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San Marcos council grills FY2026 budget and asks staff to model higher tax scenarios
Summary
City staff presented a $366.4 million FY2026 budget and three tax-rate scenarios; council directed staff to prepare the budget on the 'long-term focused' 64.96¢ rate and to run additional scenarios near 67¢–68¢ that would narrow or erase projected FY2027 shortfalls.
San Marcos City Manager Reyes and finance staff presented the proposed FY2026 budget on Aug. 19, telling the City Council the $366,400,000 spending plan includes $122,800,000 for the general fund and new investments in human services and community navigation.
Reyes said the proposal reflects months of departmental work and noted the budget funds $750,000 for human-services grants, a new Office of Community Support and Resource Navigation, tenant-protections funding of $70,000, and pay and benefits changes. "The $366,400,000 budget includes $122,800,000 for the general fund," Reyes said during the presentation.
Finance staff laid out three tax-rate choices for council: the no-new-revenue rate (6.278¢), a staff-recommended long-term-focused rate (64.96¢), and the voter-approval rate (70.47¢). Staff said the…
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