San Marcos City Council hears first reading of city budget, tax rate

The San Marcos City Council held public hearings Sept. 6 on adopting the city’s 2022-23 fiscal year budget and tax rate.

The proposed budget represents a 14% increase over the 2021-22 budget—about $37 million—totaling $297,440,593. Water, wastewater and electric utility rates will remain the same while storm water rates are set to increase by 6.5%, according to city documents.

The budget is set to generate 14.4%, or $5,451,606, more in revenue from property taxes compared to the 2021-22 fiscal year. It was passed 4-3 with Council Members Maxfield Baker, Alyssa Garza and Saul Gonzales voting against it.

Additionally, the proposed tax rate at $0.5930 is lower than the previous year's tax rate at $0.6030 and expected to generate $41.74 million. While the tax rate may lower, the taxable assessed value has continued to increase year-over-year according to the budget proposal, generating more money for the city and could be costing residents more in property taxes.

The $0.5930 passed with Council Member Shane Scott dissenting. The $60.30 rate might be brought up at the Sept. 20 second reading and could pass at that time. Both the budget and tax rate will come before the council on Sept. 20 for final adoption.

If the council keeps the maximum rate of $60.30, an additional $700,000 is slated for public safety to hire additional officers in the city’s fire and police departments and expected to generate $42.44 million.

Zara Flores contributed to this report.