San Antonio City Council Debt Management and Bond Program Work Session – January 21, 2026

The San Antonio City Council held a work session on January 21, 2026, beginning at 2:05 p.m., to discuss the city's debt management plan, bond program capacity, stormwater fee structures, and airport revenue bonds. The meeting was led by Mayor Jones and included presentations from financial staff (Troy and Mike Shannon) and city council members. The council deliberated on three bond capacity scenarios (ranging from $625 million to $1.2 billion), potential property tax rate adjustments, and stormwater fee increases, with a focus on balancing infrastructure needs with fiscal responsibility. No formal votes were taken; the session concluded with a move to executive session at 4:45 p.m.

Discussion Items

• Debt Management Overview: Staff presented the city's current debt situation, noting that the property tax rate for debt service has remained at 21 cents per $100 valuation since 2004. The total assessed property value in 2026 is $159 billion, with projected growth of less than 1% in 2026, 0.5% in 2027, 1.75% in 2028, 2% in 2029, and 2.5% in 2030. The bond capacity has dropped from $1.2 billion in 2022 to approximately $500 million due to flat property values. The city's outstanding general obligation debt is $1.7 billion, with an average life of 6.7 years.

• Bond Program Scenarios: Three bond capacity scenarios were presented:

  • Scenario 1: $625 million in capacity by May 2027, maintaining the 21-cent tax rate and assuming 2% growth.
  • Scenario 2: $1 billion capacity, requiring a growth target of 3.25% in 2028 and maintaining the 21-cent rate, with potential flexibility to adjust the rate.
  • Scenario 3: $1.2 billion capacity, requiring a growth target of 3.5% in 2028 and maintaining the 21-cent rate. Staff emphasized that these scenarios are projections and that the tax rate could be adjusted downward if growth exceeds targets.

• Stormwater Fee Increases: Staff outlined four scenarios for stormwater fee adjustments:

  • Scenario 1: No increase, resulting in only $10 million in bond capacity over 25 years.
  • Scenario 2: 2% increase starting in 2027, generating $106.7 million in bond capacity.
  • Scenario 3: 5% increase in 2027 followed by 2% increases through 2031, generating $140 million.
  • Scenario 4: Higher increases leading to $174 million in capacity. Current monthly residential fees range from $3.75 (Level 1, under 2,750 sq ft) to $10.45 (Level 3, over 4,220 sq ft). Non-residential fees range from $0.31 to $0.73 per 1,000 sq ft. The stormwater fee has not been increased since fiscal year 2020.

• Airport Revenue Bonds: Staff noted that the city approved $1.3 billion in airport revenue bonds on December 18, 2025, and requested council consideration on April 2, 2026, to support airport development. The bonds would be closed on July 15, 2026.

• Council Member Positions:

  • Councilwoman Spears (via Councilman White) and Councilman White opposed any increase in property tax rates or stormwater fees, citing the city's 22-year history of not raising the property tax rate and the burden on residents. White argued that the city should focus on existing inefficiencies and not add more debt.
  • Councilman Villagran supported scenarios 2 and 3, emphasizing the need to meet infrastructure needs and noting that the city has historically been conservative. He expressed confidence in the city's growth.
  • Councilman Galvan asked about the ability to increase stormwater fees only for non-residential properties, noting that 80% of stormwater revenue comes from non-residential accounts. He supported scenarios 2 and 3 for bonds and scenario 3 for stormwater.
  • Councilman Mickey Rodriguez supported scenarios 2 and 3, advocating for strategic investment in districts with greater needs, such as street repairs and community centers. He emphasized that bond funds should be used for projects that directly benefit residents.
  • Councilman Gonzalez supported scenarios 2 and 3, stressing the need for intentional project selection, especially for parks, sidewalks, and drainage. He also supported a separate bond proposition for sports facilities.
  • Councilman Castillo supported scenarios 2 and 3 and asked about the possibility of adjusting stormwater rates for non-residential properties. He expressed concern about the cumulative impact of fee increases from various city services.
  • Councilman Gabito supported scenarios 2 and 3 for bonds and scenarios 3 and 4 for stormwater, citing the need to address flooding and safety issues. He emphasized that preserving life is paramount.
  • Councilman Aldarete supported scenario 2 for bonds and scenario 2 for stormwater, but also expressed openness to scenario 3. He stressed the importance of prioritizing community needs.
  • Councilman Munguia supported scenario 2 and asked for more data on the impact of tax rate increases on homeowners.
  • Councilwoman Viagran supported scenarios 2 and 3 and urged strategic investment rather than equal distribution across districts. She also called for intentional funding choices, avoiding projects like a gymnasium for a university.
  • Councilman Cor echoed support for scenarios 2 and 3 and emphasized the need for a robust bond program to address deferred maintenance.

Key Outcomes

• No formal votes were taken. The council provided feedback to staff on bond scenarios and stormwater fee options.
• Staff will return with additional analysis, including the impact of a $11.07 annual tax increase under scenario 2, and a breakdown of stormwater needs by district.
• The council will continue discussions on bond program timelines, with a preference for either a May 2027 or November 2027 election. Some members favored a later date to allow more economic clarity.
• Staff will explore the possibility of adjusting stormwater fees for non-residential properties only, as suggested by Councilman Galvan.
• The council will hold a future session to discuss project prioritization and the creation of a citizen bond committee.
• The meeting recessed into executive session at 4:45 p.m. to discuss economic development negotiations and real estate purchases.