SAN MARCOS — The San Marcos City Council unanimously approved a healthy budget for the 2025-26 fiscal year on Tuesday, projecting an improved financial situation from previous years thanks to revenue from the Measure Q sales tax.
This year’s $204.4 million budget includes approximately $185 million for maintenance and operations and $19.1 million for capital improvement projects. It also plans for a 40% General Fund reserve, the second-highest reserve level in the county.
“In order to ensure that the General Fund remains in a balanced position, we continue efforts to operate the city like an efficient business,” said City Manager Michelle Bender.
Last year, San Marcos leaders had to make cuts across most city departments to achieve a barely balanced 2024-25 budget, highlighting the need for additional revenue sources.
As a result, city leaders advanced a local one-cent sales tax measure to the ballot, which was passed by around 66% of voters in November. The tax will fund public safety and emergency response, road and infrastructure maintenance, and parks and community spaces over 10 years.
Councilmember Maria Nuñez thanked city leaders and residents for making the sales tax measure possible.
“A year ago, there was a lot of uncertainty sitting in this seat with my colleagues. There was a lot of uncertainty of what was to come and where we would be in our budget, and luckily, Measure Q passed overwhelmingly,” Nuñez said. “I’m really grateful for the leadership that we had, and I’m really grateful for our residents, that we were willing to do that for all of us, for our community.”
Measure Q is projected to generate a total of $26.7 million by the end of the 2025-26 fiscal year next summer.
Of this total, $6.8 million will be allocated to operating services, including park and trail maintenance, facility repairs, and fire equipment needs; $7.3 million will be dedicated to capital improvement projects; and $7.8 million will be transferred to the infrastructure replacement and rehabilitation funds.
This 8.7% infrastructure investment exceeds the 6% minimum required under city policy and will allow the city to address maintenance needs proactively before they become even more costly.
“This measure has allowed the city to responsibly resume meeting the service levels that support the quality of life that the San Marcos residents take great pride in, while simultaneously fulfilling its long-term commitments and service obligations,” said Salvador Roman, Budget Review Committee chair.
Emergency response services will account for more than half of the city’s $97.9 million in General Fund expenditures for 2025-26. This includes $28.7 million for fire services and $25 million for law enforcement, which also accounts for an estimated $900,000 increase to the contract with the San Diego County Sheriff’s Department.
The next-largest department expenditure is public works at $12.7 million, followed by internal services departments at $12.2 million, development services at $8.4 million, and parks and recreation at $5 million. Administration, legislative services, and other uses received the least funds.
San Marcos is projecting a 5% increase in General Fund revenues from last year, for an estimated $98.3 million in total revenues. Property tax is the largest revenue source at 34%, followed by sales tax at 22%, and charges for services at 15%.
Capital improvement projects
The $19.1 million Capital Improvement Project budget for this upcoming year outlines major projects for local parks, streets, and habitat restoration.
Projects with the biggest price tags this year include the $3.1 million annual surface seal project and $3.5 million for the restoration of 64 acres of wetland habitat in the San Marcos Creek from Discovery Street to Echo Lane.
The budget also allocates $3.5 million toward deferred roadway maintenance, including street rehabilitation projects and supplemental slurry.
“The city will be able to accomplish the deferred maintenance catch-up, which will keep our streets safe and our facilities in optimal operating condition, as well as enable staff to launch several necessary and now attainable preventative maintenance programs,” said Budget and Analysis Manager Janet Brotherton.
Staff said they will also need to reevaluate the repair schedule for local roads and conduct a new Pavement Condition Index (PCI) assessment to evaluate road conditions.
“We’ll definitely have to kind of reset … and evaluate where we need to catch up,” said Development Services Director Isaac Etchamendy.
Other roadway projects include $400,000 for a traffic signal at Linda Vista and Grand Avenue, and $1 million for the reconstruction of San Marcos Boulevard from Grand Avenue to Rancho Santa Fe Road.
City leaders said they would like to see more communication with residents about road projects, particularly regarding the specific phases and timelines they can expect. For example, after completing the milling process, which removes and grinds the existing asphalt, it’s not always clear how long it will take for the city to continue to the next phase.
“Whatever we can do, especially if it’s in a neighborhood where there’s a lot of houses … something so they know there will be further work done,” said Councilmember Danielle LeBlang.
City staff stated that they are working on enhancing public education regarding road projects. The type of outreach depends on the specific project, but the city generally relies on door hangars and texted traffic alerts.
Bender said the city is also focusing on more “grassroots” outreach that doesn’t solely rely on technology.
The city will also allocate $2.7 million to replace the HVAC system at Fire Station 1 and $1 million to replace the HVAC system at the Senior Activity Center on Richmar Avenue.
Several park and recreation projects are receiving funding in the budget. This includes $1.5 million allocated toward improvements at Bradley Park, in addition to $400,000 for the master planning process at the park, which will add further enhancements such as restroom upgrades, playground renovations, arena reconstruction, field renovations, and lighting improvements.
The city is also funding projects at Discovery Lake, including $400,000 for repairs to the small access bridge and $200,000 for planning improvements at the lake, such as removing invasive plant species.
The budget allocates $400,000 for the second phase of the Richmar Park Project, which includes adding a shade structure, a half-court basketball court, sidewalk and landscaping.
Additionally, $150,000 is allocated for the ongoing planning and construction of Rancho Coronado Park, and $400,000 is allocated for planning improvements at the Woodland Pool.
Other projects funded in 2025-26 include $1 million for the completion of a pedestrian promenade at the San Marcos Creek, $100,000 for the restoration of the Meyer-Doran House, also known as the Pink House, and $350,000 for a condition assessment of the city’s fire stations.
City leaders thanked the Budget Review Committee and Measure Q Citizens’ Oversight Committee for their work on this year’s budget.
