San Antonio City Council Budget Work Session: Economic Development, Planning, and Transportation – August 26, 2025

On August 26, 2025, the San Antonio City Council held a budget work session to review proposed FY2026 budgets for the Economic Development, Planning, and Transportation departments. Department directors presented overviews, historical data, and program updates. Council members discussed budget reductions, program eliminations, and requested additional metrics and coordination reports.

Economic Development

• The proposed FY2026 budget is $18.6 million, a reduction from previous years, including $9.7 million in restricted funds. Staff will decrease from 42 to 40.
• The department highlighted a 0% interest loan program for small businesses (up to $500,000), which has supported 164 beneficiaries since 2016, with 26 loans proposed for FY2026.
• A pilot program with Stream American received $250,000 for corridor revitalization and leadership training, with 32 participants from corridors in Districts 1, 2, 3, and 5.
• The construction mitigation program (established in FY2025 with $1.4 million) is eliminated for FY2026 because no new eligible long-term construction projects were identified. Council members expressed concern, noting ongoing construction impacts on small businesses (e.g., Marbach Road, St. Mary's Street).
• Council members requested data on program outcomes, Return on Investment (ROI) metrics, and a breakdown of how incentive dollars (e.g., tax abatements, Chapter 380 agreements) generate economic activity. Several requested a report on the impact of the construction mitigation funds and potential reinstatement.

Planning

• The Planning Department proposed a $4.4 million budget (unchanged from FY2025) with 24 civilian positions. 41% of the budget is dedicated to SA Tomorrow, the city's comprehensive plan adopted in 2016.
• Subarea plans are being implemented in phases; Phase 3 (West Side) is nearing completion, and Phase 4 (Southwest) is underway. The department is also updating the Northeast Corridor revitalization plan, which includes a market study and subsidy program.
• Council members discussed the need for better alignment between zoning requests and adopted plans, questioned the timeline for the Southwest subarea plan, and requested a list of completed projects from the corridor revitalization program since 2014.
• Concerns were raised about the lack of an implementation coordinator for SA Tomorrow and the need for cross-departmental accountability. The department committed to providing a report on program metrics and coordination with Economic Development.

Transportation

• The Transportation Department requested $9.6 million for FY2026 (including capital and general funds). The department was created in 2021.
• Key policies adopted in the past year: Vision Zero Action Plan (September 2024), Complete Streets Policy (September 2024, which earned a gold medal from Smart Growth America), Transit-Oriented Development Framework (December 2024), and a Bicycle Plan (January 2025).
• The department is implementing 53 projects across the city: 17 in pre-design, 22 in design, 9 in pre-construction/construction, and 5 completed this year. Projects include pedestrian crossings, bike lanes, and traffic calming.
• Council members questioned the timeline for reviewing the ordinance prohibiting parking in bike lanes (estimated 9–12 months for community engagement). Several urged expediting the process, citing safety concerns for cyclists, especially children.
• The department reported ongoing coordination with TXDOT and other agencies on construction projects. A safety campaign funded by a $5.5 million grant (including $1.2 million for marketing) is underway in high-risk corridors.
• Council members requested a report on how infrastructure improvements (e.g., lighting, crosswalks) reduce police calls for traffic accidents and crime, and asked for a cost-benefit analysis of Complete Streets investments.

Key Outcomes

• No formal votes were taken; the session was informational.
• Council members directed staff to provide additional information on:
  • Economic Development: ROI metrics for incentive programs, a list of businesses assisted by construction mitigation funds, and a timeline for eligible projects.
  • Planning: A report on the use of funds for the Northeast Corridor revitalization since 2014, and a list of completed projects from subarea plans.
  • Transportation: A study on how Complete Streets policies reduce long-term maintenance costs, and an expedited timeline for the bike lane parking ordinance review.
• Several council members expressed support for restoring the construction mitigation program and requested further discussion during the formal budget adoption process.