The San Marcos City Council approved $49 million in bonds last week. SAN MARCOS MERCURY PHOTO.
By ED MIHALKANIN
The San Marcos City Council unanimously approved bonds totaling more than $49 million last week. The debt will fund improvements for streets, wastewater, water, and drainage projects throughout the city.
Dan Wegmiller, Managing Director of Specialized Public Finance, said Standard & Poor (S&P) assigned a “AA-“ long term rating and stable outlook to San Marcos. S&P based its rating on the city’s direct access to both the Austin and San Antonio metropolitan areas, “strong historical assessed valuation,” and “strong financial performance.” S&P categorized San Marcos financial management practices as strong.
The city’s debt service ratio is 62 percent and the council’s goal is to reduce it to 55, the council still issued about $29 million in new debt. The rest is a refinancing of old debt to take advantage of better rates.
The largest bond package approved was a certificate of obligation package totaling $24.5 million. The main categories identified by the city staff for spending these funds are streets ($6.67 million), wastewater ($5,427 million), Victory Gardens ($5,337 million), drainage ($4.957 million), water ($4.481 million), and parks and public buildings ($2.062 million).