San Antonio’s $4.4 Billion Budget Would Raise Property Taxes and Cut Nearly $90 Million to Close a $158 Million Gap
San Antonio residents could see a higher city property-tax rate next year under a proposed budget aimed at closing a nearly $158 million General Fund shortfall through 2028.
The proposed tax increase comes after Mayor Gina Ortiz Jones spent recent weeks warning that San Antonio’s worsening financial outlook could force difficult choices beyond routine spending cuts.
Jones first urged business and philanthropic leaders to consider three-year funding commitments for 15 community organizations receiving nearly $6.52 million from the city, including DreamVoice and the San Antonio MLK Commission.
She later proposed putting the city’s $489 million Spurs arena commitment on the November ballot as San Antonio faced a projected $157.7 million two-year budget shortfall.
Now, the property-tax increase Jones warned could be necessary is part of the city’s proposed budget.
City Manager Erik Walsh’s $4.4 billion FY2027 spending plan calls for San Antonio’s first property-tax rate increase in 34 years as officials work to close the nearly $158 million General Fund gap over the next two years.
Related: No, San Antonio Has Not Voted on the City’s $489 Million Spurs Arena Contribution
Walsh presented the proposal to Mayor Gina Ortiz Jones and City Council on Thursday, laying out a two-year plan that city officials say would balance the budget while cutting $89.6 million in spending across FY2027 and FY2028.
The proposal would increase the city property-tax rate from 54.159 cents to 56.288 cents per $100 of taxable value.
For the average homeowner, city officials estimate the change would cost about $2.95 more per month.
For perspective, the U.S. Census Bureau puts San Antonio’s median owner-occupied home value at $235,700. A homeowner at that value receiving the city’s 20% homestead exemption would pay roughly $1,061 in annual city property taxes under the proposed rate, about $40 more per year or $3.35 per month than under the current rate. The calculation reflects only the City of San Antonio portion of the tax bill and does not include school district, county or other taxing entities.
“This is a balanced and responsible budget focused on our community’s top priorities,” Walsh said. “It reflects the sound financial management that our residents expect by making careful reductions, protecting essential services, and continuing to invest in our community’s future.”
Nearly $158 Million Shortfall Drives Budget Decisions
The city entered the budget process facing a projected General Fund shortfall of nearly $158 million through FY2028 as officials contend with rising expenses, lower property values and state restrictions on how quickly local revenue can grow.
San Antonio did not collect the maximum property-tax revenue permitted under state law during the previous two years. The city says state law allows that unused taxing capacity to be carried forward, giving council the ability to consider the proposed rate increase now.
At the same time, the city is proposing $156.4 million in property-tax relief through homestead exemptions and tax freezes for seniors and homeowners with disabilities.
General Fund revenue is projected to increase 5.1% in FY2027, compared with a 4.1% increase in expenses.
Police and Fire Funding Remain Priorities
Public safety would continue to command a significant portion of city spending.
The proposal allocates $676.5 million to the San Antonio Police Department and $451.2 million to the San Antonio Fire Department.
SAPD would add 49 officers, including 27 assigned to the airport’s new terminal. Funding equivalent to 22 vacant park police positions would also be shifted to SAPD to create 22 additional positions, bringing the department to 2,957 officers.
At the same time, SAPD is expected to reduce spending by $5.4 million through lower overtime costs, administrative savings and the elimination of six civilian support positions.
The Fire Department would add nine firefighters, bringing uniformed staffing to 1,889, while reducing expenses by $3.7 million through changes involving overtime and leave.
Housing and Homelessness Plans Shift
The budget proposes $30.8 million for homeless services, including a new strategy addressing frequently recurring encampments and completing the city’s Shelter and Housing Framework.
One significant change involves the city’s proposed low-barrier homeless shelter.
The budget would not continue the low-barrier shelter plan in its current form. Instead, the city proposes using $9 million in interest generated from housing bonds to increase emergency shelter capacity and improve a day center.
Affordable housing would receive another $37.7 million, funding rental assistance, 497 home repairs, 419 new or preserved affordable homes and down-payment assistance.
Streets, Sidewalks and Neighborhood Services
The proposal includes $129.8 million for street maintenance, covering 1,979 projects and approximately 534 miles of streets.
Another $12.8 million would construct 12.8 miles of sidewalks and repair 8.7 miles.
The city also proposes shifting $7.3 million in eligible street projects from the General Fund to its capital budget, along with investments in quick-build street projects, traffic-signal technology, speed studies and a pilot program for rail-crossing alerts.
Animal Care Services would receive $38 million from the General Fund. A new animal hospital scheduled to open this year would add 10 positions and $1.9 million in funding.
The city projects ACS will conduct 42,959 surgeries and achieve an 88% live-release or placement rate during FY2027.
Some Senior Nutrition Sites Would Close
The Human Services General Fund budget would remain relatively flat at approximately $31.2 million.
Senior centers would maintain their 7 a.m. to 7 p.m. operating hours, while the city would fund operations at the new District 1 Multigenerational Center and renovated Ella Austin and Kenwood community centers.
However, three part-time senior nutrition sites with low participation would close: Darner, South San and Harlandale Briar.
City officials say each is located within five miles of a full-service senior center capable of providing additional services at a lower cost per participant.
Parks would receive $71.1 million from the General Fund, including $3.8 million for shade structures at 12 playgrounds. Libraries would receive $58.1 million, including funding for the Carver Branch Library expansion, safety improvements and replacement of 164 public computers.
Residents Get Their Say Beginning Aug. 17
The proposal is not yet final.
City Council begins a series of budget work sessions following Walsh’s presentation, while residents will have opportunities to weigh in through town halls scheduled throughout the city from Aug. 17 through Aug. 28. The city has also scheduled a Youth Town Hall for Aug. 22.
The first meetings on Monday, Aug. 17, include a District 2 town hall at Wheatley Heights Sports Complex, 200 Noblewood Drive, and a District 7 meeting at Doris Griffin Senior Center. Both begin at 6:30 p.m.
Formal public hearings on the proposed property-tax rate and budget are scheduled for Sept. 2 at 5 p.m. and Sept. 10 at 9 a.m. at City Council Chambers. Council is scheduled to consider final adoption of the FY2027 operating and capital budget and tax rate on Sept. 17.
Learn more about the proposed budget and view a full list of Town Hall meetings, including the Youth Town Hall, at SA.gov/Budget.
