AGENDA CAPTION:
Title
Consider approval of Ordinance 2026-41, on the second of two readings, amending rates for Stormwater Utility in accordance with Section 86.505 of the San Marcos City Code; including procedural provisions; and declaring an effective date.
Body
Meeting date: September 15, 2026
Department: Finance and Capital Improvements/Engineering
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:
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Stormwater
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Background Information:
During Budget Policy, Council directed staff to use an incremental rate approach for all utilities. Stormwater last increased rates in Fiscal Year 2023. At that time, Council chose not to raise rates and instead used General Fund support to pay for Stormwater capital projects.
Because inflation reached over 4% as of July 2026, Fiscal Year 2027 is an appropriate time to resume the incremental approach for this fund. In addition, due to growing pressures on the General Fund, Stormwater began covering capital costs directly – up to $5M starting in Fiscal Year 2025.
During the August budget workshop, Council asked staff to model different rate sc...
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