City Council Approved The $4.4 Billion FY2027 Budget In A Divided Vote, Raising The City Tax Rate As Leaders Sought To Avoid Deeper Cuts To Services
San Antonio homeowners will pay a higher city property-tax rate next year after City Council approved its first rate increase in more than three decades Thursday as part of a $4.4 billion budget aimed at closing a projected $158 million shortfall.
Council approved the property-tax increase 7-4, raising the city rate from 54.159 cents to 56.288 cents per $100 of taxable value.
Mayor Gina Ortiz Jones joined District 7 Councilwoman Marina Alderete Gavito, District 9 Councilwoman Misty Spears and District 10 Councilman Marc Whyte in voting against the increase.
The increase amounts to about $2.95 more per month — or roughly $35.43 per year — for the average homeowner with a homestead exemption, according to the city.
The city says it will simultaneously provide $156.4 million in property-tax relief through homestead and other exemptions.
The increase marks a significant turn for San Antonio, which had not raised its city property-tax rate since 1992.
City Faced $158 Million Shortfall
The vote capped weeks of contentious budget negotiations as council members wrestled with how to close a projected $158 million shortfall through FY2028.
According to the city, the adopted budget addresses that gap through nearly $90 million in spending reductions, $34.8 million in new or adjusted fees and other revenues, and $90.2 million in available property-tax capacity over two years.
That tax capacity accumulated because the city did not use the full amount allowed under state law during the previous two years.
Council members who supported the increase argued that rejecting it would require substantially deeper cuts to city services. City officials estimated another $75 million in reductions over two years could have been necessary without the higher rate.
Jones disagreed.
“We owe it to our neighbors to make the tough cuts, and unfortunately, this budget shows we punted,” Jones said following the decision, according to local reporting. She questioned whether the increase was necessary and whether the city had reduced spending enough before turning to taxpayers.
Eastside Boys & Girls Club Gets $350,000 Lifeline
The final budget also brought a major development for families on San Antonio’s East Side.
District 2 Councilman Jalen McKee-Rodriguez secured $350,000 through the Inner City Tax Increment Reinvestment Zone for the Eastside Boys & Girls Club, which had announced plans to pause programming at its longtime Martin Luther King Drive clubhouse beginning Sept. 30.
The funding represents about half of the Eastside clubhouse’s annual operating budget, according to local reporting.
The first portion is expected to support approximately three additional months of operations. The remaining money would depend on Boys & Girls Clubs of San Antonio presenting a viable plan for making the location financially sustainable.
Related: Jalen McKee-Rodriguez Responds To Eastside Boys & Girls Club Closings
The funding does not resolve the broader uncertainty surrounding Boys & Girls Clubs programming on the East Side. The Rayburn Clubhouse is still scheduled to close this month.
The Observer has been following the community response to both changes, including an Oct. 2 Community Call to Action meeting organized as residents seek longer-term solutions for East Side children and families.
Police, Fire And Neighborhood Services
Public safety remains the largest major investment in the General Fund.
The adopted budget provides $676.5 million for SAPD and $451.2 million for the San Antonio Fire Department.
SAPD will add 49 officers, including 27 for the airport’s new terminal. Funding equivalent to 22 vacant park police positions will also move to SAPD to create another 22 officer positions, bringing the department to 2,957 officers.
At the same time, SAPD is expected to reduce costs by $5.4 million through overtime reductions, administrative savings and elimination of six civilian positions.
The Fire Department will add nine firefighters while reducing costs by $3.7 million through changes in overtime and leave use.
Libraries will receive $58.1 million from the General Fund, while Parks and Recreation will receive $71.1 million.
The library budget includes funding for the Carver Branch Library expansion, safety improvements, replacement of 164 public computers and new furniture and equipment.
The city says both libraries and parks will reduce expenses by scaling back lower-participation programs and shifting eligible expenses to other funding sources.
Senior Services, Housing And Streets
Human Services will receive nearly $33 million, with senior-center hours remaining from 7 a.m. to 7 p.m.
The budget funds operations at the new District 1 Multigenerational Center and renovated Ella Austin and Kenwood community centers.
Two part-time senior nutrition sites — South San and Harlandale Briar — will close. The city says both are located within five miles of full-service senior centers.
The budget also includes $30.8 million for homelessness services and $37.7 million for affordable housing.
The city will not move forward with its previously discussed low-barrier shelter proposal in its current form. Instead, $9 million in interest earnings from housing bonds will go toward expanding emergency shelter capacity and improving a day center.
Housing dollars are expected to support 497 home repairs, 419 new or preserved affordable homes, rental assistance and down-payment assistance.
Another $129.8 million will go toward street maintenance, covering 534 miles and 1,979 projects, while $12.8 million is budgeted for new and repaired sidewalks.
Residents Will Also See Higher Fees
The property-tax increase will not be the only additional cost residents encounter.
The budget relies on approximately $34.8 million in new or adjusted fees and other revenues over two years.
Solid Waste customers, for example, will see a 75-cent monthly increase for garbage-cart service and another 25-cent increase in the environmental fee.
The city says the combination of cuts, higher fees and additional property-tax revenue allows San Antonio to balance both FY2027 and FY2028 while maintaining nearly $49 million in projected General Fund reserves at the end of FY2028.
“Even in a challenging environment, this balanced budget is responsibly focused on our community’s top priorities,” City Manager Erik Walsh said in announcing the adopted budget.
The new fiscal year begins Oct. 1.
Learn more about the budget at SA.gov/Budget.
