San Marcos approves over $100M for water and wastewater projects

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.