San Antonio City Council B Session: FY2022 Financial Update & Federal Funding Impact – February 18, 2026

The San Antonio City Council convened on Wednesday, February 18, 2026, at 1:04 PM for a B session. The meeting focused on the first quarter financial report for fiscal year 2022 (3+9), the taxpayer impact statement, and a tabletop exercise simulating federal funding cuts. Council members discussed budget trends, infrastructure needs, and strategies to mitigate risks to vulnerable populations. The meeting adjourned at 3:31 PM.

Public Comments & Testimony

• No public comments were presented during the meeting.

Discussion Items

• Financial Report (Q1 FY2022 – 3+9): Freddy Martinez, City Budget Director, presented the preliminary, unaudited results for October–December 2025. The total city budget adopted was $4.6 billion, comprising $1.6 billion in restricted funds, $1.6 billion in the General Fund, and $1.16 billion for other funds. General Fund revenues exceeded projections by $8.6 million in the first quarter, largely due to warmer weather boosting CPS Energy payments. Sales tax receipts were slightly below projections, with a $4.1 million shortfall noted for January 2026. Hotel occupancy tax revenues were 1% below plan because of lower occupancy and daily rates. The Alamo Dome and Convention Center revenues were on track but slightly below expectations. Overall, the city projects a year-end General Fund surplus of $6.9 million above plan but noted a $1.1 million downward revision for CPS revenue.
• Employee Benefits Fund: Rising claims (civilian claims up 12%, police/fire up 11%) caused a projected $14.5 million overrun. The city will continue monitoring and report back in the 6+6 update.
• Taxpayer Impact Statement: Councilman White proposed publishing the impact statement in newspapers and online, including not only city property taxes and fees (water, sanitation) but also CPS Energy and SAWS charges. He supported making this a city ordinance. Council members expressed support for transparency. The item was slated for a vote on May 14, 2026.
• Infrastructure Performance: Of the 1,558 planned pavement preservation projects, 668 were completed in Q1; 127 of 353 rehabilitation projects were done. Sidewalk program: 3.8 miles of 22.5 miles were constructed, with 1.78 of 10.5 miles repaired. Pavement marking: 133 of planned units completed. Council members noted that only 22% of city streets are in poor or failing condition, but goals to reach 80 percent rating remain unmet. Concerns were raised about the need for better coordination with SAWS to avoid overlapping work.
• Low-Barrier Shelter: The shelter has $4.8 million in annual funding from the General Fund (previously ARP). To date, 183 individuals have been served; 20% moved to stable housing. Councilman White calculated an annual cost of ~$109,000 per person. Several members questioned cost-effectiveness and requested clearer success metrics.
• Federal Funding Tabletop Exercise: Justina Tate, Assistant City Manager, described a 5-hour simulation held in December 2025 with multiple agencies. Two scenarios were examined: a 50% reduction in federal grants and impacts from reconciliation bills on Medicaid, CHIP, SNAP, and WIC. Key findings included significant disruptions to health, housing, and food systems; the need for a unified public message; and recommendations to create a cross-sector working group, share resources, and explore philanthropic partnerships. Council members expressed interest in including larger nonprofits and foundation partners. Councilwoman Spears asked about impacts on public safety and parks, which were not covered in the exercise.
• Presidential Budget Process: Councilwoman Mesa noted that on February 3, 2026, the Administration signed four key appropriations bills providing funding through September 30, 2026, which included increases for WIC, Head Start, and other programs. The administration also sent a memorandum detailing federal funding flows.
• TIRS (Tax Increment Reinvestment Zones): Mayor Jones proposed a strategic review of TIRS, which contain $48 million in city funds, to identify potential savings for infrastructure. Council members divided on the issue: some supported using TIRS to bridge gaps, while others warned against dissolving these tools, citing their role in community investment. Councilman Cory expressed opposition to any moves that would remove TIRS funding from neighborhoods.
• Budget Calendar: The proposed FY2027 budget calendar includes a 5-year forecast in May, a council retreat on May 22, proposed budget release on June 17, work sessions on August 13, and adoption on September 17. Several council members requested extending the community feedback period from two weeks to a full month (April) to allow more input.
• Council Member Input on Services and Equity: Council members stressed the need for a definition of city services and non-core services, with a full-day discussion scheduled in May. Councilwoman Munguía called for a multi-year planning horizon (3–5 years) and greater equity in infrastructure investments, particularly inside Loop 410. Councilman Cor suggested moving from a geography-based allocation to a need-based formula for street and sidewalk projects.

Key Outcomes

• No formal votes taken during this B session. The meeting served as a discussion and review of financial status and upcoming steps.
• Directive to Staff: The mayor instructed Eric to produce a process to review TIRS for potential reallocation, and to prepare a strategic discussion on street performance metrics and sidewalk programs before budget talks.
• Next Financial Update: The 6+6 report will be presented in May 2026, including a five-year financial forecast and updated employee benefits fund status.
• Taxpayer Impact Statement: Council member White intends to bring a separate item to the May 14, 2026 meeting to require citywide publication of the impact statement in newspapers and online, including CPS and SAWS charges. The timeline will align with property tax assessment assumptions.
• Federal Funding Exercise: Staff will reconvene the cross-sector group and may expand participation to larger nonprofits. The city will also reach out to philanthropic organizations to explore alternative funding.
• Council Priorities: The council will hold a full-day session in May to define core vs. non-core services, with input from PFM on a new budget model expected in April.