San Antonio unveils roughly $4 billion FY2026 proposed budget; city says property tax rate will not increase

San Antonio city officials on Sept. 3 opened a public hearing on the fiscal year 2026 proposed budget, presenting a plan of about $4 billion and saying the city's ad valorem tax rate would remain unchanged at 54.159 cents per $100 valuation.

Justina Tate, the city's budget director, told the City Council the proposed FY2026 budget totals about $4,000,000,000, a roughly 2.2% increase over FY2025, made up of a $1.69 billion general fund, about $1.10 billion in capital spending and $1.2 billion in restricted funds. Tate said the proposal includes roughly $152,000,000 in property tax relief through exemptions and freezes for homesteads, seniors, people with disabilities and childcare providers.

"The fiscal year 2026 proposed budget is about $4,000,000,000," Tate said during her presentation. She reiterated that "there is no property tax rate increase in the proposed budget. It remains at 54.159¢ per $100 in valuation." Tate also said the city received the certified tax roll from the Bexar Appraisal District showing an approximate 0.9% decrease in base value and new values growing about 1.76%.

Tate highlighted fee changes included in the proposal: under a new state law she said will take effect Dec. 1, food establishment fees would be assessed based on gross food sales rather than number of employees; the change is intended to partially recover the cost of food safety and inspection services.

During the hearing's public-comment portion, Jack M. Finger criticized the proposal and urged larger tax relief and spending cuts. Finger cited a prior $21 million deficit and suggested eliminating the city's arts and culture budget, saying one arts agency, the Esperanza Peace and Justice Center, had programming he opposed. He also urged cutting diversity, equity and inclusion programs.

"You keep saying you haven't raised the taxes in the 30 some odd years, but we the taxpayers know that our experiences put the light of that," Finger said. He also suggested the city could "erase" an approximately $13,000,000 arts and culture line and shift those funds elsewhere.

The council closed the hearing after hearing comments and noted two additional dates in the adoption process: a second public hearing on the budget and tax rate scheduled for Sept. 11 and a formal Council vote on adopting the FY2026 budget and tax rate scheduled for Sept. 18.

No formal vote on the budget or tax rate occurred at the Sept. 3 hearing; city staff presented the proposal and accepted public comment as part of the required public hearing process.