City Council Work Session - May 19, 2026

The City Council Work Session of San Marcos on May 19, 2026, focused primarily on the preliminary fiscal year 2026-2027 budget, including detailed presentations on economic development, general fund forecasts, property and sales tax revenues, and capital improvement program (CIP) planning. Finance and city staff provided updates on revenue projections, budget shortfalls, and expenditure challenges, highlighting a $4 million deficit for FY27 and ongoing efforts to balance the budget through cost-saving measures such as retirement incentives and managed hiring. The council discussed potential tax rate scenarios and the impact of tax increment financing zones on revenue allocation. Additionally, the council received an update on the expanded utility payment assistance program, including recommendations to modify eligibility criteria, assistance limits, and funding caps to better serve residents facing financial hardship. The council expressed interest in implementing some immediate changes to the assistance program while requesting further data and analysis for future adjustments. The CIP presentation was deferred to a later meeting. No formal votes were recorded during this session, but several action items were identified for follow-up, including further budget workshops, community input sessions, and refinement of utility assistance policies.