San Antonio council reviews FY2026 finances and runs federal‑funding simulation as officials plan for possible cuts

San Antonio city staff presented a preliminary first‑quarter FY2026 3+9 financial report and walked council members through a federal‑funds simulation that modeled deep reductions in federal grants, prompting questions about program priorities and requests to publish a taxpayer impact statement before budget adoption.

Freddy Martínez, the City’s director of budget, told the council the 3+9 report covers unaudited October–December figures and represents a “preliminary update” to the five‑year picture. He said the general fund is “in line” with the adopted plan but flagged continued pressure from sales‑tax volatility and higher employee benefit claims. “Estamos anticipando 502 [million] de dólares que se reciban en el 1º trimestre,” Martínez said in presenting revenue projections and reserve levels tied to the council’s 15% policy target.

Assistant City Manager Cristina Tate summarized a multi‑agency exercise held in December that simulated a 50% reduction in federal grants and examined impacts on housing, health, human services and homelessness response. Tate said the city included $153 million in bond‑backed funds and modeled impacts on roughly 663 positions; the exercise showed “interrupciones significativas” to services if large federal flows are reduced and recommended creating a cross‑sector stakeholder group to coordinate mitigation plans. “Este ejercicio se ha planeado en un 5 horas,” Tate said, describing two scenarios the participants discussed.

Council members focused on two near‑term priorities: transparency for residents and program performance metrics. Several members urged staff to publish a taxpayers’ impact statement well before final adoption so residents can see how proposed fees and tariff changes would affect household bills. Councilor Mark White, who led the impact‑statement initiative, said the disclosure should include CPS and other entities involved in utility billing. Staff confirmed the impact statement will be incorporated into the FY2027 packet and posted online in advance of public hearings.

Members also pressed for clearer outcome measures on costly programs, notably the low‑barrier shelter initiative. Councilors noted the program’s current annual budget of roughly $4.8 million and questioned per‑person costs and success metrics. “Si tuviéramos el 10 por 100, serían 109,000 por persona… ¿Qué tipo de métrica necesitamos ver aquí para determinar si estamos teniendo éxito a través del programa de baja barrera?” a councilor asked. Staff said the program’s target outcome was a 55% positive exit rate for clients and that 183 people had been served under a contract noted in the presentation; housing staff said 183 clients had received services and that outreach links to behavioral‑health placement options remain constrained by system capacity.

On capital and infrastructure, councilors pressed for a clearer path to meet paving and sidewalk goals, especially along the 4/10 corridor, and discussed whether reinvestment tiers for tax‑increment revenues (TIRs) should be preserved or adjusted. Staff reiterated the calendar for FY2027 work: a five‑year forecast due in May, committee sessions in July and August, and final adoption targeted for Sept. 17.

Council discussion included operational questions about hotel‑occupancy tax receipts and major event scheduling; staff said hotel taxes were below plan for the quarter but anticipated recovery later in the year as scheduled concerts and events proceed.

No formal votes were taken. Council members closed the session with instructions for staff to return with more detailed spreadsheets, clearer performance metrics for major programs and the taxpayer impact statement ahead of the May forecast and the public review period in June.

The City Council adjourned the scheduled discussion and indicated further budget briefings and public forums will follow as the FY2027 calendar advances.