San Antonio weighs first property-tax hike in 33 years as FY2027 budget unfolds
San Antonio’s FY2027 budget is underway, and leaders are weighing a tax-rate hike, spending cuts, or both before June and August deadlines.
San Antonio’s FY2027 budget fight is underway, and City Council is being asked to choose between a property-tax-rate increase, spending cuts, or a mix of both. The city’s budget calendar puts a June 17 trial budget on deck, an Aug. 13 proposed-budget presentation next, and a Sept. 17 meeting when council is scheduled to consider the budget and tax-rate ordinances.
At the May 22 goal-setting session, staff presented deficit scenarios tied to the FY2027 outlook. The city’s financial presentation says one path is to set the property-tax rate at the state-allowed growth level, while other options include fee changes and targeted reductions; the presentation also says FY27 property-tax revenue is projected to fall 1.7% if the current rate is maintained.
The tax question is the sharpest part of the debate. Local reporting says the current rate is $0.54159 per $100 of valuation and that maxing out the rate would push it to $0.57648, which would be the highest city rate since FY 2007; the Express-News also reported council members describing property taxes as having gone 33 years without an increase.
KSAT reported that if the city maxes out the rate, the average homeowner would pay about $81 more a year on top of a current city tax bill of $1,074. That is only an estimate, though — the final impact will depend on the tax rate council adopts and the appraised value of each home.
The stakes go beyond property-tax bills. The city’s general fund pays for police and fire protection, parks and libraries, and the Express-News reported that if council rejects a rate increase, officials would need to find $131 million in cuts from the general fund. KSAT also reported May 29 that some council members still want more SAPD officers, even as they debate how to pay for them.
