City Manager Proposed $442 Million Bond Package

San Antonio officials aim to fund infrastructure projects while avoiding property tax hikes.

Updated on Sept. 30, 2026 in City Hall

Isometric editorial illustration of a limestone civic building with arched windows, representing city infrastructure planning. — San Antonio officials introduced a $442 million bond package to fund critical downtown infrastructure while maintaining current property tax rates. AI Illustration. Upload story photo >

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Should your city prioritize bond-funded development projects if it risks increasing local property taxes?

City Manager Erik Walsh has introduced a $442 million bond proposal intended to secure funding for municipal infrastructure without increasing the property tax rate. The bond is designed to support the construction of a new $1.3 billion Spurs arena.

Why it matters

The proposal allows the city to move forward with critical downtown infrastructure improvements while bypassing a tax hike that would typically accompany larger bond packages. It serves as a necessary mechanism to fulfill the city's financial commitment to the new arena project.

The proposed $442 million bond includes $35 million specifically for downtown infrastructure, which will be supported by an 80% cost match from TxDOT. If a larger $1.2 billion bond were pursued instead, homeowners would face a $66 annual tax increase starting in 2029.

The players

Erik Walsh

He serves as the City Manager of San Antonio and is responsible for overseeing municipal budget proposals.

San Antonio City Council

The legislative body for the City of San Antonio that is responsible for adopting city budgets and calling bond elections.

TxDOT

The Texas Department of Transportation is a state agency responsible for managing the state's transportation infrastructure.

The details

The city has already committed $489 million toward the $1.3 billion Spurs arena, while Bexar County has pledged $311 million following voter approval in November 2025. By keeping the bond package at $442 million, staff aim to maintain current tax levels while still facilitating project progress.

November 2025: Bexar County voters approved the arena financing measure.
September 17, 2026: City Council adopted the new city budget.
October 1, 2026: The city fiscal year 2027 officially begins.
2027: The proposed bond package election is slated for the ballot.
2029: A $66 annual tax increase for homeowners would take effect if a larger bond is passed.

Political Context

Opponents or fiscal hawks may argue that even a reduced bond package contributes to long-term debt obligations that could necessitate future tax adjustments regardless of current projections. Some community groups often raise concerns that prioritizing arena infrastructure distracts from pressing neighborhood-level utility needs.

Residents should monitor the upcoming 2027 election, as the bond's passage will dictate whether the city maintains current tax levels or moves toward projects requiring future tax increases. If the bond is rejected, voters should expect a reexamination of the arena deal and potential changes to infrastructure timelines.

The takeaway

The city is strategically limiting its bond request to avoid triggering automatic property tax hikes while still meeting its financial obligations for the new arena. Homeowners and local stakeholders should watch the ballot election in 2027 as it will determine the city's fiscal trajectory regarding infrastructure development.