San Antonio City Council Passes Record $3.96 Billion Budget for 2025

San Antonio’s City Council Approves a Monumental Budget for 2025

In a significant move, San Antonio‘s City Council came together this Thursday morning to approve a record-setting budget of $3.96 billion for the upcoming fiscal year 2025. This budget reflects a 5.8% increase from last year’s $3.74 billion budget and marks a return to what city officials describe as a “normal revenue year” reminiscent of the city’s pre-pandemic financial status.

A Step Toward Stability

City Manager Erik Walsh emphasized the budget’s focus on responsible management, resourcefulness, and resilience. “I keep calling it a ‘normal’ revenue year,” he remarked, highlighting the city’s optimistic financial outlook as the fiscal year kicks off on October 1 and extends through September 2025.

Even with this booming budget, the council has enacted some necessary belt-tightening measures, aiming to balance the city’s expenses while catering to the priorities set forth by its residents. For instance, a new contract for San Antonio’s firefighters and paramedics was passed simultaneously, granting these essential workers raises totaling over 21% across three years—a move that highlights the council’s commitment to public safety and employee welfare.

Facing Budget Cuts

As part of efforts to tackle an ongoing budget deficit, the council announced plans to cut more than $23.6 million from the city’s general fund this year. Interestingly, about $13 million of these cuts come from simply shifting how funds are allocated, such as using a tourism-related pot for police overtime instead of the general fund.

However, actual program cuts amounting to $10.5 million have also been implemented. This includes reductions for a mobile shower program aimed at aiding the homeless, diminished overtime for downtown scooter enforcement, and merging a boarding home inspection team’s duties into existing code compliance roles.

New Fees and Financial Adjustments

In addition to spending cuts, the new budget has introduced multiple fee increases affecting city services. For instance, parking at the Alamodome, ambulance rides, and costs related to false alarms for unpermitted burglar and fire systems will see higher rates. Notably, the EMS transport fee will now rise by $500 in an effort to accommodate the fire union contract.

The council had only a modest amount of additional funds to allocate. The projected surplus from CPS Energy is around $21 million, but a substantial portion has already been earmarked for other upcoming budgetary needs. Consequently, many of the council’s spending requests—over $20 million worth—will remain unfulfilled for the time being.

Concerns for the Future

Despite its size, the budget is navigating through some stormy waters. A looming $3.5 million deficit is forecasted for fiscal year 2026, prompting council members to consider whether to dip into the CPS Energy revenue they had initially set aside, especially in light of a coming utility rate hike. The situation remains fluid, and with final payments for the CPS Energy surplus expected in October, a detailed evaluation will take place in a November meeting.

Looking Ahead

The San Antonio City Council’s approval of this budget poses both opportunities and challenges for the community. With ongoing enhancements for public safety and necessary cuts in various areas, residents are at the center of this financial puzzle. The commitment to maintaining a balanced yet beneficial budget underscores the council’s continued focus on doing what’s best for the city, all while keeping an eye on the future.