accomplish the purposes set forth in the Budgets, including, but not limited to, the acquisition of necessary rights of way and executing the agreements associated therewith, provided no additional changes are made in the total budgeted appropriations unless approved by the City Council. The City Manager is hereby authorized and directed to make the appropriate adjustment to each departmental budget as outlined herein and to cite this Resolution as authorization therefor.
BE IT FURTHER RESOLVED that all demands against the City arising out of or in connection with the above-described Budgets shall be prepared, presented to, filed, and paid as authorized by the provisions of the City procedures, as may be in force, prescribing the means and method of presenting the payment of demands by the City of San Marcos.
PASSED, APPROVED AND ADOPTED by the City Council of the City of San Marcos this 9th day of June 2026, by the following roll call vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
____________________________
Rebecca D. Jones, Mayor
City of San Marcos
ATTEST:
_____________________________
Phillip Scollick, City Clerk
City of San Marcos
335
ATTACHMENT 3
Resolution Establishing Reserves
336
RESOLUTION NO. 2026-XXXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN
MARCOS AUTHORIZING APPROPRIATION AND TRANSFER OF
FUNDS FOR THE ESTABLISHMENT OF AN APPROPRIATED
RESERVE FOR FUTURE EXPENDITURES AND/OR CONTINGENCIES
FOR FISCAL YEAR 2026-27
WHEREAS, State Legislation was passed by the voters and required municipalities to establish appropriation limits and funds for appropriated reserves; and WHEREAS, it is necessary to appropri ate, transfer and establish an appropriated reserve for future expenditures and/or contingencies; and WHEREAS, the City Council adopted General Fund Reserve Policy No. 2012 -04 (“Policy”), and amended by Resolution 2024 -9299, which establishes a target minimum reserve level of 40% of General Fund annual operating expenditures into three reserve designations; and
WHEREAS, the Policy requires City Council action for the appropriation of the One- time Recurring Savings/Opportunity reserve funds; and
WHEREAS, the Policy dictates that a 10-Year reserve replenishment plan to be developed should the use of reserves cause the total unassigned fund balance to fall below the minimum threshold of 40% of General Fund annual operating expenditures; and WHEREAS, all monies not subject to the City's appropriation limit, general fund unbudgeted reserves, general fund reserves, subventions, and monies generated by municipal operations and required for such items as lawsuits, insurance claims, catastrophic events, contract change orders, legislative or State Commission approved legislation o r decisions requiring increased costs, excess inflationary trends, motor vehicles and capital equipment, building additions or construction, land requirements for municipal operations 337
Resolution No. 2025-XXXX
and general operational service needs, and events beyond the control of the City, shall be designated as an Appropriated Reserve for future expenditures and/or contingencies.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Marcos does hereby:
authorizes, appropriates, transfers and establishes an Approp riated Reserve for future expenditures and/or contingencies for the purpose of providing for the previously mentioned municipal requirements. The total amount of the reserve shall be equal to the U nappropriated Reserves for the F iscal Year 2026-27. The C ity Council may, at its option from time to time, by Resolution, add or subtract, as deemed appropriate by the occasion, to such reserve by transferring unencumbered surplus from an appropriate fund or funds.
authorizes the use of General Fund One-time Recurring Savings/Opportunity reserves as identified herein in the proposed FY 2026-27 Operations and Capital Improvement Program budget for the Fire Station 5 Capital Improvement Project (CIP# FC021), temporarily resulting in a total unassigned fund balance below the minimum 40% reserve threshold established by General Fund Reserve Policy No. 2012-04 and hereby approves the attached Reserve Replenishment Plan attached hereto as Exhibit 1, consistent with the requirements of General Fund Reserve Policy No. 2012-04.
PASSED, APPROVED AND ADOPTED by the City Council of the City of San Marcos this 9th day of June 2026, by the following roll call vote:
AYES: COUNCILMEMBERS:
338
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
_____________________________
Rebecca D. Jones, Mayor
City of San Marcos
ATTEST:
_____________________________
Phillip Scollick, City Clerk
City of San Marcos
339
Tranche Principal ($) APR** Term (Months) Interest Total Paid Tranche 1 $3,939,191.00 3.73% 24 304,611$ 4,243,802$ Tranche 2 $4,000,000.00 3.73% 12 151,777$ 4,151,777$ $7,939,191.00 $456,389 $8,395,580
Exhibit 1: FC021 Fire Station 5 Reserve Loan Repayment Plan* Summary
Interest compounds monthly and is accrued towards the balance. Each tranche is paid in full at maturity with total interest earned. *The use of one-time recurring savings/opportunity reserves shall be utilized as directed by City Council at the Fire Station 5 public workshop held 7/22/2025. The use of reserves helps meet the required construction schedule, and results in a total cost savings of approximately $1.75M-$2.6M in interest payable to external financing options. This replenishment plan is intended to deliver the project with the most cost effective option for construction delivery and interest earnings to reserves, per General Fund Reserve Policy 2012-04. Should future financial conditions warrant modification of the repayment schedule, the replenishment plan may be modified with a period not exceeding 10 years, per the requirements of General Fund Reserve Policy No. 2012-04. ** Interest rate as of March 2026 for estimation purposes only. Actual interest each month will match current interest rate that reserve funds would have earned 340
City of San Marcos
Staff Report
1 Civic Center Drive
San Marcos, CA 92069
File #:26-2892
MEETING DATE:
June 2026
SUBJECT:
SAN DIEGO ASSOCIATION OF GOVERNMENTS REPORT (MAYOR JONES) Recommendation
Note and File
Attachment(s)
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City of San Marcos
Staff Report
1 Civic Center Drive
San Marcos, CA 92069
File #:26-2893
MEETING DATE:
June 2026
SUBJECT:
LEAGUE OF CALIFORNIA CITIES REPORT (COUNCILMEMBER MUSGROVE) Recommendation
Note and File
Attachment(s)
City of San Marcos Printed on 6/4/2026Page 1 of 1
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342
City of San Marcos
Staff Report
1 Civic Center Drive
San Marcos, CA 92069
File #:26-2894
MEETING DATE:
June 2026
SUBJECT:
NORTH COUNTY TRANSIT DISTRICT REPORT (DEPUTY MAYOR SANNELLA) Recommendation
Note and File.
Attachment(s)
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City of San Marcos
Staff Report
1 Civic Center Drive
San Marcos, CA 92069
File #:26-2895
MEETING DATE:
June 2026
SUBJECT:
NORTH COUNTY DISPATCH JOINT POWERS AUTHORITY REPORT (COUNCILMEMBER LEBLANG) Recommendation
Note and File
Attachment
City of San Marcos Printed on 6/4/2026Page 1 of 1
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City of San Marcos
Staff Report
1 Civic Center Drive
San Marcos, CA 92069
File #:26-2896
MEETING DATE:
June 2026
SUBJECT:
CLEAN ENERGY ALLIANCE REPORT (COUNCILMEMBER NUÑEZ)
Recommendation
Note and File
Attachment(s)
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City of San Marcos
Staff Report
1 Civic Center Drive
San Marcos, CA 92069
File #:26-2897
MEETING DATE:
June 2026
SUBJECT:
CITY COUNCIL BUSINESS VISITS
Recommendation
Note and File
Attachment(s)
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