Council holds first reading on water and sewer rate increases; ordinance will phase in five-year rises and be revisited in two years

Leon Valley’s public works director, Melinda Morris, presented the first reading of an ordinance to increase water and sewer rates and to restore a tier structure that matches San Antonio Water System (SAWS) tiers. The ordinance proposes a phased five-year rate schedule, with annual increases for both water and sewer base and volumetric charges, and increases to regulatory fees (Edward’s Aquifer Authority and TCEQ surcharges).

Morris told council the increases are intended to produce a target revenue stream to fund capital repairs and anticipated purchases (including water-rights purchases and repairs to aging infrastructure), and to create capacity for a potential voter‑authorized bond for major capital projects. The ordinance also adjusts city pass-throughs for the Edward’s Aquifer Authority and TCEQ fees.

Council discussion: Several council members and members of the public asked questions about the timeline, the use of any one-time land-sale proceeds and whether changes would be reviewed; the finance director and the manager clarified that the council had previously approved the rate direction and that the ordinance is a housekeeping step required by city charter. Council agreed to place the ordinance on the next consent agenda for final action; staff said the council had earlier instructed that the increases be revisited in two years to consider reduction or further adjustment depending on revenue performance and capital needs.

What’s next: The item will appear on the consent agenda (final reading/ordinance adoption) at the council’s next meeting unless a council member requests it be pulled for separate consideration. Staff emphasized that one-time land-sale revenue should not be counted as recurring operating funds when projecting long-term obligations.