SAN ANTONIO – City officials are weighing a proposed Fiscal Year 2027 budget that would raise the city’s property-tax rate while cutting spending and shifting some costs to protect core services amid what leaders describe as a difficult financial outlook.

City Manager Erik Walsh presented the Fiscal Year 2027 Proposed Budget to the mayor and City Council on Aug. 13, 2026. The city said the FY 2027 budget is balanced, as required by law, and includes a balanced plan for FY 2028.

San Antonio began the budget process with a projected General Fund shortfall of nearly $158 million through FY 2028, citing rising costs, lower property values and state limits on local revenue growth. The proposed budget includes $89.6 million in spending cuts across FY 2027 and FY 2028.

“This is a balanced and responsible budget focused on our community’s top priorities,” Walsh said. “It reflects the sound financial management that our residents expect by making careful reductions, protecting essential services, and continuing to invest in our community’s future.”

The proposal recommends a property-tax increase, noting the city did not collect the full amount of property-tax revenue allowed during the past two years and that state law allows unused capacity to be carried forward. The proposed rate would rise from 54.159 cents to 56.288 cents per $100 of taxable value. For the average homeowner, the city estimates the increase would be $2.95 per month.

The city said it would also provide $156.4 million in property-tax relief through homestead exemptions and tax freezes for seniors and homeowners with disabilities.

General Fund revenue is expected to grow by 5.1% in FY 2027, while expenses would grow by 4.1%, according to the proposal.

The city said the budget is designed to protect essential services, meet legal requirements and support City Council and community priorities including public safety, streets and sidewalks, homeless services, affordable housing, senior services, parks and libraries.

Homelessness and affordable housing

The proposed budget includes $30.8 million for homeless services, including what the city described as a new approach to frequently recurring encampments and completion of the city’s Shelter and Housing Framework.

The budget does not continue the low-barrier shelter plan in its current form. However, the city said $9 million in interest earned from housing bonds would be used for emergency shelter capacity and to improve a day center.

For affordable housing, the proposal includes $37.7 million to support rental assistance, 497 home repairs, 419 new or preserved affordable homes and down payment assistance.

Infrastructure

The proposed budget includes $129.8 million for street maintenance covering 1,979 projects and 534 miles, along with $12.8 million to build 12.8 miles of sidewalks and repair another 8.7 miles.

To reduce pressure on the General Fund, the city said $7.3 million in eligible street projects would be funded through the capital budget. The proposal also includes $600,000 to speed up the design of neighborhood and capital projects and $1.4 million for quick-build street projects, traffic-signal technology, speed studies and a test program for rail-crossing alerts.

Public safety

The proposed General Fund budget includes $676.5 million for the Police Department and $451.2 million for the Fire Department.

The city said the San Antonio Police Department would add 49 officers, including 27 for the airport’s new terminal. The proposal also moves funding equivalent to 22 vacant park police positions to SAPD to create 22 SAPD positions. Under the plan, SAPD would have a total of 2,957 officers.

SAPD would reduce costs by $5.4 million through lower overtime, administrative savings and eliminating six civilian support positions, according to the proposal.

The Fire Department would add nine firefighter positions, bringing its total uniformed staff to 1,889. The department would reduce costs by $3.7 million through more efficient use of overtime and leave, the city said.

Animal Care Services

The proposed General Fund budget includes $38 million for Animal Care Services. A new animal hospital is expected to open this year, adding 10 Animal Care positions and $1.9 million in funding.

The city said Animal Care Services expects to perform 42,959 surgeries, a 5.2% increase. The department also expects 88% of animals to be placed or released alive next year and to respond to 98.5% of the 51,330 critical calls it receives in FY 2027.

Senior and human services

The Human Services General Fund budget would remain approximately level at $31.2 million. The proposal maintains senior center hours from 7 a.m. to 7 p.m. and funds operations of the new District 1 Multigenerational Center and the renovated Ella Austin and Kenwood community centers.

Three part-time nutrition sites with low participation would close: Darner, South San and Harlandale Briar. The city said each site is within five miles of a full-service senior center, which offer more services at a lower cost per participant.

Parks and libraries

Parks funding in the General Fund is $71.1 million. The city said the budget supports maintenance of nine new miles of greenway trails, three miles of walking loops and 158 acres of parkland, and includes $3.8 million to add shade structures at 12 playgrounds.

Libraries are funded at $58.1 million in the General Fund. The proposal funds the Carver Branch Library expansion, safety upgrades, new equipment and furniture, and replacement of 164 public computers.

The city said both departments would lower costs, adjust programs with less use and move eligible expenses to other funds.

Economic development and other funds

The proposed budget includes $5.6 million for new economic investment through the Economic Development Incentive Fund.

The Airport Fund totals $185.9 million. The city said the new 850,000-square-foot terminal is approximately halfway complete and remains on scope, on schedule and on budget for completion in FY 28.

The budget includes $54.1 million for Development Services and $171.6 million for Solid Waste, including $3.1 million for the Starcrest Transfer Station. The proposal includes a fee increase of 75 cents on garbage carts and a 25-cent increase on the environmental fee.

Public input

Residents are encouraged to attend City Budget Town Halls to learn about the proposed budget, share their thoughts and ask questions. Meetings will be held in every City Council district from Aug. 17 through Aug. 28.

MEETINGS:

Monday, August 17, 6:30 p.m.

DISTRICT 2- Wheatley Heights Sports Complex, 200 Noblewood Drive, 78220,DISTRICT 7- Doris Griffin Senior Center, 6157 Northwest Loop 410, 78238

Tuesday, August 18, 6:30 p.m.

DISTRICT 3- Southside Lions Senior Center, 3303 Pecan Valley Drive, 78210DISTRICT 6- Ron Darner Parks & Recreation Headquarters, 5800 Historic Old Highway 90 West, 78227

Wednesday, August 19, 6:30 p.m.

DISTRICT 4- Robinette Community & Senior Center, 1423 South Ellison Drive, 78245DISTRICT 9- Walker Ranch Senior Center, 835 West Rhapsody Drive, 78216

Thursday, August 20, 6:30 p.m.

DISTRICT 8- Phil Hardberger Urban Ecology Center, 8400 Northwest Military Highway, 78231

Saturday, August 22, 10:30 a.m.

Youth – San Antonio Food Bank, 5200 Historic Old Highway 90 West, 78227

Monday, August 24, 6:30 p.m.

DISTRICT 5- Las Palmas Branch Library, 515 Castroville Road, 78237DISTRICT 10- Northeast Senior Center, 4135 Thousand Oaks Drive, 78217

Tuesday, August 25, 6:30 p.m.

DISTRICT 1- Central Library, 600 Soledad St., 78205

The City will also host two public hearings regarding the 2027 Ad Valorem Tax Rate and the Fiscal Year 2027 Proposed Budget.

Wednesday, September 2, 5 p.m.

San Antonio City Council Chambers, 114 W. Commerce Street, 78205

Thursday, September 10, 9 a.m.

San Antonio City Council Chambers, 114 W. Commerce Street, 78205