San Marcos adopts balanced $97.9M operations budget, ramps CIP funding with Measure Q

The San Marcos City Council on June 10 adopted a structurally balanced operations and maintenance budget for fiscal year 2025–26 and the five‑year Capital Improvement Program, approving two resolutions that staff said together appropriate funding and establish an appropriated reserve for the coming year.

“Staff is pleased to present you this evening with a structurally balanced budget that makes significant investments in keeping San Marcos a safe, clean, and well‑maintained city while also securing the highest level of cash reserves in the county,” Finance Director Donna Appar said during the presentation of the budget packet.

Nut graf: Council approved a $97.9 million expenditure plan that staff and the Budget Review Committee say balances operations, increases infrastructure spending after deferred maintenance and preserves a 40% general‑fund reserve (about $39.1 million), using Measure Q proceeds and other restricted funds to accelerate capital work.

Staff presented revenue and spending highlights: projected general‑fund revenue just over $98 million; property tax growth of roughly 5% driven by residential turnover and new construction; charges for services projected at about $14.7 million; and an estimated $2.4 million increase in real‑estate‑portfolio revenue due to completed city rental projects. Non‑discretionary costs include a $900,000 increase for the sheriff contract (a 3.5% negotiated increase) and anticipated 3% rises in utilities, fuel and insurance.

Measure Q funds were identified as a primary enabler of an increased capital and maintenance program. Staff presented Measure Q projections that allocate roughly $8.0 million to infrastructure funds, $7.0 million to operational uses such as parks and landscape maintenance and fire apparatus upkeep, and $7.2 million to capital projects for fiscal year 2025–26. The capital budget appropriation for FY26 alone was $19.1 million, with Measure Q representing about 33.2% of the CIP funding in the coming year.

The capital presentation outlined priorities and near‑term projects: the Fire Station condition assessment and planned rehabilitation work, a Woodland Pool condition and planning analysis, Discovery Lake bridge repairs and vegetation/water‑quality planning, a Bradley Park master plan, Fire Station 5 rezoning and design, a Richmore Park mini‑pitch soccer arena and shade structure, and continued slurry‑seal and reconstruction work on city roadways. Staff said the city will also resume vehicle and ambulance replacement programs and purchase a side‑by‑side ATV for sheriff use.

The Budget Review Committee chair, Salvador Romano, said the committee met from February through May and unanimously recommended adoption after department briefings and a best‑value analytical review. “The committee supports staff recommendation of the resolution and the adoption of the fiscal year 25‑26 budget,” Romano said.

Council members asked technical questions about road outreach, the Pavement Condition Index (PCI), and how staff will sequence rehabilitation work and resident notifications; staff said they will expand outreach, use door hangers and bilingual postcards for neighborhood projects, and collaborate with the director of lean government on mapping and targeted alerts. Staff also said they will re‑inspect roads and update PCI data before scheduling major rehabs.

Outcome: Council moved to adopt the resolutions approving the operations budget and the five‑year CIP, and the motion passed unanimously. The council also acknowledged the Measure Q oversight and Budget Review Committee participation and received the committees’ reports.

Ending: Staff and the council said they expect multi‑year investments to reduce deferred maintenance and to fund preventive maintenance, but staff cautioned that larger economic or policy changes (state/federal) could alter projections and that many projects remain contingent on environmental and permitting timelines.