San Antonio’s City Council approved a $4.3 billion budget Thursday that avoids a tax rate increase by relying on roughly $4 million in new and increased fees. The spending plan for fiscal year 2026, overseen by Mayor Gina Ortiz Jones in her first budget cycle, addresses immediate city needs while bracing for potential reductions in federal funding.
The budget’s reliance on fees-rather than property taxes-impacts residents through adjustments to services like progress impact fees and solid waste collection. This approach aims to maintain current service levels despite anticipated financial headwinds, but also prompts a broader discussion about diversifying city revenue streams. The council is simultaneously considering a revenue-sharing agreement tied to the forthcoming Spurs arena, seeking additional funds from sources like naming rights, parking, and concessions.
Mayor Jones emphasized the need for proactive revenue generation, stating, “We cannot think about the budget gap and not think about… how do you get additional money into the general fund?” She anticipates increasing financial pressure as federal funding perhaps decreases.
The approved budget includes $1.6 billion for the San Antonio Police Department and $838 million for the city’s general fund. Council members also approved fee increases related to development and solid waste services to help offset costs. The city is also actively pursuing a revenue-sharing agreement linked to the new Spurs arena, hoping to secure funds from naming rights, parking revenue, and concessions.
