SAN ANTONIO – City Council approved San Antonio’s fiscal year 2027 budget Thursday, adopting a package that includes a property tax revenue increase, updated tax rates and changes to city fees.
The budget takes effect Oct. 1 and includes the city’s operating and capital spending plans, a five-year infrastructure management plan and a six-year capital improvements program.
RELATED: San Antonio faces tough choices as City Council tackles $158M budget deficit
Residents are set to see a property tax increase after City Council approved a new budget following months of debate and a $158 million budget deficit.
Council also approved an ordinance acknowledging that the budget will bring in more property tax revenue than the current fiscal year.
The approved maintenance and operations property tax rate is 35.138 cents per $100 of taxable value. Council set the debt service rate, which pays principal and interest on city debt, at 21.150 cents per $100 of taxable value.
Together, the rates total 56.288 cents per $100 of taxable value. That means the city tax bill on a home with a taxable value of $300,000 would be about $1,689 a year — roughly $1,054 for day-to-day city services and $635 to repay city debt.
The calculation reflects only the City of San Antonio’s portion of a property tax bill and does not include taxes from school districts, Bexar County or other entities.
The package also updates fees within the city’s general fund and certain restricted funds, carries forward some unspent fiscal year 2026 money and adjusts previous appropriations for city projects, programs and department needs.
Council also approved a one-time annuity increase for eligible city retirees and beneficiaries through the Texas Municipal Retirement System, along with a revision to the city’s contribution rate.
Council voted 7-4 to approve a 3.9% property tax increase. The vote split between the city’s most affluent districts and its most low-income ones, and it passed without Mayor Gina Ortiz Jones’ support.
After the vote, Ortiz Jones said, “The motion carries. Thank you again for the hard work.”
District 3 Councilwoman Phyllis Viagran supported moving forward, saying, “I have made it clear, this is our time, and our opportunity.”
District 2 Councilman Jalen McKee Rodriguez also backed the budget despite disagreements, saying, “Though we may disagree on this document today, I believe it is in our best interest to move forward.”
Four council members from the Northside districts and MayorJones opposed the increase. District 9 Councilwoman Misty Spears said, “I just feel that raising taxes without taking steep cuts in our own budget is just a slap in the face to our constituents and taxpayers.”
District 10 Councilman Marc Whyte questioned the city’s long-term plan, saying, “Five years from now we will still have over a $100 million deficit. Is the plan then again, to raise taxes at that point?”
City Manager Erik Walsh said the city must rein in spending while also addressing growth and service demands. “We’ve got to control our spending. We can’t do everything. We’re going to have to increase revenue. We’ve got a growing city with population demands. And the public’s expectations that police officers are available when they need them, and the library’s open when they want to go,” Walsh said.
The property tax increase means the average San Antonio homeowner will pay around $35 more per year. The city will begin implementing the budget Oct. 1.
For more than 30 years, San Antonio has managed without raising its property tax rate. I could not support asking taxpayers for more when we have not exhausted every opportunity to make government more efficient,” said Councilman Marc Whyte in a statement. “We need to get spending under control, practice greater financial discipline, eliminate duplication, and focus our resources on the core services residents depend on.
Whyte said reviews of five city departments this year identified $12.8 million in savings, showing that additional scrutiny can produce results.
That demonstrates what is possible when we take a hard look at how government spends taxpayer dollars,” Whyte said. “We need to continue that momentum and bring that same level of scrutiny to every department.
The approved budget includes funding for the Darner Senior Nutrition Center for the next two fiscal years.
It adds nine San Antonio Fire Department positions and provides a 5% wage increase.
“Today, I voted to approve San Antonio’s FY 2027 Budget and the property tax rate necessary to support it. These were consequential votes, and neither of them was taken lightly.
Throughout this budget process, we heard from District 8 residents who were clear about what they expect from their City: strong police and fire services, safe streets and infrastructure, support for our libraries, meaningful action on homelessness and housing, and a City government capable of delivering the services our community relies on every day,” said Councilmember Ivalis Meza Gonzalez in a statement.Taxpayers were clearly concerned about rising costs and what a tax rate increase could mean for their household budgets. As a homeowner with a young family and a taxpayer, it is understandable that every additional expense matters.That is why, during our deliberations, I proposed and worked to reach consensus on a one-cent decrease in the Maintenance and Operations rate, believing that represented a responsible middle ground and would provide additional revenue to protect essential services while limiting the impact on taxpayers.Ultimately, Council took a different path and adopted an M&O rate of 35.138 cents, or a two-cent increase per $100 of taxable value. I voted in support of the final rate after weighing the consequences of failing to adequately fund the budget and the services our residents have repeatedly asked us to protect.The FY 2027 Budget maintains critical investments in police and fire, adds 49 police officer positions, increases infrastructure maintenance, and strengthens our response to homelessness. It also makes difficult reductions in other areas while preserving the integrity of the services residents depend on.Thank you to City Manager Erik Walsh, his team, and our City staff for the months of work behind this budget. Most importantly, thank you to the residents who attended town halls, completed surveys, called our offices, submitted comments, and made their voices heard. Those conversations mattered throughout this process.”
The budget also funds new Animal Care Services positions for spay and neuter services and veterinary care.
It preserves Metro Health programs for children’s oral health care, violence intervention and family support, while funding maternal health services.
The package includes speed-mitigation infrastructure and continues funding for San Antonio Education Partnership Scholarships.