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13 Mayor Kathy M. Morris Remarks, May 7, 1990 As we approach the 21st Century, it is vital that we, as a united community, use the strengths of our position as "the jewel of the IH 35 corridor," while maintaining an affordable and excellent quality of life. We have many challenges ahead, and it will take all of us to guide San Marcos into a bright future. We must protect our San Marcos water supply, springs and river, and pursue our concerns with the Edwards Aquifer as we develop surface water resources--which will mean increased water rates--and aggressive conservation measures. As wholesale purchasers of electricity from LCRA, we have seen a 27% increase in the cost of wholesale power in the past several years, a sum which is passed directly to ratepayers. We are making a concerted and constant effort to fend off LCRA's unreasonable rate increases to insure and maintain SMEU's competitive rates. The alley use fee has increased 4% to keep pace with the cost of maintenance, equitable for the cons~mer and well below similar fees in neighboring communities. The City Council of 1988 inherited a low fund balance and a high debt--debt that had been incurred to make vitally needed improvements to our streets and utilities. However, taxes had not been raised for three years and the general fund balance was at an all-time low. We were, in a sense, living off our savings account. Continuing such dangerous financial management would have sent us into a deficit and left us without a strong financial foundation. Today, in 1990, the Council has established a realistic and stable financial posture, and yes--we, as .taxpayers, have had to begin paying our way to avoid a deficit situation.