Hours 0:00 – 5:51, 9/1/26

Citizen Comment:

Six people spoke at 6 pm. Main points made:

  • Three homebuilders: these impact fees will destroy affordable housing! Please delay these!
  • There will be an October 16th Halloween party at the activity center for adults with disabilities.
  • Ken Paxton’s suit against the ADA is barreling forward.
  • A data center in Caldwell County applied for San Marcos water and was approved. Voters should have been informed.*
  • We should bring in more businesses to stabilize our budget.
  • It is harder for kids today to buy their first house.
  • My family has owned land here since 1909, but we’re being priced out.
  • Encourage naive plants instead of increasing water rates.

*I was unable to find any information about this.

Two other people spoke at 3 pm:

  • The director of the Hays County Food Bank promotes Homeless Awareness Month, with a bunch of events all September.
  • The director of the San Marcos River Foundation has some recommendations for Quail Creek park, to keep debris out of the Blanco River. Namely, relocate the baseball fields and put grass fields in the floodway, instead.

Item 1: City EMS

Backstory: Back in 2022, Hays-San Marcos EMS covered three Emergency Service Districts of Hays County. They decided to unionize, asking for benefits such as extra pay for bilingual EMS workers and stable work hours.

The local Emergency Service Districts lost their minds, and basically dissolved the combined EMS program

  • Northern Hays and Dripping Springs vote to leave in 2024, and form their own EMS
  • Kyle also votes to leave in 2024 as well

Then it was just San Marcos.

This past spring, we had to decide whether or not to keep using Hays-San Marcos EMS or build our own. We decided to build our own. We’ve been hiring people and figuring out logistics and buying equipment.

Starting October 1st, San Marcos residents will receive San Marcos EMS ambulance rides. That’s what this is about.

Today’s issue: Suppose you have an emergency and call 911, and get taken to the hospital. Later on, San Marcos needs to cover the costs of this ride. How much should our new EMS charge?

The total cost to run San Marcos EMS is estimated to be roughly $9.1 million/year.

Here are the possible sources of money:

  • City taxpayers
  • Insurance companies
  • Medicare and Medicaid
  • Sending a bill to the person who needed the ambulance

Here’s the general strategy:

  1. Try to get as much money as possible out of insurance companies and Medicare/Medicaid.
  2. Have city taxpayers cover a lot of the rest for people in the city.
  3. When some random out-of-towner is driving down I-35 and has an accident, they get the bill for any extra costs, instead of passing it on to tax payers.

This is easier said than done!

Step 1: Set rates with a the goal of maxing out insurance payments and Medicare/Medicaid.

Here’s what’s being proposed:

“ALS” is Advanced Life Support, “BLS” is Basic Life Support. They said $1600 is the most common base rate, and then it might go up from there.

This is pretty similar to what everyone else charges:

So San Marcos charges insurance or Medicare/Medicaid with the $1600 bill.

I tried to find how much of the $1600 the city could expect to get out of Medicare/Medicaid/insurance, but it’s tricky.

For example: “Medicare Part B covers 80% of approved ambulance service costs after patients meet the annual Part B deductible of $257 in 2025. Beneficiaries remain responsible for the remaining 20% coinsurance plus any costs exceeding Medicare-approved amounts if providers don’t accept assignment.”

Insurance companies often claim they cover 80%, but between copays, deductibles, and other bullshit, I’m not sure how much of that the city actually sees.

Step 2: Whatever the insurance companies and Medicare/Medicaid doesn’t cover gets sent to the patient.

If the insurance or Medicare actually pays 80%, then the patient would get billed for $320. But it could be a lot more.

Step 3: Somehow we want to help local people that got billed, but not help rando out-of-towners driving down I35.

This is where Council gets bogged down.

  • Which residents do we want to help?
  • How do we want to verify who lives where?
  • Do we automatically knock off their bill, or do we require the resident to call the city and negotiate?
  • Do we want to help people who live outside of San Marcos, but are part of the community?
  • Do we want to help people who live outside San Marcos, and have nothing to do with San Marcos? Like, they were just cruising down I-35, or they came to watch a PAC 12 Texas State football game?

The answers are a little spotty:

For people in the city limits:

We cannot automatically knock the rest off the bill. This is a problem! Suppose you take an ambulance ride and get a bill for $700. On the bill, it would say, “You can call the city to discuss a payment plan or other assistance.”

But it would not say, “Hey! This $700 is not real! You’ve been paying taxes to cover it. You need to call us so we can knock the bill down.”

Most of San Marcos would stress out about the $700.

For people nearby the city:

There is some momentum on Council to help nearby people with the rest of their ambulance costs. They don’t pay property taxes to the city, but they pay some sales tax to the city when they visit San Marcos.

There is not much appetite to subsidize true out-of-towners.

If someone is driving from Austin to San Antonio and gets in a wreck here, they’re just going to go through the billing process.

….

It is estimated that insurance, Medicare, Medicaid, and people paying their bills would bring in about $3.16 million:

That means that the last $5.9 million falls to local taxpayers.

My back-of-envelope math is that half of that gets covered by sales tax and half by property tax.

  • $3 million over 9000 households is about $330 per home owner, in property taxes.
  • $3 million over 70,000 adults is about $43 per adult, in sales tax.

There are no other sources of money. The total has to come to $9.1 million.

Just for funsies, let’s daydream about socialized medicine:

It’s almost as though insurance companies aren’t helping! So weird. It’s as if they are just extracting profit, without providing better health care.

Bottom line: We’re going to look to see how New Braunfels handles residency issues, and come back with more precise scenarios.

Alyssa: New Braunfels does not think about residence as generously as we do.
Answer: It will just be a starting off point.

….

Items 14 – 19, and 3: All the Budget Stuff

This is where the meeting gets hairy. We’re about to hold votes on:

  • Setting the 2027 budget
  • Setting the tax rate
  • Raising the electric utility rate
  • Raising the water and wastewater rate
  • Raising the stormwater fee
  • Raising the trash/recycling rate
  • Charging developers an impact fee

NONE OF THIS IS BINDING! This is all the first vote.

Last year, everything went off the rails a few minutes before the second vote. There is still plenty of time for everything to unravel.

….

The theme this year seems to be: Lorenzo wants to dismantle local government. I don’t know how else to interpret what goes down.

Lorenzo and I chatted for a few minutes in 2024, when he was running for office. (He most likely does not remember this.) He reassured me that he was liberal, progressive, all the things I’d want in an elected official.

As far as I can tell, he is actually a 1980s Republican: “I don’t want to abolish government. I simply want to reduce it to the size where I can drag it into the bathroom and drown it in the bathtub.”

Note: Shane Scott also does not give a shit about city services! It’s just that I expected that from him. (And Matthew is… erratic, this evening.)

It was a weird night! Let’s dive in.

Setting the 2027 budget:

Last year, the property tax rate was 65.15¢. This year’s budget was built on the same tax rate, 65.15¢.

  • City services and programs have been cut back, because department budgets have not been increased in 3 years, despite inflation.
  • We are spending $5 million on our new EMS.
  • Abbott is signaling that he wants to screw over city budgets when the legislature meets next year.

My $0.02: we should always raise property taxes a teeny bit, rather than digging ourselves into a big hole and hitting the community with a big hike every few years. But here we are, digging! Oh well.

We’ve been over the details back in March, and in May, and in August. There is basically no additional discussion tonight.

The non-binding vote:

(Josh Paselk is absent.)

Great. Non-binding, but fine. The real vote will be September 15th.

……

Progress:

  • Setting the 2027 budget
  • Setting the tax rate
  • Raising the electric utility rate
  • Raising the water and wastewater rate
  • Raising the stormwater fee
  • Raising the trash/recycling rate
  • Charging developers an impact fee

Moving onto the tax rate.

Now they need to vote on the tax rate, 65.15¢.

Home prices have fallen a little bit, so the expected tax bill will fall a little, too:

Note: This is just the city property tax.

You also pay into the school district and county:

  • Hays County tax rate: 0.3999¢
  • SMCISD tax rate: 1.0152¢, but with a $140K exemption from the state

On a $296,301 house, you’d pay:

  • total property tax bill: $4701
    • $1,930 to the city
    • $1185 to the county
    • $1586 to the school district

Ok, fine.

Note: Renters pay property taxes indirectly, because landlords generally set rent that will cover their costs and turn a profit.

Humor me while I gripe:

San Marcos subsidizes home owners:

  • Every home owner gets $15K exempt from their appraisal, or about $97 knocked off their tax bill.
  • Home owners over 65 years old get a $35K exemption, or about $228 knocked off their tax bill.

Some senior citizens are living close or below the poverty line, and desperately need that $228.

Every member of Kissing Tree is over 65, and none of them are close to or below the poverty line! The average Kissing Tree home was worth $500,000 in 2025:

Every home owner of Kissing Tree gets an extra $228 per year, for being over 65 years old. Just some nice pin money for the ice cream shoppe. (This is on top of the $1.7 million TIRZ subsidy!)

There are 933 homes in Kissing Tree. Every year, San Marcos gives Kissing Tree an extra $212K, for being over 65 years old.

Total, these tax exemptions add up to $1.6 million:

Remember: this is a gift to home owners. The city spends $1.6 million subsidizing home owners every year!

The reason we are not raising the tax rate is that Council decided this, back in January 2026, at their visioning session.

Over the next 9 months, we heard over and over again:

  • Council does not want to raise taxes.
  • Department budgets will not change for the 4th year.
  • We’re spending $5 million on EMS now.
  • This is unsustainable.

Last meeting, we locked in the max possible tax rate. This is a weird Texas rule: council has to set a maximum ceiling tax rate, in August. Council picked 65.15¢, (ie the same tax rate that the budget is based on).

Tonight, Matthew says, “You know what guys? I’m going to put my head on the chopping block and do the right thing. Let’s be responsible and set the tax rate at 67 cents!”

Everyone looks at him, gobsmacked. Like, “Where have you been? You’ve been on council since 2022. You know how this works. You literally voted for a max rate of 65.15¢ two weeks ago. You could have spoken up then, but now it’s too late.”

There are two possibilities:

  1. Matthew pays zero attention to what’s going on. He is literally ignorant, after four years on Council.
  2. Matthew is scheming, and trying to look like a good guy when he knows it’s too late.

I don’t know what the answer is, but neither one is a good look!

….

The non-binding vote on setting the tax rate at 65.15:

Great. The real vote will be September 15th.

Progress:

  • Setting the 2027 budget
  • Setting the tax rate
  • Raising the electric utility rate
  • Raising the water and wastewater rate
  • Raising the stormwater fee
  • Raising the trash/recycling rate
  • Charging developers an impact fee

Two down!

Electric rates, Water/wastewater rates, Stormwater fee, Trash/recycling rates:

There are rate increases being proposed in every category. Here is what we’re talking about:

An average household would see bills increase by $8 a month. (But in the peak of summer, a large household would see bills much higher than this.)

Here is the problem: If you don’t raise rates, the tax payers will still foot the bill. San Marcos residents will paying these costs, either through your utility bill or through your tax bill. There just is no squirming out of this.

Here is Lorenzo and Shane:

I also debated using this meme:

You get the picture. We have to pay for the cost of providing electricity, water, etc, and there’s no magical thinking that will undo this.

First up is the Electric Rates:

Here’s the increase being proposed:

This is an increase of 1.3%. The Community Benefit Charge is a flat fee, which will go to replacing streetlights and adding new streetlights.

What happens if we don’t raise rates by 1.3%?

If we don’t go for this hike, then taxpayers still pay the difference. It’s just that it comes from the General Fund, instead. There is just no way around it – we pay for our electricity and infrastructure.

Second problem: the Electric Utility Bond Rating. If our bond rating gets worse, costs go up. If our bond rating gets better, costs go down.

Small regular rate increases help your bond rating. This will help keep our costs low, over time.

Finally: we have worked really hard over the last few years to fully fund an accessible utility assistance program. This is supposed to help those residents who are financially precarious.

The vote: Raise rates by 1.3%?

Shane and Lorenzo:

But it passed anyway, so fine. Great. Nonbinding, but great.

Water and Wastewater:

The meeting starts to deteriorate in this next item.

Here are the proposed rate hikes:

These are recommended by CUAB, which stands for Citizen’s Utility Advisory Board.

Here is the big issue to understand:

In other words, we legally have to raise rates. We do not have a choice.

Furthermore, we have the bond rating problem again. If this doesn’t pass, it will be more expensive to borrow money for infrastructure projects.

Lorenzo: I don’t care. We shouldn’t be borrowing money if we’re broke.
Answer: You’ve already borrowed the money. You have already signed the contracts for a new wastewater treatment plant by Redwood.

Lorenzo voted for the water treatment plant in June, and he voted for all the developments that need the new treatment plant in March 2025, December 2025 , January 2026, and July 2026. There is no surprise! You have to pay for the infrastructure once you sign the contract!

[You feel how frustrated I am getting??]

Alyssa: I still have questions. My neighbors and constituents say that this chart of rate hikes does not match their lived experiences of what they get billed.

The vote:

That means it fails.

Well, fuck!

I keep saying “These are nonbinding votes”. But they’re only nonbinding if it passes, because then it advances to the real vote. If it fails, it tanks the whole thing.

….

What do we do now?

This is one of those moments where it gives lie to the bullshit. Everyone knows that it is bad for everyone in San Marcos if it fails. Therefore we have to find a way to allow these chickenshit votes to keep from actually screwing everyone over.

What do we decide to do?

We phone Josh Paselk. Literally, we phone a friend like we’re on Who Wants to Be a Millionaire.

Josh had some emergency and was not able to attend the meeting. But he sees the Bat Signal, and hops on the phone.

Hi Josh:

Sorry to bother you like this.

We reopen the vote, and ask him over the phone how he votes:

Alyssa also switched her vote.

However, remember: this is non-binding. This allows us to get through to the real vote, on September 15th. Both Alyssa and Josh say that they have major reservations, but they want to move it forward.

Good fucking grief.

On to the Stormwater fee:

Unlike most of the other fees, this is a flat rate. This is to fund projects to stop floods from flooding people’s houses.

Right now, the people of Sunset Acres are especially impacted – they’ve been flooding for decades.

Construction started years ago, but it is a big, slow project to fix the flooding:

Before this, Blanco Gardens had their flooding addressed, with years of construction following the 2015 floods. Rio Vista had a lot of stormwater work done in their neighborhood in the early 2010s. Bishop and Belvin have had stormwater work done. There are other neighborhoods still waiting their turn.

Getting water in your home is soul-crushing. These projects are big and slow, but so deeply important.

Everyone’s stormwater fee would go up 86¢ cents per month.

Lorenzo: this is all because you all didn’t have the gumption to raise the tax rate! We’re robbing Peter to pay Paul, but worse, because this is rate payers and not home owners.

City Manager Stephanie Reyes: Raising the tax rate does not help with stormwater projects. Property tax goes to the General Fund. Flooding projects are paid for from the Stormwater account. These are separate funds.

I’m going to actually transcribe Amanda’s and Lorenzo’s fight here:

Amanda: This is where I sort of get frustrated, because I have been saying this from the very beginning, and we are all – everybody on this dais – privy to the way the budget process works. When you say that you don’t want to raise taxes, under the guise of saving taxpayers money, there are consequences to passing that dime over, and over, and over again.

We were all afforded the opportunity to raise taxes that way earlier, and no one made that motion.

Lorenzo: I voted to NOT raise the tax rate and I have consistently voted not to raise utility rates either. If y’all want more money, y’all should just have the balls to raise the tax rate.

Amanda: Arguably the hardest thing we do as elected officials is address the budget and address rates. And I don’t think any of us approach this as if it’s easy. The scenarios that Ms. Garza is talking about, I have lived, my mother lived. These are not easy decisions.

But inaction has consequences. We are required to make tough decisions, looking at the financial viability of our city.

(Lightly edited.)

Lorenzo does not want to raise taxes, nor raise rates, nor pay for stormwater projects. That is why I said that he wants to “drown the government in the bathtub” above.

How much will this 86¢ help?

Raising the stormwater fee by 86 cents a month would allow us to borrow $24 million to fund stormwater projects.

The vote:

Yes, Shane and Lorenzo, we see you:

Like, do they not believe that people’s houses flood every time it rains?

Anyway, it passed. Great. Nonbinding. Great.

Last is Trash and Recycling.

Everyone is sick of discussing these same things. Here’s how the (nonbinding) vote goes:

Great.

Progress Report:

  • Setting the 2027 budget
  • Setting the tax rate
  • Raising the electric utility rate
  • Raising the water and wastewater rate
  • Raising the stormwater fee
  • Raising the trash/recycling rate
  • Charging developers an impact fee

One left!

Next we have Impact Fees

Good news! Finally something you don’t pay!

Background:

Remember this map?

These are just some of the future developments coming for San Marcos.

We’ve seen it a LOT lately. (Most recently here, in August.)

These developments cost San Marcos taxpayers more money than they will bring in. Sprawl is very expensive! The people who will someday buy those houses will not pay enough taxes to cover the cost of running electricity, water, wastewater, roads, fire, police coverage, and EMS out to them. (Plus longterm maintenance of all those things.)

We do need housing! We need:

  • affordable housing,
  • housing closer to town and in town
  • environmentally friendly housing.

We should subsidize the impact fees in these cases, because this is the kind of housing that San Marcos needs.

But for sprawl? impact fees cover the costs associated with sprawl. Developers should pay them.

…..

We have not raised impact fees in a very long time. Things have spiraled out of control. This is costing taxpayers a lot.

To get things back under control, we are proposing to raise impact fees by a lot:

So in 2018, we set fees at $6486 for an average house. Now the fee would be $25,680 for an average house. (This is huge! This is why regular small increases are better. But here we are.)

….

Developers are losing their fucking minds! Their argument is “This will raise home prices by $20K! Do you really want to punish young families?”

Listen: we do need more housing. But developers are grown ups! They decide what to build and where to build it. They can build cheaper housing, if San Marcos residents can’t afford what they want to build.

To save $20K, developers could:

  • reduce square footage by about 100 square feet. Instead of selling an 1800 square foot house, they’d have to build a 1700 square foot house.
  • Or they could remove a half-bath.
  • Or build a carport instead of a garage.

I’m not a builder! Let them figure it out. They are grown ups.

San Marcos is a Target/Old Navy city, not an Anthropologie/Nordstrom city. These developers are crying because they want to make Nordstrom houses and sell them in an Old Navy city, and have the tax payers pick up the $20K difference in cost.

Developers: Feel free to lobby the city for smaller lot sizes! Feel free to lobby the city for more opportunities to build quad-plexes and other small scale apartments as infill! These things would help affordability. Just don’t pretend that San Marcos has to subsidize your large sprawling bullshit.

I’m sorry. I’m very, very cranky by this point.

….

One wrinkle: what about those developers who have already designed their houses and can’t easily go back and make them smaller and cheaper?

City Staff say there are 28 developers who could finish pretty quickly. These 28 projects have already been substantially started under the old fees. Fine.

If we don’t pass these impact fees, what happens?

Each time we give developers a break, we are going to have to raise rates on the rest of us.

How much are we talking?

These are the projects that we have to pay for:

We need to cover roughly $60.5 million over the next 10 years.

These developments are definitely coming! We already approved them! The infrastructure has to be built.

The wheeling and dealing begins:

Jane: I propose that we delay implementation until December 1st, to let those 28 developers in the pipeline use the old rates.

Lorenzo: I intend to vote no on every possible option. I do not want any impact fees, whatsoever.

Amanda: What about credits and rebates for infill, green development, and affordability?

Yes! Do this! Taxpayers should subsidize housing that benefits San Marcos. But no one appears interested in discussing this, so it dies on the vine.

Matthew, Josh, and Lorenzo are hashing out all these different possibilities.

  • What if we wait till January?
  • What if we do half the increase today, and half in 12 months?
  • What if we kill this entire thing altogether, and start over from scratch? (yes, this was Lorenzo)

Alyssa: No one brought this kind of energy to our neighbor’s utility bills.

Matthew makes a proposal that everyone listens to: Put 60% of the new fees in place on October 1st. Save 40% of the new fees for October 1st, 2027.

Matthew: “This is for the mom and pop builders, that only build 3 houses per year. I’m thinking of them!”

Amanda: Your amendment is a giant giveaway to the huge homebuilders. Why not just carve out the mom and pop builders?

Matthew: Yes, but I’m thinking about the mom & pop builders.

Amanda: This is not saving money. This will drive up costs for tax payers.

My back of the envelope math:

We’re trying to cover $60.5 million over 10 years. So in 2027, we’re hoping to bring in $6 million. Our old rates are about 20% of what’s proposed, so let’s say the old rates would bring in $1.2 million.

Matthew is proposing to let developers cover an additional $3.8 million next year, and have San Marcos residents cover the other $2 million.

The vote on Matthew’s proposal:

Just WOW.

Look: I’m not actually anti-developer! We really do need housing built!

But we shouldn’t subsidize sprawl. We should subsidize infill, affordable housing, and sustainable housing.

But wait! There’s more!

It seems to drive Matthew crazy that Jane voted against his proposal, even though his proposal passed. The two of them keep wheeling and dealing.

Jane: One year is too long.

Matthew: I could do May 1st.

Jane: How about April 1st?

Amanda: How about February 1st?

In the end, they decide to split the difference: March 17th, St. Patty’s Day.

The vote: 60% until St. Patty’s day, and then 100% after that:

According to my ballpark math, this will roughly mean rate-payers are covering $1 million, instead of $2 million. Better!

This is the end of the discussion. This is what sticks.

….

Note: Currently, there are no subsidies for:

  • affordable housing
  • Infill
  • environmentally green housing

We are not subsidizing housing that is good for San Marcos!

I sincerely hope we change that! But after this clusterfuck, I doubt it will come back around. JFC.

….

This is me:

This is the end of all the budget stuff.

(Till next time! This was all non-binding!)

……

Items 10-11: SMPD funding requests

  1. Expedited drug testing of evidence

We pay to speed up evidence drug testing, so that it gets completed in 30 days instead of 150 days. We contract with DPS to do this. In other words, if cops seize a bunch of pills during an arrest, they send it off to verify whether it’s aspirin or ecstasy.

The current funding being requested to do this is $130K, which is large enough to come to council.

Amanda: Has this amount changed? Is it getting more expensive?
Answer: Actually, Hays County forgot to bill us for two years. So this is more expensive than that.

(What. What on earth.)

Amanda: Are we going to be back-charged for those two years?
Answer: Nope. They’ve been cleared.

Lorenzo: Why are we paying for expedited services? This should come out of county money, because it benefits them.

There’s a kernel of truth in what Lorenzo is saying. The Hays County DA benefits if we pay for expedited 30 day evidence testing. But it’s stingy as hell and bad for maintaining good relationships with other governmental entities. It’s good to exonerate our residents quickly if the evidence comes back clean.

Here’s what Lorenzo is missing: the world runs on relationships. If you can approach other agencies with grace when something is small potatoes, then you’ll have a better time holding on to your convictions when important issues go down.

This is small potatoes.

The vote:

Josh has since hopped offline, and Lorenzo has switched to remote.

Anyway, it passes.

2. an SMPD contract with Axon Enterprises

Axon has been in local news lately as a data center that the county may or may not have signed a contract with. It’s confusing. (There are not enough hours in a year for me to cover Hays county politics.)

Anyway: This isn’t that. This is evidence storage.

Any time police take evidence, they have to legally hold it for a certain number of years. If they confiscate a computer or a phone or an apple watch, they have to upload the data as evidence and save it somewhere.

This is where they save it – we’re paying $46K yearly to store digital evidence with Axon.

Alyssa: there’s a bit in the contract about using data for product enhancement. Can we opt out of that?
Answer: Yes we can!

This will come back around with that provision.

Item 20: CARTS

CARTS stands for Capital Area Rural Transportation System.

It’s these guys:

via

CARTS covers:

  • Free bus rides around town
  • Free paratransit for people with disabilities
  • $4 rides to Austin, or $6 daily pass.

Routes and frequency aren’t great, but the city is working on it.

….

We split costs with the state and the federal government:

Great! That’s how government should work.

We are about to begin our Transit Master Plan, and so if I may:

Please address in the Transit Master Plan

There’s no public transportation to get back and forth between San Marcos and New Braunfels, or San Marcos and Seguin.

Here’s the problem: we’re on the southern tip of the Austin Cap Metro service area:

(We do have a bus that runs to Redwood, just outside this area.)

New Braunfels and Seguin are on the northern edge of the San Antonio Alamo Regional Transit:

And the two systems don’t overlap or coordinate on their boundaries, so there’s just this cliff dividing San Marcos from its neighbors:

Puzzle pieces! (I had fun making that picture.)

Suppose you use the shuttle service because of your physical disability. How are you supposed to get from San Marcos to Seguin? There are a lot more mental health resources in New Braunfels than in San Marcos, but only if you’ve got the means to get yourself there and back.

Listen: Seguin, New Braunfels, and San Marcos need to triangulate on some shared public transit along I-35 and 123. Austin Metro is not meeting our needs here.

Item 24: Food vendor fees

This is just a very quick item, because it was already past midnight.

Amanda: When people want to sell food, it’s $79 for a 14-day mobile food permit. Could we see about reducing this, to help our everyday people?

Answer: Yes!

This will come back around as a future item.

Bonus! 3 pm workshops, 8/18/26

(I combined the 3 pm public comment with the 6 pm public comment, in the first post.)

Workshop 1: The Budget

It is heavy-duty budget season!

July 25th is the day that City staff finds out exactly how much tax money we’ve received. This is the first concrete draft budget that Council has looked at.

The whole thing has to be approved in the next month.

….

Background: How’s San Marcos these days?

We’re growing:

That’s probably an undercount. The city thinks we’re more like 90,000 people.

The next two slides take some thinking.

First: here’s how much the median home owner pays in property taxes to the city:

So home owners pay more here than elsewhere.

However:

the city spends less per resident.

This is because the deck is stacked against San Marcos in some key ways. The only one they mention in this presentation is this, though:

We’ve got more tax-exempt land than most places, in part because the university is our central giant business, but they don’t pay taxes.

You all know about inflation. The city knows about it, too:

However, the city has not increased taxes to keep up with inflation. Department budgets have not changed in 3 years. This year it would take roughly $720K extra to keep up with inflation.

Note: Apparently many cities are going through layoffs and budget cuts right now. Here’s a bunch of major Texas cities with budget problems and here’s a story on Kyle.

We’ve been extremely careful in watching our pennies, and we are weathering this economy in a stable way. So that’s nice.

Onto the budget!

There are actually many different independent budgets. Each one has its own revenue and spending. So the Electric Fund is funded by utility rates and impact fees, the General Fund is funded by taxes, etc.

Here’s all of them:

The big one is the General Fund. Here’s how it gets funded:

Here’s some of the major pressures on it:

SMPD gets 5% raises and SMFD gets 4.5% raises, because they’re allowed to unionize. That’s what collective bargaining gets you. Texas outlaws all other public unions besides those, though. So everyone else gets 3% raises. It’s not the slightest bit fair.

Also: this year we had our first round of Participatory Budgeting experiment. The public was asked to submit project ideas, and then we all got to vote on which projects to fund.

Here’s how it went:

Lorenzo: That’s pretty sad. Only 117 votes?
Answer: It was our first rodeo! We’ll promote the projects and try to drum up more enthusiasm.

Back to the General Fund:

Basically, things are less grim than they feared.

We’re going to have a balanced budget this year, without raising taxes:

Graph showing that between 2027 and 2030, our budget should be between the minimal scenario revenue and the moderate scenario revenue.

For the next three years, we might be on track to have a balanced budget, or we might get unlucky.

The new property tax rate

Last year, staff presented three different options to Council. Councilmembers all said which one they liked best. City staff went and finalized a bunch of details before the final vote. Then half the council members changed their mind at the last second.

This year, staff did not outline multiple options. They just said, “Hey, we don’t need to raise taxes to make the budget work.”

[Note: I actually think this is a bad idea. The budget is not working! We are not keeping up with inflation. Small incremental tax hikes are much better than having to occasionally lob giant tax hikes at the public.]

Anyway:

Note on inflation and how Governor Abbott is going to try to screw over cities further next session.

They’re not actually voting on the tax rate until September. But for planning purposes, staff is working with the same tax rate as last year, ¢65.15. On a $300,000 house, that works out to about $1,950.

Question: Is Council okay with setting a maximum tax rate of ¢65.15? This is the tax rate we had last year.

Everyone is on board with this.

Note: This is just the tax rate cap. They’re just saying the tax rate won’t be higher than ¢65.15.

The rest of the budget

The other major funds are:

  • Hotel Tax Fund: this has to be used for tourism and museums and things like that.
  • Community Enhancement Fund: there’s a big discussion about streetlights, maintenance, and who keeps track of where they should be located.
  • Electric Utility Fund: your electricity supplier
  • Water and wastewater: ie all your water hook-ups to get fresh water and get your toilet waste taken away and cleaned
  • Stormwater: major projects to keep people’s homes from flooding when it rains
  • Resource Recovery Fund: think trash and recycling
  • Transit Fund: busses and bike lanes
  • Airport Fund: airport repair, etc.

Council has a big discussion about a lot of rate hikes:

Chart showing proposed increases of each utility service or fee.

So the average house would see a $7 increase in their monthly bills.

They spend a lot of time discussing the pros and cons of all these. For example:

The Community Benefit Charge: It’s supposed to cover streetlights and lighting. How do we decide which streets need streetlights? Who is being neglected because the city hasn’t installed their lights or repaired them?

The Electric fund: our bond rating got downgraded a few years ago. This means that it costs more for us to borrow money to complete electric projects. Can we fix this by raising rates? Would it save tax payers money in the long run? (Yes, it would.)

The Stormwater fund: it shows a $0 increase above, but that’s a mistake. This fall, they’re going to roll out a stormwater master plan, and it’s going to take a rate hike to pay for projects in the Wallace Addition and Bishop/Belvin. We have a lot of flooding in town, just from ordinary thunderstorms.

Bottom line: pretty much everyone says “Yes” to all of these increases (besides Alyssa), but none of this is binding yet. They’re just telling staff that they’re open to these rate increases.

……

Workshop 2: EMS billing

San Marcos-Hays County EMS was dissolved last year because they had decided to unionize. Police and fire can unionize, and private EMS companies can unionize. But the leaders in Hays County lost their fucking minds when their private EMS company decided to unionize. So Kyle and Dripping Springs each split off to form their own EMS, and San Marcos was stuck holding the bag.

We’re in the process of building San Marcos EMS now.

Question: How much should EMS charge for a ride?

The problem – of course – is that health care is super broken in the US. How do you set rates that are fair within a system that is a hopeless mess?

In San Marcos:

  • About half of all EMS calls are Medicare patients
  • About 6-12% more calls are from people covered by Medicaid
  • About 25% have insurance
  • The rest – 13%-19% – don’t have insurance and can’t really pay.

You make up astronomical rates in order to get payments from insurance. Then insurance covers some of it, or none of it, and then people are screwed over for the rest. It’s a terrible system.

(Obviously socialized healthcare is the way to go. You get much better health outcomes in your country for far cheaper.)

San Marcos cannot solve the real, underlying problem.

Here is what’s proposed:

Lots of acronyms without explanation.  ALS 2 is recommended to be $2700
ALS Emergency, non-emergency, $1800.  BLS: 1600. Plus some smaller charges, like oxygen, disposables, and blood administration.

The city can offer certain discounts to help residents:

How the City Can Protect its Residents: Resident Discount, Private-pay discount, charity care/TASPP

The other major problem is the time crunch. If Council doesn’t approve something, then the new San Marcos EMS can’t start the paperwork with insurance companies and Medicare and Medicaid, so that they can be operating by October 1st.

Everyone on Council was uncomfortable with everything. It was super rushed – they only had 15 minutes – and no one had time to thoroughly understand the details.

They did give it the thumbs up, so that EMS could make its October 1st opening deadline, but the plan is to revisit these decisions.

We’ll see!

Bonus! 3 pm workshop, 4/7/26

Citizen Comment: Five people talk.

They all talk about EMS, so I’ll put their comments down below.

The backstory:

There are nine different Emergency Service Districts, called ESD #1 – #9, which make up Hays County. Some are fire, some are just EMS, and some are both.

The districts with EMS are 1, 2, 3, 7 and 9:

Hays County ESD #1: Dripping Springs, Driftwood, Henly.
Hays County ESD #2: Buda
Hays County ESD #3: San Marcos
Hays County ESD #7: Wimberley.
Hays County ESD #9: Kyle and all the country bits around those towns.

This map of the districts is hard to read, but it’s the only one I could find:

In 2020, Wimberley and Buda were running their own EMS.

The other three ESDs all shared an EMS service. We all contracted out with San Marcos-Hays County EMS, (SMHC-EMS), a nonprofit EMS.

Great!

In 2022, SMHC-EMS decides to start forming a union:

It took them about 2 years, but they finally negotiated a new contracted with their board of directors which included things like this:

Great!

About 30 seconds later, ESD #1 and ESD #9 both cancel their contracts with SMHC-EMS, and vote to open their own EMS departments. Pretty much textbook union-busting.

So San Marcos is stuck holding the bag, by ourselves. What do we want to do? Last August, we commissioned a study with some consultants.

January 2026: The consultants give us three choices:

  1. Renew the contract with SMHC EMS and just carry on.
  2. Roll EMS into our fire department. This is called Fire-based EMS.
  3. Make a new standalone City EMS department.

There’s a long conversation about collective bargaining and labor rights, and whether a City-based EMS could be granted some form of negotiating power.

A majority of council votes for Option 3, but they ask city staff to look into the laws around collective bargaining and EMS.

Let’s talk about union-busting for a sec.

Forming a union is a big hassle, and so my guess is that the grievances with management were significant. (I don’t have any details, though.)

Pre-union-busting, how much did EMS cost everyone? Here’s what I found from 2022:

ESD #1: $3.3 million in taxes (here)
ESD #9: $3.84 million in taxes (here)
San Marcos: $4.22 million in taxes (here)

Total:  $11.36 million of taxpayer money to SMHC-EMS.

Post-union-busting, we now have three separate departments. Here’s what tax-payers are paying in 2026:

ESD #1: $8 million in taxes (here)
ESD #9: $10.2 million in taxes (here)
San Marcos: I can’t locate this for the life of me.  Let’s ballpark $9 million in taxes, for our City EMS, based on the consultant study from January.

Total: $27.2 million of taxpayer money, to three separate EMS departments.

Bottom line: Way to go, asshats. You’re spending $16 million extra of taxpayer dollars, but at least you’re screwing over the people who keep us alive in an emergency.

Which brings us to tonight! 

The point of the workshop is to update Council on how it’s going, planning for a new City EMS department.

The staff presentation

First off: city staff say there is absolutely no way to give EMS collective bargaining power under state law.

Police and Fire Departments can unionize, which is known as “Civil Service”.

But EMS doesn’t qualify as Civil Service, because San Marcos is too small:

You have to have 460K people or more. So Austin can do this, but not us.

The first step is to hire an EMS Chief:

After this, we’d start hiring everyone else. Current SMHC-EMS workers would have first dibs on applying, and then we’d open it up to anyone else.

There’s a whole lot of medical mumbo-jumbo about credentialing, medical directors, clinical operating guidelines, physician consultations, etc, which I honestly do not have the background to follow.

What do people say at Citizen Comment?

Five people speak:

  • Former SMPD commander: This is great! City EMS services are the way to go. State of Texas has bad laws around civil service, but the EMS workers are okay letting collective bargaining go.
  • Citizen rep on Hays County EMS Board: Same!
  • Two longterm field workers: This is the best of a bad situation. City EMS is the way to go.
  • Zach Philips, president of the EMS union: you don’t need to rush this process. Our contract runs until 2028. Why not finish the contract and carefully plan your new City EMS to start in 2028?

What does Council say?

Alyssa: How did you build the job description for the EMS Chief? What’s the timeline?
Answer: We looked at other city EMS chiefs, and based it on those. We want someone who can build an EMS department from scratch, and also build lots of partnerships. Maybe down the road, we can do mobile community healthcare or something. The hiring process will probably take two months, but it’s flexible.

Amanda: Austin uses a process called “Consultation” instead of collective bargaining. Can we do that?
Answer: Austin has a special bracketed carve out in state law. We may be able to do something called “Voluntary Consultation”.

Note: What is Voluntary Consultation?

It sounds like a soft version of collective bargaining. Here’s an explanation about how it’s used in school districts:

 

While the law explicitly prohibits collective bargaining, many school districts have adopted consultation policies allowing school boards to meet and confer with educators about educational policy and employment conditions. These consulting agreements are related to the concept of collective bargaining but constructed in such a way that the input given is considered advisory rather than legally binding, and therefore does not qualify as a collective bargaining agreement by law. The school districts are not required to act on the input received from the employees and final decisions on matters discussed through the consultation process are decided by school board members.

So it’s not binding, and it would be voluntary by the city. At best, it’s a good-faith effort to foster communication. At worst, it’s thoughts-and-prayers.

City Manager Reyes: this means that certain city employees would get a perk not offered to the rest of city employees. Something to consider.

(Note: We could offer Voluntary Consultation to everyone. Just saying.)

Amanda: Is it viable to keep the current contract in place to 2028?

No one really answers this, but this is the central question. Should we build an EMS department from scratch in 5 months? Or should we see whether it works to just keep our contract with SMHC-EMS?

There’s this chart:

Sorry about the screenshot. I know it’s tiny and hard to read. (It wasn’t in the packet, because it was only requested the day before.)

I think this chart is supposed to show that it saves more money to build our own EMS department by October. But it really doesn’t.

Lorenzo makes an excellent point: this chart supposedly compares City EMS and SMHC-EMS. Some of the numbers should be identical either way – for example, the amount of revenue from ambulance rides should be the same. But they’re not – they’re off by $1.3 million. (This is the first row of the chart, comparing the 1st entry and the 4th entry.)

In several places, numbers that should match don’t actually match. This is probably because nobody actually knows the real estimates, and they used different sources to get projections in the different columns.

Point being: no one can really say which will be cheaper, the current contract or a City EMS.

Amanda: This is not solely about revenue. I’m focused on the quality of care and taking care of our community, not taking the cheapest option.

But Lorenzo wasn’t arguing that we should go for the cheapest option. He was arguing that we haven’t really thought through just staying with the current contract. It is a viable option, but we’re acting like it’s off the table.

My read is that staff came in with a lot of momentum towards building a new EMS department. There just isn’t a lot of oxygen in the room to discuss continuing the current contract.

Josh: I value people and communication more than I value the nitty-gritty details!

Josh is both right and wrong. He’s correct that when people with power operate in good faith, and value their employees and value communication, you have the best possible scenario. But he’s also wrong: when people with power stop operating in good faith, the only leverage that employees have are the details that are spelled out. When things go sideways, the devil is in the details.

I think Josh believes “Look, I have good intentions and I like being a good boss. That’s enough to make sure we’re in the good scenario!”

So what’s the timeline?

If everything was put in motion today, it would take 6 months for the state license to come through. Then we’d coordinate with Medicare, Medicaid, DEA, etc etc.

Matthew: Where would we put city EMS?
Answer: We’d talk to their landlord and try to rent out their current building.

Hopefully everything would be ready to go on October 1st, but otherwise we’d have a contingency plan, which we also would build out.

Jane: How long did ESD 1 and ESD 9 take to create their own plan?
Answer: ESD 1 took 6-8 months, ESD 9 was a bit longer.

Jane: can we compare benefits plans?
Answer: We’re working on it.

Note: It’s not just benefits. At the January meeting, they also mentioned looking to make sure seniority transfers over. Otherwise you are going to lose your most experienced EMS workers.

Alyssa: This is big and complicated, and there are so many ways for it to go disastrously wrong if we rush it.

Fire Chief Les Stevens: The Medical Practitioner oversees these transitions and would not allow care to lapse for one second.

Amanda: In the next legislative session, maybe we can lobby for fixing the Civil Service rules?

….

Ok Council:

1.  Who wants to stick with City based EMS?

Yes: Matthew, Shane, Jane, Josh, Amanda
No: Lorenzo and Alyssa

Alyssa says that she is just not yet satisfied with the open questions about labor protections.

2.  Who wants to look into Voluntary Consultation as a lite-collective-bargaining?

Yes: everyone.
No: no one.

So there you have it.

At the very end, the union rep Zach Phillips weighs in again:

  • I still have concerns about the timeline and labor protections
  • EMS will absolutely not generate revenue. Do not look at this as a revenue source, I promise.
  • Yes on lobbying the state legislature. We think we can make progress on this by 2028, which is one reason to wait.
  • You all will be the 2nd largest city based EMS, after Austin. What’s the rush?

Alyssa: Will we put a union rep on the hiring committee for the EMS chief?
Answer: Absolutely. Yes.

Final notes: How are we going to pay for this? We’re already looking at a $4 million budget hole. As Zach said, this will not generate revenue.

My guess is that that will be a big, messy conversation, and so there just wasn’t time to roll that conversation into the this workshop.

What a mess! Sure do wish we hadn’t done this last year:

But here we are.

Bonus! 3 pm workshops, 1/20/26

Public comment at the 3 pm workshops:

There are three speakers:

  • President of the local EMS union. We’ll hear from him throughout the workshop.
  • Speaker in support of the current board chair of the San Marcos Housing Authority
  • Max Baker, on the SMPD staffing study. (This item was actually postponed.)

….

Workshop: San Marcos EMS

Backstory: This is a mess! It first came up on the blog, back in September.

Here’s my best attempt to reconstruct the timeline:

1983: San Marcos-Hays County EMS is formed as an independent non-profit. All the nearby towns and Hays County all contribute to funding it.

2009: We hire Fire Chief Les Stephens. When he’s hired, he’s told that the SMHC EMS is a total mess, and we want to be prepared in case we need to bail on them. So he starts making sure that all his fire fighters are trained as paramedics.

2010: Buda bails on SMHC EMS, and splits off to run their own program.

SMHC EMS gets its act together and becomes a high-quality organization. So we end up not needing to split off. But we still require that fire fighters be paramedics, because it’s best practices. A lot of times, they’re the first ones on the scene.

All that backstory was provided by the city.

This next piece was NOT provided by the city:

2022: SMHC EMS starts forming a union:

Immediately everyone starts splitting off and forming their own EMS services.

If it looks like union-busting and quacks like union busting… it’s union-busting, yeah?

This is the big theme of the night: the EMS workers are getting screwed, no matter how you slice it.

2025: San Marcos asks Kyle and Hays to give us 12-18 months to put together an EMS plan.

2026: The clock is ticking. The first ambulances will be removed in April, and they’ll all be gone by October.

Which brings us to today

All the partners left, and now it’s just San Marcos. We have to figure out how we want to provide EMS services to San Marcos residents.

So we commissioned a 6 month EMS study. This workshop is about that study.

These are the three choices:

  1. Renew the contract with SMHC EMS and just carry on.
  2. Roll EMS into our fire department. This is called Fire-based EMS.
  3. Make a new standalone City EMS department.

No matter what, San Marcos needs to be able to provide some basic things:

Here’s how much personnel is required under each model:

Here are the costs:

The reason City EMS is cheaper is partly because it requires less staff, but also because EMS workers would get paid less.

  • Status quo? SMHC EMS is unionized. They can demand higher wages
  • Fire-based EMS? Our fire department gets partial union perks, like collective bargaining. This is the whole “meet-and-confer” thing. So they can also arrange higher wages.
  • City EMS: they’ll get paid along with all the other city employees.

San Marcos prides itself on paying its employees pretty well, but it’s just not the same as having a union. (And in Texas, it is basically illegal for public employees besides Fire and PD to unionize.)

Some extra details:

Here’s the summary table:

Sorry, I know it’s small. It’s slide 15 of this presentation, or page 153 on this PDF, if you want to scroll.

The consultants are recommending that we go with City EMS.

And, of course, this is all very urgent. As the contracts dissolve, everyone will start taking their supplies.

The first ambulances will start to leave in April, and the last of the ambulances will be gone by October.

….

What does everyone say?

Zach Phillips is the president of the SMHC EMS union. He says:

  • There are inconsistencies in the EMS study. We’d like you to postpone.
  • If postponing isn’t an option, our goal is workforce continuity.
  • Our priority is providing high quality care. We can best do that by keeping the experience and expertise of our employees together. We know San Marcos really well.

What does Council say?

Amanda: I’m worried about the destabilization of the workforce. What transition process would be recommended?
Answer: The EMS workers would go through the normal city application process, but we’d work closely with them to align expectations and make it as smooth as possible.

Josh: My big concern is the transition.
– You can’t do good work without good people, but our salaries are lower.
– Taking on a whole company in-house is expensive
– We have to be fiscally responsible, but if we’re going to do this, we need it to be rock-solid.
– How would insurance and liability work?
Answer to that last bit: We get insurance through Texas Municipal League.

Shane: When Chief Stevens was hired back in 2009, the plan was to convert to Fire-based EMS. Chief, how do you feel about all of this?

Chief Stevens: Fire fighters do not want to be EMS, and EMS workers don’t want to run into burning buildings. When you talk to the people that work in these departments, they generally do not want to be merged.

Note: This is the biggest argument against fire-based EMS. Several different speakers say the same thing: Medical EMS people like doing the medical stuff, and fire fighters like doing the fire-fighting stuff. They do not want to merge.

Shane: Well, did we waste a bunch of money then preparing SMFD to be ready to convert to EMS?
Chief: No. It’s best practices to get fire-fighters trained as paramedics. We’re usually first on the scene, so we can start medical care while EMS gets here. We’re going to keep requiring paramedic certification.

Jane: How would the finances work out?
Answer: We’ve been paying $2.5 million to SMHC EMS. You all allocated an extra $2 million last September.

Jane: But that still leaves about $9 million?
Answer: Well, you bring in some money from patient care.

Mini-rant: the average cost of an ambulance ride is $2673. If we had socialized medicine, like the rest of the sane world, the bill to the consumer would be $0. But we pay twice as much for healthcare in the US and get significantly worse services. Ah, capitalism.

Alyssa: There are allegations of union-busting. I need more time before I decide.

Lorenzo: City EMS is cheaper because the workers get a worse deal. If we do Fire-based EMS, they’d get 4% raises every year, along with FD and SMPD. I’m against City EMS.

Amanda: What’s the time frame here?
Answer: We’re a little freaked out! Last July, we asked them to give us 12-18 months. But they’re going to start removing ambulances in April. The dissolution will be complete in October.

Amanda: I’m fine with the recommendation in the report.

Josh: Can I call the union president back up? Sir, what is the union’s position on transitioning to non-union jobs?

Union President Zach: One of our concerns is that all employees are able to transition, assuming they want to.
– Like Chief Stephens said, not all EMS want to be fire fighters. I personally prefer EMS and medical things, and not fire.
– We want to make sure all individuals can come over with their existing seniority.
– We’re worried about the timeline. If it drags out, you’ll lose people with a lot of local expertise because they’ll look for other jobs.

Josh: If you had a way to do it, what’s your preference on the transition? Assuming it’s options 2 or 3?
Zach: Right now, we have collective bargaining.
– The state does not allow public employees to collective bargain.
– But city councils can vote to allow meet-and-confer for City EMS.
– We just want to be able to negotiate.
– There’s no way we could go on strike, and we would not ever try to go on strike.

City Assistant Manager Anderson: I’ve been trying to figure this out. My read on state rules is that City EMS can have an employee association, but they aren’t allowed collective bargaining.

City Lawyer: I need to read up on some of these legal details. I don’t think collective bargaining is allowed. Some of the bigger cities have a similar thing to meet-and-confer between other employees. I just need to look stuff up.

City Manager Reyes: Each option carries budget consequences, so just be mindful.

Shane: I’m torn. I need more time, too.

Matthew: how do you transfer seniority?
Answer: We’d have to work it out. We’ve worked it out in other contexts, though.

Matthew: I’m for City EMS then. I want to explore these meet-and-confer options though.

Bottom line:

City EMS plus labor protections: Matthew, Josh, Amanda, Jane

Need more time: Alyssa, Lorenzo, Shane

So we’re going with City EMS, but city staff will bring back some details:

  • the inconsistencies in the study that Zach referenced,
  • Labor protections, whether we can do a meet-and-confer option
  • Quality of care measures.

Hopefully things will get sorted!

One final note, just because it’s cute.

Fire Chief Les Stephens, last year when he was inducted into the Texas Fire Service Hall of Honor:

Les Stephens, on the San Marcos city staff webpage:

Did we…. Was he 12 years old when we hired him??

There were supposed to be two other workshops:

  • the SMPD staffing study,
  • an update on the comprehensive plan

But we ran out of time, so both were postponed.