The bill has now passed the Legislative Committee, but if passed, it will take effect on September 1st.
San Antonio – From streets, parks, libraries to fire, police and housing, Texas cities issue bonds to fund major projects and use property tax revenue to pay off their debts.
But now that practice can be limited. Texas lawmakers are considering a bill that would limit how much local governments can pay to pay their debts each year.
Written by four Texan Republicans, House Bill 19 caps these payments on 20% of what they normally collect in property taxes.
For the city of San Antonio, that means employees will not be able to issue another bond until 2036, even if voters want to approve it earlier. Cut future urban bond programs by at least half.
“It’s essentially like saying, ‘You can borrow money for your house, but you can only pay this (a) month,” said Jeff Coyle, assistant city manager at San Antonio. “This is a huge concern for all areas that love the bond program, for street repairs and for all new fire stations in the new libraries and parks and bond programs.
The city was considering issuing bonds in 2027, focusing on affordable housing and street improvements in connection with Project Marvel, an ambitious plan for the city in the downtown sports and entertainment district.
“When we talk about Project Marvel or the proposed sports entertainment district, one of the big things we have to fund is infrastructure,” said Ben Golzel, city of San Antonio. “And this is the source we’re considering doing that.”
The bill passes through the Texas Legislature. Although he is currently on the committee, he believes that if Mayor Ron Nilenberg passes, he will take power from the residents.
“We have adopted a rural budget management approach and are effectively applying it to Texas’ biggest cities,” Nilenberg said. “What it does is to prevent the issuance of the funds needed to build or repair the streets for the next decade, and even if voters vote, it will prevent them from doing so.”
Once this bill passes, it will come into effect on September 1st.
