AGENDA CAPTION:
Title
Receive a staff presentation and hold discussion regarding the Fiscal Year 2026-2027 Budget Policy for the City of San Marcos, and provide direction to the City Manager.
Body
Meeting date: February 26, 2026
Department: Finance
Amount & Source of Funding
Funds Required: N/A
Account Number: N/A
Funds Available: N/A
Account Name: N/A
Fiscal Note:
Prior Council Action: N/A
City Council Strategic Initiative: [Please select from the dropdown menu below]
Public Safety, Core Services & Fiscal Excellence
Choose an item.
Choose an item.
Comprehensive Plan Element (s): [Please select the Plan element(s) and Goal # from dropdown menu below]
☐ Economic Development - Choose an item.
☐ Environment & Resource Protection - Choose an item.
☐ Land Use - Choose an item.
☐ Neighborhoods & Housing - Choose an item.
☐ Parks, Public Spaces & Facilities - Choose an item.
☐ Transportation - Choose an item.
☒ Core Services
☐ Not Applicable
Master Plan: [Please select the corresponding Master Plan from the dropdown menu below (if applicable)]
Choose an item.
Background Information:
Section 8.02 of the City Charter requires a budget policy workshop to be held by February 27th each year. The Budget Policy provides the framework for developing the Fiscal Year 2026-2027 Budget.
The annual budget process begins in late January with Council holding a visioning session. By late February, Council holds a budget policy workshop and is required by City Charter to adopt the Budget Policy Statement by March 31st, after holding a public hearing. The Budget Policy Statement provides the guidelines and parameters the City Manager must use in the preparation of the proposed budget. Budget workshops are then held in May, June, and August to provide Council updates and request direction on the preparation of the budget. During the August budget workshop, the City Manager delivers the proposed budget to Council. Multiple public hearings are then held on the budget, tax rate, and any proposed fee changes in September, with Council adopting the budget by the end of the current fiscal year.
This item includes the following attachments: the budget policy presentation and the FY26 Adopted Budget Policy Statement. There are decision points included in the presentation that will help staff draft the FY27 Budget Policy Statement. City Council’s response to the decision points and all other direction received during the Budget Policy workshop will be incorporated into the proposed FY27 Budget Policy Statement that Council will be considered on March 31st.
Council Committee, Board/Commission Action:
N/A
Alternatives:
N/A
Recommendation:
Receive the presentation, hold discussion on the Fiscal Year 2026-2027 Budget Policy, and provide direction to the City Manager.