Financial Advisors Outline $500M Bond Strategy and Sensitivity Analysis for City Council

The San Antonio City Council held a budget work session on August 27, 2025, focusing on critical financial decisions and the potential issuance of a $500 million bond. The discussions centered on the importance of conducting a sensitivity analysis to evaluate the city's financial capacity and the implications of future debt.

City officials emphasized the need for thorough analysis before making significant financial commitments. They highlighted that understanding market conditions and potential risks is essential to avoid future tax rate increases due to unmanageable debt. The sensitivity analysis will stress-test the proposed bond plan, ensuring that the city can afford the debt even if economic conditions worsen.

Council members discussed the timing of the bond issuance, considering options to either proceed with the bond in the upcoming November election or delay it until 2027. This delay would allow for a more comprehensive assessment of the housing market and economic trends. Officials noted that other Texas cities are adjusting their tax rates based on community needs, which could inform San Antonio's approach.

The conversation also touched on the city's stormwater management projects, with a focus on a $411 million plan involving 14 projects. City officials committed to providing a clearer timeline for understanding the financial capacity related to these projects within the next 30 to 45 days.

Overall, the meeting underscored the city's cautious approach to financial planning, balancing immediate needs with long-term fiscal responsibility. The council aims to ensure that any decisions made are well-informed and sustainable for the community's future.