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Council backs stormwater fee credits for school district in exchange for easements; rejects full fee waiver
Summary
After a multi-hour staff briefing on the city’s stormwater utility fee, the Council directed staff to pursue a fee‑credit approach for San Marcos Consolidated ISD in exchange for drainage easements or property participation in CIP projects, rather than a full exemption.
SAN MARCOS, Texas — The San Marcos City Council on Tuesday directed city staff to pursue a stormwater‑fee credit approach for the San Marcos Consolidated Independent School District (SMCISD) rather than approve a full or temporary fee waiver.
Staff presented four options in response to a school district request: (1) perpetual exemption, (2) temporary exemption, (3) an alternate rate/tier for school districts, or (4) a credit program that would offset stormwater fees in exchange for easements or property used for city drainage capital improvement projects. Council indicated unanimous support for option 4 — fee credits tied to CIP participation — while emphasizing the need to protect the stormwater fund’s capital program.
Why it matters: San Marcos’ stormwater utility funds flood control, drainage maintenance and water quality programs. City staff told council the fee is considered the best practice in Texas for equitable cost allocation because it is based on impervious area or equivalent residential units (ERUs). A full exemption for school districts would reduce stormwater revenue by about $378,000 annually and would remove capacity for roughly $5 million in CIP work in later years, staff warned.
What council decided: Rather than lowering or eliminating fees outright — which staff said would materially reduce available CIP funding — council favored a credit mechanism that keeps project‑funding inside the stormwater enterprise. Under option 4 staff would develop an approach to grant stormwater credits in return for school district property or easements that the city can use for detention, conveyance or water‑quality infrastructure. Councilmembers said this approach preserves operating and capital capacity while creating a path to mitigate drainage problems adjacent to schools and neighborhoods.
City‑school background: Staff described prior city support for SMCISD over recent years: safety resource officers, crossing guards and some capital support. The city reported it has contributed more than $1.4 million to district needs across FY23–FY25 to date, including safety staff and a generator installation. Board representatives said the district is willing to pursue easements for the Sunset Acres drainage project and will take proposed credit arrangements to the school board for approval.
Legal/regulatory context: The Texas Clean Water Act, state local government code provisions, and court precedent require drainage charges be nondiscriminatory and legally defensible; staff cautioned that a different rate for school districts could present legal challenges.
Next steps: Staff will draft a credit program framework tied to specific CIP projects (for example, the Sunset Acres drainage work) and seek a formal agreement with the district. Council also encouraged staff to prioritize outreach to East Side neighborhoods most affected by chronic flooding. No formal roll‑call motion was necessary; council reached consensus to proceed with option 4.
Quote: “This gives both parties flexibility and keeps the money inside the stormwater fund so projects do not get delayed,” City Manager Mary Reyes told council. “It’s the best way to ensure we can continue scheduled drainage improvements while providing relief to the school district.”
