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The current Bexar County property tax rate of just under 30 cents per $100 dollar valuation will likely remain the same for the next fiscal year to fund a $2.6 billion dollar county budget.
County commissioners voted unanimously on the tax rate on Tuesday to fund a basic services budget, which includes no new capital projects, such as for roads and flooding, and a pay freeze for elected county leaders and most county employees. Around $20 million in surplus flood tax funds are also being moved into the general fund.
And for the first time publicly, County Judge Peter Sakai, confirmed some county job cuts are coming, but did not say how many.
"In this current budget year, we believe that some positions will be lost," he said. "We'll have to tell some employees, 'we'll do our very best to find positions for you,' but some positions will be cut, especially those that were funded by federal funds called ARPA (American Rescue Plan Act)."
Those ARPA COVID relief funds were signed into law in March 2021 and used to fund positions related to public and mental health and social services but are running out at the end of the year.
The annual county property tax bill for a median priced home of $315,000 would be $945, but of course, that tab does not include other taxing entities, including school district property taxes, which make up the lion share of a combined property tax bill.
The county property tax rate won't be formally adopted until after a public hearing on the tax rate and on the $2.6 billion dollar county budget. That public hearing is scheduled for Sept.15 in commissioners' court.
The county is trying to fill a $145 million dollar budget gap caused by those ARPA funds going away, along with the much bigger hit to property valuations that led to lower property tax revenue. There has also been a slowdown in new home and business construction, further eroding the property tax base. And property tax exemptions have expanded, including for businesses and for surviving spouses of disabled veterans. While hard on county property tax revenues, those exemptions have been good for taxpayers as pointed out by Precinct 1 County Commissioner Rebeca Clay-Flores, who said those savings for them amounted to $1 billion.
Republican Precinct 3 County Commissioner Grant Moody praised county staff for their work on the tight budget. He said the lower property values now combined with a steady tax rate may mean property taxpayers will actually pay less for the first time in years.
He said in recent years higher property appraisals led to higher property taxes even with a steady property tax rate.
"I think we owe it to homeowners to hold the line here, and maybe they're going to finally see a decrease in their Bexar County tax contribution this next FY (fiscal year)," he said.
Precinct 2 and 4 County Commissioners Justin Rodriguez and Tommy Calvert, respectively, voted to keep the property tax rate the same but warned of lean times still to come and tough budget decisions again near year. Calvert pointed out the 400 property foreclosures at the courthouse on Tuesday alone, a decline in home sales, and an increase credit card debt cases coming for justice of the peace courts, and the increased cost of living and interest rates for everyone.
Rodriguez pointed out 85% of the county budget is consumed by mandates required by the Texas Legislature, which the county has no choice but to fund.
Many county employees and county retirees are upset over the county pay freeze, including Derrick Easter, a deputy of 25 years and board member with the deputy's union, the Deputy Sheriff's Association of Bexar County.
He told commissioners surveys show public safety is the top concern of taxpayers, and the pay freeze will lower morale among deputies. Easter said union talks have gone on for a long time and have now amounted to nothing.
"If you could separate us from the rest of Bexar County employees, just because we've been at the bargaining table negotiating," he said. "So, it's disheartening when you're sitting across the table from somebody for 600-and-something days and the whole time, they are going to offer you nothing. That doesn't seem like they are negotiating in good faith.
Easter said the City of San Antonio had a big budget deficit too but managed to give its police officers a 16% raise over the next three years.
Sakai, who leaves office on Jan. 1, said he was worked to keep spending down during in his four-year term to help prepare for these austere times. He also said he was proud of his fellow commissioners during this tough budgetary time.
"Everybody is increasing their tax rate," he said of local taxing entities. "So, with this vote, a favorable vote, we are not. And I think that's a powerful, positive message. If you take care of business, if you make the right decisions, you can get through these tough times.
The next fiscal budget takes effect on Oct. 1.
