While the San Antonio Water System will not seek a residential rate increase next year as part of its proposed 2025 budget, it will seek to tackle the water utility’s so-called “non-revenue water” issue head-on, SAWS officials told its board of trustees Tuesday.
SAWS’ proposed 2025 budget would be its largest ever at $1.08 billion, and includes allotting a significant chunk of its capital spending in 2025 toward its effort to address the increased number of water main breaks SAWS has seen over the past three years.
In a special presentation, the utility answered questions about its efforts to address non-revenue water loss, the term it uses to refer to water lost within the system.
The municipal water utility experienced the most main breaks within pipes delivering the city’s water supply ever in 2023, breaking 2022’s record, due to the scorching summer heat that led San Antonio to reach 75 triple-digit days last year.
Since 2013 — the year SAWS was ordered by the U.S. Environmental Protection Agency to reduce its in-system spills — the utility has invested more than $1.2 billion in infrastructure improvements said Jeff Haby, SAWS senior vice president of production.
Over the past decade, SAWS has significantly reduced the number of “Sanitary Sewer Overflows” (SSOs) that it had, Haby noted.
“We were fortunate to be recognized by the EPA in 2021, when we went up there for our annual trip,” Haby said. “Just like the SSOs, we want to become the national model” for reducing in-system leaks, Haby said.
SAWS will continue investing in decreasing its leaks over the next several years.
The utility expects to put about $613.1 million into its capital improvement program for 2025, which includes: $264.5 million for water main installments, replacements and governing; $81.4 million for sewer main installments, replacements and governing; $89.9 million for water production improvements, including purchasing generators and installing resiliency measures; and $6.5 million for chilled water improvements.
The new impact fees approved earlier this year are expected to generate an additional $39 million for the water utility in 2025, said Doug Evanson, SAWS executive vice president and chief financial officer.
“[That] will help disintegrate some of those CIP spending needs,” Evanson told the board. SAWS operations and maintenance (O&M) costs are projected to increase by roughly $16 million next year, Evanson said.
The water utility also plans to increase its employees’ minimum living wage from $18.25 to $19, with SAWS employees in entry-level pay grades receiving a 4% pay increase in January, Evanson said. Starting rates for two subsequent pay grades will also be adjusted to avoid compression, Evanson said.
SAWS’s proposed budget shows the utility is looking to grow its staff by roughly 80 new employees next year, including hiring 39 employees for “water loss reduction” and an additional 18 employees for construction management for “capital improvement program implementation.”
Tuesday was SAWS first briefing on the proposed 2025 budget. The trustees will receive another budget briefing next month and will vote on it in November.
