SAN ANTONIO — San Antonio city staff recommended the city’s first property tax rate increase in 33 years as part of a proposed 2027 budget presented to the City Council last week to address a projected budget deficit that could reach $157.7 million by 2028.
City officials said rising expenses and slowing revenue growth have created budget pressures that could expand the deficit to $264 million by 2031 if no corrective action is taken.
Under the proposal, the city would increase the property tax rate by 3.5%, the maximum allowed under state law, and use available “unused increment” funds to generate nearly $54 million in additional revenue.
The city’s current property tax rate is about 54 cents per $100 of taxable property value. City staff estimated the proposal would increase annual property taxes by about $81 for the average homeowner, or approximately $6.75 per month.
Officials said the additional revenue would help avoid service reductions and workforce cuts. Staff warned that rejecting a property tax increase could require the elimination of 132 filled positions and prevent salary increases for city employees.
Council members expressed differing views on the proposal during budget discussions.
District 10 Councilman Marc Whyte opposed the tax increase, calling it unacceptable. District 9 Councilwoman Misty Spears said residents in her district do not support a tax hike and urged the city to pursue grants and partnerships with Bexar County to strengthen finances.
Mayor Gina Ortiz Jones said she was not prepared to support a property tax increase without additional details about the budget proposal and potential alternatives.
Council members Phyllis Viagran and Ric Galvan voiced support for a tax increase if it would prevent significant cuts to city services and departments. District 1 Councilwoman Sukh Kaur asked staff to examine how much revenue the city could generate by using unused increment funds without raising taxes.
Council members also requested district-specific analyses showing how potential budget reductions could affect services and staffing. City staff said they plan to provide that information in August.
Staff also proposed several additional revenue measures expected to generate $21.9 million over the next two years. The proposals include increasing ambulance transport fees from $1,500 to $1,700, charging an annual $10 fee for library users who live outside city limits, and reducing city funding for Fiesta by $1.4 million over two years.
Some council members suggested other revenue options. District 4 Councilman Edward Mungia proposed examining fees related to private communication towers. District 5 Councilwoman Teri Castillo opposed cuts affecting libraries, while Jones questioned whether organizations that generate revenue through ticket sales should continue receiving city subsidies.
District 2 Councilman Jalen McKee-Rodriguez said workforce reductions would have significant consequences for affected employees and their families.
City staff will present a proposed budget to the City Council on Aug. 13. The council is expected to adopt a final budget and decide on any property tax increase before the end of September.
