San Antonio staff present $4 billion FY2026 proposal, create Capital Delivery Department and boost homelessness funding

City budget director Justina Tate told the Planning Commission on Sept. 10 that the City of San Antonio’s proposed fiscal year 2026 budget totals $4 billion and represents about a 2.2% increase over last year’s budget. "Our total, fiscal year 2026 proposed budget is $4,000,000,000 and this represents about a 2.2% increase over last year's budget," Tate said during the commission meeting.

The proposal divides the budget into three major components: $1.2 billion in restricted funds (revenues dedicated to specific services such as the airport and solid waste), a $1.1 billion capital budget for large projects, and a $1.69 billion general fund that supports core city services including public safety, infrastructure, parks and animal care services. The proposed budget would maintain the city’s property tax rate at 54.159 cents per $100 of valuation and includes about $152 million in property tax relief programs, Tate said.

Why it matters: the proposal funds major capital work already under way, continues pandemic-era and ARPA-era shelter funding, and shifts the city’s internal structure to create a new department focused on delivering bond and large capital projects. Those decisions will affect construction schedules, drainage and street maintenance, homelessness responses and public-safety staffing across San Antonio and will move next to City Council for adoption this month.

Key budget components and planned investments - Homeless services: The proposed budget establishes a new Homeless Services and Strategy Office with about $30.5 million in direct investment for outreach, encampment response and a low-barrier shelter. Tate said the budget continues one year of…