San Marcos mayor outlines budget shifts, infrastructure and growth plans in State of the City address

The mayor of San Marcos delivered a State of the City address, telling residents the city’s budget outlook improved after a stronger-than-expected preliminary tax roll and rising sales-tax receipts, while warning state policy changes and expiring federal grants continue to constrain local finances.

The address front‑loaded fiscal details. The mayor said an initial $4 million shortfall was reduced after the preliminary roll showed about $367 million in new value, producing roughly $3.1 million in additional revenue, and stronger sales tax collections. He also cited state action on business personal property exemptions (House Bill 9) and expiring federal grants that shifted roughly $1.1 million in costs into the general fund, and said HB 9 reduced city revenue by about $786,000 as presented in the address.

Why it matters: those revenue shifts affect whether the city can expand services or must prioritize maintenance, capital projects and public safety. The mayor ran live polls during the event to gather resident priorities; attendees ranked the San Marcos River and water resources among the top assets.

Infrastructure and water projects were central to the address. The mayor said the Alliance Regional Water Authority now supplies 2.4 million gallons per day to the system and that the city is more than halfway through design of a second wastewater treatment plant expected to come online in fall 2028. He also said the Texas Water Development Board awarded funding for a Highway 80 utilities project that includes a 6.5 million‑gallon‑per‑day lift station, a force main and a reclaimed water line identified in the city’s 2015 wastewater master plan.

Public safety and services: beginning Oct. 1 the city will provide emergency medical services, the mayor announced, and stressed investments in equipment and accreditation. He said the police department earned accreditation from the Texas Police Chiefs Association and the fire department is accredited; the fire department also added a repurposed “blocker truck” to protect first responders at highway incidents.

Economic development and land use: the mayor described creation of a standalone economic and global business development department focused on partnerships and workforce training, and said the city acquired nearly 250 acres at the San Marcos Regional Airport to expand aviation‑related development and training opportunities. He listed several private projects in the pipeline that the city said will add jobs and retail capacity, including a nearly $50 million project called "Buckies," a 114,000‑square‑foot HB store at I‑35 and McCardi Lane, and a downtown hotel with roughly 130 guest rooms.

Support for small businesses: the mayor highlighted a legacy business program and showed a video with several longtime local business owners. One business owner said, “Being recognized as a legacy business in San Marcos is truly an honor,” and described the company’s multigenerational ties to the community.

Land development changes: the mayor said the council is nearly finished with more than 300 amendments to the land development code—about a third resulting from developer input—intended to streamline permitting (removing a requirement for a watershed protection plan at planning & zoning, allowing optional preliminary platting), assign planners or engineer case managers, implement presubmittal reviews and reduce inspector wait times.

Parks, river stewardship and fees: to help maintain the river and parks, the city will start a holiday/weekend entrance fee at Rio Vista Park that applies to visitors but remains free to residents in the 78666 ZIP code and those within the San Marcos school boundary (registration required for the resident exemption).

Community services and branding: the mayor announced a new library mobile app, expanded funding for nonprofits that provide utility, rent and tenant assistance, the creation of an Office of Community Support and Resource Navigation, I‑35 gateway monuments and a forthcoming city brand developed with community input. He also noted regional partnerships—citing a recent NASA visit and the Starburst Aerospace innovation hub—as evidence of growing tech and aerospace interest.

Public comments near the end of the event emphasized river protection and local infrastructure: residents praised the habitat conservation plan for preserving river flows during drought, encouraged a proposed film studio as a local opportunity, and thanked the city for street and overpass improvements in the historic district.

What’s next: the mayor said departments are finalizing budget requests and a proposed budget will be presented in August (as stated during the address). The event concluded after the final poll and brief public-comment period.

Source and attribution: quotations and specific program descriptions are drawn from the mayor’s address and statements by local business participants and residents during the program.