San Antonio City Council will reconvene on Oct. 29 to discuss bond proposals. Credit: Michael Karlis

City Council is weighing another property tax increase in advance of the 2027 bond, a move that would allow the city to borrow more for roads and sidewalks across the city along with infrastructure improvements aligned with Project Marvel.

During Wednesday’s B Session, at least four members of council said they are open to the idea of another property tax increase if it means more funding for city projects over the next five years.

However, four more appear undecided, and the three most fiscally conservative members said they’re skeptical voters would approve a tax-increase-driven bond. Those in opposition pointed to council’s recent approval of a 3.9% property tax increase and a SAWS rate hike as an indication residents are already being asked to shoulder too much.

The debate comes as city leaders struggle to figure out how to keep up with growth as they face tighter budgets brought on by factors such as declining property valuations, cuts in federal funding and rising police and fire expenses.

City Manager Erik Walsh told reporters on Wednesday that the city doesn’t expect any revenue growth until at least the 2028 fiscal year unless economic conditions improve significantly.

“A tax increase absolutely has to be off the table. We’ve got to stop putting our hands in people’s pockets and taking their money,” Councilman Marc Whyte said at Wednesday’s meeting. “I mean, every damn time we’re up here, we’re talking about taking more money out of people’s pockets, and that has to stop.”

Bond proposals

The city can borrow $442 million for the 2027 bond cycle without issuing another property tax increase, Walsh told council. Among other things, that total includes $35 million for infrastructure improvements as part of Project Marvel.

At least four council members — Phyllis Viagran, Teri Castillo, Ed Mungia and Sukh Kaur — said during the meeting that they’re open to borrowing $750 million so more projects around the city can move forward. That would necessitate another property tax increase on top of the 3.9% one council recently passed.

Council members Marina Alderete Gavito and Misty Spears joined Whyte in voicing opposition to another property tax increase.

The four other members of the dais, including Mayor Gina Ortiz Jones, appeared undecided on which way to proceed.

Drainage projects

One aspect that all on council members appear to support is $175 million for stormwater and drainage improvements. However, members are split on how to raise that sum, which is separate from the proposed $442 million bond.

Walsh and his staff are proposing a 16% stormwater fee increase, which longterm amounts to about $10 a year for average homeowners.

Right now, most residential users pay about $5 a month.

Kaur proposed incorporating the stormwater drainage project into the proposed infrastructure bond. That would mean residents’ stormwater fees would remain the same, but property taxes would go up by around $1 monthly, by her estimates.

Council will discuss the matter again on Thursday, Oct. 29, when staff will provide two options. One will include a larger bond with a property tax increase, while the other will be a $442 million bond with no property tax increase.

If the bond is to go to voters in May, council must finalize the bond amount and its projects no later than the second week of February.

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Michael Karlis is a multimedia journalist at the San Antonio Current, whose coverage in print and on social media focuses on local and state politics. He is a graduate of American University in Washington,...