San Antonio City Budget Work Session on Convention, Arts, Tourism & Airport – August 26, 2026

On Wednesday, August 26, 2026, at 2:01 p.m., the City of San Antonio City Council convened a budget work session to review proposed fiscal year 2027 budgets for the Convention & Sports Facilities, Arts & Culture, Visit San Antonio, and Airports departments. The meeting lasted until 5:10 p.m. and featured presentations by department directors, followed by questions and discussion from council members. No formal votes were taken; the session was informational in advance of budget adoption.

Convention & Sports Facilities Department Presentation

• Hotel Occupancy Tax (HOT) Context: The current HOT rate is 17% (6% state, 2% Bexar County, 9% city). FY27 HOT collections are projected at $109.4 million, a ~20% increase since 2018. FY26 collections were slightly higher due to $2 million in back taxes. The city’s 9% is allocated: 2% for convention center capital/debt, and 7% for tourism-related activities (15% to Arts & Culture, 15% to History & Preservation, 35% to Visit San Antonio, up to 35% to convention facilities).
• Facilities Overview: The department oversees Henry B. Gonzalez Convention Center, Alamo Dome, Carver Center, and leases for Nelson Wolff Stadium and Toyota Field. The 2025 Men’s Final Four had an estimated $440 million economic impact. San Antonio ranked 9th best conference city by U.S. News. Alamo Dome will host five major concerts in September 2024 with projected attendance over 195,000 fans; ~75,000 will travel from outside the area.
• Proposed Budget: Total FY27 funding across all funds is $84.6 million. General fund contribution is $1.5 million (Carver Center) plus $700,000 in special revenue. Facility revenues have grown 57% since 2018 ($18.8 million). Event days at Alamo Dome: 112 in FY27 (12 marquee, up from 5 in FY18). Convention center occupancy is at 75% (practical maximum).
• Program Changes: Proposed $1.8 million in new/adjusted venue fees (first increases in 10 years) — including $724,000 from Alamo Dome parking/ticket fee adjustments to offset police traffic control costs (total SAPD traffic support = $2 million). Other fee adjustments at convention center.
• Capital Planning: $8.1 million in FY27 and $6.1 million in FY28 for critical Alamo Dome maintenance (HVAC, lighting, Wi-Fi, concession upgrades, arena floor). Convention center capital improvements of ~$4 million (carpet replacement) funded from the 7% HOT, not the 2% expansion fund.
• Contract Extensions Recommended: 10-year contract extension with Visit San Antonio; 10-year renewal for Tourism Public Improvement District (TPID); third and final five-year extension of Wolff Stadium agreement with Missions baseball club (early exit allowed when new stadium is ready).
• Contract Compliance: Adding one position for contract monitoring; implementing new forms and procedures to reduce risk.

Arts & Culture Department Presentation

• Department Overview: Director Crystal Jones presented the FY27 proposed budget of $14.2 million. 62% goes to core grants programming for nonprofits and artists. $500,000 for public art maintenance. 24 positions funded. Film incentive program: 10 incentive projects, 782 filming days, 862 paid local positions created (7 of 10 projects qualified for extra 2% incentive because they hired above required veterans). Estimated $21.03 direct spending per $1 granted.
• Grants Programming: Third year of three-year funding cycle: $7.2 million for nonprofits (41 operational grantees, $4.9 million; 10 cultural heritage grantees, $2.2 million; event grants $150,000). Artist grants: $262,000 for 30 San Antonio-based artists ($7,500 or $15,000 each). New three-year cycle guidelines will be brought later.
• Public Art: 20 installations/dedications this year (driven by 2022 bond). 21 public art projects as part of airport expansion. 9 “art as shade” projects addressing urban heat island effect. 26 planned maintenance projects for FY27. $500,000 general fund for maintenance is third year of dedicated funding; funds are used for structural repairs, graffiti removal, and lighting upgrades.
• Film Impact: 1,200 hotel room nights from film productions. Film incentive recently increased to 14% matching state incentive.

Visit San Antonio Presentation

• Economic Impact: Tourism/hospitality generated a record $23.4 billion total economic impact in 2024 (8.8% increase over 2023). Generated $284 million in city tax revenues. Industry supported over 150,000 jobs (1 in 8 employed San Antonians). Visit San Antonio’s efforts directly generated $1.9 billion in 2025.
• Sales & Marketing: Record-breaking sales year: nearly 1 million room nights booked, over 800 events confirmed, 74 citywides secured. Communications team secured 1,200 media stories ($30 million earned media value). Marketing campaigns generated 214 million engagements, driving 2.1 million trips.
• Local Creative Economy: More than 100 contracts with local artisans, musicians, entertainers; 650 business referrals to meetings/conventions industry. Free Riverwalk community programming attracted nearly 1.8 million attendees.
• Challenges: Convention center at capacity; competition from Austin, Houston, Dallas expanding facilities (over $7 billion total). Booking pace shows risk of losing groups after 2030. Example: Texas High School Coaches Association (18,000 attendees) is considering Austin for 2032.
• ROI: Every dollar invested in Visit San Antonio returns $45 in demonstrable visitor spending (based on attributable sales, earned media, and marketing attribution).
• International Visitors: 2.6 million international visitors in 2024 (2.4 million from Mexico, ~50,000 from Canada, then UK). Focus on growing drive markets and group business.
• Scholarship Program: San Antonio Hospitality Foundation raised record $150,000; awarded five scholarships ($2,500 each) to St. Philip’s College and UTSA students.

Airports Department Presentation

• Proposed Budget: FY27 total $222 million (up 17% from $185 million). Revenue: $76.1 million aeronautical (airline) and $109.8 million non-aeronautical (parking, concessions, etc.). Operating expenses $107 million (3% increase). Debt service $32 million. $46 million to capital improvement fund. Same number of personnel (487 positions).
• Capital Program: $2.6 billion overall. In FY27, $859 million will be spent. Terminal C (850,000 sq ft, 18 gates) opens in ~22 months (by end of 2028). Parking garage (2,500 spaces, 7 stories, $132 million) under construction. Current terminal A+B combined is 700,000 sq ft; Terminal C more than doubles footprint.
• Air Service: 47 nonstop destinations (down from 50 due to Spirit exit, loss of Fort Lauderdale, San Juan, Oklahoma City). Enplanements down ~5% FY26 vs FY25 due to three government shutdowns. FY27 projected enplanements 2.5 million (2.8% above FY26). Target markets: Sacramento, Portland, Rio Grande Valley, Pittsburgh; also Mexico leisure destinations (Cabo, Tulum, Cancun) and transatlantic service (300 passengers daily from Europe start journey in San Antonio). Cargo down 20% year-over-year.
• Rate Changes: Proposed new parking/ground transportation fees to yield $10 million in FY27. TNCs (Uber/Lyft) from $2.50 to $5 per trip; shuttles $1.50 to $5; limos $1.25 to $5; charters $3 to $5; taxis unchanged. Parking: long-term from $16 to $20/day; short-term from $29 to $30; valet unchanged. Surface lot veteran/military parking unaffected.
• Federal Grants: $320 million in grants secured from FAA since 2020. Received $30 million for air traffic control tower modernization.
• Stinson Municipal Airport: 78 acres available for development; master plan includes four alternatives for advanced air mobility (EVTOL) hub; discussions with South Texas Chamber and Brooks.
• Passenger Experience: 189 initiatives identified to improve operations before Terminal C opening, scaled to 52 focus areas.

Council Discussion & Positions

• Councilmember Corps (District 2) praised collaboration among departments and asked about HOT projections: slight decrease explained by one-time back taxes and flat occupancy/ADR. She requested data on concert attendee origins and strategies for booking bilingual artists; also asked if IMP projects could include arts components like bonds do.
• Councilmember White (District 9) supported film investment but questioned $500,000 general fund for art maintenance, suggesting moving it to HOT to free up funds for traffic safety (30 radar feedback signs and flashing stop signs eliminated). He asked why Visit San Antonio’s share of HOT (35%) is higher than Austin (16%) or Dallas (25%); Mario Vaz responded that ROI is $45 per $1 invested, and the formula is conservative. White noted Visit San Antonio’s shift to focus on group business and drive markets was smart.
• Councilmember Mesa González (District 8) supported proposed fee changes and asked about contract re-evaluation outcomes (process improvements, no cost savings). Asked about arts grants being on same three-year cycle (sustainability). Inquired about film studio incentives (state media production development zone). Asked whether proposed parking rate changes affect disabled veteran/military parking program (surface lot unaffected; garages have discounts). She suggested improving veteran parking application instructions.
• Councilmember Alarcón Gavito (District 7) asked about coordination with VIA for downtown parking (existing park-and-ride promotion; suggested council newsletters). Expressed strong support for keeping $500,000 art maintenance in general fund to show city commitment; argued arts are a “must have.” Questioned overlap between arts grants and delegate agency funding for same nonprofits (e.g., CEC, Book Festival) and suggested being strategic about city funding. Asked about international visitor breakdown (majority Mexico). Urged Visit San Antonio to share best practices from other cities with council.
• Councilmember Castillo (District 5) asked about reduction in contracted supplemental cleaning from $38 to $4 (due to full staffing; can be re-added if needed). Supported adding a contract monitoring position. Mentioned roof repair line item and asked about insurance coverage. Stressed importance of arts funding from D5 residents, noting roundtable feedback: prioritizing local artists, ensuring maintenance fund, improving transportation to arts venues. Highlighted literary arts and Book Festival’s role in literacy.
• Councilmember Viagran (District 6) emphasized need for Rio Grande Valley direct flights. Thanked Visit San Antonio for efficient use of tax dollars. Noted that Dallas and Houston have state entertainment funds and NFL teams, so San Antonio’s 35% HOT share is justified. For arts, defended $500,000 general fund for art maintenance as a city commitment (not a “nice to have”).
• Councilmember Spears (District 9) expressed concerns about art projects in bond projects, citing $500,000 roundabout art piece that was not local and poorly managed. Stated arts funding is unpopular in her district given traffic safety needs. Acknowledged visit San Antonio’s success but worried about losing conventions to Austin/Dallas. Asked about declining event days at convention center (department explained focus on bigger, higher-impact events). Asked for comparison of fees to peer cities (fees are aligned).
• Councilmember Mungia (District 3) praised functional art (shade structures) and community engagement. Noted airport is a regional asset. Expressed interest in Rio Grande Valley flights.
• Councilmember Galvan (District 1) thanked departments and noted excitement for upcoming concerts (Black Veil Brides, Pierce the Veil). Asked for detailed list of history & preservation HOT allocations and expressed concern about cultural heritage districts funding reductions.
• Councilmember McKee Rodriguez (District 2) noted that Visit San Antonio and Airport receive zero general fund dollars; Arts & Culture $500,000; Convention & Sports $1.5 million (for Carver). Asked about art maintenance necessity and process (structural, expert conservation). Supported maintaining general fund art maintenance but open to future HOT funding as pot grows.
• Mayor Jones asked about Terminal C impact on enplanements (expected 5-8% organic growth, ~500,000-800,000 additional). Discussed airport incentives for new routes (three-year now allowed). Noted cargo is down 20%. Asked about convention center capacity: 75% is operational maximum; 232 events vs 275 target due to short-term business not materializing due to economy, tariffs, federal funding cuts. Inquired about average room nights generated by Alamo Dome (leisure, not contracted). Asked about timeline for other cities’ convention center expansions. Noted that HOT-funded arts organizations should demonstrate accessibility; questioned San Antonio Museum of Art’s only 14 free hours per month. Expressed desire to shift general fund arts funding to HOT where possible to free up core services. Proposed potential amendments to redistribute HOT grants.

Key Outcomes

• No formal votes taken; work session to inform FY27 budget adoption.
• Council members directed staff to provide follow-up memos on: hotel occupancy tax allocation details for history & preservation; feasibility of using HOT for art maintenance; room night generation by Alamo Dome; detailed timeline of other Texas convention center expansions; financial impact of convention space shortage in 2031-2033; list of state media production development zones; detailed breakdown of arts funding equity and accessibility.
• Several council members expressed intent to propose amendments: potentially moving the $500,000 art maintenance from general fund to HOT; reallocating some HOT grants from well-endowed museums to local artist grants; ensuring homeless tax funds are used efficiently.
• Airport director will bring forward a new air service incentive program for council approval.
• Convention center expansion feasibility study and longer-term capital plans will be presented at a future B session.
• Update on Wolff Stadium master plan will come during Economic Development department work session next month.