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 \u2014 all while the city continues planning Project Marvel, the proposed downtown sports and entertainment district.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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\u2019s 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.<\/p>\n
Jones has also floated the possibility of increasing SAWS\u2019 annual transfer to the city\u2019s general fund, a move that could help close part of a projected budget gap but could also add pressure for future water rate increases.<\/p>\n
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 \u2014 though property taxes could be used for voter-approved infrastructure.<\/p>\n
Guest:<\/b><\/p>\n
Gina Ortiz Jones<\/b> is the mayor of San Antonio.<\/p>\n
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