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College Station adopts FY 2026 budget, sets property tax rate at 0.511872 per $100 after debate
Summary
Council approved a $474.2 million FY 2026 budget and adopted a property tax rate of 0.511872 per $100 assessed valuation (debt 0.202668; O&M 0.309204). The budget vote was unanimous; the tax‑rate vote passed 6–1 amid concern about looming state caps on future increases.
The College Station City Council approved the fiscal 2026 budget and set the city’s ad valorem tax rate during its Aug. 28 meeting.
Council voted 7–0 to adopt the proposed FY 2026 budget of $474,225,698. Later in the meeting the council adopted a property tax rate of 0.511872 per $100 assessed valuation (debt service at 0.202668; maintenance and operations at 0.309204) on a recorded vote of 6–1; Councilmember Yancey cast the lone dissenting vote.
Finance staffer Mary Ellen Leonard described the technical distinctions the council had considered earlier in the agenda: the "no‑new‑revenue" rate (the lowest rate that would produce the same revenue as last year), and the voter‑approval rate as calculated by the county tax office. Leonard said state legislative activity in a special session changed the likely voter‑approval formula within the last several days — a development staff could not yet consider final — and advised council on tradeoffs between preserving near‑term rate flexibility and planning for fiscal sustainability.
A member of the public who spoke at the hearing, Valen Cipek, asked why the city would advertise the voter‑approval rate instead of a lower rate and what taxpayers would receive for the increased revenue. Mayor John P. Nichols and staff responded that the advertised rate is intended to provide the city with margin to cover inflation and anticipated changes, including a likely exemption affecting personal property and possible revenue shifts next fiscal year.
City management and several council members framed the vote as a policy choice about multi‑year resilience: adopting the voter‑approval rate preserves a higher base that staff says will reduce the probability of having to return to voters for future increases if statewide caps on growth are imposed. Opponents argued a more modest rate would preserve the option to lower the tax rate in the future and avoid increasing household bills now.
What this means: The budget as adopted funds the staffing and capital choices presented to council (including additional public safety staffing reflected in the budget) and leaves the city’s property tax levy set at 0.511872 per $100. Staff said they will continue monitoring state action and will return to the council if legislative changes require budget adjustments or additional action.
