Vision SMTX Appendix_Adopted 2024_

Fiscal Impact Analysis Methodology and Findings

APPENDIX C: KEY FINDINGS FROM FISCAL IMPACT ANALYSIS

Summary of Findings The major findings from the fiscal impact analysis that were identified to guide Comprehensive Plan policy are summarized below. Findings specific to each entity are also summarized at the end of each entity’s chapter. 1. The fiscal impact analysis of the two scenarios found that the Preferred Growth scenario produces a net positive annual impact on the City’s General Fund ($3.9 million annually, which is 3.9% of estimated total new annual expenditures). The Preferred Growth scenario also produced a greater net positive fiscal benefit to the City than the Existing Trends scenario. The Preferred Growth scenario provides for a greater diversity of housing and lower potential for low density/intensity employment uses. This growth pattern produces a more cost-effective built environment for the City to serve. 2. New development in the City of San Marcos that is not in Hays County produces a greater service cost, especially for police service. The City of San Marcos’ ETJ is within four different counties (Caldwell, Comal, Guadalupe, and Hays). Most of the city and its future growth potential is within Hays County, which is more convenient for service provision since San Marcos is the Hays County seat. New development in other counties generates greater coordination needs and added service burdens. The impact is most apparent for police services, which must utilize facilities in each county for arrests and booking. Travel time to county facilities that are not in San Marcos (i.e., not Hays County) is increased significantly, which reduces utilization of officers and generates greater demands for new officers to serve new development. 3. The location of growth significantly impacts the effectiveness and cost of fire service. Fire service effectiveness is driven by a few key factors including response time to calls and the utilization of firefighter units/apparatus. Development that is far from existing fire stations (i.e., with a response time greater than four to six minutes) impacts response times and utilization of units. New development outside existing fire station service areas has a much greater cost to serve as it will generate the need for new stations and firefighters. 4. The expansion of the City’s utility systems should follow the direction and pattern of growth prescribed in the Comprehensive Plan. Potential growth areas for the City of San Marcos, in some cases, are outside of existing water and sewer service areas for the City’s water and wastewater utilities. New development in areas outside of existing utility service areas will generate requests for service even if the new development is not annexed into the city. If the City chooses to not expand its service boundaries to serve new development, it can create the potential for encroachment of neighboring districts or new, small-scale water and sewer districts to be formed.

SAN MARCOS COMPREHENSIVE PLAN 2024

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