As San Antonio officials search for ways to close a looming budget gap, city leaders are considering shifting more of the cost of Fiesta onto event organizers.
A trial budget presented to City Council on Thursday included a proposal to recover an additional $700,000 annually from Fiesta-related city support costs, part of a broader package of fee adjustments and measures aimed at balancing the city’s finances.
City officials have not yet outlined how the proposed cost recovery would be structured or which Fiesta organizations would need to pay additional costs.
City Manager Erik Walsh said the figure represents a budget target to eventually recover roughly 50% of the city’s Fiesta-related expenses.
Deputy City Manager Maria Villagómez previously told council during an April discussion on charging an admission fee during peak hours for Fiesta de los Reyes — the largest and historically free Fiesta event — that the city spends about $3 million on Fiesta-related expenses each year.
The Rey Feo Consejo Educational Foundation brought forward the proposal for a $5 admission fee in response to rising security costs after new safety measures were implemented following recent violence at the event, including a 2024 shooting that left two people dead and four others injured.
Foundation representatives told council the event costs roughly $1 million to produce each year and traditionally generates relatively modest proceeds that are used to fund scholarships for local students. Before the additional security requirements were implemented, Fiesta de los Reyes generated about $85,000 in net proceeds in 2024.
After organizers spent roughly $140,000 in new costs tied to fencing, controlled-entry points, bag checks and security screenings, the event operated at a loss in 2025.
To help offset those costs, the city approved the ticket fee and a revenue-sharing agreement in a 7-4 vote, with Mayor Gina Ortiz Jones, Councilmembers Jalen McKee-Rodriguez (D2), Teri Castillo (D5) and Ric Galvan (D6) voting against the measure.
Under that agreement, city officials projected receiving roughly $37,500 in annual revenue from ticket sales, with most proceeds remaining with the foundation to cover security and operating expenses. The agreement projected about $400,000 in ticket revenue, with the foundation retaining the first $250,000 before any revenue sharing with the city began.
City officials did not provide actual revenue from ticket sales by time of publication.
While the city projected only modest revenue from the ticketing agreement, officials estimated San Antonio would spend about $730,000 on security at Market Square during Fiesta this year, up from roughly $690,000 the year before.
That spending drew renewed scrutiny Thursday as council members discussed ways to balance a budget that could require the city’s first property tax rate increase in more than three decades.
Jones suggested organizations that charge admission should shoulder a greater share of their operating expenses rather than rely on taxpayer support, directing city staff to compile a list of subsidized revenue-generating entities for council to review during budget deliberations.
“I want to see a full list of these things, Erik, that if you charge a ticket fee, then you can figure it out,” Jones said. “If we’re talking about cutting nutrition centers, we’re not going to fund the Botanical Gardens.”
The mayor said Fiesta events should not be exempt from that discussion, particularly as the city considers recovering only a portion of its Fiesta-related expenses.
“When we’re talking about only cutting half of the things that we subsidize for Fiesta, that $700,000, which I know is just one event,” Jones told the city manager. “I know you’re going to have to talk to your Centro buddies and some of the other folks about what that means for them, but again, if you charge a ticket fee, we should not be subsidizing your things and you can figure out how to right the costs.”
The Rey Feo Consejo Educational Foundation, Texas Cavaliers and Centro San Antonio did not respond to requests for comment by time of publication.
This story first appeared in the San Antonio Report.