City Council Budget Policy Workshop - February 26, 2026

The City Council of San Marcos held a Budget Policy Workshop on February 26, 2026, focusing extensively on the fiscal year 2026-2027 budget policy. The meeting included detailed presentations on the city's financial outlook, revenue sources such as property and sales taxes, and expenditure forecasts across various funds including general, electric, water/wastewater, stormwater, resource recovery, airport, and transit funds. Council members discussed the challenges of maintaining a structurally balanced budget amid inflationary pressures, expiring federal funding, and service demands. Key procurement-related topics included the continuation of federal funding-supported programs, capital improvement projects like historical restoration funded by hotel tax revenues, and upcoming contract renewals such as the resource recovery contract with Texas Disposal Systems. The council provided direction to maintain the current tax rate near 65.15 cents, support continuation of American Rescue Plan Act (ARPA) funded programs with further information requested, and uphold funding levels for human services agencies. They also emphasized the need for transparency in budget assumptions and the importance of balancing service delivery with fiscal constraints. No formal votes on contract awards or new procurements were recorded, but the council set policy parameters guiding staff in budget development and future procurement planning.