San Marcos City Council approved the first of two readings for the city’s fiscal year 2016-17 budget on Tuesday. The second and final reading of the budget will be held at City Council's Sept. 20 meeting, during which time city staff will also present a second and final reading of the proposed rate increases related to drainage, water and wastewater service and solid waste collection services included in the $193.81 million budget.

City Council approved the first of two readings of the FY 2016-17 tax rate at the Tuesday meeting, which remains at $0.5302 per $100 property valuation, the same as the FY 2015-16 rate. The tax rate has not been changed since 2007.  The second and final reading of the tax rate will be held Sept. 16.

According to a presentation given to City Council at Tuesday’s meeting, the average homeowner in San Marcos will pay about $24 more in annual city property taxes, however, due to increases in property values.

Drainage utility rates


The city’s drainage utility fee helps fund improved drainage throughout the city. These fees are set to be increased after City Council’s unanimous approval of the first reading of an ordinance on Tuesday.

A small residential lot, defined as a lot measuring less than 6,000 square feet, currently pays $5.20 per month, and under the new rates they would pay $5.72 per month. The owner of a medium-sized residential lot, defined as those 6,001 to 12,000 square feet in size, currently pays $8.32 per month and would pay $9.15 per month under the new rates. Owners of large residential lots, defined as any lot more than 12,000 square feet in size, currently pays $9.53 per month and would pay $10.48 per month under the new rates.

Water rates


City Council also approved a 5 percent rate increase to water rates and a 2 percent increase to wastewater rates on Tuesday. Under the new rates, the average residential water customer in San Marcos will pay an additional $2.75 per month for water and wastewater service combined.

The Citizens Utility Advisory Board, which provides recommendations to City Council regarding utility issues, has recommended small annual increases during the next three to five years in order to offset the cost of the Hays Caldwell Public Utility Agency project. The utility project aims to bring water from the Carrizo-Wilcox Aquifer in east Caldwell County to the cities of San Marcos, Kyle and Buda as well as the Canyon Regional Water Authority in Guadalupe County.

“We’re going to bring water from a distant aquifer to our residents,” Council Member Jude Prather said. “A project like that will cost a significant amount of money. If we slowly increase these rates we will lower that sticker shock in 2019 and 2020.”

Assistant City Manager Steve Parker said the city paid $4 million cash for the first phase of the project rather than issue debt. Had the city used debt to finance the first portion of the project, rates likely would have had to increase even more, he said.

The HCPUA project is expected to supply the city’s future water needs for 50 years when it becomes available.

“We’re literally financing the water for our children and grandchildren at this time,” Mayor Pro Tem John Thomaides said.

No residents spoke against the proposed increases.

Solid waste rates


City Council also approved slight increases to the city’s monthly solid waste collection rates, which includes collection of garbage, recyclable materials and green waste, as well as recycling services  at Green Guy Recycling. Fees also pay for household hazardous waste and brush drop off services, as well as recycling public container service, special events trash collection and community clean ups.

The rate increases include (FY 2015-16 rates in parentheses):

65-gallon trash cart—$23.61 ($22.44)
96-gallon trash cart—$26.61 ($25.44)
Extra 96-gallon trash cart—$6.11 ($5.93)
Extra 96-gallon recycling cart—$5.82 ($5.65)
Extra 96-gallon green waste cart—$5.82 ($5.65)
Extra 30-gallon bag tag—$5.82 ($5.65)
Extra 30-gallon no tag—$9.30 ($9.03)

Recycling service rates for multifamily customers, such as those living in apartment complexes, were increased about 3.94 percent.

Multifamily recycling services—$6.86 ($6.60)