San Antonio manager proposes $4.04 billion 2026 budget; tax rate unchanged

City Manager Eric Walsh presented the City of San Antonioproposed fiscal year 2026 operating and capital budget to the City Council on Aug. 14, proposing a $4.04 billion combined budget, a $1.69 billion general fund and no increase in the cityproperty tax rate.

Walsh opened the presentation by saying, "The tax rate is not changing and is staying the same," and outlined a two-year planning approach that the administration used to narrow an earlier projected multi-year shortfall.

The nut of the plan: reduce projected expense growth while protecting essential services, minimize impacts on vulnerable residents and avoid short-term fixes that create long-term risk. To achieve that, Walsh proposed parking fee and permit adjustments, transfers of eligible operating items to capital, $111 million in spending reductions identified over the summer, and targeted program changes rather than across-the-board cuts.

Key numbers and proposals

- Total proposed city budget (all funds, including capital and restricted funds): $4,040,000,000 (2.2% increase). - Proposed general fund: $1,690,000,000 (1.6% increase). - Authorized city positions in the proposal: 13,723 (net decrease of 116). Walsh said 68 civilian positions would be reduced, 35 of which are currently filled and will be reassigned where feasible. - Capital budget: $1.1 billion, with about $650 million for airport terminal development and $11.4 million proposed to address flood damage at Bridle Creek, Old O'Connor and Old Grissom Road. - Street maintenance: $122 million proposed for the citystreet maintenance program, roughly 1,500 projects and 416 miles addressed. - Homelessness and housing: Walsh proposed creating a homeless services and strategy office under the chief housing officer and included $4.8 million to continue a low-barrier shelter; the budget package includes $30.4 million in combined general fund and grant funds tied to housing efforts. - Public safety: the proposed general-fund public-safety budget is 63.7% of the general fund. The plan includes adding 53 police officers (28 supervisory positions for the planned South Flores police substation and 25 patrol officers) and additional firefighters and enhanced squad units; Walsh said the fire budget includes $1.4 million for staffing/equipment and facility assessments. - Compensation: a 2% across-the-board civilian pay adjustment is proposed for Oct. 1, a 4% police adjustment and an 8% firefighters adjustment tied to their collective bargaining agreements; Walsh said the budget also incorporates a 5% increase in civilian health-care premiums, with estimated employee cost impacts ranging from $0.86 to $32 per month depending on plan and dependents.

Budget process and next steps

Walsh said the budget presented is the start of a month of council work sessions: 12 budget work sessions over five weeks, 10 district town halls and required tax-rate and budget hearings, with adoption of the FY2026 budget scheduled for Sept. 18. He emphasized the administration's two-year balancing approach and said the fiscal-year-27 plan is a guardrail subject to change as FY26 actuals are monitored.

Organizational and program changes

Walsh proposed two organizational changes intended to improve delivery and strategy: 1) a new Homeless Services and Strategy office to align outreach, shelter and supportive services; and 2) a Capital Delivery Department formed by reallocating roughly 188 staff now in Public Works and elsewhere to focus on managing and completing capital projects. Mike Shannon, identified in the presentation as the Development Services official who will be appointed to oversee capital delivery, was named to lead that transition.

Council discussion and concerns

Council members expressed support for protecting core services while probing specific elements of the plan. Common lines of questioning included: why the civilian pay adjustment is 2% rather than 3%; whether more police officers (some council members urged funding 65 or 100 new officers rather than 25) should be added now rather than later; the sustainability of funding for the low-barrier shelter; and the geographic distribution and pace of capital investments such as sidewalks and streetlights.

Justina Tate, the budget director, clarified how some program funds are allocated: "The money that's allocated to the encampment includes both the outreach team from the homeless services and strategy department as well as funding for solid waste to do the actual cleanup," she told council members when asked about a $5 million encampment allocation.

Public comment

A member of the public, Jack M. Finger, used his allotted time during the tax-rate item to criticize property-tax relief and local tax policy, saying the average homeowner had seen higher bills and urging the council to consider larger reductions in tax burden.

Votes at a glance

- Consent agenda (items 6through 15, except 12B withdrawn; item 9 pulled for recusal): motion to approve carried on a voice vote (mover/second not specified in the record). Outcome: approved. - Item 9 (ordinance extending a lease agreement with BeLink for one-year renewal, revenue of $9,348.45 to the general fund): motion and second recorded and the item passed. Outcome: approved. - Item 4 (ordinance establishing the city's proposed maintenance and operations tax rate at 33.009 cents per $100 and a debt-service rate at 21.15 cents per $100 as recommended in the FY2026 proposed budget): motion and second recorded and the ordinance passed; the city manager and staff reiterated there is no increase in the tax rate. Outcome: approved. - Item 5 (ordinance setting dates, times and places for required budget and tax-rate public hearings): motion and second recorded and the item passed. Outcome: approved.

(For council actions where the transcript records only voice votes or generic "aye" responses, the official mover and seconder were not specified in the verbatim record; formal roll-call tallies were not printed in the transcript.)

Why it matters and next steps

The proposed FY2026 budget keeps the tax rate steady while shifting the city's spending priorities through a mix of reductions, fee changes and targeted investments intended to preserve core services and shore up capital delivery. Council work sessions and town halls scheduled over the next month will allow members to amend the proposal ahead of a Sept. 18 adoption vote.

City staff said the budget workbook and detailed schedules have been posted to the city's OpenGov site for public review; council members and staff will return to department-level briefings starting the week after Aug. 18.