San Antonio Mayor Gina Ortiz Jones is entering a difficult stretch of city budgeting, with several expensive decisions arriving at once: possible utility rate hikes, a potential property tax rate increase and a smaller-than-expected 2027 bond package — all while the city continues planning Project Marvel, the proposed downtown sports and entertainment district.

City officials are evaluating a 2027 bond election, but the next package could be far smaller than the $1.2 billion bond voters approved in 2022. City financial staff have warned that a bond of similar size would likely require an increase in the debt-service portion of the property tax rate, which is used to repay bond debt. Exact options are expected to be refined later this year.

The pressure comes as San Antonio faces projected budget shortfalls and slower revenue growth. TPR reported that the city may need to consider both budget cuts and a property tax rate increase as it prepares for 2027.

At the same time, both city-owned utilities are under scrutiny. SAWS has warned that aging water and wastewater infrastructure will require major investment. A consultant’s study suggested the utility could need steep increases by 2030, beginning with proposed water and wastewater hikes in 2026. CPS Energy, meanwhile, has built a potential rate increase into its budget but says it will wait until after the summer before deciding whether to formally seek one.

Jones has also floated the possibility of increasing SAWS’ annual transfer to the city’s general fund, a move that could help close part of a projected budget gap but could also add pressure for future water rate increases.

Complicating the picture is Project Marvel. The city says the downtown district would include a new Spurs arena, Hemisfair redevelopment, convention center improvements and other projects, funded primarily through visitor taxes and private contributions — though property taxes could be used for voter-approved infrastructure.

Guest:

Gina Ortiz Jones is the mayor of San Antonio.

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