AGENDA CAPTION:
Title
Receive a Staff presentation and hold a public hearing to receive comments for or against Ordinance 2026-41, increasing Stormwater Utility Rates as authorized by Section 86.505 of the San Marcos City Code; including procedural provisions; and declaring an effective date; and consider approval of Ordinance 2026-41 on the first of two readings.
Body
Meeting date: September 1, 2026
Department: 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: Click or tap here to enter text.
City Council Strategic Initiative: [Please select from the dropdown menu below]
Stormwater
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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.
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N/A Core Services
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Master Plan: [Please select the corresponding Master Plan from the dropdown menu below (if applicable)]
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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 June 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. A modest, inc...
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