Facing a major budget deficit and a struggling economy, the San Antonio City Council approved a 3.9% property tax increase Thursday \u2014 the city\u2019s first in more than three decades.<\/p>\n
The 7-4 vote largely split members along socio-economic lines, with wealthier Northside districts opposing the 3.9% increase<\/a> and members from less affluent districts voting in favor.<\/p>\n Initially, nearly all council members balked at raising taxes when inflation is already putting so many residents in a financial strain.<\/p>\n But weeks of reviewing alternate budget scenarios<\/a> led a majority to believe that more spending reductions \u2014 on top of the $90 million worth of cuts already planned over the next two years \u2014 would hit most vulnerable residents too hard.<\/p>\n \u201c[In] the conversations I\u2019ve had [with residents] \u2026 it\u2019s actually been the most humble among us who have been the first to say, \u2018yes,’\u201d said Councilman Edward Mungia (D4), whose Southside district is among the poorest. <\/p>\n \u201c\u2026That\u2019s a stark contrast with those who have had the most, people who own more than one parcel of property, saying that they can\u2019t afford that.\u201d<\/p>\n This year slowed economic growth left many Texas cities and counties<\/a> in a similar boat, looking high and low for cuts to balance their budgets.<\/p>\n In San Antonio, that meant a public reckoning over some big recent economic development investments, including whether to help fund a new Spurs arena<\/a>, led by Mayor Gina Ortiz Jones<\/a>.<\/p>\n A deeply divided council still never found consensus on a different approach, however, and City Manager Erik Walsh told them this week that they\u2019d run out of time<\/a>. <\/p>\n The city is legally obligated to pass a balanced budget every year, and voting down the rate hike would delegate an additional $75 million worth of cuts to city staff.<\/p>\n Councilwoman Ivalis Meza Gonzalez (D8), who was considered a swing vote on the tax hike, said that was a bridge too far, and ultimately split with other Northside members and approved the increase.<\/p>\n \u201cThese right-sizing initiatives do not cut to the bone \u2026 [but] if the property tax increase were to fail, it would fall to the city manager\u2019s office,\u201d said Meza Gonzalez. <\/p>\n \u201cI believe that amounts to an abdication of my responsibilities. \u2026 I really want my colleagues to recognize that decision.\u201d<\/p>\n The tax increase means the average San Antonio home, valued at $234,000 with a homestead exemption, would pay an additional $35.43 per year. <\/p>\n