San Marcos council advances annexation, downtown lighting and several budget and code items
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Summary
At its March 31 meeting the council approved a set of consent items, advanced an annexation of a TxDOT maintenance site, amended the downtown TIRZ to add $200,000 for alley lighting, approved budget and parking-code amendments, and authorized post-executive-session actions on a lease and a litigation settlement.
San Marcos City Council used its March 31 meeting to advance several administrative and fiscal items that together shape near-term capital and operating priorities.
The council approved the consent agenda (items 5–12) by a single vote (7–0). On separate items the council:
- Approved first reading of an annexation ordinance to bring a TxDOT maintenance facility into the city for water and potential sewer service; staff recommended annexation for service connections and possible future redevelopment. The first-reading motion passed with the recorded vote noted in the minutes (7–0).
- Advanced a Tax Increment Reinvestment Zone (TIRZ) amendment to increase the downtown TIRZ project budget by $200,000 to install lighting across downtown alleys. The change also clarifies that TIRZ revenue may pay for ongoing maintenance. Council approved the first reading and a related $200,000 budget amendment (Ordinance 2026-11) was taken up on the non-consent agenda; the budget amendment recorded a 6–2–0 vote with one member absent.
- Approved amendments to the city's paid-parking code (chapter 82) to broaden a local-exemption definition (’local area participant’), require parking-lot signage in English and Spanish, and change the citation-response period to business days pending software verification; those code amendments passed unanimously on first reading.
- Took action after executive session to authorize staff to pursue post-lease remedies for the expired ground lease at 201 S. LBJ Drive and authorized the city manager, working with counsel, to execute a settlement agreement in litigation with Canyon Regional Water Authority. Both post-session actions passed by recorded votes noted in the meeting record.
Finance director John Locke framed the fiscal context for several choices when he summarized the city’s quarter-one numbers: "Being 25% of the way through the fiscal year, you would think that, you'd be close to 25%... for the general fund the total revenue budget is $123,000,000; the actual revenue brought in was 24 and a half million," Locke said, noting sales-tax gains and portfolio yields above benchmark.
The council recorded a mix of unanimous and split votes as indicated in the minutes; items moving on first reading will return for final action at later meetings.
