To accommodate a multitude of planned water and wastewater developments and expand treatment capacity, the city of San Marcos is developing a new Wastewater Treatment Plant.
The City Council approved over $100 million in water and wastewater utility revenue bonds to fund the plant’s development and other related projects detailed in the city’s Capital Improvement Plan, or CIP, at an April 21 meeting.
The gist
The city's fiscal year 2025-26 CIP was adopted on Sept. 16, 2025, and outlines city projects planned for the next 10 years. City staff presented an overview of the planned projects to the council Feb. 3.
The City Council approved the issuance of $93.06 million in water and wastewater utility revenue bonds at the April 21 meeting.
The bonds are debt issued by the city to fund water infrastructure projects and paid for exclusively by revenue generated over time by the facilities.
From the total issued bonds, $80 million will fund the development of the Wastewater Treatment Plant, according to agenda documents. The remaining $13.06 million will support other water and wastewater projects detailed in the CIP.
The city received an AA rating from S&P Global Ratings on revenue bonds, the second-highest possible rating, emphasizing its strong ability to meet financial commitments. The rating will help the city acquire lower interest rates on debt issuances, according to agenda documents.
The revenue bonds will be sold in a competitive sale. Bids were scheduled to be received April 21.
Other projects
In September 2025, the city received $13.7 million in financial assistance from the Texas Water Development Board’s Clean Water State Revolving Fund for the Highway 80 Utility Project. The grant included $8.31 million as a loan and $5.39 million in loan forgiveness.
The Highway 80 Utility Project includes the development of a wastewater lift station at Highway 80 and Old Martindale Road, a wastewater force main and a reclaimed water transmission line, according to agenda documents.
The City Council approved $8.31 million in Water and Wastewater Utility Revenue Bonds to finance the grant loan at the April 21 meeting.
