San Marcos City Council took the first step April 5 toward issuing about $38 million in certificates of obligation to pay for various capital improvement projects throughout the city. The issuance will not require an increase of the city’s tax rate, as the certificates of obligation will be paid for through various funds within the city’s budget. The funds will help pay for  capital projects throughout the city, including improvements to CM Allen Parkway and Hopkins Street, Mill Street, as well as the city’s participation in the Hays-Caldwell Public Utility Agency, which aim to bring water to the I-35 corridor in Hays County. A few projects, including the relocation of the city’s Fire Station No. 2, which is currently located near Texas State University at 1314 Academy Street, will be deferred because officials determined the city is not ready to move forward with those projects. Those projects will likely be undertaken in fiscal year 2017, Finance Director Heather Hurlbert said. “We try to only issue what we’re going to be using in approximately the next 12 months,” Hurlbert said.