San Marcos council adopts $371.3 million FY2026 budget and sets tax rate to cover EMS gap

San Marcos City Council adopted a $371,339,935 operating budget for fiscal year 2026 and set a property tax rate of 65.15¢ per $100 of taxable value to help cover potential emergency medical services (EMS) expenses and other needs.

City Manager Stephanie Reyes said the proposed budget "supports the essential services residents rely on every day," noting it funds parks, libraries, roads, police, fire and emergency management while expanding human services and legal aid. Finance Director John Locke walked council through the assumptions behind the plan and the related capital improvements program totaling $114,815,000.

The budget discussion centered on two revenue pressures: stagnant sales-tax receipts and a likely new $2,000,000 annual cost if San Marcos must assume EMS service previously handled by San Marcos Hays County EMS partners. Reyes told the council the city commissioned an EMS study and that the $2,000,000 figure is an estimate based on ambulances and medic units going offline as partner jurisdictions establish their own services. Fire Chief Les Stevens explained the low recovery rate on ambulance transport fees, saying the overall collection rate for the service area is "under 40%" and the city’s in-area rate is "somewhere around 35 to 37%."

Nut graf: Councilors balanced the city’s stated need to prepare for a potential sudden shift in EMS responsibility with concerns about asking taxpayers for more money before final EMS study results. Council ultimately adopted the budget and chose a tax rate designed to preserve capacity for EMS while holding some one-time spending until next year.

Most important facts - Council adopted the…