Property valuation changes reshape College Station budget, tax rate talks

COLLEGE STATION, Texas (KBTX) – College Station city leaders met Tuesday to review updated property tax rate calculations and talk about funding priorities for the upcoming fiscal year.

City leaders said the revised figures, provided by the Brazos Central Appraisal District, reflect lower valuations than expected due to higher-than-usual litigation settlements. The changes were most significant in the multi-family and commercial sectors, prompting adjustments to the no new revenue rate and voter approval rate.

What’s in College Station’s proposed $474 million FY26 budget and tax rate

Under the final certified values, the city said the proposed no new revenue rate would be $0.490510 per $100 of valuation, and the voter approval rate is $0.511872. Both are below the city’s current rate of $0.5130. Last month’s proposed budget included a 5% property tax rate cut to $0.48743, which remains lower than the final no-new-revenue rate.

Assistant City Manager and Chief Financial Officer Jeff Kersten said the changes were larger than usual.

“What probably is the most important thing to think about here is we had preliminary numbers and now we have the final numbers,” Kersten said. “As we do every year, we had to true things up. This year, that difference was larger than it typically has been in prior years, which required us to take a little bit of time and look at our estimates.”

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The city is proposing a rate of about $0.497, according to Kersten, which would fully fund the budget presented in July. He added the council will decide on Thursday which tax rate to use for the required public hearing, noting it can adopt a rate at or below the voter approval rate.

In past years, the city anticipated calling a tax rate election to fund public safety expansions. However, officials said efficiency measures and new revenue from a fire service agreement with Texas A&M University eliminated that need this year.

Budget Overview Video Below

Councilman Bob Yancy said the changes in certified property values- including $1 billion worth of successful valuation protests- had an unprecedented effect on the city’s budget process.

“It impacted the budget that we had previously put together, but we built the time in to handle that situation, and we’re pivoting,” explained Councilman Yancy. “I think that your tax dollars are being spent wisely, that we have a staff that works hard and is responsive to the council on these projects, that we’re efficient, and we’ve got a relatively low tax rate. Whatever we come in at, it’s going to be right at 50 cents, and that’s a very competitive tax rate for a city that offers what we do.”

Capital project priorities identified during last month’s budget workshop include a new Public Works facility, improvements at Texas Independence Park and Veterans Park baseball fields, and a local music statue. Additional projects such as work at Wolf Pen Creek, Northgate, and Hensel Park are not currently in the reserved fund balance.

Developer James Murr urged the council to focus more investment in Midtown, which he said has significant potential to attract commercial development if infrastructure improvements, including a connection to Highway 6, are completed.

“As I show potential buyers the plans for the future commercial mixed-use district in College Station, it is very difficult to sell the vision because they only see the Midtown residential, lack of commercial, and zero buy-in from the city,” he shared. “We can leave a legacy of a special place with an identity, or we can waste this opportunity, never to have it again.”

Councilman Yancy said the council can pursue multiple priorities.

“I think we can walk and chew gum at the same time,” began Councilman Yancy. “Midtown is a commitment that we made more than a decade ago, and I, as one member of the council, believe we need to fulfill the original vision for Midtown.”

City financial staff estimate $144 million could be available for capital projects over the next five years, funded through a combination of existing cash and tax-supported debt capacity.

The council will decide on Thursday what rate to use in calculating the FY 26 budget. A public hearing and final vote on the tax rate and budget are scheduled for Aug. 28.

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