recurring SLA Request of (1.9M) for 6 Police Officers and 3 vehicles, Volunteer Coordinator, Forensic Technician, Eventide DX Recorder, and CSTEP Prisoner Transportation. Fire — Total One -Time and Recurring SLA Request of ($186K) for Proposal for On -Site Bunker Gear Cleaning, Inspection and Repairs, Hazmat Equipment Cache Upgrades and Fire Department Accreditation Fund. Public Works — Total One -Time and Recurring SLA Request of ($549K) for Concrete and ADA Compliance Crew and Pavement Markings Account Increase. Parks — Total One -Time SLA Request of ($871K) for Parks Operation Irrigation Crew Leader + Truck, Forklift, Assistant Operations Manager Truck, Fun for All Fence Replacement, Pedestrian Mower & Trailer, Fraise Mower Koro Heavy Duty + Pronovost Turf Trailer (SPLIT), Multi Pro Turf Sprayer with GPS Technology (SPLIT), Cooling College Station Residential Tree Giveaway, Cooling College Station Park Tree Planting Year Two, Lincoln Recreation Center Van and 2027 CAPRA Reaccreditation Visit. Electric O&M — Total One -Time and Recurring SLA Request of ($361K) for Electric Safety/Training Coordinator Position, Addition of AMI Analyst position and service vehicle and Addition of One Small Bucket Truck. Water O&M — Total One -Time and Recurring SLA Request of ($372K) for Advanced Leak Detection and System Efficiency Services and Water Resources Specialist. SPM071326 Minutes Page 6 Solid Waste — Total One -Time and Recurring SLA Request of ($917K) for Mini Street Sweeper, Commercial Solid Waste Roll -off Collection Vehicle and Northgate District Self -Contained Compactors & Monitoring Units. At 2:48 p.m., the Mayor recessed the Special (Budget) Workshop. The Special (Budget) Workshop reconvened at 3:00 p.m. Mary Ellen Leonard, Finance Director, reported that staff prepared five-year forecasts for all major operating funds. She highlighted the General Fund, noting that recurring revenues and expenses are evaluated to ensure long-term balance as required by the City Charter. The proposed budget meets this requirement, with recurring revenues exceeding recurring expenses. Recurring General Fund Five Year Forecast • One SAFER grant will expire in FY29. • Property Tax Growth assumed to be 3.5% (VAR Rate) • Sales tax growth assumed to be 2%. IJ:till :0111DJ:1Xuu1:1:1I►'Lc= Total Recurring Revenues Total Recurring Expenses In Balance (Out of Balance) FY27 FY28 FY29 $134,120 $137,060 $139,550 FY30 $143,350 FY31 $147,170 $133,770 $136,820 $139,970 $143,190 $147,270 $ 350 $ 240 $ (420) $ 160 $ (100) General Fund Balance FY27 Breakdown RECOMMENDATION $4,650 • Economic incentives • Grants matching dollars • Fuel/energy cost reserve • Special elections $101.7M GENERAL FUND $20,000 DISCRETIONARY $34,653 REQUIRED • Required reserve by policy • Federal Opioid Abatement $42,400 UNASSIGNED • Amounts available for future contingencies and one-time req uests • Reserve for Baseball Economic Development Required/Policv • Required 25% Reserve (Fiscal Policy) $34,485 • Federal Opioid Abatement $168 Staff Recommendation • Matching Grant Dollars Allocation $1,000 • Additional Economic Incentives $2,000 • Fuel / Energy Cost Reserve $1,500 • Special Elections $150 SPM071325 Minutes Page 7 Discretionary • Baseball Economic Development $20,000 Mrs. Leonard summarized the FY26 Capital Strategy, future debt forecasts, governmental debt capacity, and the five-year O&M projections for the Water Fund. She noted that the planned construction of three additional water wells will significantly impact the Water Fund, with debt service increasing by approximately 87% between FY26 and FY31 when the related debt is issued. She stated that future water rate increases will likely be needed to support this debt, potentially in FY28 or FY29, depending on future fund balance levels. Water Transfers (Sources) / Uses include payments for: • Debt Service — this increases from $7 million in FY26 to $12 million in FY28 and $13 million in FY29 for the 3 new water wells. • Cash for Capital decreases as the debt service increases. • Water will need rate increases in FY28-FY29 due to debt service for new wells. • Payment for shared services like HR / IT / Finance / Legal/ utility billing / fixed costs • Risk Mitigation Fund —balance is $2.6 million. No additional transfers planned in forecast. The target for funds is $3 million. HOT Fund Five -Year Forecast FY27 FY28 FY29 FY30 FY31 Beginning Fund Balance Total Revenues Total Expenses $17,065 $17,528 $17,820 $19,515 $21,128 9,534 9,663 9,852 10,093 10,334 9,071 9,371 8,157 8,480 8,809 Endin • Fund Balance $17,528 Ca • ital Re • uired $15,896 $17,820 $ 16,134 $19,515 $ 18,046 $21,128 $19,601 $22,653 $ 21,068 Mrs. Leonard stated that budget amendments are expected to accommodate Council -approved special events, including Savannah Bananas, USA Track & Field, Athletes Unlimited Softball League, and the Texas A&M Soccer Event. Councilmember Mcllhaney left the meeting at 3: 40 pm. Citywide Canital Proiect Annronriations Mrs. Leonard summarized that the complete Five -Year Funded Capital Plan is detailed in the capital project forecasts. She noted that additional appropriations represent budget additions for ongoing projects from prior years as well as new projects funded for FY27. Streets: • Midtown Baseball and Business Road ($11,000,000) • City Wide Signals and Intersection Improvements ($6,000,000) • Rock Prairie Road — WD Fitch to City Limits ($5,000,000) • Greens Prairie Road — County Portion ($1,200,000) SPM071325 Minutes Page 8 Parks and Rec: • Texas Independence Park Construction ($16,200,000) • Wolf Pen Creek Improvements ($7,000,000) • City Wide Neighborhood Parks Improvements ($5,000,000) Facilities and Technology: • Public Works Operations Center Construction ($55,000,000) • Northgate Improvements ($5,000,000) Electric: • Various distribution, transmission, and substation improvements Water: • Well #9 Rehab Construction ($7,750,000) • DPRS Tank Improvements ($6,000,000) • Midtown Baseball and Business Utilities ($4,700,000) Wastewater: • Alum Creek Sewer Trunkline ($2,750,000) • Various rehab projects Drainage: • Systemwide projects Bryan Woods, City Manager, explained that the Five -Year Capital Plan includes additions totaling $169.4 million, prioritized by Council in January. These additions include the Public Works Facility, the Midtown Baseball/Business Road and related utilities, Texas Independence Park, and citywide trails, intersections, and signal improvements. He noted that utility projects are based on identified infrastructure needs. Category Project Additional Appropriations City Facilities City Facilities Midtown Public Works Facility (Construction) Northgate SUBTOTAL - City Facilities Midtown Baseball and Business - Road $ 55,000,000 $ 5,000,000 $ 60,000,000 $ 14,000,000 Midtown Midtown Midtown Parks Parks Parks Midtown Baseball and Business - Water Utilities Midtown Signage Texas Independence Park (Phase 2) SUBTOTAL - Midtown Wolf Pen Creek Neighborhood Parks Hensel Park $ 5,000,000 $ 700,000 $ 16,200,000 $ 35,900,000 $ 7,000,000 $ 5,000,000 $ 10,000,000 Streets - Rehab Streets - Signals Streets - Sidewalks Streets - Rehab SUBTOTAL - Parks Drainage Revolver Signals & Intersections (incl. George Bush /Timber) Various Sidewalks/Trails Future Streets Rehab $ 22,000,000 $ 2,500,000 $ 6,000,000 $ 6,000,000 $ 10,000,000 Streets - Extension Streets - Sidewalks Future Streets Extension University Drive Pedestrian Crossing SUBTOTAL - Streets $ 12,000,000 $ 15,000,000 $ 51,500,000 OTAL COUNCIL CAPITAL ADDITIONS $ 169,400,000 Mr. Woods provided an overview of the FY27 utility projects, noting that they can be funded within existing electric, water, and wastewater rates and that no rate increases are planned for FY27. He stated that water rates may need to increase in FY28—FY29 to support debt related to new water wells, and that wastewater may require a future rate increase beyond the five-year forecast to support debt service. SPM071325 Minutes Page 9 2027 2028 2029 2030 2031 Electric Water Wastewater $5,000 $58,000 $26,500 $18,000 $17,400 $32,000 $10,000 $8,250 $8,000 $15,000 so $0 $5,000 $1,000 $0 otal Future Utility Rate Su • • orted Debt $89,500 $67,400 $26,250 $15,000 $6,000 Mr. Woods concluded that, based on Council's direction for capital projects, no additional governmental debt capacity is available until FY34. He noted that the long-range forecast maintains the Total Governmental Debt to Assessed Valuation percentage below 2.00%, and that each cent on the property tax rate funds approximately $15—$17 million in governmental capital projects. Governmental Debt Issue Estimated Debt Ca • aci Governmental Debt Rollin• Off Total Governmental Debt % of Assessed Valuation FY26 FY27 FY28 FY29 FY30 FY31 0 0 0 0 0 0 0 (19,415) (17,882) (19,847) (22,152) (23,728) (23,794) 217,476 262,044 326,373 340,720 337,492 335,698 TOTAL 62,450 84,175 36,500 20,500 22,000 225,625 0 (126,817) 1.55% 1.40% 1.56% 1 1.59% 1.47% 1.41% 3. Adiournment. There being no further business, Mayor Nichols adjourned the Special (Budget) Meeting of the City Council at 4:59 p.m. on Monday, July 13, 2026. ATTE T: Tanya Smi , City Secretary Joliti P. Nichols, Mayor SPM071325 Minutes Page 10