Item 28: Petition to repeal the Police Officer’s Civil Service Law
This was very hard to follow. Here’s my best guess:
Backstory:
In 2022, Mano Amiga organized a petition to repeal and renegotiate the city contract with the PD union. (“Meet and Confer” is the contract process.) They were successful! But then the city sandbagged the renegotiation process. There were some small but meaningful changes, and some cosmetic changes, and then the new contract was signed.
This time: Mano Amiga organized a different petition, to repeal Civil Service.
So what is Civil Service? It’s a State of Texas thing. It’s the basic “framework for the hiring, promotion and discipline of police officers and fire fighters”. So when the city negotiates the contract with the police union (SMPOA), everyone starts with Civil Service, and then negotiates on top of that.
However, cities don’t have to start with Civil Service. You can repeal it and start some other way. So this is what Mano Amiga wants to do. (I don’t know what their strategy or end game is here. I’m sure they’d explain when they launch a public campaign, though.)
Here’s how you repeal Civil Service. It’s long and confusing:

And what happened is that the city rejected the petition. Mano Amiga submitted a petition with 850 signatures, which is enough to adopt Civil Service (per Part B), but not enough to repeal Civil Service (per part E).
Mano Amiga is angry because they say the city waited until the last minute to tell them their petition wasn’t valid. But they vowed to fire it up again, and get enough signatures for the next cycle.
…
Item 29: Funding for low-income housing. (LIHTC tax credits)
Mayor Hughson and Mark Gleason had a conversation. Mark went to Jane and said, “We’re spending all this money on LIHTC Housing, and it’s not just this year. It’s not just the next 15 years. It’s decades and decades to come! This is fiscally irresponsible!” Are we being too helpful to poor people?!?
Jane thought he had a good point. We need money for core services! What if the LIHTC tax credits are ruining everything? It’s worth taking a look at.
Hoo boy. Okay, we have to unpack this. Here’s our plan:
- How much money are we spending on low-income housing?
- Is this a lot, or a little?
- How much more low-income housing do we need?
- What did Council have to say?
- What are we doing next?
Here we go!
1. How much money are we spending on low-income housing?
In 2022, we started requiring LIHTC applications to include a tax estimate. The first application that includes this is in February 2024. So let’s start there.
- February 2024: Existing LIHTC housing in Blanco Gardens reapply for state funding.
Cost to city: $0. Not asking for local tax exemptions.
Units provided: 40 of 54 units are Section 8 housing. - March 2024: Fake affordable housing near the high school
Cost: $0. Not asking for local tax exemptions.
Units provided: 0 for low-income residents. - May 2024: Behind Target, by the railroad tracks
Estimated tax credit: $7,262,589 over 18 years. (I’m going to scale this to $6,052,158 over 15 years.)
Units provided: 34 low income units - May 2024: By Centerpoint, on the railroad tracks
Estimated tax credit: $4,000,000 over 15 years
One time rebate: $400K
Units provided: 55 low income units - July 2024: Earlier in this very meeting, on Aquarena Springs
Estimated tax revenue: $3,207,000 over 15 years
One time rebate: $400K
Units provided: 46 low income units
Summary: Three developments have applied for tax credits for the city. The total cost is $13,259,157.5 over 15 years, for 135 low-income apartments in those three developments.
This works out to $883K per year. Per apartment, we are knocking $550 off of the monthly rent.
Next question!
2. Is $883K in tax credits a lot, or a little?
Kinda both? Here’s some context from our yearly General Fund budget:
Yearly General Fund budget:
– The total General Fund budget is $109 million this year.
– SMPD get $24.5 million
– Fire Dept gets $17.6 million
– Economic Development gets $2.9 million
– Library gets $2.1 million
– Animal Shelter gets $1.6 million
– Parks Department get $850K [Parks Dept gets $6.8 million. I misread the budget at first! Sorry about that.]
– Social services get $550K.
– The arts get $85K
I just grabbed a few useful categories. You can read all you want here.
So we are spending more on the LIHTC projects than we are on the arts or social services. Those combined are about 0.5% of the yearly budget.
We are spending much less on LIHTC projects than we do on SMPD, the Fire Department, and economic development. Those three categories combined are about 41.2% of the yearly budget.
My guess is that LIHTC projects come out of the $2.9 million for economic development. That money is supposed to create jobs. The thing that bothers Mark Gleason is that LIHTC projects don’t create jobs the way Buccee’s creates jobs. (Kissing Tree also doesn’t create jobs the way Buccee’s creates jobs. Kissing Tree is more like a LIHTC project in this way.)
Next! The three LIHTC projects just kind of came up spontaneously during the last couple meetings, and took everyone by surprise. What are some similar comparisons?
The other things that Council approved at this meeting alone:*
– $46 million over 15 years on roads and utilities in Kissing Tree. That works out to $3 million per year.
– $6 million on water and wastewater for Dunbar over 2 years. That works out to $3 million per year.
– $1.3 million on lighting for soccer fields at Five Mile Dam.
– $330K to update the Airport Master Plan
– $430K in a wastewater treatment agreement with McCoy’s
– $125K with Titan Utilities
– Two different Utilities trucks totalling $660K
– Energy management contract for $135K
– $480K for lawns and beds of city buildings
– $439K for Hull Street Stormwater improvements
– $215K on tree removal from the storm
– $432K on health care contracts
So those are the kinds of amounts we spend all the time, and Mark Gleason does not clutch his pearls.
Look, $883K is a fair amount of money! It is worth planning in advance and being intentional with how we spend it, so that we can best serve our community. Right now we’re approving projects on an ad hoc basis, and so there is room for improvement.
However: Kissing Tree is not put under a microscope. There are never any 5 or 10 year updates for Development Agreements where we give tax credits to private companies. SMPD’s budget is not put under a microscope.
It is always, always the programs that help poor and vulnerable people that make Council say, “I dunno, they might be wasting this shiny nickel we’re giving them. Let’s do a deep dive!”
…………..
Next!
3. How much more low-income housing do we need?
We don’t know! In 2018, we undertook a giant housing affordability project.
As of 2017, this was the housing need in San Marcos:

In 2019, Council killed the whole thing off. Years of effort and nothing was ever adopted to help create affordable housing.
In 2023, city staff gave Council a workshop on housing, and recommended that Council resume this project. As far as I know, they have not done this.
Bottom line: in 2017, we had a shortfall of 4233 rental units for all households earning under $35K. This whole conversation is about 135 apartments. We need a lot more affordable housing than that.
LIHTC projects really are too expensive to be the only way we build affordable housing. (Fortunately, there are cheaper things that San Marcos could do! Like allowing ADUs and duplexes everywhere. But I digress.)
….
4. What did Council have to say?
Jane Hughson:
– We are not receiving enough tax dollars to support the services (library, police and fire, etc) going to these projects.
– We need the housing, though.
– Are these San Marcos residents? Or outsiders? I’m frustrated with outsiders.
Shane: How much sales tax revenue do they bring in?
Jane: The people would be paying sales tax either way.
Jude:
– We should update the formula for the proportion of 1,2, and 3 bedroom units that we require.
– We should require cash back, and make a formula for the cash back amount they owe us
– But LIHTC projects are still good, they increase housing!
Stephanie Reyes: I’d like to get a demographer to look at how much low income housing we need.
Saul: These LIHTC projects make taxes are higher on everyone else!! We should have a moratorium on LIHTC projects.
Matthew: Can a development be half-LIHTC?
Answer: not really.
Jane: Other cities give density bonuses and have inclusive housing incentives. Can we do that?
Answer: We already offer these. Since 2018. But we can’t get anyone to take us up on them.
Jane: Not to say I told you so, but we could have done this on Lindsey Street.
Mark Gleason: I have so much budget angst. It’s not just this year – we’re giving away tax dollars for decades to come! It’s not just 15 years. It’s 20! And 30! Decades to come!
[Mark! No. That last bit is nonsense. Nothing automatically extends more than 15 years. Everything will be renegotiated at the end of the contract. Stop hyperventilating.]
More Mark: We have to diversify the economy here! We need more data! I cannot approve any more of these without data!
Alyssa, speaking the truth: Can we do this conversation more productively? Instead of focusing on revenue loss, let’s focus on maximizing benefit to community members.
Jane: I just want clarity on how much we’re spending. And also, how can we bring in more jobs?
Shane: The housing waitlist is like a year long. Doesn’t that establish residency?
…
5. What are we doing next?
In the end, they decide that the housing committee will look closely at the housing policy, and then they’ll hold a workshop. They’re particularly concerned with:
- How many total LIHTC projects do we have, and what’s the estimated taxes on all of them?
- How many low income projects do our peer cities have, per capita?
- Can we re-evaluate how many 1,2,3-bedroom apartments are required?
- Can we formalize the rebate formula? Can we require rebates?
- Can we do a needs assessment survey?
- Rebate money should not go to the general fund. Can it be used in an intentional way?
Alyssa requests that our DEI Coordinator be present at the committee meeting. This is a very smart idea. She also recommends this resource for background reading.
…
Look: There is nothing wrong with those actual bullet points. It is good to review our LIHTC policy and see how it can be improved.
But the whole vibe is, “ACK! We’re spending so much money on poor people housing!” and it sets my teeth on edge.
If Council were serious about housing affordability, they would dust off the Housing Action Plan, update it, and implement it. Instead, we get Mark Gleason huffing over $13 million dollars to poor people, while sweetly handing Kissing Tree $46 million without blinking.
* NOTE: I updated this list because I forgot about the Consent Agenda. Originally I pulled amounts from the most recent few meetings, but I realized there were way more examples than I originally thought.




