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City Council Meeting Minutes May 19,2026 <br /> adoption anticipated on September 15. <br /> Director of Economic and Local Business Development,Helen Ramirez, <br /> outlined the city's economic development philosophy, emphasizing the role of <br /> commercial and industrial growth in reducing the residential tax burden. She <br /> reviewed available incentive tools, noted that incentives such as Chapter 380 <br /> agreements and Tax Increment Financing are performance-based, and <br /> highlighted upcoming projects and a recent business survey with over 90 <br /> responses. <br /> Finance Director Locke summarized key economic indicators, including a <br /> population estimate of just over 91,000 and rising inflation. He noted that <br /> departments have held budgets flat for several years, creating real reductions <br /> in purchasing power, and that per-capita spending in FY 2027 remains below <br /> FY 2023 when adjusted for inflation. <br /> On sales tax,Mr.Locke reported that the city had experienced 17 months of <br /> negative growth due largely to a decline from one major taxpayer but that the <br /> rolling average has since rebounded. He recommended budgeting 1.8 percent <br /> growth for FY 2027. Mayor Pro Tem Shane Scott asked about the negative <br /> period, and Locke confirmed it was primarily attributable to the single <br /> taxpayer. <br /> Mr. Locke presented preliminary property tax data, reviewed definitions, and <br /> noted estimated taxable value of$10.7 billion after applying the standard <br /> protest <br /> allowance. He discussed new value trends and the disparity between residential <br /> and commercial additions. He outlined the current rate,the estimated <br /> no-new-revenue rate, and the voter-approval rate, cautioning that these remain <br /> preliminary. <br /> 0.39.00 Current tax rate is 65.15. Other estimated rates at this time are <br /> preliminary: No New Revenue Rate 65.50, Voter approval rate 70.32. Final <br /> information will be available at the budget presentation in August. <br /> Mr. Locke then reviewed the updated general fund forecast, noting revenue <br /> improvements from the preliminary tax roll, EMS revenues, and the return of <br /> a Housing Finance Corporation property to the roll. New expenses include <br /> EMS operations and IT infrastructure needs. With savings from the retirement <br /> incentive program and managed hiring,FY 2027 is now projected to be <br /> City of San Marcos Page 2 <br />