San Antonio City Budget Work Session for Economic Development, Planning, and Transportation Departments - August 26, 2025

The City of San Antonio held a budget work session on August 26, 2025, from 2:02 PM to 4:11 PM, to review the proposed fiscal year 2026 budgets for the Economic Development, Planning, and Transportation departments. Mayor Jones presided with quorum present. Presentations covered departmental budgets, ongoing programs, strategic plans, and implementation efforts, followed by council questions and directives.

Economic Development Department Presentation

Director Brenda presented the FY2026 budget for the Economic Development Department. The proposed budget reflects a reduction of $1.4 million for the small business construction grant program (no new eligible corridors for FY26) and a reduction in the construction mitigation program from $500,000 to $350,000. The Greater SATX funding model shifts to a 35-cent per capita model, reducing the city's contribution by $70,000. The department will continue the 0% interest rate loan program at $500,000, which has facilitated over $5 million in loans to 161 recipients since its inception, with 380 businesses benefiting since 2016. The proposed allocation will support an additional 26 loans valued at $1 million. The Revitalize SA Corridor Leadership Program, a $250,000 investment, has trained 32 participants representing corridors such as South Cross, Quintana, Roosevelt, North Main, and East Commerce. The department highlighted the $9 billion potential new investment and over 8,000 jobs in the Greater SATX pipeline, and that incentivized projects since 2009 have a leverage ratio of $116 for every $1 of taxes abated or rebated.

Planning Department Presentation

Director Bridget White presented the Planning Department's FY2026 proposed budget of $4.4 million, with no change in position count (24). The department focuses on implementing the SA Tomorrow comprehensive plan through sub-area planning. Eleven of 30 sub-area plans have been adopted, with phase three plans forthcoming and phase four underway. The budget includes a reduction of about $134,000 from right-sizing contracts and commodities, with no service impact. The department highlighted the Northeast Corridor Revitalization Program, the Goliad Road Revitalization Plan, and the Bandera Road Corridor Phase 2 project. Crime Prevention through Environmental Design (CPTED) efforts were noted, including a report for the Rosemont Apartments. The department also discussed city-initiated rezoning to align with adopted plans, such as the Denman Neighborhood Plan amendments in the Medical Center area.

Transportation Department Presentation

Director Kat Hernandez presented the Transportation Department's FY2026 proposed budget of $9.6 million, including general, restricted capital, and grant funds. The department has 14 positions. Key policies adopted in the past year include the Vision Zero Action Plan update (September 2024), the Complete Streets Policy (gold medal from SETI Health, ranked #1 by Smart Growth America), the Transit-Oriented Policy Framework (December 2024), and the Bike Network Plan (January 2025). Implementation efforts include 20 high-impact corridors evaluated for safety countermeasures, a $5.5 million Safe Streets for All grant for mid-block crosswalks and safety campaigns on Zarzamora, and 53 departmental projects across the city (17 in pre-design, 22 in design, 9 under construction, 5 to be completed this fiscal year). The department is also working on a walk zone analysis for the VIA Green Line stations and a traffic calming study around Hildebrand.

Council Discussion and Questions

Council members raised several issues and requests:

• Mayor Jones: Requested a deeper analysis of return on investment for programs like the LIFT loan program, including long-term business outcomes. Asked Planning to provide recommendations on zoning penalties to identify additional revenues. Asked for an analysis of how delayed flood projects impact planning. Requested CPTED statistics showing reductions in SAPD response after infrastructure improvements. Asked for data on how Complete Streets projects reduce first-responder needs. Asked about protected bike lanes and prioritization near schools.

• Councilman Mungia: Expressed support for the Northeast Corridor revitalization and requested tracking of how often zoning changes override adopted area plans. Asked about the Southwest Community Plan timeline. Expressed concern about eliminating construction mitigation grants, especially for the upcoming Marbach Road project. Asked Transportation for long-term planning on Zarzamora and Gray Ellison streets.

• Councilwoman Alderete Gavito: Echoed concern about eliminating construction mitigation grants. Asked for tangible outcomes from the Revitalize SA program, such as business impacts. Asked about applying the Deco District model to other areas. Pressed for timelines on bike lane parking policy review, urging a faster timeline than 9-12 months.

• Councilman Galvan: Supported construction mitigation grants but suggested shifting responsibility to Public Works. Asked about coordination between Economic Development and Public Works on construction outreach. Requested tracking of revenue returns from incentive programs. Supported the SA Tomorrow planning process and asked for implementation priorities and funding sources.

• Councilwoman Spears: Asked about walkability in District 9, noting the illegality of biking on sidewalks; requested policy review for outer suburbs. Asked about coordination with TechStat and Public Works during construction. Asked about frequency of reevaluating the SA Tomorrow comprehensive plan. Expressed concerns about annexation impacts on school districts and interlocal agreements. Asked about leveraging federal dollars for the Sabeda program and workforce strategies for AI. Requested a copy of the city's annexation and growth management policy.

• Councilman White: Asked about reliance on federal grants and contingency plans. Requested crash reduction statistics for Vision Zero projects and completion timelines. Expressed skepticism about the Bike Network Plan, citing assumptions and reliance on federal funds; requested ridership and usage metrics. Asked for detailed itemized breakdown of NEC expenditures since 2014. Asked about accountability for SA Tomorrow implementation and coordination with Economic Development. Questioned the shift from BDOs to small business outreach team and requested metrics.

• Councilwoman Castillo Angiano: Supported construction mitigation grants, citing St. Mary Strip. Thanked Planning for large-area rezoning in District 2. Asked about outreach and safety campaign specifics (e.g., billboards, surveys). Supported bike network plan but emphasized need for parking solutions. Suggested moving bike rodeos from SAPD to Transportation Department.

• Councilwoman Meza Gonzalez: Echoed support for construction mitigation grants, requested impact data. Supported 0% interest loan program and more PR. Asked about the Revitalize SA program in District 8. Asked about the Denman estate property and its impact on neighborhood plans. Requested lists of high-impact corridors and projects in District 8.

• Councilwoman Castillo: Thanked Transportation for Safe Streets grant on Zarzamora. Emphasized need for investment in quiet zones due to longer trains. Thanked Planning for community engagement on West Side plan. Supported the Main Street America pilot program and facade grants. Asked about staff reductions in Economic Development (two positions absorbed). Asked about supporting Prosper West via Westside TIRZ.

• Councilwoman Corr: Asked about impact of staff consolidation on metrics. Requested data on Supply SA certifications by district. Asked about remaining Revitalize SA grant expenditures. Inquired about growth stage grants and requested a clear outcomes-based conversation for all EDD programs. Expressed conflict about construction mitigation grants, noting challenges with application criteria. Asked about reflecting state law changes (commercial/industrial to multi-family) in planning. Praised Transportation for leadership and quick-build grants. Requested continued work on safe routes to school and missing middle housing.

• Councilwoman Spears (second round): Requested a copy of the city's annexation and growth management policy. Asked about fluctuations in contractual services budget. Praised collaboration with Geekdom and Launch SA. Asked about maintaining sister city engagement.

• Councilman Galvan (second round): Thanked Planning for land use planning in annexation areas. Suggested coordination with ISDs on development impacts. Requested a study on maintenance cost savings from Complete Streets.

• Mayor Jones (second round): Requested ROI for OJT and incumbent worker funds. Asked how proposed investments align with McKinsey report on SME productivity. Requested a simple example (e.g., Toyota) of incentive ROI to general fund. Asked about traffic cameras for Vision Zero and revenue potential. Requested confirmation that developer-initiated TIRZs will be covered in the upcoming TIRZ work session.

Key Outcomes

• Data Requests:

  • Economic Development to provide ROI analysis for LIFT program and other incentives, including long-term business outcomes, revenue returns, and a simple case study (e.g., Toyota).
  • Planning to provide recommendations on zoning penalties, analysis of flood project delays on planning, CPTED statistics showing crime reduction and reduced SAPD response, and a list of all CPTED-related projects.
  • Planning to provide a detailed itemized breakdown of NEC expenditures since 2014, and a copy of the annexation and growth management policy.
  • Planning to track and report how often zoning changes override adopted area plans, by area type.
  • Transportation to provide crash reduction statistics for Vision Zero projects, completion timelines for all projects, lists of high-impact corridors and projects by district, and ridership/usage metrics for bike investments.
  • Transportation to provide a study on maintenance cost savings from Complete Streets.
  • Economic Development to provide data on Supply SA certifications by district, impact data on construction mitigation grants, and outcomes for Revitalize SA program participants.

• Policy and Implementation Directives:

  • Mayor directed Planning to provide recommendations on zoning penalties to generate additional revenues.
  • Mayor directed Transportation to provide CPTED and Complete Streets data showing reduced need for SAPD response.
  • Mayor asked Transportation to prioritize safe routes to schools for protected bike lanes.
  • Councilman Mungia directed Transportation to lead long-term planning for Zarzamora and Gray Ellison streets.
  • Councilwoman Alderete Gavito urged expediting the bike lane parking policy review timeline (currently 9-12 months).
  • Councilwoman Corr requested a communication piece on state law changes allowing commercial/industrial to multi-family conversion.
  • Councilman Galvan requested a study on maintenance cost savings from Complete Streets.

• Future Sessions: A work session on TIRZs (including city-initiated and developer-initiated) is scheduled for the following week.

• Budget Considerations: The proposed elimination of the $1.4 million construction mitigation grant program was met with significant concern from multiple council members, who requested further discussion on retaining or restructuring the program. The Mayor and council members noted the need to balance public safety investments with infrastructure and economic development programs.