City Adopts Balanced Fiscal Year 2026 Budget

Published on September 18, 2025

SAN ANTONIO (September 18, 2025) – City Council today approved a balanced $4 billion budget for Fiscal Year 2026 that protects essential services, invests in community priorities, and keeps the City’s property tax rate unchanged. The plan also sets the foundation to maintain balance in Fiscal Year 2027 despite slower revenue growth and rising costs.

At the start of the budget cycle, the City faced projected shortfalls. To close the gap, the City reduced spending by $111 million, shifted some costs to the Capital Budget, increased targeted fees and fines, and eliminated 67 positions – with impacted employees placed in existing vacancies.

“Even in a challenging environment, this budget stays true to our values: protecting core services, minimizing the impact on vulnerable residents, and avoiding long-term risks,” said City Manager Erik Walsh.

Major Investments by Priority Area

Homelessness

The budget creates a new Homeless Services & Strategy Department to focus on providing immediate help for our unhoused neighbors while working on lasting solutions. The City’s $30.5 million investment includes $4.8 million to keep open a low-barrier shelter that was originally federally funded. It also ensures that 1,300 homeless encampments are cleaned up within 14 days of a 311 report.

Infrastructure

The budget establishes a Capital Delivery Department with 188 existing positions to deliver major bond projects on time and on budget while working alongside Public Works. This separates major project delivery from routine maintenance, allowing both teams to work more efficiently. The budget commits $122 million to street improvements, enough to complete 1,464 projects and maintain 416 miles of road. It also dedicates $17 million to sidewalks, adding 21 miles of new sidewalks and repairing 11 miles.

Affordable Housing

The budget invests $31.4 million to continue implementing the Strategic Housing Implementation Plan (SHIP). This includes $22.8 million for home rehabilitation and repair, rental assistance, and down payment assistance. By the end of Fiscal Year 2026, we expect 13,100 affordable homes completed, underway, or planned.

Public Safety

The budget invests $631.5 million to police services and $428 million to the Fire Department to keep our community safe. This will add 40 new police officers for patrol and 28 police officer positions for the S. Flores police substation scheduled to open in 2027. The budget adds 12 new firefighters to address medical calls.

Animal Care

The budget continues a multi-year investment in Animal Care Services. The City’s $33.6 million investment will enable a projected 85% live release and placement rate, a 100% response rate to critical calls by the end of Fiscal Year 2026, and 41,459 spay and neuter surgeries – a 6.5% increase over Fiscal Year 2025.

Learn more about the budget at SA.gov/Budget.