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Home My WebLink About07/06/2026 - Special Minutes - City CouncilSPM070626 Minutes Page 1 MINUTES OF THE CITY COUNCIL SPECIAL MEETING IN-PERSON WITH TELECONFERENCE PARTICIPATION CITY OF COLLEGE STATION JULY 6, 2026 STATE OF TEXAS § § COUNTY OF BRAZOS § Present: John P. Nichols, Mayor Council: Mark Smith, Mayor ProTem William Wright David White Melissa McIlhaney - absent 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 Quorum is Present . With a quorum present, the Special Meeting of the College Station City Council was called to order by Mayor Nichols via In-Person and Teleconference at 5:30 p.m. on Monday, July 6, 2026, in the Council Chambers of the City of College Station City Hall, 1101 Texas Avenue, College Station, Texas 77840. 2. SPECIAL ITEMS 2.1. Presentation, discussion, and possible action on the FY 202 6-2027 Proposed Budget. Mary Ellen Leonard, Director of Finance, discussed the FY27 budget which includes new funding for Public Works Operations Center, Midtown Baseball/Business road and related utilities, Texas Independence Park construction, Wolf Pen Creek, Neighborhood Parks Improvements, Water Well 9 Rehab, Citywide signals and intersection improvements. The budget also considers service expectations in public safety, water resources, quality of life, and infrastructure. Additionally, the Five-Year Forecasting Model evaluates the fiscal impact of recurring costs, capital investment, revenue changes, and general fund balance management. Mrs. Leonard presented an overview of the proposed FY 2026-2027 budget, noting that a budget workshop meeting is scheduled for July 16th 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 FY26, the operating and maintenance budget increased by approximately 1.20%, while the capital budget increased by 15.81% and the total net budget increased by 21.53%. SPM070626 Minutes Page 2 Mrs. Leonard summarized preliminary taxable values, tax rates, and factors affecting no -new revenue and voter approval rates. Property tax valuations were delivered April 23, with final figures due July 25. The proposed budget uses April data and will be updated in July. Preliminary Taxable Values • New value adds of 3.36% are primarily due to high rises coming online. • Preliminary valuation information reflects some litigation adjustments, business personal property exemptions provided by the state, amounts over 10% that are not taxable and some new exemptions. FY27 O&M Property Tax Revenue Estimate SPM070626 Minutes Page 3 Actual Sales Tax vs. Inflation • Nominal sales tax is growing slightly, however due to inflation purchasing power is declining. • Proposed sales taxes are expected to grow at 2.0% for the FY27 Budget. • The 2.0% increase results in an increase of $535,000 in sales tax over FY26 actuals. Mrs. Leonard stated the CPI rate for projected revenue and expense changes is 3.0%. Fire reimbursement from Texas A&M is expected throughout the forecast, though the agreement ends in FY29. Two -thirds of investment income from the retained fund balance will support recurring expenses. Utility transfer rates to the General Fund remain the same as last year. FY27 Utility Rate Increases • Electric – None • Water – None • Wastewater – None • Roadway Maintenance – 3.0% • Drainage – 3.0% • Solid Waste – 5.0% SPM070626 Minutes Page 4 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. Mrs. Leonard provided a brief overview of the FY27 Proposed SLAs – General Fund. Significant Service Level Adjustments • Recurring requests totaling $2,100,000 including: • 6 Additional police officers with vehicles. • 1 police volunteer coordinator FTE. • 1 police forensic evidence tech. • 4 Concrete and ADA Compliance FTEs with vehicle. • 2 Planning FTEs ( Engineering Technician and Building Inspector) • 1 FTE related to Irrigation in Parks • 4 FTEs in total to support Internal Audit, IT, HR, and Capital Improvements. • One-Time requests totaling $2,500,000 including: • $1,021,000 for software related to document management, identity management and learning systems • Corrective building maintenance funds • Flood Study and FEMA Map revisions Enterprise Significant Fund Service Level Adjustments • 1 Drainage Maintenance Assistant Division Manager FTE and Tree Chipper • Northgate Surface Lot Resurfacing and Garage Signage • 1 Electric Safety Position • 1 AMI Analyst Position • Water leak detection services • 1 Water resource specialist • Water meter replacement program increase • Solid Waste Commercial Roll-off Collection vehicle • A mini street sweeper A complete Five-Year Funded Capital Plan is detailed in the capital project forecasts. Appropriations are budget additions for current projects included in prior years and new projects funded for FY27: • Streets $32,401,078 • Parks and Recreation $28,587,084 • Facilities and Technology $60,354,499 • Electric $33,017,264 • Water $20,932,696 • Wastewater $4,702,316 SPM070626 Minutes Page 5 • Drainage $1,500,000 • Northgate Minor Capital $100,000 Mrs. Leonard outlined the Five-Year Capital Plan, which features additions amounting to $169.4 million as prioritized by the Council in January. These additions involve constructing a Public Works Facility, developing Midtown Baseball/Business Road along with related utilities, and enhancing Texas Independence Park, as well as citywide trails, intersections, and signals. Utility projects are planned according to the city's infrastructure requirements. Council Capital Additions • City Facilities $60,000,000 • Midtown $35,900,000 • Parks $22,000,000 • Streets $51,500,000 • Total Additions $169,400,000 General Fund Balance FY27 Breakdown Required/Policy • 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 Discretionary • Baseball Economic Development $20,000 Mrs. Leonard concluded by summarizing the FY26 Capital Strategy, future debt forecasts, estimated governmental debt capacity, and five-year O&M projections for Electric, Water, Wastewater, and HOT Funds. The capital project schedules detail funded projects in the proposed book. All government-related projects and debt can be managed without raising the tax rate. Utility projects are prioritized by infrastructure needs. She also highlighted the following: SPM070626 Minutes Page 6 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 In summary, the city's financial strategies and forecasts are designed to ensure sustainable growth and infrastructure development while maintaining fiscal responsibility. 2.2. Presentation, discussion, and possible action on calling a public hearing on the City of College Station FY 2026-2027 Proposed Budget for Thursday, July 23, 2026 at 6:00 PM in the City Hall Council Chambers. Mary Ellen Leonard, Director of Finance, informed the Council that state law requires a public hearing notice on the budget at least 10 days before the meeting. After the hearing, the Council can adjust items without increasing the total budget. Staff recommend scheduling a public hearing on the City of College Station FY 202 6-2027 Proposed Budget for Thursday, July 23, 2026, at 6:00 PM in the City Hall Council Chambers. MOTION: Upon a motion made by Councilmember Wright and a second by Councilmember Smith, the City Council voted six (6) for and none (0) opposed, to set a Public Hearing on the proposed FY26 budget for the City of College Station at a regular council meeting on Thursday July 23, 2026, at 6:00 pm in the City Council Chambers. The motion carried unanimously. 3. Adjournment. There being no further business, Mayor Nichols adjourned the Special Meeting of the City Council at 6:02 p.m. on Monday, July 6, 2026. SPM070626 Minutes Page 7 ________________________ John P. Nichols, Mayor ATTEST: ___________________________ Tanya Smith, City Secretary