01.29.2026 Visioning Workshop - Day 1 Meeting Minutes

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City council Meeting Minutes - Final January 29, 2026 Hold discussion and participate in Fiscal Year 2026-2027 Visioning Workshop, topics discussed may or may not include or be limited to: growth, quality of life, economic development policies, transportation, community partners, outreach, future infrastructure and facility needs, beautification and community enhancement, enhancement of core services including future staffing and personnel needs, flood mitigation strategies, and provide direction to Staff. City Manager Stephanie Reyes opened the Visioning 2026 session, launching the 9-month budget cycle and emphasizing its role in setting Council priorities before detailed budget work begins. She highlighted expanded public engagement efforts, noted economic uncertainty, and stressed balancing affordability with sustainable revenues due to sales tax volatility. Reyes underscored the importance of workforce investment and introduced incoming Economic Development Director Helen Ramirez. She previewed presentations on the comprehensive plan, financial forecast, capital improvements, and community input, and reviewed the two-day agenda. Andrea Villalobos, Assistant Director of Planning and Development Services, presented the Comprehensive Plan Oversight Committee's top priorities, narrowing 130 action items to eight. These include: updating the Transportation Master Plan; evaluating a staff position for transportation demand management; improving safe crossings under I-35 and major arterials; creating a fiscal sustainability tool for development proposals; coordinating land use and transportation planning; reviewing and adopting a housing action plan; implementing green building and conservation practices; and promoting land uses that support target industries and diversify the tax base. Finance Director Jon Locke presented fiscal planning considerations, including the FY27 budget calendar and key milestones from visioning to adoption in September. He noted that only 51% of San Marcos land is taxable, with the remainder exempt —primarily owned by the City, Texas State University, and Hays County. Locke reported a projected $4 million general fund shortfall for FY27 due to expenses outpacing revenues and highlighted the impact of House Bill 9, reducing business property tax revenue by $450,000 annually. He also noted improved employee retention, with vacancy rates dropping from 15% in FY22 to 8% in FY25. City Manager Reyes added that personnel costs total $85M of the $100M general fund and discussed a retirement incentive to avoid layoffs while maintaining competitive wages. Engineering and CIP Director Shaun Condor reported that CIP funding City of San Marcos Page 2