San Antonio City Council Meeting: FY 2026 Budget Presentation & Tax Rate, August 14, 2025

The San Antonio City Council met on August 14, 2025, at 9:04 AM, with all members present (Councilmember Via Gran attending virtually) and a quorum. The primary focus was the presentation of the proposed FY 2026 operating and capital budget by City Manager Eric Walsh, followed by council discussion on priorities, spending, and tax rates. The meeting adjourned at 12:11 PM.

Consent Calendar

• Items 6 through 15 were approved as a group, except Item 12B (withdrawn) and Item 9 (heard separately for recusal). No items were pulled for individual discussion.
• Councilmember Alderete Gavito highlighted reappointments to boards and commissions for Districts 7 and 8, including Francis Guzman (Pre-K for SA), Robert Sipes (Zoning Commission), Melanie Cawthorn (Disability Access Advisory Committee), and Irene Zinmeister (Education Commission).
• Councilmember Castillo Angiono highlighted the appointment of John Kelly to the Zoning Commission and Donald Orion to the Zoning Board of Adjustments for District 8.

Public Comments & Testimony

• Jack M. Finger (speaking on Item 4 – tax rate) opposed the proposed tax rate, arguing that property tax bills have increased despite the city claiming "no new taxes." He requested a 10% tax cut and the return of CPS Energy revenue or a sales tax rebate to taxpayers.

Discussion Items

• Item 3: Presentation of the FY 2026 Proposed Operating and Capital Budget – City Manager Eric Walsh presented the $4.04 billion overall budget (2.2% increase), with a $1.69 billion general fund (1.6% increase). The proposed tax rate remains at 54.159 cents per $100 valuation (33rd consecutive year without an increase). Key highlights:
  • Balancing a projected $173 million deficit over FY 2026 and 2027 through reduced spending ($111 million), fee/fine adjustments ($12 million), CPS off-system sales revenue ($69.2 million), and revised revenue projections.
  • 68 civilian positions reduced (35 filled); 53 new police officers added (28 for new substation, 25 for patrol); 12 new fire positions for enhanced squads.
  • Establishment of a Homeless Services and Strategy Department and a Capital Delivery Department.
  • $30.4 million for affordable housing; $122 million for street maintenance; $17 million for sidewalks; $4.8 million to continue the low barrier shelter.
  • 2% cost-of-living adjustment for civilian employees (down from 3% in trial budget); 8% for firefighters; 4% for police.
• Councilmember Castillo requested consideration of a 3% civilian COLA, restoration of employee wellness programs (Personify), and data on traffic citation heat maps and encampment abatement costs.
• Councilmember Alderete Gavito supported core services, the new homelessness department, and requested information on adding 65 instead of 25 police officers.
• Councilmember Corps supported outcome-based budgeting, a 3% COLA, and requested data on the low barrier shelter turnaway rate and potential illegal dumping fine increases.
• Councilmember White opposed the low barrier shelter funding ($4.8 million) and strongly advocated for funding 65 police officers (instead of 25), emphasizing public safety as the top priority. He also called for a review of delegate agency funding based on return on investment.
• Councilmember Spears supported 100 police officers, a 3% COLA, and urged collaboration with the county and suburban cities to reduce redundancies.
• Councilmember Castillo Angiono supported the 3% COLA but expressed concern over encampment sweeps, requesting cost data and advocating for reinvestment in integrated community safety.
• Councilmember Mungia supported the 3% COLA, asked about district-specific animal care officers, and requested updates on the 60/40 patrol plan and the SAPD Explorer program.
• Councilmember Galvan supported the 3% COLA but requested a detailed breakdown of the homelessness budget, expressing concern that only one outreach worker per district is insufficient. He also questioned the use of CPS policy funds and stormwater fees.
• Councilmember Via Gran (virtual) supported core services, no tax increase, and requested a review of civilian compensation, illegal dumping fines, and participation in a tabletop exercise on federal funding cuts.
• Mayor Jones directed staff to provide alternative scenarios for the civilian COLA (e.g., bottom-up distribution) and to conduct a tabletop exercise on federal funding cuts (CDBG, HOME, metro health grants). She also called for data on how budget changes impact vulnerable populations geographically.
• Councilmember Castillo (second round) expressed support for increasing the hotel occupancy tax contribution to arts and culture, restoring CIP funding for each district, and ensuring that outreach workers receive adequate support.
• Councilmember Spears (second round) requested a point-in-time heat map for homelessness in District 9, broken down by demographics (elderly, veterans).
• Councilmember White (second round) expressed willingness to look into the TURS issue in District 2 and echoed support for restoring CIP funding.
• Councilmember Corps (second round) requested restoration of funding for flashing stop signs and radar feedback signs ($700,000) and urged the development of a citywide sidewalk plan, noting that the current CIP process forces council members to "pick winners and losers."
• Councilmember Mungia (second round) asked whether funding for the CHEST nonprofit (a homelessness service) was retained in the budget, which was confirmed. He also requested that budget survey results be used to guide departmental improvements.
• Councilmember Alderete Gavito (second round) reiterated the importance of restoring CIP funding for sidewalk projects.
• Councilmember Galvan (second round) supported increasing the hotel occupancy tax allocation for arts and culture and praised the ACS marketing team.

Key Outcomes

• Approval of Consent Agenda (Items 6-15): Approved with Item 12B withdrawn and Item 9 separated for recusal. Motion carried.
• Approval of Item 9 (La Villita Lease Extension): Approved (motion and second, no public speakers). Motion carried.
• Approval of Item 4 (Property Tax Rate for FY 2026): Approved, setting the rate at 54.159 cents per $100 valuation (no increase). Motion carried.
• Approval of Item 5 (Setting Public Hearing Dates for Budget and Tax Rate): Approved. Motion carried.
• Next Steps: Budget work sessions begin Tuesday, August 19, 2025, and continue through September 17, 2025. Town halls in each district run August 18–27, 2025. The council will adopt the final budget on September 18, 2025.
• Directives: Staff will provide data on alternative COLA scenarios, a breakdown of the homelessness budget, cost per encampment sweep, traffic citation heat maps, and information on expanding police hiring to 65 officers. A tabletop exercise on federal funding cuts will be organized.