San Marcos council receives final update on FY2026 capital improvements program

San Marcos City Council on Sept. 2 received a final presentation on the proposed Fiscal Year 2026 Capital Improvements Program, including fund-level spending plans, a failing bridge on Cape Road that will remain in a one-way configuration while environmental review proceeds, and preliminary timing for a future bond election, city staff said.

City staff said the update reflects revisions made since the draft CIP was delivered to council on May 20, 2025 and that the city intends to adopt the CIP with the FY2026 budget at the council's next meeting. “We are committed to sound financial management. And ensuring public transparency as it relates to our budget process and projects included within the scope of our capital improvements program,” a staff presenter said.

Sean Condor, the city's engineering and capital improvements director, summarized current-year and near-term totals and highlighted a critical project: the Cape Road bridge. Condor said the crossing consists of two spans and that one span is failing; the city has reduced traffic to a one-way configuration and expects that configuration to remain for at least a year while environmental review and design proceed. Condor said the project is constrained by habitat for the fountain darter and that the environmental process will determine whether the city can place culverts or must build an elevated span. He said that the city plans to use HDR for design work and estimated that a replacement could cost “a bare minimum” of $500,000 to $1 million, with design taking roughly six to 12 months and construction three to six months, though he cautioned the schedule and cost remain uncertain until the environmental review is complete.

Condor outlined the FY2026 program totals presented to council: General Fund capital projects roughly $11,200,000; Stormwater about $6.8 million; Water and wastewater about $86,000,000 (the majority driven by a developer agreement for a second wastewater treatment plant, described in the presentation as the FM 1978 Water Reclamation Facility); and Electric about $10,000,000. Staff projected next-year planning figures in the presentation — roughly $10,000,000 for the General Fund and a smaller water/wastewater program — and said those figures could change as the tax and revenue picture becomes clearer.

On funding and timing, Condor said the city is using operating funds to pay near-term design costs for Cape Road and plans to include the project in the 2027 CIP. If construction funding is needed sooner, the city would consider a reimbursement resolution or shift funds from other projects that are not yet ready to proceed. Staff also discussed a possible bond election process targeted in planning documents for 2029, with bond committee work in 2028; staff characterized that timeline as a best-case, high-level plan and said specifics remain subject to council decisions and the tax revenue outlook.

Councilmembers asked about the Thorpe Lane projects listed in the CIP. Condor said Thorpe Lane includes two distinct efforts: a sidewalk project funded through Community Development Block Grant (CDBG) dollars and an intersection improvement at Springtown and Thorpe funded by a TxDOT grant. Condor said the city will pay 100% of design for the TxDOT grant and will be responsible for any costs above the grant amount during construction; council noted a $200,000 CDBG allocation cited for the Thorpe Lane improvements.

Staff closed by noting the CIP update will be submitted for approval with the budget and formally adopted at the next meeting. Digital copies of the CIP are available online, and hard copies are available at the city offices and the library, staff said.

Copies of the CIP and related materials will be on the agenda for formal adoption with the FY2026 budget at the next council meeting.