San Marcos council unanimously adopts balanced 2026–27 budget, affirms Measure Q spending plan

The San Marcos City Council on Thursday adopted the city’s FY2026–27 operations and maintenance budget and the five‑year Capital Improvement Program, voting unanimously to approve Resolutions 2026‑9613 and 2026‑9614.

City Manager Michelle Bender and finance staff presented a structurally balanced budget that staff said maintains the council’s reserve policy, prioritizes public safety and infrastructure, and relies in part on Measure Q sales‑tax revenue. "Staff is presenting a budget that is structurally balanced, maintains compliance with the city council's reserve policy, meets all infrastructure funding targets, and most importantly prioritizes the fundamentals that matter most to our community," Bender told the council.

The Measure Q Citizens Oversight Committee provided an overview of Measure Q receipts and expenditures. "Since the measure's enactment in April of 2025, the city has collected $5.2 million in fiscal year 2025," Orla Trussell, chair of the committee, said. Trussell reported that year‑to‑date Measure Q receipts for FY2026 through quarter two totaled $11.3 million and summarized the committee’s unanimous approval of the city’s FY2027 Measure Q spending requests totaling roughly $23 million (about $11.8 million for operations, $6.2 million for infrastructure and $5 million for capital projects).

Finance staff gave detail on revenue and expenditures: general fund revenues are projected at just over $104 million for FY2027, with property‑tax growth and building‑related fees among contributors; public safety (fire and law enforcement) accounts for more than half of the general‑fund spending. The Measure Q request includes $4.5 million tied to the Fire Station 5 construction project and funding for ongoing road maintenance and parks improvements.

Staff also described the city’s reserve strategy and a short‑term funding approach for Fire Station 5 that would temporarily use the city’s opportunity reserves to accelerate construction and avoid higher external borrowing costs; that use would still leave reserves near peer city levels and, staff said, would be repaid within the policy’s allowed period.

Council members praised the level of review by the Measure Q and Budget Review committees and stressed continued transparency and resident communication as projects move forward. The council indicated it will continue to provide periodic updates on major capital projects and Measure Q expenditures. The motion to adopt the budget passed by unanimous vote (Council Members Leblang, Musgrove, Nunes and Deputy Mayor Sella voting yes; Mayor Jones absent).

The council’s adoption puts project planning and appropriations in place for upcoming work including upgrades to public safety equipment, road overlays and the Fire Station 5 project, with staff committed to continuing public outreach and reporting on progress.