Approximately 100 retirees attended the Aug. 14, 2026, Brown Bag session on the City’s FY 2027 Proposed Budget & Retiree Benefits Update.
As you may be aware the City has projected a $158M budget deficit through FY 2028. This budget deficit is due in large part to rising costs, declining property values (and associated property tax revenue), and state limits on local revenue growth. Among the solutions to address the budget deficit the City is proposing budget cuts, fee increases, and an increase in property tax rates ($2.95/mo for average homeowner).
At the Aug. 14 Brown Bag Justina Tate, Asst. City Manager, delivered the following presentation on the City’s FY 2027 Proposed Budget:
In addition, Renee Frieda, Human Resources Director, and Joel Jenks, Interim Asst. Director for Human Resources, furnished the following presentation on Retiree Benefits:
You can also access these presentations on the RECOSA website by clicking here or copying and pasting the following link into your web browser: https://recosa.org/aug-14-2026-brown-bag-presentations/
After several years of relatively low, stable healthcare premiums, the City is proposing premium increases for both pre-65 (non-Medicare) and post-65 (Medicare) retirees. These increased premiums are due primarily to increased healthcare costs and the elimination of federal Medicare subsidies. In addition, for pre-65 retirees, there are proposed plan design changes in the form of increased deductibles and out-of-pocket maximums.
The City is also proposing the maximum TMRS cost-of-living-adjustment (COLA) available of 1.9% for all retirees that retired by Dec. 31, 2025.
The San Antonio City Council is scheduled to adopt the FY 2027 Proposed City Budget on Sep. 17. The information outlined in the presentations is subject to change until the budget is adopted. The City is conducting Budget Town Hall meetings Aug. 17 – 25 to solicit input from residents on the FY 2027 Proposed City Budget.
Information regarding annual enrollment will be forthcoming. If you do not wish to make any changes to your medical, dental or vision coverage, no action is required on your part – your current coverage will automatically roll over to 2027. If you do not have vision or dental insurance and would like coverage in 2027, you must enroll during annual enrollment.
While the RECOSA Board is disappointed with the proposed healthcare cost increases, we understand the underlying reasons and appreciate City staff’s efforts to minimize the impact to retirees.