Universal City Council aims for 0.53 tax rate, designates two reinvestment zones and approves several capital projects

Universal City City Council on July 8 directed city staff to advertise a proposed overall tax rate of 0.53 and took a series of actions on capital projects, economic incentives and planning while hearing presentations on wastewater rates, a golf course renovation study and five‑year crime trends.

The tax‑rate guidance came after several hours of budget review. City staff said a 0.53 tax rate supports the fiscal 2026 proposed budget, while a one‑cent change in the rate would shift about $200,000 in revenue citywide. “For every penny up or down it’s equivalent to approximately $200,000,” the city’s finance presentation said. Council voted to direct staff to publish a 0.53 rate to start the public hearing process.

In other fiscal and capital items, council approved bids and authorizations for street and waterline work on Flintstone Drive, accepted final public improvements for Cibolo Crossing Unit 2, and approved multiple consent items. Council also authorized staff to expend $105,000 to hire a golf‑course architect to prepare design and bidding documents for renovation work at the municipal course; council discussion clarified that the money could come from venue‑tax funds already budgeted to the golf course.

Council designated two reinvestment zones — the Reunion District Reinvestment Zone No. 1 and the Aviation District Reinvestment Zone No. 1 — allowing the city to consider tax abatement applications within those areas in the future. City staff reiterated that designation alone does not grant abatements; any abatement would require a separate application and council approval.

Staff reports and presentations

Katie Overstreet, utilities manager with the San Antonio River Authority, presented the SARA wholesale wastewater budget and rate proposal. Overstreet said the system‑wide average wastewater rate increase for fiscal 2026 is about 5.18 percent, while Universal City’s wholesale charge — using the system’s winter‑average methodology — would rise roughly 4.1 percent year‑over‑year based on the city’s winter average. “This year we’re looking at a system wide average increase of 5.18%,” Overstreet said. SARA staff said connection fees will not increase for fiscal 2026 and that the new budget will go to the SARA board in September with new rates effective Oct. 1.

Nathan Kreis, a golf‑course architect hired to assess the municipal course, summarized a report that identified bunkers, irrigation, tee boxes and tree management as the course’s primary capital needs. Kreis recommended combining major elements of the renovation into a single construction project to reduce mobilization costs and keep the course open during most work. He estimated the probable construction range at roughly $1.2 million to $1.8 million and said his design contract to prepare bid documents would cost $105,000.

Chief Ed Michalski presented a five‑year review of reportable offenses (2020–2024) and calls for service. Michalski said property crimes — primarily theft and burglary — accounted for most incident volume and drove the 2023 spike; those numbers fell in 2024. He said staffing shortfalls in 2023 reduced the department’s ability to conduct proactive patrols, and that recent hiring and a permanent traffic unit helped reduce reported incidents and increase arrests for crimes against society. “When we start to notice…hot spots, we send selected patrols,” Michalski said, summarizing the department’s approach to trends.

Votes at a glance

- Budget/tax guidance — Council directed staff to publish a proposed overall tax rate of 0.53 for public notice and the required public hearing process (council vote to publish guidance recorded). - Golf course design contract authorization — Council authorized staff to expend $105,000 for design and bid documents from the golf course fund/venue tax (motion recorded). An amendment that would have restricted additional venue‑tax transfers failed. - Reinvestment zones — Council adopted ordinances to designate Reunion District Reinvestment Zone No. 1 and Aviation District Reinvestment Zone No. 1 (ordinances read and adopted on first reading; council discussed that abatements would require separate applications and approvals). - Municipal solid‑waste CPI adjustment — Council approved the contractually required Consumer Price Index pass‑through adjustment for solid waste rates. - CDBG Flintstone Drive street improvements — Council accepted the low bid and awarded the CDBG‑funded street contract (award recorded). - Flintstone waterline project — Council accepted the low bid and awarded the waterline contract for Flintstone Drive (award recorded). - Cibolo Crossing Unit 2 — Council granted final acceptance of public improvements for Unit 2 (final acceptance recorded). - Executive session resolution — Council met in executive session on a proposed purchase of property at 104 E. Lindbergh for the Universal City Economic Development Corporation; council returned and moved to authorize the purchase (motion and vote recorded).

Why it matters

The advertised tax‑rate step begins the legal process that will include a required public hearing and a final vote; the council’s guidance sets the level staff will use when publishing the rate notice. Designating reinvestment zones opens the door to future tax abatement applications tied to specific projects; such abatements reduce city tax receipts while the abatements are in effect and would come back to council for approval on a case‑by‑case basis. The wastewater presentation foreshadows a modest wholesale increase that will affect the city’s utility fund and ultimately retail customers. The golf‑course work and the Flintstone/Cibolo construction awards are funded from a combination of local revenues, venue tax and awarded grants and represent near‑term capital work already budgeted or identified in the proposed FY2026 plan.

What’s next

Staff will publish the proposed tax rate and schedule the statutorily required public hearing. SARA will present its budget to its board in September and the new wholesale wastewater rates would become effective Oct. 1 if adopted. The golf‑course architect will produce design documents and an RFP package; the city will return to council for construction‑phase approval once bids are received. Council will consider formal abatement applications if developers apply within the newly designated reinvestment zones.

(Reported from the Universal City City Council meeting, July 8, 2025.)