This is the third story in a series about the way taxes, utility rates and fees are rising in San Antonio and Bexar County. You can read the first story here and the second story here.
A slew of local taxing entities are raising their tax rates for the first time in many years — at the same time city-owned utilities are also closing in on potential rate hikes.
The San Antonio Report has been tracking what it all means for the average homeowner, who could pay $129 more per year so far in property taxes and other fees, according to our analysis at the conclusion of budget season.
That doesn’t include a likely rate hike for the City of San Antonio’s 2027 bond program, which the council will consider in October, and a CPS Energy rate hike, which doesn’t yet have a formal estimate.
In recent years, property owners have watched their valuations rise dramatically, often leading to higher property tax bills even as municipalities lowered their rates to stay under the state’s revenue caps.
Now the real estate market is softening at the same time inflation is rising, and an array of new state and local tax exemptions are keeping more taxable value off the rolls.
That’s left many Texas cities, counties and school districts debating tough spending cuts and rate hikes as revenue comes in far below expectations.
“These are hard decisions,” San Antonio City Manager Erik Walsh said in a Sept. 15 media briefing. “You’re seeing city councils in big cities and small towns across the state wrestling with the same thing.”
The City of San Antonio landed on a plan to cut $90 million in spending over the next two years, while also raising its tax rate by 3.4% in 2027. Another 4.4% rate hike is anticipated in 2028 to close an overall $158 million deficit.
Bexar County avoiding raising rates this year by dipping into its reserve funds to close a deficit, but commissioners openly acknowledge it’s not a solution they can continue for very long.
Many San Antonio-area school districts also face deficits this year thanks to shrinking enrollment and state funding changes. Five school districts are asking voters to increase their tax rates or approve bond elections to raise revenue in November, while some are even doing both at the same time.
That’s as San Antonio’s two city-owned utilities, CPS Energy and San Antonio Water System, are also gearing up for rate increases, with leaders saying the cost of their estimated needs will keep rising the longer they wait.
“You can look at this [city] property tax rate increase and be like, ‘Okay, $37 a year. It’s not a big deal,’” Councilwoman Marina Alderete Gavito (D7) said at Metro SA Chamber’s City Vision event on Monday. “[But] it is a big deal when we’re looking at a potential SAWS rate increase coming up to us in October, when we’re looking at the school districts increasing their tax rate, [and] when the San Antonio River Authority is increasing their tax rate.
“Our residents are feeling the burden.”
Since the San Antonio Report first analyzed the rate discussions taking place across the various taxing entities and utilities in June, the projected additional annual cost of taxes and fees for the average homeowner has decreased slightly, from about $168 per year to nearly $129.
The city backed off early plans to raise rates as high as legally allowed without voters’ permission, but could soon come back with another increase to allow for a bigger bond election.
Changes to school taxes are outlined below, but also weren’t included in the total because the county is split between so many districts and only some of them are raising rates this year.
City of San Antonio
M&O property taxes
City Council approved a 3.9% property tax increase this year — the city’s first in more than 30 years. That’s in addition to major budget cuts and increased fees that were still needed to close a $158 million deficit over the next two years.
City leaders expect another 4.4% rate increase will be needed in fiscal year 2028.
Several months ago, Walsh was calling to raise taxes as high as the city can legally raise them without having to call an election and seek permission from voters.
He later scaled back that request, saying the city needed more wiggle room in future budgets if the economy doesn’t turn around — and therefore shouldn’t max out the state’s growth cap in a single year.
City Council was deeply conflicted about whether to raise taxes, in part because some members thought there was more room to cut.
But after viewing an outline of the additional programs they could lose, a majority of the members decided deeper spending cuts would be more disruptive to their residents than a tax increase — though the vote was split largely along the city’s socioeconomic lines.
“[With a tax increase], the majority of our revenues will come from the largest businesses and corporations, the people who own and maintain larger and multiple properties, the people who have larger homes,” said Eastside Councilman Jalen McKee-Rodriguez (D2), who voted in favor of the rate hike. “If we implement any further cuts … the impacts will fall in Districts 1 through 5 — some of the most impoverished in our community.”
In addition to the tax increase and spending cuts, the new city budget uses an array of new or increased fees to generate additional revenue, including higher towing and impound fees, more expensive ambulance rides and new charges for nonresidents who use city libraries.
This budget also delayed the hire of new police officers that many council members consider crucial.
Current tax rate: The city’s total tax rate is currently $0.541590 per $100 of property valuation, including both the maintenance and operation and debt service portions of the bill.
How much? The new rate for 2027 is set at $0.56288 per $100 of valuation — a 3.9% increase.
The official city budget proposal shows the property tax bill for the average homestead, valued at $234,000, going up about $2.95 per month, or $36 per year.
Properties without a homestead exemption — including rental properties, second homes and businesses — are likely to see a bigger increase.
Tax rates are frozen for people 65 years and older, as well as those who have a disability, if they have a homestead exemption on their property. That applies to about 47% of San Antonio households, which won’t see an increase on their bills, according to the city. The city’s 2027 Taxpayer Impact Statement can be viewed here.
The City Council only increased the maintenance and operation portion of the tax rate, which covers day-to-day operations at the city, while leaving its discussion about the debt service portion for a meeting later this fall.
The new tax rate allows the city to take in more in property taxes than the previous year by about $20 million.
San Antonio has been stopping short of maxing out its revenue increases, allowing the city to roll over some of that “unused increment” from FY 2025 and FY 2026 this year, without hitting the state’s cap. The city will be able to do the same in FY 2028 by using the unused increment from FY 2027.
City bond
The debt service portion of the city’s tax rate remains the same for now, but that could change as the city seeks to increase its bond capacity in 2027.
That’s when the sports and entertainment district known as Project Marvel is competing for funding with other critical infrastructure projects. The council will debate its strategy for the debt service portion of the tax rate separate from the city budget, starting with a meeting in October.
Bonds are money borrowed against future growth, something that’s normally reliable in a fast-growing city. But slowed economic growth and dropping property valuations now have city staff projecting San Antonio’s capacity will be much smaller than the $1.2 billion bond voters passed in 2022 — down as far as $450 million, according to the latest projections for 2027.
Against that backdrop, city staff is recommending the council expand its bond capacity by setting what’s known as a variable debt rate strategy, where rates go up or down as needed based on property valuations.
The debt service portion of the tax rate hasn’t changed since 2004, and council would be giving staff permission to raise it as high as is needed to repay bonds issued for major projects. Alternatively, the debt service rate could go down if valuations rose dramatically, which leaders are not projecting to happen any time soon.
“Based on the current forecast, a bond program comparable in size to the 2022 program would require a tax rate increase to meet the bond repayment obligations,” Troy Elliott, the city’s chief financial officer, told the council in May.
Current rate: The debt service portion of the tax bill is currently set at $0.21150 per $100 of valuation.
How much? Using a “variable rate,” City Council could go for a 2027 bond that’s comparable to the $1.2 billion voters approved in 2022, according to a Jan. 21 presentation.
It’s unclear what that would do to the average resident’s bill, but it’s notable that the 2022 bond occurred during a period of unusual economic growth.
Stormwater fee
At the beginning of the year, city leaders said they would also look at increasing the stormwater fee on residents’ water bills to help fund flood and drainage infrastructure.
This could be a way to fund critical flood projects at a time when the city hasn’t received much state or federal funding to help pay for them, but it wasn’t included in the 2026-2027 budget proposal.
Parks and environmental fee
The city’s budget proposal called for increasing the parks and environmental fee collected on residents’ CPS Energy bills, which helps fund tree maintenance and operate the city’s park system.
Two years ago, the city took some heat for pulling money from its tree canopy fund and using it to landscape a gorilla enclosure at the San Antonio Zoo.
This year money is moving around again. The city’s budget review identified “inefficiencies” to cut spending in the parks and environmental fund, but staff also plans to move some general fund expenses over and pay for them through those restricted dollars. The details are outlined in a Sept. 9 presentation.
Current fee: San Antonio’s parks and environmental fee is currently $2 per month.
How much? The budget proposal calls for raising the rate to $2.25 in the 2026-2027 fiscal year, and $2.50 per month the following year.
Trash fee
The 2026-2027 budget proposal calls for raising the solid waste fees on residents’ CPS Energy bills to keep up with growing costs of services.
This is a new fee added since our first roundup, which would show up as both a higher monthly bin fee and a higher monthly environmental fee.
Current fee: Trash bin fees vary by size, ranging from $14.75 per month for a small 48-gallon cart to $20.26 per month for a medium 64-gallon cart, to $30.75 per month for a large 96-gallon cart.
The environmental fee is currently $3 per month.
How much? The budget proposal calls for raising cart fees by 75 cents per month, regardless of the size.
That would bring them up to $15.50 per month for a small 48-gallon cart, $21.01 per month for a medium 64-gallon cart and $31.50 per month for a large 96-gallon cart.
The environmental fee would go up to $3.25 per month.
Combined, the total cost would be about $1 more per month for a household with one bin, or $12 per year.
Bexar County
Bexar County property taxes
Bexar County leaders reported the worst financial year since the 2008 market crash headed into this budget cycle, with declining property values leaving the county with less revenue than the previous year without a rate hike.
“We don’t often experience a literal drop in property tax revenue,” County Manager David Smith told commissioners headed into this budget season. “We’ve experienced declining growth. We’ve experienced stagnant growth. But a literal drop — even though it’s a small one — is unusual for us.”
Smith presented a budget that kept the rate even by freezing new capital projects, forgoing cost of living pay increases for the county’s roughly 5,000 employees, and taking about $68 million from the county’s rainy day fund — something he conceded is unsustainable long term.
Commissioners largely adopted those recommendations and slashed staff from a new health department the county stood up several years ago with pandemic relief funding.
Smith, who is retiring this year after his 30th county budget cycle, said the county will likely need a rate increase in the near future to fund major infrastructure needs for roads and flood control in the fast-growing unincorporated parts.
Current rate: Bexar County’s current tax rate is $0.276331 per $100 of valuation.
How much? Since property values have gone down, keeping the rate even means the average Bexar County home could pay less in property taxes this year.
Tax Assessor-Collector Albert Uresti said the average Bexar County home with a taxable value of $266,000 — after applying the homestead exemption — will see a $9 decrease in its annual property tax bill, or 75 cents per month.
Alamo Colleges District
Alamo Colleges District, which includes all Bexar County taxpayers, approved an 8.76% tax rate increase this year — its first in more than a decade.
A tax rate increase of that size does not require voter approval, only a board supermajority, which it received in September.
Trustees initially thought the increase would be lower, but the district’s growth continues to outpace its revenue, with tuition and fees frozen at the state level, and state revenue is falling short by millions of dollars for the upcoming academic year.
That contributed to a $27 million budget deficit headed into its 2027 budget cycle.
Current rate: Alamo Colleges’ current tax rate is $0.149 per $100 of valuation.
How much? The new tax rate for fiscal year 2027 will be $0.167 per $100 of valuation.
For homeowners, the increase will result in a $37 annual increase for homes valued at $270,000, the current median home value, or $48 more annually for a home valued at $320,000.
Hospital district
Bexar County Hospital District, which does business as University Health, has kept its tax rate steady for several years. A University Health spokesperson said the tax rate will remain the same this year.
“Only 16% of University Health’s revenues came from property taxes in 2025,” University Health spokesperson Elizabeth Allen said. “The rest was from patient revenues, private insurance, Medicare, Medicaid and other payment programs.”
The public hospital system is in the process of getting three new hospitals up and running. University Health’s budget is managed by a seven-member board of managers appointed by the Commissioners Court. The organization runs on a January to December budget cycle.
Current rate: $0.276235 per $100 of valuation.
How much? No increase.
San Antonio River Authority
The San Antonio River Authority is responsible for managing the San Antonio River Basin, and in the face of a deadly flood last year, continues to face big pressure executing major flood mitigation and response efforts.
At the same time, it’s expected to bring in less revenue this year — leading the board to approve a tax increase for the second year in a row.
The agency collects revenue from several sources, including property taxes from a four-county jurisdiction made up of Bexar, Karnes, Wilson and Goliad counties.
Last year, Bexar County leaders gave it an additional $21 million to fund the River Authority’s NextGen flood warning system — a response to the summer’s flood deaths — but the agency had to raise taxes so it could fund the same efforts in the other three counties, said Deputy General Manager Rick Trefzer.
Trefzer initially said they wouldn’t need another tax increase this year, but after property valuations were finalized, the agency was poised to bring in $900,000 less than the previous year if it kept rate the same.
Some also feared that if they waited, state lawmakers could change laws currently allowing them to grow their revenue at a higher rate than cities and counties.
Current rate: The River Authority’s current rate is at $0.0183 per $100 valuation.
How much? The River Authority’s board approved a 5.46% increase for fiscal year 2027, bring its rate to $0.01930 per $100 valuation.
For the average home in the river authority’s four-county jurisdiction, valued at $326,888 with a homestead exemption, that’s expected to result in a $2.77 increase per year, according to a River Authority spokeswoman.
Utilities
San Antonio Water System (SAWS)
SAWS had to pivot after its initial plan to invest in its infrastructure was voted down by San Antonio City Council in June. The utility knocked off $600 million from its initial proposal and its board members approved a lower $2.6 billion plan at the beginning of the month.
Projects range from replacing water mains and upgrading pump stations to retrofits of water recycling plants.
To pay for it, SAWS wants to raise rates starting in January and push back its schedule for the rate adjustment by a year. That means it would run from 2027 to 2030 instead of 2026 through 2029.
For 2027 and 2028, the rate change would remain the same as what SAWS proposed to City Council in June, but SAWS officials said delaying the rate adjustment meant it was more likely to increase in the last two years of the plan.
At an Aug. 4 meeting, utility officials said the average residential monthly bill would be $16.93 more expensive than today by 2030 — as opposed to the $14.90 per month increase they were previously looking at.
But the council remained divided on the issue when it came up for a vote in July, so the final decision isn’t expected until October — potentially increasing the cost of some of the projects and, therefore, the cost of a potential rate adjustment.
Current: The last time SAWS raised rates was in 2020, taking the average monthly residential water and sewer bill from $65.83 to $72.38, according to the utility.
How much? The latest plan presented to the City Council would raise the average residential bill by $3.91 per month, or $46.92 per year, in the first year after it’s implemented.
Bills would continue to increase gradually over the coming years, and SAWS could use a range of available rate increases — from 5.5% to 7% in 2029 and 5% to 6.6% in 2030 — to meet their needs. Officials said because of the City Council delay, the increases in those years were more likely to be at the top end of that range.
The utility estimates that the average residential bill would climb $16.93 per month, or $203.16 per year, by 2030.
SAWS has a rate calculator on its website that allows customers to see how their own bills would change, though it requires the customer to pull some technical information from the second page of their bill.
CPS Energy
CPS Energy is also talking about a potential rate increase in the coming year, after its board approved a fiscal year 2027 budget that includes a $50 million shortfall.
That gap could be funded by a rate increase, the utility said, but the City Council hasn’t agreed to it yet. CPS Energy officials had planned to look at its rates again at the end of summer, but has since changed leadership.
How much? The utility has been downplaying the potential rate hike as a possibility — not a done deal. But Councilman Edward Mungia (D4) told the San Antonio Report in March that it could be as much as a 4% increase on ratepayers.
At a June board meeting, CPS Energy officials touted an average monthly bill of $191.77 as being lower than other Texas cities.
A 4% increase would raise that monthly bill by $7.67 — meaning the average household pays a total of $92.04 more per year. But since CPS Energy has not yet committed to an increase or said how big it would be, our calculations left it out until there’s more clarity.
CPS Energy says it will know more about its financial status after the summer, when it typically makes money by selling energy onto the grid.
School districts
For many Bexar County taxpayers, school property taxes could also go up this year.
So-called voter-approved tax rate elections, or VATREs, increase tax rates on the maintenance and operation side, unlocking extra dollars a school district can use on day-to-day costs like pay, student programs and utilities.
Bonds increase tax rates on the interest and sinking side to pay for infrastructural projects like HVAC and building renovations.
Five districts have already announced plans to raise taxes if they’re able to get permission from voters, and two are pursing VATREs and bond elections at the same time.
Northside ISD
Northside ISD is asking voters to approve a 3-cent tax increase and an $883 million bond election in November.
The district says the proposed tax increase would unlock an extra $21.5 million for pay increases for teachers and auxiliary staff, some of which make less than $15 an hour.
On the bond side, NISD is proposing an $886.2 million package to pay for new vehicles and technology, facility improvements and a new natatorium.
How much? If voters approve the VATRE, their tax rate would go from $1.0049 to $1.0349 per $100 of taxable property value. The district said that would increase property tax bills by approximately $30 per year for every $100,000 in home value.
The bond proposals don’t require a change in the rate.
San Antonio ISD
San Antonio ISD officials are pitching a 3.17-cent tax increase and a $600 million bond election in November.
San Antonio ISD is facing a budget deficit because of declining enrollment, largely flat state funding and rising costs. More than a century old, the district also has several small and aging buildings, increasing their maintenance costs.
Only a few months ago, SAISD felt positive it could go out for a bond of $450 million without requiring a tax rate increase. District leaders instead opted for a larger ask, which would incur a 6-cent increase to the I&S rate, implemented over the next three years.
How much? If the voter-approval tax rate election and all three bond measures pass, SAISD’s tax rate would go from $1.1552 to $1.6437 per $100 of taxable value by 2030 for homeowners in the district.
For an average home of $240,000, that would be approximately $70 more annually, or $5.83 per month.
South San Antonio ISD
South San Antonio ISD will ask voters to increase its maintenance and operations rate by 7 cents this November.
This would generate an extra $2.7 million a year the district says is needed for urgent school roof repairs and raises for paraprofessionals, teaching and instructional aides.
South San ISD is currently under state control after years of financial mismanagement and board dysfunction. While not in a budget deficit, state-appointed superintendent Raul Hinojosa has been pushing for the rate increase to generate extra dollars for pay, facilities and student programs.
How much? The district’s current tax rate is $1.1959 per $100 of taxable property value. That rate is divided in two smaller rates: $0.4990 on the I&S side and $0.6960 on the M&O side.
South San’s proposed increase, which will likely show up as Proposition A on the ballot, moves pennies from the I&S side to the M&O side and incurs a small increase overall.
District officials say the change to the tax rate wouldn’t significantly increase costs for the average homeowner.
East Central ISD
After going out for a VATRE that voters rejected last November, East Central ISD will be back on the ballot with a smaller ask.
One of few districts that’s actually growing in enrollment, ECISD will ask voters to approve adding 3.72 cents to the maintenance and operations rate, which could unlock an extra $8.47 million a year.
To avoid a large increase, ECISD’s board decreased its interest and sinking rate by 3.71 cents, so if voters approved the changes in November, their rates would go up by a fraction of a penny.
ECISD officials say the extra money would help the district keep up with inflation, maintain a performance-based compensation plan, hire armed security officers and maintain or even reduce class sizes by hiring more teachers.
How much? If VATRE passes this year, ECISD’s total tax rate would go from $0.9319 to $0.9320 per $100 of taxable value.
For the average homeowner in ECISD, approval of Prop A will mean less than $1 a year difference, officials said.
Schertz-Cibolo-Universal City ISD
Schertz-Cibolo-Universal City ISD, a semi-rural district on the far East Side of Bexar County, is proposing a 12-cent increase to its M&O rate, which could generate an additional $15 million a year for the district.
It’s a larger ask than last year, when the district put a 6-cent VATRE on the ballot that voters ultimately rejected.
District officials say the extra funds would go toward employee pay, staff retention and student programs like fine arts, career and technical education and athletics.
How much? If voters say yes, the district’s tax rate would go from $1.0769 to $1.1969 per every $100 of taxable property value for homeowners in the district.
For an average home of $317,335, that would be approximately $216 more a year after homestead exemptions, or $18 per month.
Law enforcement
Last year, the City of San Antonio raised parking ticket prices, as well as fees on alarms and permits, to shore up its budget. Further fee increases were presented in this year’s budget, expected to generate $30.4 million over the next two years.
Bexar County just rejected a plan to raise more revenue by writing more tickets.
County Precinct 3 Constable Mark Vojvodich also said he’s also not going forward with a plan to bring in revenue by signing up for an expanded federal immigration enforcement partnership.
How much? San Antonio’s 2027 budget includes a long list of increased fees on everything from ambulance rides to booted vehicles to parking tickets. That list was even expanded in the final weeks to help pay for the cost of the City Council’s budget amendments. They take effect Oct. 1.
Methodology: This story contains San Antonio Report calculations built from leaders’ public comments, presentations to the City Council, local school boards, the Alamo Colleges District board and other government entities. While the entities’ definitions of an “average” homeowner or ratepayer may vary, each increase cited is based off how local officials have said these changes will affect an average community member.
Disclosure: The River Authority’s Rick Trefzer serves as treasurer on the Texas Public Radio board of directors.
