City Finance Office Reviews $3.6B Debt Management Strategy and Future Bonds

San Antonio's City Council has taken significant steps to enhance its financial management and infrastructure development during the Budget Work Session held on August 27, 2025. A key highlight was the presentation of the city's updated debt management plan, which outlines the strategies for managing existing and future debt.

The plan focuses on various types of debt instruments, including general obligation bonds, certificates of obligation, and tax notes, all primarily backed by property taxes. The last authorization for general obligation bonds occurred in 2022, amounting to $1.2 billion for over 180 projects. The council discussed the importance of maintaining a low effective interest rate of 2.8% on the current outstanding debt, which totals approximately $2.6 billion.

In addition to general obligation bonds, the council reviewed the issuance of revenue bonds, particularly for airport and stormwater projects. The airport's terminal development program is set to require a significant revenue bond issuance of around $1 billion, with plans to address a $469 million payment due in February. This financing will support ongoing construction and improvements at the airport.

The discussion also highlighted the city's strong bond ratings, which are among the highest for cities of similar size in Texas and nationwide. This strong rating is crucial for securing favorable borrowing terms and ensuring the city's financial health.

Furthermore, the council expressed interest in addressing drainage projects, with potential opportunities to utilize stormwater revenue bonds for additional funding. The stormwater bonds, currently at $24.5 million, are backed by a dedicated stormwater fee, which also supports operational costs.

Overall, the meeting underscored the city's commitment to responsible debt management and infrastructure investment, setting the stage for future growth and development in San Antonio. The council's proactive approach aims to ensure that the city can meet its financial obligations while enhancing public services and facilities for residents.