San Marcos staff outlines utility rate modeling, stormwater CIP shift and public-engagement concerns

City staff provided the San Marcos City Council an update on utility funds and public-feedback themes, saying the city is using incremental rate modeling for utilities and planning a hybrid funding approach for stormwater capital projects.

The staff member said, “The utility rate modeling is in process, and we're continuing with the incremental rate increase approach when rate increases are required for the utilities. The late penalties have been removed from the models as well as the budget as directed by city council.” The staff member added the Citizens Utility Advisory Board will make recommendations on any rate adjustments needed for fiscal year 2026.

The briefing said the city plans to have the stormwater fund pay for up to $5,000,000 of its capital…