Public Finance

City of San Marcos

It was the time spent on the ground in San Marcos that gave Stephens a distinct local perspective of both the needs and the potential of the community.

Date: September 24, 2015
Client: San Marcos
Amount: $17,645,000
Role: Lead Manager
Transaction: Combination Tax & Revenue Certificates of Obligation, Series 2015
Sector: Municipality

The city of San Marcos, situated in central Texas between Austin and San Antonio, is home to more than 60,000 locals and the thriving Texas State University. A vital center of higher education with business-friendly incentives, San Marcos is recognized as one of America’s best places to live 1.  As a result, it’s also one of the fastest growing cities with population growth of 30 percent between 2010 and 2015 2,  and as the University continues to flourish with record-setting enrollment upwards of 40,000 students annually, San Marcos continues on a steady trajectory toward expansion 3.   The city’s evolution from small town to booming metropolis has led to an inevitable need for infrastructure maintenance and revitalization.

For years, Stephens Inc. has served as an underwriter for the City of San Marcos, and in 2015, Stephens was selected to be the lead manager for the city’s $17,645,000 Combined Tax & Revenue Certificates of Obligation. The bond offering was issued to fund capital improvements throughout the city — specifically to develop the city’s streets, bridges, sidewalks, water and waste water system, electric system, airport and parks— meeting the needs of this rapidly developing area and demonstrating a long-term commitment to future growth. 

Recognizing the continued potential of San Marcos, Stephens set out to deepen its engagement with the community and dialogue with the city. Before the bond offering discussion even began, the Stephens team took the time to immerse themselves even further in the local community, enabling them to accurately understand the city’s needs. 

By attending the community’s rotary meetings and connecting with officials, Stephens gained valuable insight into the city’s priorities and heard first-hand the needs of community members. It was this time spent on the ground in San Marcos that gave Stephens a distinct local perspective of both the needs and the potential of the community—knowledge that served them well when it came time to issue the bond offering.

1 Naughton, Liz. (2016, June 6). America’s Best Places to Live: San Marcos, Texas. America Unraveled. Retrieved from
2  Davila, Vianna. (2015, May 21). San Marcos fastest-growing city in the U.S. for third year running. San Antonio Express Times. Retrieved from:
3  Texas State University. (2016). Texas State hits milestones, enrollment record for 19th consecutive year [Press release]. Retrieved from /2016/September-2016/Enrollment091916.html

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