Published on June 10, 2026
The City of San Marcos will start the new fiscal year with a balanced budget that invests in community priorities while setting the city up for long-term fiscal health. The City Council adopted the fiscal year 2026-27 budget Tuesday, the culmination of a collaborative process that included seven public meetings, including the new Measure Q Citizens Oversight Committee.
Priority projects included in the budget that goes into effect July 1 focus on three main areas: public safety, infrastructure, and parks and community spaces. Highlights include:
Completing the design and preparing for the construction of a new fire station, the city’s fifth, being built at the corner of Las Posas Road and Armorlite Drive
Increasing street repaving to extend the life of local roads, improve safety and create a smoother ride
Improving traffic flow along San Marcos Boulevard
Replacing the heating and cooling system at Corky Smith Gym, plus improvements to the city’s Community Center, Woodland Park Pool and Williams Barn
New initiatives to support San Marcos businesses and a strong local economy
Updating city codes and policies to reduce bureaucracy and red tape
The city’s General Fund operating budget, which covers most day-to-day city services, for fiscal year 2026-27 is $103.9 million, a 6% increase over this year’s adopted budget. The annual budget maintains healthy reserves and exceeds the city’s goal of setting aside the equivalent of 6% of the general fund budget each year for future infrastructure needs. Addressing deferred maintenance is a top priority because it will ultimately provide long-term savings by avoiding costly emergency repairs.
The fiscal year 2026-27 budget also includes $23.7 million spending from Measure Q, a one-cent local sales tax approved by voters in 2024. Measure Q funds are tracked separately so it’s easy for the public to see how they’re being spent. In fiscal year 2026-27, Measure Q will be used to maintain constant staffing for fire and emergency medical services and replace self-contained breathing apparatus to help keep firefighters safe. Measure Q will also fund landscaping, janitorial and custodial work at city parks, and maintaining the city’s underground drainage system.
The Capital Improvement Program budget, which funds major city construction projects, is $21.7 million. This budget will fund progress on the new Fire Station 5, Fire Station 3 renovations, repairs to the Olive Street bridge and a variety of street improvement projects
The final adopted budget will be available on the city’s website starting July 1.