San Antonio faces a major budget deficit and Friday new Mayor Gina Ortiz Jones and council members were told it could reach $151 million in 2027.
That’s unless they make some tough choices.
Among the options, dramatic cuts in spending and potentially raising the property tax rate for the first time in years.
Several council members said they could not support increasing the tax burden for San Antonians.
But the city manager and his staff presented the increase as one of three options they could choose to reduce the deficit.
The previous council was warned in May that property tax revenue is flat causing a big imbalance in budgets for the next two years.
Today city staff presented the council with three scenarios.
The first: they can cut spending on everything but core services.
The second option: spending cuts plus holding back $59 million the city would normally give to CPS Energy. That money comes from surplus energy CPS sells to the Texas power grid.
The third option includes some cuts, CPS energy money, and an increase to the property tax rate.
“Scenario three is an absolute nonstarter. No new tax hikes on our citizens,” said District 10 Councilmember Marc Whyte.
“Right now council is stuck between a rock and a hard place, we’re up here knowing that we’re going to have to make hard decisions on how these cuts are going to have to happen,” said District 7 Councilmember Marina Alderete Gavito.
Here’s what the city says the estimated impact would be to homeowners’ tax bills if the council chooses the tax hike.
An increase of between $57 and $67 in 2026.
And a $28 or $29 increase in fiscal year 2027.
Some council members said they’re worried about using the CPS Energy money because it might cause the city owned utility to seek a rate increase.
There will be budget work sessions and community town halls over the summer and a budget will have to be adopted in September.