SAN MARCOS CITY COUNCIL
The San Marcos City Council reviewed ordinances for electricity and water/wastewater rate increases during their Sept. 2 meeting, approving the first reading of the proposed increases, which must also pass a second reading during the Sept. 16 council meeting to go into effect. If approved on the second reading, the changes would apply to bills issued to City of San Marcos utilities customers after Oct.1, 2025.
The Council voted for an 4.4% electricity rate increase as well as a 10.4% effective increase in water (10.8%) and wastewater (9.7%) rates on the first readings of these ordinances. The electric bill ordinance was passed by a vote of 6-1, with councilmember Shane Scott the dissenting vote. The water/wastewater ordinance passed by a 4-2 margin, with councilmembers Shane Scott and Saul Gonzales voting against it.
According to Jon Lock, City of San Marcos Director of Finance, the electricity rate increases were based on rising personnel costs, the cost of new software for utility billing, contractor fees and funds set aside for a CIP (Capital Improvement Plan). The annual salary for a New Electrical Engineering Supervisor ($167,000) was also factored into the rate increase, according to Lock.
Council member Amanda Rodriguez requested a clarification of the role of the new Supervisor position, asking if the hiring an Electrical Engineering Supervisor would decrease the amount of independent contractors hired by the city.
“Is this going to save us money in the long run?” Rodriguez said. “Does this person make us less likely to go out for consultants … what are we getting out of this?”
With the proposed increase, a monthly bill for a utility customer using 1,000 kWh would increase from $120.03 to $126.52. The U.S. Energy Information Administration (EIA) reports that the average monthly residential electricity consumption in Texas is approximately 1,146 kWh.
The 10.4% increase in water/wastewater rates also reflects a rise in personnel costs, including a new Water Distribution Supervisor with an annual salary of $167,000, as well as contracts with Alliance Regional Water Authority ($250,000) and outside contracts with treatment plants for surface water ($242,000) and wastewater ($700,000).
Mathew Mendoza expressed concern for the high price of the surface water and wastewater contracts, hoping that these costs could be reduced. “Is there ever a chance that these contracts will ever become inhouse, that we have enough employees to just do this ourselves?”
City Manager Stephanie Reyes said that these contracts had previously been run by the city, but a study showed that an outside contractor would be less expensive. “We used to run it in-house,” replied City Manger Stephanie Reyes. “We had a cost analysis done and it was more cost effective to go out with it.”
Director of Utilities Tyler Hjorth said San Marcos does have plans to bring water treatment back in-house within the next few years, noting that a review process has been included in the outside contracts, so that once the city-run treatment facilities are capable of handling the demand, the City will take over the outside contracts.
“If and when it becomes economically advantageous to us, we’ll bring those people back in house, Hjorth said. “When it makes sense, then we can make that move.”
The City Council is also reviewing a small increase in charges for resource recovery, which will also receive a second reading on Sept. 16. Fees for garbage and recycling will also go up a small amount, in most cases less than 30 cents per trash or recycling container per year.
All citizens are encouraged to participate by viewing the Sept. 16 hearings in person or watch them online at www.sanmarcostx. gov/videos or on Grande channel 16 or Spectrum channel 10. Citizens wishing to participate in the public hearing may do so by sending written comments to be read aloud or request a link or phone number to join the hearing to citizencomment@ sanmarcostx.gov no later than 12:00PM the day of the meeting. If attending in person, no sign-up is necessary.
