\u201cAt the end of the day, our expenses are growing faster than our revenue,\u201d Walsh told reporters ahead of that meeting. \u201cSo we\u2019re going to have to approach it from both sides.\u201d<\/p>\n
San Antonio hasn\u2019t proposed<\/a> raising the tax rate for 33 years.<\/p>\n But slowed economic growth yielded a 2.1% drop in the city\u2019s base taxable values this year. That\u2019s been a hit to the property taxes that account for about 30% of the city\u2019s general fund, which also receives money<\/a> from CPS Energy, sales taxes and other sources.<\/p>\n The property tax increase city staff presented Thursday would equate to about $81 per year on the average San Antonio homestead. It would not apply to residents whose rates are frozen because they\u2019re over the age of 65 or disabled \u2014 which account for about 46% of the city\u2019s homesteads.<\/p>\n The final budget and tax rate won\u2019t be approved until September.<\/p>\n But given the early opposition from council members surrounding the tax increase, Walsh told reporters that he was laying out a more detailed budget outline<\/a> earlier than usual so they could conceptualize the realities of $158 million in cuts.<\/p>\n \u201cSome of the council members [said] in the budget work session, \u2018We don\u2019t want to do any revenue issues. How do we cut our way out of it?’\u201d Walsh said. <\/p>\n \u201cWe\u2019re going to walk them through what that looks like.\u201d<\/p>\n The biggest rate increase allowed<\/p>\n State law caps the amount<\/a> that cities can collect in property taxes at 3.5% over the previous year \u2014 not including new growth added to the tax rolls \u2014 before they\u2019d have to seek permission from voters.<\/p>\n It\u2019s not clear yet what rate the city is proposing for the coming year, because property valuations are still being contested with the appraisal district.<\/p>\n But Thursday\u2019s trial budget called for<\/a> raising it as high as needed to reach the 3.5% growth cap, while also taking advantage of a provision in state law that lets the city go even further. By using what\u2019s known as the \u201cunused increment,\u201d cities can grow revenue beyond the 3.5% cap if they came in below that in either of their past two budget years.<\/p>\n \u201cThe Legislature said, \u2018We\u2019re going to add this increment model so that you can tap into the unused property taxes when you voluntarily kept your rate below the state-allowed number,’\u201d Assistant City Manager Jeff Coyle said Thursday. \u201c[Cities can] apply that to sort of smooth out the ups and downs of the real estate market.\u201d<\/p>\n San Antonio has some unused increment to roll over from the years when property valuations were rising rapidly. <\/p>\n Given the massive deficit the city faces this year, staff is recommending using it to generate another $58.2 million in property tax revenue over two years.<\/p>\n That\u2019s in addition to the roughly $66.6 million the city would take in from raising rates to the allowed 3.5% growth cap. <\/p>\n Library admission, environmental fees and staff freeze<\/p>\n Given the rapidly rising expenses of a growing city, even maxing out the available property tax revenue won\u2019t be enough to close a ballooning budget gap.<\/p>\n The city\u2019s public safety budget alone<\/a> is expected to grow by $80 million over two years due to a changing collective bargaining agreement and rising general expenses.<\/p>\n That\u2019s without adding any of the new police officers called for by a study of the city\u2019s law enforcement needs<\/a>.<\/p>\n \u201cSome council members will say that [more officers] needs to be the first thing you put in place, but the first thing we\u2019re going to do is balance what we have,\u201d Walsh said.<\/p>\n Other city costs are also going up<\/a> with inflation, so staff is proposing an array of potential fee increases<\/a> to help bring in more revenue.<\/p>\n The city presentation mentioned increasing a monthly parks and environmental fee on residents\u2019 CPS Energy bills, as well as charging people who don\u2019t live in San Antonio city limits to use the libraries, and passing down more Fiesta-related costs<\/a> to partner organizations.<\/p>\n Councilwoman Phyllis Viagran (D3) suggested the city should also bump up fees on garage sale permits, while Councilwoman Marina Alderete Gavito (D6) recommended making speeding tickets much more expensive.<\/p>\n City staff also laid out possible cost-saving efforts<\/a> it could use if the council doesn\u2019t accept the full property tax increase being proposed. Those could include forgoing raises for civilian employees for the next two years, and slashing spending the city typically directs to local nonprofits.<\/p>\n The public presentation didn\u2019t include specific examples, but Mayor Gina Ortiz Jones appeared to have some in front of her as she encouraged staff to go even further with the cuts.<\/p>\n \u201cIf you are a private entity charging a ticket fee, for example \u2014 you just happen to be on the list San Antonio Botanical Garden \u2014 they have an event called Bubbles and Blooms. They\u2019ll be okay,\u201d Jones said.<\/p>\n The city was suggesting cutting its botanical garden contribution down from $1.2 million to $1 million, which Jones said should be $0, before moving on down the list.<\/p>\n \u201cA lot of these things, I mean frankly we shouldn\u2019t be funding these things at all,\u201d Jones said. \u201d \u2026 I\u2019m not saying we don\u2019t need [the San Antonio Book Festival] \u2014 I was just there this last time and it was great \u2014 but these are not things that the public needs to be paying for.\u201d<\/p>\n \u2018Putting it on our credit card\u2019<\/p>\n Slowed economic growth has already left city leaders with smaller-than-expected capacity for their upcoming 2027 bond election, which pays for major infrastructure programs.<\/p>\n Bonds allow cities to finance projects by borrowing money against their future growth, and under the city\u2019s current debt service rate, that would only yield about $625 million for infrastructure projects in the 2027 bond \u2014 compared to a $1.2 billion bond in 2022.<\/p>\n The city hasn\u2019t changed the debt service rate on residents in many years.<\/p>\n But since that portion of the property tax bill isn\u2019t subject to the state\u2019s 3.5% growth cap, city leaders are now recommending moving to a \u201cvariable rate\u201d<\/a> that will allow them to increase it as needed.<\/p>\n That could bring the bond up to size, while also allowing the city to move some projects it typically funds through the budget over to the capital program.<\/p>\n \u201cWe have about $7.3 million in the 2027 budget right now for street maintenance, and we\u2019re cash funding it,\u201d Walsh said. \u201cWe\u2019re going to recommend we move that $7.3 million into the capital budget \u2026 and that frees up $7.3 million in operating [expenses].\u201d <\/p>\n Jones hasn\u2019t said whether she supports raising taxes for a bigger bond next year. The mayor typically helps rally support for such changes with voters.<\/p>\n![\"\"](\"https:\/\/www.newsbeep.com\/us-tx\/wp-content\/uploads\/2026\/06\/FirePoliceDepartment_SAFD_SAPD_EmergencyServices_SmokeHazeAirQuality_FireTrucks_PoliceCruisersUnits_.jpeg\")
SAPD vehicles are stationed along Roosevelt Avenue as the SAFD works to extinguish a fire in a vacant building on the South Side of San Antonio on May 7, 2026. Credit: Amber Esparza \/ San Antonio Report<\/p>\n![\"\"](\"https:\/\/www.newsbeep.com\/us-tx\/wp-content\/uploads\/2026\/06\/BB_03850.jpg\")
Large-scale bunny sculptures by Hunt Slonem adorn the San Antonio Botanical Garden for the Huntopia exhibit. Credit: Brenda Baz\u00e1n \/ San Antonio Report<\/p>\n![\"\"](\"https:\/\/www.newsbeep.com\/us-tx\/wp-content\/uploads\/2026\/06\/SpursCountyCity_Leadership_DowntownSpursArena_Hemisfair_06_11.05.2025_AmberEsparza.jpg.jpg\")
San Antonio Mayor Gina Ortiz Jones speaks about the passing of Proposition B at a press conference in front of City Hall. Credit: Amber Esparza \/ San Antonio Report<\/p>\n