The agency tasked with managing the San Antonio River basin and more recently building a critical flood warning system took the first step Wednesday toward increasing taxes to the highest its ever been.

The same challenge vexing leaders in the city, county and other local taxing entities — rising costs and dwindling revenue from property taxes — has led the board of the San Antonio River Authority to vote in favor of increasing by 5.46% its 2027 tax rate.

The River Authority’s current rate is at $0.01830, or 1.83 cents per $100 valuation. 

This week, Deputy General Manager Rick Trefzer told the board he recommends the River Authority consider a proposed tax rate of $0.01930, or 1.93 cents per $100 valuation.

The River Authority also increased its tax rate in 2025, from $0.01787 to the current level, but did not expect another increase this year. 

In June, Trefzer said that while early numbers indicated the agency would face a reduction in revenue, it could probably avoid a rate increase. But that would depend on pending information on the potential decrease in valuations, he said.

Now that data is in, revealing declines in property tax valuation for the first time in many years, Trefzer said.

The numbers show that if the River Authority maintained its current tax rate, revenue could come in at almost $900,000 less than the previous year.

The proposed new tax rate, on the other hand, is estimated to generate $1.8 million more in annual revenue than last year, which amounts to a total of $52.5 million.

At a board meeting in early August, Trefzer previewed the taxation calculations, saying he would come back with a more detailed recommendation.

“We just wanted to make sure we painted this picture of at some point there is probably not going to be enough tax revenue to support the current level of service,” he said. “That is not in 2027, but looking to 2030 and beyond, I think there’s certainly a scenario where we need to be thoughtful about what the tax rate is.”

On Wednesday, he delivered more clarity.

Like the City of San Antonio and Bexar County, the River Authority is also preparing its 2027 budget for a fiscal year that starts Oct. 1. Its elected board of directors will vote next month to adopt the proposed $411.2 million budget, new tax rate, as well as rates and fees schedule. 

During a budget presentation this week, River Authority staff discussed several cuts and adjustments to the budget to rein in or manage costs, including staffing, operations and capital projects. Serving a four-county regions, the River Authority’s revenue sources include tax dollars, water rights and leases, and administrative and operating fees.  

In addition to funding a new flood warning system, the River Authority has budgeted for $154.8 million for other major capital projects it has in the works, including flood control, conservation, creeks and trails maintenance, parks and improvements on infrastructure and utilities.

Last year, the San Antonio River Authority entered into an interlocal agreement with Bexar County to begin development of a “NextGen” flood warning system to improve how quickly first responders can detect rising water and warn drivers before roads become impassable.

The system is designed around the type of flooding that has historically caused the most deaths locally: motorists driving into flooded low-water crossings.

The majority of revenue derived from last year’s tax rate increase and this year’s is going to NextGen. In Bexar County alone, the cost is roughly $20 million.

“It’s a fair assumption that it will be more extensive than the Mission Reach,” Trefzer said.

The River Authority is also constructing a new headquarters at 201 W. Sheridan, a two-story, 57,000-square-foot office building expected to be complete in 2027.

Even when all those projects come online in the coming years, operations and maintenance costs come into play.

“We’ve made the commitment to oversee all the flood gauges for Bexar County and the City of San Antonio [and] we are still working through what that financial commitment might be,” Trefzer said.

“From our standpoint, it is in the best interest of the service for us to be the one that oversees the gates, to ensure that there’s constant monitoring, that there’s somebody ensuring that they’re maintained and they’re online for the folks to use the tools that have been provided,” he said.

While state law caps the amount cities can collect in property taxes at 3.5% over the previous year before having to seek permission from voters, taxing entities like the River Authority are capped at 8%.

That means the River Authority’s tax rate increase this year can’t exceed 2 cents per $100 valuation.

“I’m not a fan of raising taxes at all,” said Derek Gaudlitz, a board member representing Wilson County and chairman of the board. “I’m very concerned … but I also recognize that we have needs that are coming up [and] the big thing is that NextGen program.”

Board members on Thursday unanimously voted in favor of the proposed tax increase, saying it was necessary to avoid a significant cut in services or future growth plans.

“This is the highest rate we’ve ever had. However, we also are doing more and providing more value than we ever have before,” said Patrice Melancon, a Bexar County at-large board member.

The board is scheduled to hold its first public hearing on the proposed tax rate and vote to adopt the rate and its 2027 fiscal year budget on Sept. 16.

Disclosure: The River Authority’s Rick Trefzer serves as treasurer on the Texas Public Radio board of directors.