OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

San Antonio City Budget Update and Federal Grants Tabletop Exercise - February 18, 2026

City Council — Wednesday, February 18, 2026
BodySan Antonio, Texas
SessionCity Council
DateWednesday, February 18, 2026
StatusFILED
Video Record
0:00 / 2:27:15

Transcript — Verbatim
0:49

Good afternoon.

0:50

The time is now 104 p.m.

0:51

on Wednesday, February 18th, and the City of San Antonio B session is called to order.

0:56

Madam Clerk, please call roll.

0:59

Councilmember Corps.

1:01

Councilmember McKee Rodriguez.

1:03

Councilmember Via Gran.

1:07

Councilmember Mungia.

1:08

President.

1:09

Councilmember Castillo.

1:11

Councilmember Galvan.

1:12

Councilmember Aldereta Gabito.

1:15

Councilmember Mesa Gonzalez.

1:17

President.

1:17

Councilmember Spears.

1:18

Here.

1:19

Councilmember White.

1:20

Here.

1:20

Mayor Jones.

1:21

Mayor, we have Corum.

1:22

Great.

1:22

Thank you.

1:26

Great.

1:27

So today we're going to receive an update on the FY263 plus nine budget and finance report, the recommended FY27 budget calendar, taxpayer impact statement, and then the outcomes of the federal tabletop exercise.

1:44

As we have, frankly, regardless of the topic, whether we're talking about rate increases or whether we're talking about infrastructure, we have routinely talked about the challenging economic environment that we see and that we anticipate, particularly with the implementation of the one big beautiful bill.

1:59

And so each of the things today will help us understand kind of where we are, where we may have some potential leeway as we look at potentially shorting up any additional cuts at the federal level.

2:20

Again, this is something that I asked Bidon not necessarily to generate all the answers, but really to help us understand what assumptions we might be making and then how we would better collaborate to mitigate any risks, at least as we understood them now, as we look to close the budget gap, understanding some of the changes in the budget may in fact affect the most vulnerable already, on top of those who will be more vulnerable once we see the federal cuts implemented.

2:50

Okay.

2:55

Thank you, Mayor.

2:56

Good afternoon, Mayor and Council.

2:57

So uh yes, so Freddie is going to walk through our first quarter report.

3:02

Um this is something we do every quarter in terms of the financial reporting to the council.

3:08

It'll it'll give you an early indication of how we fared um in uh the fall of of twenty-five.

3:15

Um the the report is part of our overall financial strategy to update the council on the city's fiscal position throughout the year, and our next point of uh of reference for the council will be our six plus six report, which is closely followed thereafter by um the five-year financial forecast and then the council's um budget work session.

3:39

You'll Freddie will go through the calendar here with you shortly.

3:42

Um you hear from Freddie uh this afternoon that our our financial position of the general fund is is in line.

3:49

We've had some little bit of continued challenges with sales tax, um, but it's been mitigated by CPS revenue.

3:56

Um we'll kind of point out um all the other major operating but uh funds that we have and where we stand, but but generally everything is moving uh on track.

4:07

Um as the mayor mentioned, uh the back end of the we're also we've also included the taxpayer statement that was a CCR that went to governance earlier in the year and uh kind of laying out took taking the feedback of governance.

4:20

Uh that is something that we would are uh expecting and recommending that we do as we go into fiscal year 27.

4:27

And then the last part the mayor touched upon it, the federal uh tabletop exercise, which was um a worthwhile exercise for um us to go through as an organization and particularly the departments that were participated in that.

4:41

Um I also wanted to um uh make sure that the council saw the email that Sally sent out here about a week ago that kind of gave an update in terms of the federal budget uh that was uh finally agreed upon, 11 of the 12 aspects of the federal budget and those appropriations more to come, right?

5:02

It is a continued effort in kind of watching what's happening at the at the federal level.

5:07

The president has yet to lay out his budget, will uh which will undoubtedly uh kind of lay that framework.

5:13

The exercise was good for us to go through with our stakeholder partners because it helped narrow down the focus of who are we trying to serve, who do we need to serve, where are our vulnerable populations, and in a uh cataclysmic type of funding scenario, what do we do?

5:31

Um and uh you'll hear from uh from Justina about that uh this afternoon.

5:36

So with that, I'm gonna turn it over to Freddie.

5:42

I'm the budget director for the city.

5:45

And today we're gonna cover the uh FY26 first quarter financial status as well as some projections for revenues and expenses for the fiscal year.

5:54

We'll also highlight some of our budget initiatives.

5:57

Uh, I'll talk about the recommended 2027 budget calendar, also review the uh potential impact taxpayer impact statement, and finally, uh Justina Tate will present on the federal grants tabletop exercise.

6:10

But before I get into the presentation, I just wanted to draw your attention to the binder in front of you.

6:14

Uh it will include the presentation, the three plus nine financial report, a January status of or January status report on our budget initiatives and our CB uh comprehensive budget review implementations.

6:26

It also includes the 24-7 performance report and the federal grants tabletop exercise.

6:32

And we'll also and it also at the end has the uh draft uh FY27 budget calendar.

6:39

So going on to our first quarter financial report.

6:43

Just keep in mind that this is a preliminary financial update to the city council.

6:48

It represents unaudited actuals from October through December and compares the results to the plans for FY26.

6:55

In this presentation, we'll highlight the general fund and selected restricted funds.

7:00

However, the report that is provided includes additional refund additional funds that's in your binder and it's also available online for review.

Discussion Breakdown — Share of Meeting
Budget█████████████████████████████████████████████51%
Public Health████████████14%
Federal Advocacy███████8%
Public Safety████5%
Public Engagement████5%
Homelessness████5%
Infrastructure████4%
Employee Health██2%
Parking██2%
Summary of Proceedings

San Antonio City Budget Update and Federal Grants Tabletop Exercise - February 18, 2026

On February 18, 2026, the San Antonio City Council received a first-quarter financial status update for FY26, a recommended FY27 budget calendar, a taxpayer impact statement proposal, and findings from a federal grants tabletop exercise. The meeting highlighted a general fund on track despite sales tax headwinds, emerging challenges in employee healthcare costs, and preparations for potential federal funding reductions.

Consent Calendar

  • [No consent calendar items were discussed.]

Public Comments & Testimony

  • [No public comments were made.]

Discussion Items

FY26 First Quarter Financial Report

  • General Fund: Overall results for the first quarter (October–December) are in line with the adopted budget. Total resources were $1.69 billion; expenses were $1.7 billion. Revenues exceeded the plan by $8.6 million (collected $510 million vs. anticipated $502 million), driven by higher CPS Energy revenues (warmer weather and off-system sales). Sales tax is $700,000 below plan through December, and through January the shortfall widened to $2.6 million. CPS revenue is $9.1 million over plan. The fund is projected to be 1.1% ahead of budget for the year. Expenses are $1.7 million below plan.
  • Hotel Occupancy Tax (HOT): Revenues are $1.9 million below plan in Q1 due to lower occupancy (1% lower) and average daily rate ($3 lower). The year-end projection is a $3 million shortfall.
  • Airport Fund: Revenues are $200,000 over plan; airport is performing within budget.
  • Development Services Fund: Revenues and expenses are on track; a $1.4 million variance is attributed to permit fees from the airport terminal development program.
  • Solid Waste Fund: Revenues are $1.4 million below plan due to lower recycling prices ($20/ton less), offset by lower expenses in disposal and collection.
  • Employee Benefits Fund: Claims activity was $7.4 million over plan in Q1, with a projected year-end overage of $4.5 million. Uniform claims are 9% over FY26 budget and 11% above FY25; civilian claims are 5% over budget and 12% above FY25. January claims were at budget, so the trend is being monitored.

Budget Initiative Highlights

  • Low Barrier Shelter: $4.8 million budgeted. Goal: serve 450 unduplicated clients with 55% positive exit outcomes. Through January, 110 clients served (goal was 125) and 21 exited to stable housing. Staff noted Strach (hospital systems) is using part of the facility, which may affect bed availability.
  • Minor Home Repair (Under One Roof): $8 million total budget; assisted 93 households in Q1 (on track).
  • Rental Assistance: $5.7 million budget; assisted 785 eligible individuals in Q1 (on track).
  • Street Maintenance: $122.4 million budget; completed 668 of 1,558 pavement preservation projects and 127 of 353 rehabilitation projects (ahead of schedule).
  • Sidewalk Program: $17 million budget; completed 3.4 miles of 22.5 miles of new sidewalk construction and 1.9 miles of 10.5 miles of repair (ahead of schedule).
  • Fire Enhanced Squad: Added 12 positions ($1.3 million); cadets started class in January, expected to graduate in July.
  • Police Officers: Added 40 positions ($2.2 million); cadets to begin classes in September.

FY27 Budget Calendar

  • The recommended calendar includes: May 6 – six-plus-six/five-year forecast; May 14 – mid-year ordinance; community survey mid-April to early May; May 22 – goal setting session (with core vs. non-core program analysis); June 17 – trial budget presentation; August 13 – proposed budget release; September 17 – budget adoption. Council feedback on the calendar is due by February 25.

Taxpayer Impact Statement (CCR from Councilman White)

  • Staff proposed publishing an annual statement showing comparisons of property tax rates and fees (solid waste, environmental, parks, stormwater) with the prior year. For a median home valued at ~$157,000 (FY25) vs. ~$160,000 (FY26), the property tax increase is ~$17. Other fees: solid waste fee unchanged, environmental fee unchanged, parks environmental fee increased $6/year, stormwater fee unchanged. Total impact: 1.7% increase ($23.27 per year). The statement would be included in the budget document, published in newspapers (Express News, La Prensa), and posted on the city website. Councilman White requested it be codified by ordinance. Several council members supported adding broader context (rates, other revenue sources, other taxing entities) and ensuring broad dissemination.

Federal Grants Tabletop Exercise

  • Conducted December 2025 with 34 outside agencies (healthcare, housing, food access, utilities, nonprofits, county, city departments). The city's budget includes $153 million in federal grants, funding 663 positions. The exercise focused on health, housing, homeless, and human services grants totaling $85.7 million (436 positions, 66% of federally funded positions).
  • Scenario 1: 50% reduction in city-administered federal grants.
  • Scenario 2: 50% reduction in community-wide grants plus impacts of federal reconciliation bill on Medicaid, Medicare, CHIP, SNAP, and ACA.
  • Key findings: (1) Funding reductions would create significant disruption to health, housing, food access, and education systems. (2) Existing service networks operate at high capacity and cannot absorb large-scale increases in need. (3) Need for consistent public messaging to reduce community confusion and fear. (4) Support for improved cross-sector coordination, shared data tools, and unified resource/referral systems. (5) Recommendation to form a cross-sector federal funding impact working group.
  • Staff noted that while most federal appropriations are funded through September 2026, the implementation of policy changes (e.g., work requirements) may affect access and increase need.
  • Mayor Jones emphasized that the city's public health professionals have recommended using general fund dollars to maintain critical services (e.g., TB testing) if federal funds are cut, as no alternate providers exist.

Key Outcomes

  • No formal votes were taken; the meeting was a discussion and information session.
  • Next financial update: The six-plus-six report and five-year forecast will be presented in May 2026, with a mid-year budget adjustment ordinance on May 14.
  • FY27 Budget Calendar: Council feedback is requested by February 25 to finalize the calendar.
  • Taxpayer Impact Statement: Council expressed broad support for adoption by ordinance; staff will bring a draft ordinance for the May 14 mid-year meeting.
  • Federal Grants Working Group: Staff will form a cross-sector working group and may involve philanthropic partners (e.g., Area Foundation, Cronky Group) as recommended by the Mayor.
  • Reevaluation of Street IMP: A consultant is being contracted to revamp the street pavement management program, with results expected by summer 2026.
  • Core vs. Non-Core Program Analysis: To be presented at the May 22 goal setting session, facilitated by PFM.
  • Employee Benefits Fund: Staff will continue monitoring claims and provide an update in May.
  • Lost Medicaid 1115 Waiver (estimated $8 million): Not yet accounted for in the $142 million gap closure; Mayor noted that closing the gap as currently proposed does not offset this loss, and the council may need to identify additional options.

Meeting Transcript

Good afternoon. The time is now 104 p.m. on Wednesday, February 18th, and the City of San Antonio B session is called to order. Madam Clerk, please call roll. Councilmember Corps. Councilmember McKee Rodriguez. Councilmember Via Gran. Councilmember Mungia. President. Councilmember Castillo. Councilmember Galvan. Councilmember Aldereta Gabito. Councilmember Mesa Gonzalez. President. Councilmember Spears. Here. Councilmember White. Here. Mayor Jones. Mayor, we have Corum. Great. Thank you. Great. So today we're going to receive an update on the FY263 plus nine budget and finance report, the recommended FY27 budget calendar, taxpayer impact statement, and then the outcomes of the federal tabletop exercise. As we have, frankly, regardless of the topic, whether we're talking about rate increases or whether we're talking about infrastructure, we have routinely talked about the challenging economic environment that we see and that we anticipate, particularly with the implementation of the one big beautiful bill. And so each of the things today will help us understand kind of where we are, where we may have some potential leeway as we look at potentially shorting up any additional cuts at the federal level. Again, this is something that I asked Bidon not necessarily to generate all the answers, but really to help us understand what assumptions we might be making and then how we would better collaborate to mitigate any risks, at least as we understood them now, as we look to close the budget gap, understanding some of the changes in the budget may in fact affect the most vulnerable already, on top of those who will be more vulnerable once we see the federal cuts implemented. Okay. Thank you, Mayor. Good afternoon, Mayor and Council. So uh yes, so Freddie is going to walk through our first quarter report. Um this is something we do every quarter in terms of the financial reporting to the council. It'll it'll give you an early indication of how we fared um in uh the fall of of twenty-five. Um the the report is part of our overall financial strategy to update the council on the city's fiscal position throughout the year, and our next point of uh of reference for the council will be our six plus six report, which is closely followed thereafter by um the five-year financial forecast and then the council's um budget work session. You'll Freddie will go through the calendar here with you shortly. Um you hear from Freddie uh this afternoon that our our financial position of the general fund is is in line. We've had some little bit of continued challenges with sales tax, um, but it's been mitigated by CPS revenue. Um we'll kind of point out um all the other major operating but uh funds that we have and where we stand, but but generally everything is moving uh on track. Um as the mayor mentioned, uh the back end of the we're also we've also included the taxpayer statement that was a CCR that went to governance earlier in the year and uh kind of laying out took taking the feedback of governance. Uh that is something that we would are uh expecting and recommending that we do as we go into fiscal year 27. And then the last part the mayor touched upon it, the federal uh tabletop exercise, which was um a worthwhile exercise for um us to go through as an organization and particularly the departments that were participated in that. Um I also wanted to um uh make sure that the council saw the email that Sally sent out here about a week ago that kind of gave an update in terms of the federal budget uh that was uh finally agreed upon, 11 of the 12 aspects of the federal budget and those appropriations more to come, right? It is a continued effort in kind of watching what's happening at the at the federal level. The president has yet to lay out his budget, will uh which will undoubtedly uh kind of lay that framework. The exercise was good for us to go through with our stakeholder partners because it helped narrow down the focus of who are we trying to serve, who do we need to serve, where are our vulnerable populations, and in a uh cataclysmic type of funding scenario, what do we do? Um and uh you'll hear from uh from Justina about that uh this afternoon. So with that, I'm gonna turn it over to Freddie. I'm the budget director for the city. And today we're gonna cover the uh FY26 first quarter financial status as well as some projections for revenues and expenses for the fiscal year. We'll also highlight some of our budget initiatives.

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