As many area residents dealt with economic shifts over the summer, officials with local San Antonio entities said they are looking to lessen financial burdens locally.

San Antonio City Council and Bexar County Commissioners Court adopted in August and September fiscal year 2022-23 budgets that, among other things, reflect lower or unchanged property tax rates, expanded tax exemptions and even utility rebates in what local officials say are part of bigger efforts to offset the effects of inflation and rising property value appraisals.

Small north side cities, however, are keeping or slightly raising tax rates, with officials saying they seek to maintain a high level of services.

San Antonio’s total $3.4 billion budget raised the city’s homestead exemption from 0.01%, or a $5,000 minimum, to 10% for all homesteads; expanded the over-age 65 tax exemption from $65,000 to $85,000; grew the disabled persons’ exemption from $12,500 to $85,000; and cut the total property tax rate from $0.55827 to $0.54504 per $100 valuation.

Clayton Perry, San Antonio District 10 City Council member, who represents Encino Park and other neighborhoods north of Loop 1604 and east of US 281, said he is happy to finally see significant property tax relief as part of the newly passed FY 2022-23 budget that took effect Oct. 1.

Local officials said they estimate $95 million in total forms of property tax relief are contained within the new budget. Perry said any tax relief will help many financially struggling residents.

“That’s big. These folks are on fixed incomes. The majority of these folks are retired, are on fixed pensions, and they need this help on property taxes,” Perry said of the expanded over-age 65 exemption.

San Antonio priorities

Perry and District 9 Council Member John Courage both said tax relief was a priority while they and council colleagues spent the summer developing San Antonio’s FY 2022-23 budget.

City leaders agreed skyrocketing property appraisals across Bexar County were compounding finances for thousands of residents already coping with the fiscal fallout of the COVID-19 pandemic as well as increasing gas and food prices.

According to the Bexar Appraisal District, the average single-family home value in Bexar County had risen 28% in 2022 over 2021.

City officials said about 240,500 homes are eligible for a homestead exemption, 102,000 residents are eligible for the over-age 65 exemption, and 7,000 residents are eligible for the disabled persons’ exemption.

“With increasing property values, tax relief is now more important than ever to ensure our most vulnerable do not live with the fear of being priced out of their homes,” Perry said at a June 16 meeting where the council approved the new exemptions.

Courage on June 16 said he agreed with Perry that expanding property tax relief is necessary, but that it must be done incrementally. The city also plans to spend $250,000 to educate homeowners on protesting property values and how to file for tax exemptions.

“I’ve consistently been supportive of long-term, meaningful tax relief for the residents of San Antonio,” Courage said Sept. 15.

Additionally, San Antonio’s budget contains a plan to use $50 million from a $75 million CPS Energy revenue windfall to provide ratepayers with credits and to help registered customers to lower their energy consumption.

City officials said CPS Energy customers may opt out and redirect their credit to the city-owned utility’s Residential Energy Assistance Partnership program. Customers who choose to receive credit will see it on their December bills, CPS Energy officials said.

Courage, Perry and fellow north side Council Member Manny Pelaez of District 8 also applauded a combined $64.3 million increase in budgeted funds for police, fire, parks and public works over FY 2021-22.

The new budget features $22 million in police and fire improvements, including growing the number of uniformed and civilian fire and police positions; $100 million for scheduled road maintenance; and $2.8 million to upgrade traffic signals.

Bexar County keeps pace

Like their city of San Antonio counterparts, Bexar County officials said their $2.86 billion total budget for FY 2022-23—an increase over the FY 2021-22 budget of $2.79 billion—is tailored to support basic services, keep pace with overall growth and offer some type of tax relief.

County Judge Nelson Wolff said a newly approved 20% homestead exemption, an expanded $30,000 exemption on Bexar County Hospital District taxes imposed on homeowners age 65 and older, and keeping the tax rate at $0.29 per $100 valuation all may collectively help many local homeowners.

“It’s a very significant move that will make a big difference for people who want to stay in their home or make an investment and improve their home,” Wolff said.

The new county budget features $17 million to improve five county buildings, $10.6 million to fund 14 new uniformed sheriff’s office positions and $5.4 million for eight new road projects.

The 14 new law enforcement positions fall short of the 76 positions Sheriff Javier Salazar requested in an effort to add patrol officers and investigators to especially serve fast-growing unincorporated parts of Bexar County.

Salazar said his department is not the lone law enforcement agency struggling to retain officers while grappling with growth and pandemic-induced economic challenges.

“We’re having to do our best to compete against all the other area law enforcement agencies to continue to retain the best of the best,” Salazar said.

Wolff, who is set to retire at year’s end, said more than 60% of the county’s budget is already committed to law enforcement.

Suburban budgets

Although no north side cities are expanding their respective tax exemptions this year, leaders from Hill Country Village, Hollywood Park and Shavano Park said they remain committed to passing budgets that adequately cover basic local operations and keep property tax rates as low as possible.

Hollywood Park’s total $8.07 million budget for FY 2022-23 is 23.4% higher than the $6.18 million budget approved for FY 2021-22, city officials said.

According to Hollywood Park city leaders, their new budget contains $4.23 million combined for police and fire—a slight drop from $4.24 million allotted last year for public safety. The city said it is keeping its $0.461 per $100 valuation property tax rate.

While no residents addressed Hollywood Park’s new budget at an Aug. 22 budget hearing, resident Shannon Sims proposed freezing senior citizens’ property taxes.

Sims said many retirees are on a fixed income with limited resources and few chances for added income.

“In the past, people have asked for a senior tax freeze from the City Council, and it’s always been a straight, ‘No.’ Nobody has ever come back and explained why it’s a, ‘No,’” Sims said.

Mayor Sean Moore said Hollywood Park has only a $5,000 tax exemption for senior citizens. He added that the city mostly relies on property taxes for its revenue.

However, Moore said the city could explore a tax freeze with data from the Bexar Appraisal District. The Hollywood Park council was scheduled to host a tax freeze presentation at their Oct. 18 meeting.

“I think it’s important for us to look at the numbers and make an informed decision,” Council Member Glenna Pearce said Aug. 22.

Nearby, Hill Country Village’s new $1.91 million general fund budget is $109,201 higher than last year’s budget. City officials said the new budget features an unchanged tax rate of $0.145 per $100 valuation, and a combined $100,412 increase in police and contract fire service expenses over last year.

Mayor Gabriel Durand-Hollis said Hill Country Village makes do with what it has. The city offers a state maximum 20% homestead exemption and $50,000 exemptions for age 65 and older as well as disabled residents.

“We don’t have to collect more [tax revenue] than what we need, but we also want to serve our citizens as best as possible,” he said.

Shavano Park’s new $6.21 million general fund budget is more than last year’s $5.82 million budget. The new budget offers a combined $280,423 increase for police and fire over FY 2021–22 to cover increased pay and inflation-driven costs.

The city is enacting a $0.01 property tax hike to begin supporting road improvements funded by the May voter-approved $10 million bond, local officials said.

City Manager Bill Hill said increases in taxable values, properties eligible for the age 65 and over tax freeze, inflation, and lower permit and construction plan review fee revenues all factored into Shavano Park’s budget.

Mayor Bob Werner said his city is using its new bond proceeds to apply much-needed road fixes.

“Next year, we will begin our phased road implementation, and as we do, we will make Shavano Park streets as fresh as they were over 70 years ago when the first residents arrived,” Werner said.