This is the second 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.
Weeks out from the start of their new fiscal year, nearly all of Bexar County’s taxing entities are adjusting their budgets to account for a weakening economy that’s blown a hole in revenue projections — and might not turn around anytime soon.
When we last checked in on the long list of local municipal governments and school districts facing deficits this year, many were considering their first rate increase in many years.
Now that revenue has come in even lower than expected, some are upping their asks, while others are pivoting to more dramatic cuts.
Last week, the San Antonio River Authority pitched a last-minute tax increase that the agency’s leaders originally thought it wouldn’t need — until they saw their final taxable values drop with new exemptions and challenged property valuations.
Likewise, Bexar County’s top financial analyst presented a highly unusual net revenue decline, and told county commissioners he’d understand if they wanted to break a decades-long streak without a tax increase.
The City of San Antonio, meanwhile, scaled back plans to max out its property tax revenue this year, saying that the current landscape requires bigger “structural rebalancing” to prepare for the future.
“It’s not just fiscal year 2027 … this impacts fiscal year 2028, 2029, 2030 and 2031,” City Manager Erik Walsh said of a Aug. 13 budget proposal that included more than $90 million in cuts across two years.
Just a few years ago, property values were soaring and Texas law forced many local governments to lower their tax rates or create new property tax exemptions to stay within the state’s revenue caps.
Now that property values are declining, the exemptions remain in place, and some say it makes sense that rates come back up.
“We didn’t raise property taxes for 30 years when we were on an economic upswing, then the pandemic hit, and [now] globally we’re feeling the crunch,” San Antonio City Councilwoman Phyllis Viagran (D3) said in an interview last month.
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, while some are even doing both at the same time.
San Antonio’s two city-owned utilities, CPS Energy and San Antonio Water System, are also gearing up for rate increases, and efforts to stave one off at SAWS caused the utility to project that an even bigger hike will be needed to complete a smaller number of projects.
“Prices never go down, they always go up,” said SAWS CEO Robert Puente. “Some of these projects will be more expensive.”
The overall result could mean higher property taxes on homeowners and businesses — plus rising water and electric bills — all while Americans are already feeling the effects of rapidly climbing inflation.
Municipal governments’ fiscal years run Oct. 1 through Sept. 30, and leaders will continue debating their tax rates and budgets in the coming weeks before they’re finalized.
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 for the average homeowner has decreased slightly, from about $168 per year to $129.
But that doesn’t include likely rate hikes at the City of San Antonio and CPS Energy that don’t have formal estimates yet. Changes to school taxes are outlined below, but weren’t included in the added-up total because the county is split between so many districts — so they only affect some residents.
City of San Antonio
M&O property taxes
City staff is now pitching a 3.9% property tax increase this year, with another 4.4% needed the coming year, in addition to major budget cuts and increased fees needed to close a $158 million deficit over two years.
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.
But he now says the city needs 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 will have the final say on a tax rate increase, however, and still remains deeply divided about whether to allow one at all. Council members recently heard alternate proposals for a maxed out increase or keeping the rate even, but reached no consensus.
Even if they raise taxes, Walsh said big changes are still needed to balance spending and revenue.
The budget proposal calls for a slew of new or increased fees, including higher towing and impound fees, more expensive ambulance rides and new charges for nonresidents who use city libraries.
It would also cut library staff and senior nutrition centers, and delay the hire of new police officers that many council members want.
Current tax rate: San Antonio hasn’t raised its tax rate since 1992, and even deceased it recently during times of high growth.
The city’s total tax rate is currently $0.541590 per $100 of valuation, including both the maintenance and operation and debt service portions of the bill.
How much? The official city budget proposal shows residents paying about $2.95 per month or $36 per year more if the rate is set at $0.56288 per $100 of valuation.
That’s down from earliest estimates showing the average homestead paying about $6.75 more per month, or about $81 per year more in property taxes in 2027. But the two-year forecast assumes another 4.4% increase in the coming year.
Tax rates are frozen for people 65 years and older, as well as those who have a disability and if they have a homestead exemption on their property. That applies to about 47% of San Antonio households, according to the city.
See the alternate proposals City Council could consider here.
City bond
The city could also ask taxpayers to pitch in more this year to increase its bond capacity in 2027, where the sports and entertainment district known as Project Marvel is competing for funding with other critical infrastructure projects.
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 council can decide on its debt service tax rate separate from the city budget, and plans to look more closely at their options this fall.
“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 in San Antonio hasn’t changed since 2004. It’s 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 notable that the 2022 bond occurred at a period of unusual economic growth.
The council hasn’t said whether it agrees with the variable rate strategy, but this bond cycle is the best opportunity many council members have to secure major projects for their districts, considering the challenges with the general fund.
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.
San Antonio is coming off of one of the deadliest summers in decades due to flooding, and traditional funding sources, like the budget and bond, are already stretched thin.
The city’s Storm Water Advisory Board just completed a new matrix to rank flood control projects by need, which could help put a price tag on the most pressing needs.
Current fee: According to a Jan. 21 presentation from city staff, the last stormwater fee increase was in 2020. Residential properties are categorized into three tiers, with most falling in Tier 2, which pays $4.94 per month, or about $59.28 per year.
The Jan. 21 presentation laid out options for increasing the stormwater fee from as little as $1.20 per year to as much as $3 per year.
The rate would keep rising over the next five years, with Tier 2 properties increasing by as much as $10.08 per year by 2031.
How much? No change under the city’s proposed 2026-2027 budget.
Parks and environmental fee
The city’s budget proposal calls for increasing the parks and environmental fee collected on residents’ CPS Energy bills, which helps maintain and operate the city’s park system.
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 previous 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, to $21.01 per month for a medium 64-gallon cart, to $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’s top budget and finance experts have been warning that the county is headed for its worst financial year since the 2008 market crash. Rather than make big spending or revenue adjustments, however, the county’s budget proposal calls for it to keep dipping into its depleting rainy day fund.
If commissioners agree to keep the rate even, they’ll take in about $3.7 million less revenue than the previous year.
“We don’t often experience a literal drop in property tax revenue,” County Manager David Smith told commissioners this month. “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 includes very few capital projects and no cost of living pay increase for the county’s roughly 5,000 employees.
He said that even if the county staves off a property tax rate increase this year, it likely won’t continue for long, due to major infrastructure needs for roads and flood control in the fast-growing unincorporated parts.
“You may well decide that this rather austere budget we’re presenting today is unsatisfactory for this organization — I understand that fully,” Smith told the commissioners on Aug. 19. “… [But] I want the court to begin to consider what I believe will be major challenges that you will face in the future.”
Current rate: Bexar County’s current tax rate is $0.276331 per $100 of valuation.
How much? The county’s budget proposal calls for keeping the rate even. Since property values have gone down, that would mean 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 — would see a $9 decrease in its annual property tax bill, or 75 cents per month, if the rate stays even.
According to Uresti’s estimates, commissioners could raise the average homeowner’s bill by much as $231 per year without having to seek permission from voters.
Alamo Colleges District
Alamo Colleges District, which includes all Bexar County taxpayers, is proposing a tax rate increase for the first time in more than a decade as it faces a $27 million budget deficit.
Tuition and fees are frozen at the state level, and state revenue is falling short by millions of dollars for the upcoming academic year.
On Aug. 18, trustees voted unanimously to move forward with a slightly higher increase than what was first discussed in June.
They don’t have to seek permission from voters to do so, but the board must hold a public hearing before it can formally adopt the new rate.
Current rate: Alamo Colleges’ current tax rate is $0.149 per $100 of valuation.
How much? If approved by the board, the total tax rate would rise to $0.167 per $100 of valuation. That’s slightly higher than the $0.0125 increase projected in June.
For a home valued at the median homestead of $271,000, the increase would mean homeowners would pay an additional $3.08 per month, or $37 per year.
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. 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 plans for a 5.46% increase in 2027, bring it to $0.01930 per $100 valuation. The board will hold a public hearing and vote on the rate change at its next meeting, Sept. 16.
For the average home in the river authority’s four-county jurisdiction, valued at $326,888 with a homestead exemption, that would result in a $2.77 increase per year.
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, with an annual cost of $92.04 — but since CPS Energy has not yet committed to the increase or said how big it would be, our San Antonio Report 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 would be so small, it 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, 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.
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? No increase.
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.
Update: This story has been updated to note that increases to the city’s stormwater fee were not included in the proposed 2026-2027 budget.
