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San Antonio budget office says FY25 first-quarter results largely on track; council warned about federal-funded positions risk
Summary
City budget director presented the FY2025 first-quarter financial report showing overall alignment with the adopted budget, a small early-year revenue gap in some categories and projections to be updated in May; council members pressed staff about the potential loss of federal grant funding that supports roughly 750 positions.
City of San Antonio budget staff presented the fiscal year 2025 first-quarter financial update to the City Council, reporting that overall revenues and expenditures are generally in line with the adopted budget but that some revenue categories are tracking below plan and preliminary projections show a modest shortfall.
The update, given by Cristina Cheid, Director of the City of San Antonio Department of Budget, covered October–December results and an early projection for the remainder of FY25. Cheid described the presentation materials provided to councilmembers and said the next formal update will be delivered in May: "Nuestra actualización próxima será en mayo, veinte veinticinco, seis por seis, seis más seis, el reporte de seis más seis," she said.
Why it matters: The budget office framed the report as an early check on FY25 after three months. Council members repeatedly pressed staff about exposure to potential federal funding cuts that, if realized, could force the city to assume positions currently supported by federal grants or reduce services tied to those grants.
Key figures and items presented - Cheid reported the total FY25 budget as "3.96 billones de dólares" as stated in the presentation and described three major components: restricted funds (federally or state-restricted revenues), enterprise funds (service-specific funds such as solid waste and airport), and the general fund that pays for core services. The presentation noted the general fund supports public safety, streets, animal services and other city programs. - Sales tax revenue was reported as slightly below budget but within a few percentage points of last year; utility-related collections (CPS adjustments/utility passthroughs) were ahead of plan in part due to an anticipated electricity adjustment. The presentation said January sales-tax checks came in about $3.1 million above plan while CPS receipts for January were $5.4 million below plan, creating a net shortfall in those combined receipts for that month. - The budget office provided an early projection showing the city could be approximately $2.1 million below budget across other revenue sources, and said that projection will be updated as additional data come in. - The presentation described the hotel occupancy tax, airport fund, solid waste fund, capital program and other funds with figures presented in the slide deck. For example, the airport fund was cited as $127 million and the solid waste fund as roughly $58 million (as stated in the presentation).
Council questions and staff responses Councilmembers focused heavily on the city’s exposure to possible federal grant reductions. Councilmember Villagrán highlighted the number of positions funded by federal grants and asked for details; staff and the city manager told the council that the positions under discussion were in the range of the mid-700s and that the city was tracking national developments and would update the council if funding decisions changed. Staff cautioned there had been no immediate financial impact to date and that federal executive orders referenced in recent debate remain subject to litigation and change.
Other council concerns included: - Service-level risks: Several councilmembers asked which core services and departments (public safety, public works, health and human services, early-childhood/head start) would be affected if federal funding was reduced and asked for scenarios showing possible impacts. - Timing and process: Councilmembers asked about the budget calendar for FY26 and requested more community engagement, including an upcoming community survey and an expected presentation of the manager’s proposed FY26 calendar and priorities. - Specific program updates: Staff said investments approved in FY24–FY25—such as additional emergency-response staffing, clinics under construction, shelter operations and rental assistance—were in progress and that some of those programs were expected to continue into FY26.
What staff recommended and next steps Budget staff will continue to monitor revenue collections month-to-month and update the council in May with the midyear "six-plus-six" report (a six-month update and six-month forecast). The city manager indicated the office is reviewing potential internal efficiencies and will present areas for deeper review to council ahead of the formal FY26 process. Staff also said they will provide further detail on federal-funded positions and scenario analyses about possible funding reductions.
Ending The council did not take formal action on the budget during this session. Staff reiterated that the FY25 first-quarter report is preliminary and that subsequent months’ data will be incorporated into the May update and the manager’s FY26 calendar.
