Fiscal Year 2027 Proposed Budget Presented to Mayor & City Council

Published on August 13, 2026

SAN ANTONIO (August 13, 2026) – Today, City Manager Erik Walsh presented the Fiscal Year 2027 Proposed Budget to the Mayor and City Council. The FY 2027 budget is balanced, as required by law. It also includes a balanced plan for FY 2028.

This is a challenging financial year, but San Antonio is prepared to manage it. Like many cities, San Antonio faces rising costs, lower property values and state limits on local revenue growth. Because of these conditions, the City began the budget process with a projected General Fund shortfall of nearly $158 million through FY 2028.

The proposal protects essential services, meets legal requirements and supports the priorities of the City Council and community. These priorities include public safety, streets and sidewalks, homeless services, affordable housing, senior services, parks and libraries. 

The proposed budget includes $89.6 million in spending cuts across FY 2027 and FY 2028.

The City did not collect the full amount of property-tax revenue allowed during the past two years. State law allows the City to carry that unused capacity forward. 

Because costs are rising, the proposed budget recommends a property-tax increase. 

The proposed rate would rise from 54.159 cents to 56.288 cents per $100 of taxable value. For the average homeowner, the estimated increase would be $2.95 per month.

The City would also provide $156.4 million in property-tax relief through homestead exemptions and tax freezes for seniors and homeowners with disabilities.

General Fund revenue is expected to grow by 5.1%, while expenses would grow by 4.1% in FY 2027. 

“This is a balanced and responsible budget focused on our community’s top priorities,” City Manager Erik Walsh said. “It reflects the sound financial management that our residents expect by making careful reductions, protecting essential services, and continuing to invest in our community’s future.”

Homelessness and Affordable Housing

The proposed budget includes $30.8 million for homeless services. The funding would be a new approach to frequently recurring encampments and completion of the City’s Shelter and Housing Framework.

The budget does not continue the low-barrier shelter plan in its current form; however, $9 million in interest earned from housing bonds would be used for emergency shelter capacity and improve a day center.

The budget also includes $37.7 million for affordable housing. The funding would support rental assistance, 497 home repairs, 419 new or preserved affordable homes and help with down payments. 

Infrastructure

The proposed budget includes $129.8 million for street maintenance for 1,979 projects and 534 miles and $12.8 million to build 12.8 miles of sidewalks and repair another 8.7 miles.

To reduce pressure on the General Fund, $7.3 million in eligible street projects would be funded through the capital budget. The budget also includes $600,000 to speed up the design of neighborhood and capital projects and $1.4 million for quick-build street projects, traffic-signal technology, speed studies and a test program for rail-crossing alerts.

Public Safety

The proposed General Fund budget includes $676.5 million for the Police Department and $451.2 million for the Fire Department.

SAPD would add 49 officers. This includes 27 officers for the airport’s new terminal and moves funding equivalent to 22 vacant park police positions to SAPD to create 22 SAPD positions. The department would have a total of 2,957 officers. SAPD would also reduce costs by $5.4 million through lower overtime, administrative savings and eliminating six civilian support positions.

The Fire Department would add nine firefighter positions, bringing its total uniformed staff to 1,889. It would reduce costs by $3.7 million through more efficient use of overtime and leave.

Animal Care Services

The proposed General Fund budget includes $38 million from the General Fund for Animal Care Services.

A new animal hospital will open this year, adding 10 Animal Care positions and $1.9 million in funding. ACS expects to perform 42,959 surgeries, a 5.2% increase.

ACS expects 88% of animals to be placed or released alive next year. The department also expects to respond to 98.5% of the 51,330 critical calls it receives in FY 2027.

Senior and Human Services

The Human Services General Fund budget would remain approximately level at $31.2 million.  

The budget will maintain senior center hours from 7 a.m. to 7 p.m. It also funds the operations of the new District 1 Multigenerational Center and the renovated Ella Austin and Kenwood community centers.

Three part-time nutrition sites with low participation would close: Darner, South San and Harlandale Briar. Each site is within five miles of a full-service senior center. Those centers offer more services at a lower cost per participant.

Parks and Libraries

Parks funding in the General Fund is $71.1 million. The budget supports maintenance of nine new miles of greenway trails, three miles of walking loops and 158 acres of parkland. It also includes $3.8 million to add shade structures at 12 playgrounds.

Libraries are funded at $58.1 million in the General Fund. The budget funds the Carver Branch Library expansion, safety upgrades, new equipment and furniture, and the replacement of 164 public computers.

Both departments would also lower costs, adjust programs with less use and move eligible expenses to other funds.

Economic Development

The proposed budget continues investments that support job creation, private investment, and long-term economic growth. The proposed budget includes $5.6 million for new economic investment through the Economic Development Incentive Fund. 

Continued Investment Through Restricted Funds

The Airport Fund totals $185.9 million. The new 850,000-square-foot terminal is approximately halfway complete and remains on scope, on schedule and on budget for completion in FY28.

The budget includes $54.1 million for Development Services and $171.6 million for Solid Waste. The Solid Waste budget includes $3.1 million for the Starcrest Transfer Station, a waste-transfer and disposal facility. The Proposed Budget includes a fee increase of 75 cents on garbage carts and a 25-cent increase on the environmental fee. 

Proposed Budget Town Halls

Residents are encouraged to attend a City Budget Town Hall to learn about the proposed budget, share their thoughts and ask questions. Meetings will be held in every City Council district from August 17 through August 28.

The City will also host two public hearings regarding the 2027 Ad Valorem Tax Rate and the Fiscal Year 2027 Proposed Budget. 

Learn more about the proposed budget and view a full list of Town Hall meetings, including the Youth Town Hall, at SA.gov/Budget.