Meeting Intelligence Preview
Meeting Summary
The San Antonio City Council B Session focused on the FY26 three-plus-nine budget report and FY27 budget planning. The general fund is performing in line with budget despite sales tax underperformance, offset by higher CPS revenues. Council discussed the taxpayer impact statement CCR from District 10, federal funding tabletop exercise results showing potential impacts to health and human services programs, and concerns about $8 million in Medicaid 1115 waiver funding expiring in September that may require general fund coverage.
Key Decisions (4)
FY26 First Quarter Financial Status Report
Staff presented the three-plus-nine financial report showing general fund revenues $8.6 million ahead of budget through December, primarily driven by CPS revenues. Sales tax is $700,000 below plan through December and $2.6 million below through January. Hotel occupancy tax is underperforming by $1.9 million due to lower occupancy rates and average daily rates. Employee benefits fund is $7.4 million over plan due to higher healthcare claims.
FY27 Budget Calendar Recommendation
Staff recommended budget calendar starting with six-plus-six five-year forecast presentation on May 6, midyear ordinance May 14, community survey mid-April through early May, goal setting session May 22, trial budget June 17, proposed budget August 13, town halls and work sessions in August, and budget adoption September 17. Council feedback requested by February 25.
Taxpayer Impact Statement CCR Support
Council members expressed support for Councilman White's CCR to develop and publish a taxpayer impact statement showing property tax and fee comparisons. Statement would be published in the adopted budget, local newspapers (Express News and La Prensa), and city website. Multiple council members requested it be formalized as an ordinance.
Federal Grants Tabletop Exercise Results
Staff presented results from December tabletop exercise involving 34 outside agencies examining impacts of potential 50% federal funding reductions. Exercise focused on $85.7 million in federal grants supporting health, housing, homeless, and human services programs and 436 positions. Recommendation to create cross-sector federal funding impact working group.
Development Activity (1)
Airport Terminal Development Program
Airport expansion project pulling permits and reviews from development services, contributing to $1.4 million revenue variance in development services fund
Market Signals (5)
Commercial Demand
Hotel occupancy tax underperforming with occupancy rates 1% lower than planned and average daily rates $3 lower than anticipated, though stakeholders express optimism for calendar year 2026.
Housing Demand
Rental assistance program seeing higher per-application costs than previous year, with 785 eligible individuals assisted through first quarter of 1,839 annual target.
Sentiment
Sales tax revenue trending below budget by $2.6 million through January, with staff analyzing which sectors (retail, commercial, industrial, construction) are driving the decline.
Infrastructure
Development services fund performing slightly better than budget with $1.4 million first quarter revenue variance attributed to airport terminal development program permits.
Other
Medical conferences in October-December saw only 58% of room block attendance versus typical 85% due to travel changes and tariff concerns affecting international travelers.