San Antonio City Council on Thursday voted 7-4 to approve a 3.9% residential property tax increase next year to balance the city’s budget and plug its $158 million deficit.
It’s the city’s first property tax increase in more than three decades.
San Antonio Mayor Gina Ortiz Jones, District 7 Councilwoman Marina Alderete Gavito, District 9 Councilwoman Misty Spears and District 10 Councilman Marc Whyte all voted against the increase, arguing that council could have done more to avoid asking taxpayers to pay more.
“I look forward to the conversations we’ll have soon after this budget season to hopefully capitalize on those opportunities that we left on the table this year,” Jones said moments before the vote.
In the days leading up to the vote, Jones presented three options.
First, she proposed ending the city’s job-training program, Ready to Work — an idea rejected by her council colleagues.
Then she proposed lessening the tax burden by removing millions in spending from the General Fund and covering the difference with hotel occupancy tax plus tax increment reinvestment zone revenues.
Finally, in a Hail Mary move, Jones during council’s Wednesday budget work session proposed cutting the budgets of all city departments by 1.6%. Whyte had also proposed a 2% cut across all city departments in the weeks leading up to the vote.
However, during Thursday’s debate, the rest of council brushed aside the across-the-board cuts proposed by Jones and Whyte.
Most residents who spoke during the meeting’s public comment session opposed the tax hike. However, council’s supporters of the tax increase, including District 4’s Ed Mungia, argued the move is necessary if San Antonians expect to maintain the quality of city services they currently enjoy.
“The bottom will fall out of this city,” Mungia said. “If you think the burden right now is felt on those who are the most vulnerable, it will be to a much greater effect if we do not continue these programs that are so vital to so many people in our community.”
If council hadn’t voted for the tax increase, city staff would have been required to implement $75 million in cuts to city services and payroll.
What’s more, it also could become harder for municipalities to pass tax increases. Gov. Greg Abbott is pushing the Republican-controlled Texas Legislature to pass a law this session that would prevent municipalities from raising property taxes without obtaining approval from two-thirds of voters.
Abbott has also threatened to break up CPS Energy, San Antonio’s municipally owned utility, which contributes a significant portion of its own revenue to the city.
With the property tax increase on the way, San Antonio residents also could feel the pinch from coming rate hikes.
In the coming months, council is expected to consider whether to allow San Antonio Water System to raise rates by more than 30% as well as a possible CPS Energy rate hike.
What’s more, another 4.4% property tax increase on top of the one passed by City Council Thursday is still on the table should the city need additional revenue. Council will revisit that issue next year.
Sign Up for SA Current newsletters.
Follow us: Apple News | Google News | NewsBreak | Reddit | Instagram | Facebook | Twitter | Or sign up for our RSS Feed
Related Stories
Sparks fly at San Antonio City Hall as council clashes over city budget
As city budget crisis looms, let’s consider cutting back our fast-growing street-repair fund
Majority of San Antonio council balks at property tax increase proposed by city manager
