Good afternoon.

The time is now 1 05 p.m.

on Tuesday, August 18th, 2026, and the City of San Antonio budget work session is called to order.

Madam Clerk, please call roll.

Councilmember Corps.

Councilmember Mickey Rodriguez.

Councilmember Viegran.

Councilmember Mungia.

Here.

Councilmember Castillo is here virtually.

Councilmember Gavon.

Councilmember Alarete Gavito.

Here.

Councilmember Mesa Gonzalez.

Present.

Councilmember Spears.

Councilmember White.

Mayor Jones.

Here.

Mayor, we have quorum.

Great.

Thank you.

This meeting will be a discussion on the FY2027 proposed budget reductions and revenues.

Eric, over to you.

Thank you, Mayor.

Good afternoon, Mayor and Council.

So the first budget work session today will be focused on the overall reductions and revenues that were proposed as part of revenue adjustments that were proposed as uh as of last week's proposed budget.

Um Freddie's gonna walk through the presentation.

Obviously, there are a lot of departments here to answer follow-up questions.

I wanted to show you all the reductions and the revenue adjustments at once rather than kind of disperse it through a multitude of presentations.

So we're gonna try to cover all those issues today.

Before I turn it over to Freddie, just a reminder, we made an adjustment to the budget work session, and tomorrow's budget work session will be focused on those couple of different scenarios that the council asked about last Thursday.

That'll be tomorrow's budget uh work session, and you'll get that presentation later on this afternoon.

Freddie All right, good afternoon, Mayor and City Council.

My name is Freddie Martinez, and I am the budget director for the city of San Antonio.

And today's presentation is going to focus as the manager said on reductions and revenues included in the proposed budget.

This presentation will focus on the general fund, but I did want to call your attention to some materials that we're handing out, which will include all the reductions for the general fund and restricted funds, as well as all the revenue adjustments for general fund and restricted funds.

And then at the last page, we'll have a list of those discretionary agencies that are proposed to be reduced in FY28, the 5.1 million with under the delegate agency contracts.

We'll start with just an overview of the budget that was proposed last Thursday by the manager.

As you recall, the total budget is 4.4 billion, made up of 1.76 billion in the general fund.

1.2 million in restricted funds, such as the airport, solid waste and DSD.

And then finally, 1.4 billion in cap in the capital budget.

About 61% of that is going to be the airport, which is uh primarily made up of the uh terminal expansion projects such as Terminal Feet C, which is in full construction uh currently.

And then there's also 2022 bond programs that are in that 1.4 billion dollar number as well.

We'll start off with the reductions in the general funds.

So as you recalled in the presentation last week, we're including 89.6 million dollars of uh general fund reductions over two years.

And for the purposes of today's presentation, we've categorized them into three uh buckets, uh so to speak.

So the first bucket would be efficiencies, which come in at about 27 million or about 30 percent.

Um transfers to other funding sources, which are 23.4 million or about 26 percent, and then finally reductions with an impact, which total about 39.3 million or 44 percent.

So in total, um, those would add up to the 89.6.

This slide illustrates the uh reductions by departments in the general fund.

So you can see that uh most of the departments in the general fund do have reduc of reduction.

Um the highest one would be public works at a 8 million, but keep in mind most of that is the transfer of the street maintenance um eligible expenses to the capital budget.

In these slides, I will also talk about um some of these next ones, such as uh police, uh fire, some of the citywide reductions and some of the other reductions that are we'll be presenting today.

I'll start first with transfers to other funding sources, which totals about 14.7 million.

The biggest piece, as I just mentioned, is $7.5 million that are being transferred from the general fund to the capital budget.

7.3 million of that is the street maintenance that's eligible for the capital budget, and then there's another couple positions from the parks department that are eligible to be paid out of the uh other out of the bond programs within the capital budget.

Next is we're reducing the transfer to the resiliency energy efficiency and sustainability fund, or otherwise known as Reece.

There's no impact to the operations there as the uh fund does have a fund balance to continue operations without a transfer in the general from the general fund in FY27.

You'll see um a couple of pies there that total up to four million.