San Antonio City Council Meeting - August 14, 2025: FY2026 Budget Presentation and Tax Rate Setting

The San Antonio City Council meeting was called to order at 9:04 AM on August 14, 2025, with all members present except Councilmember Via Gran, who joined virtually later. The meeting began with an invocation by Arya Nayak from Am Ashram, followed by a pledge of allegiance. Councilmember Castillo recognized Central SAFE officers for their community 5K and back-to-school drive that served hundreds of SCISD students. The consent agenda (items 6-15) was approved with item 12B withdrawn and item 9 heard individually. The main focus was the presentation of the FY2026 proposed operating and capital budget, followed by discussion and votes on the tax rate and public hearing dates.

Consent Calendar

• Items 6-15 approved as a group, except 12B (withdrawn) and item 9 (heard individually for recusal).
• Councilmember Alderete Gavito highlighted reappointments to boards and commissions, including Francis Guzman (Pre-K 4 SA), Robert Sipes (Zoning Commission), Melanie Cawthorn (Disability Access Advisory Committee), and Irene Zinmeister (Commission on Education).
• Councilmember Castillo announced appointments to the Zoning Commission (John Kelly) and Zoning Board of Adjustments (Donald Orion) for District 8.

Public Comments & Testimony

• Jack Finger spoke on item 4 (tax rate), arguing that despite no rate increase, property tax bills have risen due to increased property values, and called for a substantial tax cut, a return of CPS energy revenue, and a sales tax rebate. He stated the average taxpayer receives "nothing decent" from the city's property tax relief programs.

Discussion Items

Item 3: FY2026 Proposed Budget Presentation

City Manager Eric Walsh presented the $4.04 billion total budget (2.2% increase), with a $1.69 billion general fund (1.6% increase). Key points:

• Tax Rate: Unchanged at 54.159 cents per $100 valuation for the 33rd consecutive year. Property tax revenue is projected to increase by only $500,000 due to a 0.86% taxable value growth (base values decreased 0.99%, new construction added 1.76%).
• Deficit Reduction: The trial budget projected deficits of $21 million in FY26 and $152 million in FY27. The proposed budget balances through spending reductions ($111 million), fee increases ($12 million), CPS off-system sales ($69.2 million), and revised revenue projections ($9 million).
• Employee Compensation: 2% COLA for civilian employees (down from 3% in trial budget), 8% for firefighters, 4% for police. Health insurance premiums for police and fire increase 10%.
• Public Safety: 53 new police officers (28 for substation, 25 for patrol) and 12 new fire positions for two enhanced squads at stations 10 and 21. Police budget $630.6 million, fire budget $428.5 million. Public safety comprises 63.7% of general fund.
• New Departments: Homeless Services and Strategy Office (under Chief Housing Officer Mark Carmona) with $4.8 million to continue the low-barrier shelter; Capital Delivery Department (188 positions, led by Mike Shannon) to focus on project delivery.
• Infrastructure: $122 million for street maintenance (1,500 projects, 416 miles), $17 million for sidewalks (21 miles new, 11 miles repaired), $2 million for additional streetlights, $11.4 million for flood damage repair on Bidal Creek, Old O'Connor, and Old Grissom Road.
• Affordable Housing: $30.4 million total; 13,100 units of the 28,000 goal completed or in pipeline; 47% of goal met.
• Other: No solid waste fee increase; airport budget $169.4 million; hotel occupancy tax $108.7 million; delegate agencies funded through May 2026; $500,000 reduction for anticipated unspent funds.
• Councilmember Comments:
  • Councilmember Castillo (D5): Supported 3% COLA, requested heat map for traffic citations, and supported increased fines for vacant properties. Expressed concern about encampment abatement funding and the need for permanent supportive housing.
  • Councilmember Alderete Gavito (D7): Supported core services, questioned the impact of 88 vacant public works positions, and requested information on adding 65 police officers instead of 25.
  • Councilmember Corr (D1): Requested performance-based budgeting, supported 3% COLA, and asked for data on low-barrier shelter turnaways. Requested restoration of funding for flashing stop signs and radar feedback signs.
  • Councilmember White (D10): Opposed low-barrier shelter funding ($4.8 million), advocated for adding 65 police officers (the full 360 plan), and called for zero-based budgeting. Emphasized spending on core services.
  • Councilmember Spears (D9): Wanted 100 police officers, 3% COLA, and collaboration with county. Requested economic impact data from businesses.
  • Councilmember Castillo Angiano (D2): Supported 3% COLA, opposed encampment sweeps, advocated for detox beds and higher wages for outreach workers. Requested pre-authorization of inner city TIRZ funds.
  • Councilmember Mungia (D4): Supported 3% COLA, requested timeline for return of district-specific animal care officers, and asked about SAPD Explorer program. Supported traffic calming and streetlight improvements.
  • Councilmember Galvan (D6): Raised concerns about homeless services budget (perceived $4 million vs. $30 million total), requested breakdown of outreach worker funding, and supported 3% COLA with a scaled approach. Supported stormwater fee adjustments and increased arts funding.
  • Councilmember Via Gran (D8, virtual): Supported core services, no tax increase, and 3% COLA. Requested information on mental health clinic for first responders and stakeholder involvement in federal funding tabletop exercise.
  • Mayor Jones: Directed staff to provide analysis of alternative COLA structures (e.g., bottom-up) and requested a tabletop exercise on potential federal funding cuts. Emphasized need for long-term fiscal sustainability.

Item 9: La Vietta Lease Agreement (Recusal for Mayor)

• Ordinance extending lease with B Link for one year (September 1, 2025 – August 31, 2026) with $9,348.45 revenue. Approved unanimously.

Item 4: Proposed Tax Rate

• Ordinance setting the maintenance and operation tax rate at 33.009 cents and debt service at 21.150 cents per $100 valuation, with no increase. Approved.

Item 5: Budget and Tax Rate Public Hearing Dates

• Ordinance setting dates, times, and places for two budget hearings and two tax rate hearings in September 2025. Approved.

Key Outcomes

• Votes:
  • Consent agenda (items 6-15) approved with item 12B withdrawn and item 9 heard separately. Motion carried.
  • Item 9 (La Vietta lease) approved unanimously.
  • Item 4 (tax rate) approved with no increase. Councilmember Via Gran voted yes.
  • Item 5 (public hearing dates) approved. Councilmember Via Gran was not present for this vote.
• Directives and Next Steps:
  • Staff to provide analysis of a 3% COLA for civilian employees and a scaled COLA from the bottom up.
  • Staff to prepare information on the cost of adding 65 police officers (vs. 25) for the FY26 budget.
  • Staff to provide a heat map of traffic citations and data on encampment sweep costs.
  • Staff to develop a tabletop exercise with stakeholders on potential federal funding cuts (CDBG, HOME, etc.).
  • Budget work sessions begin Tuesday, August 19, 2025; town halls start August 18, 2025; final adoption on September 18, 2025.
  • Councilmember Castillo Angiano to send memo on pre-authorization of inner city TIRZ funds.
  • Councilmember Corr asked for sidewalk plan to be completed and presented.
• City Manager's Report: Metro Health received two national awards; Pre-K 4 SA schools open August 18, 2025, with new South Center.