AGENDA CAPTION:
Title
Consider approval of Ordinance 2026-58, on the first of two readings, amending Section 86.199 of the San Marcos City Code to establish standardized utility payment due dates on the 1st and 15th of each month; including procedural provisions; and declaring an effective date.
Body
Meeting date: November 17, 2026
Department: Finance
Amount & Source of Funding
Funds Required: N/A
Account or Project Number (C = CIP funds): N/A
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Fiscal Note:
Prior Council Action: January 30, 2026 - Visioning Work Session, Council directed staff to explore the 1st and 15th of the month as due dates instead of the City’s current four due date billing system.
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Background Information:
The current ordinance establishing utility billing payment due dates is based on four (4) billing and account cycles, with payment due dates that fall on the 3rd, 11th, 18th, and 25th of each month. At City Council’s request, consideration was given to aligning payment due dates with common pay periods, specifically the 1st and 15th of the month, which also provides customers with more predicable payment due dates.
To reduce the number of billing cycles, Chapter 86 of the San Marcos Code of Ordinances will need to be amended to reflect the change. Utility Billing customers will be notified of this change through social media, the City’s website, and billing inserts. January 2027 is the final month that customers will have due dates that do not fall on either the 1st or 15th. Bills mailed out January 14th will have a February 1st due date, and bills mailed out January 28th will have a February 15th due date.
Some considerations that could impact customers include:
• Customers using automated payment reminders or scheduling payments through financial institutions will need to update due dates.
• No changes required for customers currently enrolled in AutoPay.
• Customers currently in billing Cycles 2 and 4 will experience a shorter service period and correspondingly lower charges on their bill due January 2027. This adjustment will only occur once as part of the billing cycle transition.
• Consolidating due dates may create heavier call volumes, lobby traffic, and longer lines at the drive-through window.
Council Committee, Board/Commission Action:
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Alternatives:
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Recommendation:
City Council approve the ordinance to change the number of utility billing due dates from four to two, which will be on the 1st and the 15th.