San Antonio staff previews FY27 draft budget and canvasses options including small property tax increase

City budget director Fer Martednez presented a preliminary two-year budget framework on June 18 that shows a structural shortfall and several revenue and reduction options.

Martednez told the council the proposed approach is preliminary and that staff plans to present a proposed budget on Aug. 13 after two months of district outreach and further analysis. He said the draft includes potential revenue actions and expenditure reductions, and offered an example increase in property tax that would translate to roughly $6.75 per month for a typical homeowner under one scenario. "Para este presupuesto de año fiscal 27 se recomienda un aumento de predial," he said, adding that staff is also developing fee adjustments and looking at new revenue streams.

Councilmembers debated tradeoffs at length. Some members urged protecting senior and disabled homeowners through freezes or exemptions and asked for deeper program-level impact analyses before approving any tax increase. Others said the city must prioritize public-safety staffing and capital repairs if new revenue is approved. Councilmembers asked staff for clearer sequencing: which positions might be cut, how reserves would be used and how potential fee changes (parks passes, library fees) would be implemented and communicated.

Martednez and staff outlined a set of suggested savings, vacancy actions and revenue adjustments that staff will refine over the summer and present in the August proposal. Councilmembers also requested district-level workshops and improved public materials to explain tradeoffs to residents.

Next steps: staff will continue community engagement through July and return a proposed budget to the council on Aug. 13 for formal consideration.