San Antonio’s water rates might increase by less than previously proposed after a city review — with the average residential bill going up by $3.91 this year instead of $4.47.
San Antonio Water System and city staff presented an updated plan for increasing rates to San Antonio City Council members Wednesday at a B Session meeting as the utility seeks funding for its $3.2 billion capital plan.
Council members are starting to line up for or against the rate adjustment ahead of an official vote on June 18.
Lower-than-expected revenue has this council considering its first property tax increase in 33 years to address a budget deficit. At the same time, both SAWS and CPS Energy are looking for rate increases and the city is negotiating a new police contract.
Troy Elliott, the City of San Antonio’s chief financial officer, said the city’s public utilities staff had been working with SAWS to analyze its budget and reduce the rate increase.
Those recommendations included maintaining vacancies in SAWS’ field operations team, a planned reduction in a SAWS contract for water purchasing and tweaking SAWS borrowing and debt requirements.
SAWS average monthly residential bills had been projected to climb by $18.51 by 2029. Elliott said the changes currently proposed would take that down to as low as $14.80.
The utility originally planned to ask for residential rates to change by 7.1% in 2028 and 6.7% in 2029. Elliott laid out a more complicated, though potentially cheaper, plan.
SAWS would have a range of available rate increases — 5.5% to 7% in 2028 and 5% to 6.6% in 2029. If the utility comes in at the minimum for either of those years, it can make the change. Any other number within that range requires approval by city staff and a briefing with City Council.
A rate adjustment at the higher end of those ranges would still be lower than what SAWS previously proposed, but would be much closer to the $18.51 monthly change by 2029. Anything above the range would require another council vote.
During the meeting, Councilwoman Marina Alderete Gavito (D7) urged SAWS to fix leaks, highlighting recurring issues in the Woodlawn Lake neighborhood of her district.
She asked when SAWS planned to complete an independent audit of the utility.
SAWS CEO Robert Puente said the audit was in the works, but that it needed to raise rates to pay for improvements as soon as possible.
SAWS plans to make $3.2 billion in updates to its water and wastewater systems, including $662 million to replace sewer mains, $461 million to replace water mains and $566 million in updates for the Steven M. Clouse water recycling plant.
Puente said if the rate adjustment was voted down this year, SAWS would ask for one again in 2027.
Other council members showed support for the changes, though.
“Kicking the can down the road is not something that I know my residents voted for me to do,” said Councilwoman Ivalis Meza Gonzalez (D8). “These are tough choices that we have to make.”
“We need to pass this rate increase, and I hope my colleagues will join me in ensuring the city of San Antonio has the water she needs,” added Mayor Gina Ortiz Jones, who serves on the SAWS board and has emerged as a strong supporter of the SAWS rate increase.
Jones noted the need for safe drinking water and maintaining a strong bond rating at SAWS, allowing the utility to borrow money at lower interest rates.
She wasn’t the only council member to speak in support, though. Councilwomen Phyllis Viagran (D3) and Teri Castillo (D5) also supported the rate adjustment.
It will need six votes to pass when council members vote next week.
