AGENDA CAPTION:
Title
Receive a Staff presentation and hold a public hearing to receive comments for or against Ordinance 2026-39, amending the rates for Electric Utility Services in accordance with Section 86.177 of the San Marcos City Code; including procedural provisions; and declaring an effective date; and consider approval of Ordinance 2026-39 on the first of two readings.
Body
Meeting date: September 1, 2026
Department: Utilities and Finance
Amount & Source of Funding
Funds Required: N/A
Account or Project Number (C = CIP funds): N/A
Funds Available: N/A
Account Name: N/A
Fiscal Note:
Prior Council Action: N/A
City Council Strategic Initiative: [Please select from the dropdown menu below]
Public Safety, Core Services & Fiscal Excellence
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Comprehensive Plan Element (s): [Please select the Plan element(s) and Goal # from dropdown menu below]
N/A Arts and Culture - Choose an item.
N/A Economic Development - Choose an item.
N/A Environment & Resource Protection - Choose an item.
N/A Housing + Neighborhoods - Choose an item.
N/A Land Use + Community Design and Character - Choose an item.
N/A Parks & Public Spaces + Health, Safety & Wellness - Choose an item.
N/A Transportation - Choose an item.
Yes Core Services
N/A Not Applicable
Master Plan: [Please select the corresponding Master Plan from the dropdown menu below (if applicable)]
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Background Information:
The City conducts an annual electric rate study and the results are reviewed by staff and the Citizens Utility Advisory Board (CUAB). The CUAB met during the summer and received a presentation on the estimated revenues and major cost drivers of the electric system. The CUAB voted to recommend a 1.3% effective rate adjustment to electric rates for Fiscal Year 2027. The recommended increase will cost an estimated $1.75 per month for the average residential user.
The CUAB also recommended a change to the Community Benefit Charge of $0.75 per mon...
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