San Antonio 2027 Bond Program Work Session, September 30, 2026

The San Antonio City Council held a special work session on September 30, 2026, to receive a briefing on the proposed 2027 Bond Program. City staff recommended a $442 million bond program based on a moderately conservative financial forecast. The council was deeply divided on the bond's size, priorities, and fiscal risk, with strong debate between pursuing a $1+ billion program to address deferred infrastructure needs and sticking with the safer $442 million recommendation to avoid a property tax increase.

Discussion Items

• Bond Capacity & Fiscal Risk: Staff presented the $442M recommendation as fiscally prudent, maintaining the tax rate. A backup scenario for a $1 billion bond was presented, which would require either a ~$0.21 debt service tax rate increase or sustained growth in property values. City Manager Eric cautioned against overextending given the uncertain economy and obligations to existing bondholders.
• Priorities, Equity, and Project Allocation: A major focus was addressing inequities in infrastructure, particularly failing streets (nearly 9% citywide, estimated $744M to fix completely) and drainage in older districts. Councilmembers from Districts 1-5 advocated heavily for greater investment in their areas, citing historical underfunding compared to the north side. The definition of "citywide" projects was debated, with some arguing it dilutes resources for neighborhoods.
• Stormwater Fee Increase: Staff proposed increasing the stormwater fee to generate $175M for drainage projects (approximately a $10/year increase on the average residential bill over time). Supporters like Councilman McKee Rodriguez saw it as a clear way to fund drainage debt; opponents like Councilman Viagran and Councilwoman Vito worried about compounding utility costs for residents.
• Sports & Entertainment District Projects: The city's ask for this area was significantly reduced from an initial $220-250M to $35M, leveraging an 80/20 match from TxDOT for projects like Durango Street improvements. Councilmembers debated whether this should be a separate proposition or if PFC/TIRZ funds could cover it.
• Affordable Housing: A $150 million housing bond was proposed to align with SHIP goals. Councilwoman Corr asked staff to explore alternative mechanisms to achieve housing goals outside the bond program.
• Community Input Process & Timeline: Staff sought feedback on the bond committee format versus town hall meetings. The consensus leaned heavily towards a May 2027 election date.

Councilmember Positions

• Support for $1 Billion+ Program: Councilmembers Viagran (D3), Mungia (D4), Galvan (D6), Castillo (D5), and Mesa Gonzalez (D9) advocated for a $1B+ bond. They argued it was necessary to address a $5.8B need, avoid further deferring critical projects in underserved areas, and maintain the city's competitive momentum. They expressed trust in the voters to approve a larger package.
• Support for $442 Million Program: Councilmembers White (D10) and Vito (D7) strongly supported the staff recommendation. They emphasized the burden placed on residents by recent property tax and utility increases, the risk of a failed bond election, and the need for fiscal restraint. Councilwoman Corr (D1) was open to a higher number but required concrete "worst case" tax impact numbers to make a decision.
• Conditional and Compromise Positions: Councilman McKee Rodriguez (D2) laid out specific options including using a stormwater fee increase and creating a targeted "F Street" bond. Mayor Jones facilitated the discussion, urging staff to provide detailed financial risk analysis and clear definitions of funding mechanisms ahead of the next session.

Key Outcomes

• No formal vote was taken. The session served to provide direction to staff.
• Next Work Session: Staff will return with detailed analysis and options on October 14, 2026.
• Staff to Deliver Updated Analysis:
  • Updated project list with staff recommendations.
  • "Worst case" tax impact analysis for bond programs at $442M, $750M, and $1B levels.
  • Identification of projects eligible for funding via PFCs or TIRZs.
  • A refined definition of "citywide" vs. "regional" vs. "district" projects.
  • Analysis of potential savings from ending the Midtown and Inner City TIRZs early.
  • Historical bond funding allocation by council district.
  • Operations & Maintenance (O&M) cost projections for proposed new facilities.
• Timeline Direction: The target for the public bond vote is May 2027.