San Antonio council faces Sept. 17 vote on proposed tax-rate increase and FY 2027 budget

San Antonio City Council is scheduled to vote Thursday, Sept. 17, on the city’s proposed fiscal year 2027 budget and property-tax ordinances as members remain divided over whether to approve a higher tax rate or revise the spending plan.

The decision could affect property-tax bills, city fees and funding for public services. The proposed tax-rate increase requires seven votes on the 11-member council. If it does not receive that support, the current property-tax rate would remain in place and city staff would have to revise the budget.

What council will consider

The city’s budget calendar lists Sept. 17 as the date for council action on the FY 2027 annual operating and capital budget, ad valorem tax-rate ordinances and revenue adjustments. The scheduled action also includes amendments to fees included in the proposed budget.

The vote follows public hearings on the proposed budget and tax rate, as well as budget work sessions scheduled for Tuesday, Sept. 15, and Wednesday, Sept. 16.

Why the budget is under pressure

The city said it began the budget process with a projected General Fund shortfall of nearly $158 million through FY 2028. San Antonio cited rising costs, lower property values and state limits on local revenue growth as factors behind the pressure.

The proposed plan addresses that gap through about $89.6 million in spending cuts across FY 2027 and FY 2028, a proposed property-tax increase and changes to fees and other revenue sources.

What the proposal would change

The proposed combined property-tax rate would rise from 54.159 cents to 56.288 cents per $100 of taxable value, an increase of 2.129 cents per $100.

The city estimates that the proposed change would cost the average homeowner $2.95 more per month. The proposal also includes $156.4 million in property-tax relief through homestead exemptions and tax freezes for seniors and homeowners with disabilities.

The proposed budget includes a 75-cent increase on garbage carts and a 25-cent increase in the environmental fee. Those fee changes are proposals and would require final council action.

The political math

Texas Public Radio reported Sept. 10 that the council remains divided over the proposed tax increase, which would be San Antonio’s first tax-rate increase in more than 30 years if adopted. The report said three council members had opposed a procedural measure allowing staff to explore the increase.

Budget Director Freddie Martinez said 60% support is required for the tax-rate increase. On the 11-member council, that means seven votes.

Without seven votes, Martinez said, the property-tax rate would remain at its current level and staff would have to return with a revised budget. That could require additional spending or service reductions, but those changes have not been enacted.

What residents should watch

The Sept. 17 meeting will determine whether council adopts the proposed tax rate and budget package or moves forward with a different revenue and spending plan. The final effect on individual households will depend on the adopted ordinances, property values, exemptions, freezes and any approved fee changes.

Until council acts, the proposed tax rate, spending cuts, fees and possible service reductions remain proposals rather than enacted changes.

Sources

• City of San Antonio FY 2027 proposed budget
• Texas Public Radio: Divided council could buck San Antonio’s first tax hike in decades with just 5 votes

Look for updates to this story

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