San Antonio officials weigh four-year SAWS rate plan to fund $3.2 billion CIP; council presses on water loss and affordability

San Antonio Water System leaders told City Council on May 7 that a proposed four‑year rate adjustment is intended to fund a $3.2 billion five‑year capital improvement program and to shore up aging wastewater and water infrastructure. Robert Puente, SAWS president and CEO, said the plan is “fundamentally about reliability, growth, and protecting San Antonio’s future.”

The proposal would cover major treatment‑plant upgrades, sewer‑main replacements and storage and conveyance projects across 2026–2029. SAWS said it has committed about $2.6 billion over the past five years to complete a federal consent decree, an AMI meter program and other projects and now needs additional investment for the next five years. Puente said roughly 30% of the CIP is cash‑funded and the remainder would be financed through long‑term debt that adds to debt service.

Why it matters: SAWS argued the program is meant to prevent environmental and regulatory failures as infrastructure reaches the end of its useful life. Council members pressed SAWS for district‑level customer impacts, alternatives to a four‑year schedule and assurances the utility will protect low‑income households. SAWS said the board will vote on the rate plan later in May and council is scheduled to consider the recommendation on June 11.

Key costs and timing: SAWS presented 2026 projects totaling hundreds of millions of dollars (three large wastewater/recycling projects cited at nearly $339 million and about 18 smaller 2026 projects). The utility projected the average residential bill would increase by $4.47 in 2026 (about a 7.9% increase for the average usage reported) and noted that, under the plan, the average residential bill would be lower than pre‑2022 levels in early years but approach a roughly $19 per month increase by the end of the four‑year period (a cumulative ~32% figure cited by council members in debate).

Affordability and assistance: SAWS proposed expanding its Uplift assistance program’s eligibility from 125% to 150% of the federal poverty level and increasing funding for several affordability initiatives (Project AWA, Plumbers to People, Laterals to People). SAWS staff said Uplift enrollment remains application‑based and that outreach includes district office signups and recurring field events. The utility also described a pass‑through fee mechanism that is trued up annually to cover Uplift costs.

Performance and leak response: In response to council questions about water loss, SAWS said non‑revenue water peaked in 2023 and that operational changes since then reduced average response time for leaks from about 14 days in 2023 to roughly two days in 2025. Puente said leak‑detection staffing rose from six to 16 and that more than 60% of staff time is now spent proactively locating hidden leaks.

Uncollected revenue and affordability metrics: SAWS said it budgets uncollected revenue at roughly 0.7% and reported delinquencies near $27 million at the end of 2025 (down from a COVID peak of about $55 million). SAWS presented an affordability metric calibrated to an EPA benchmark of roughly 4.5% of household income; staff said the non‑affordability residential class burden would rise from about 1.1% to 1.18% under the 2026 proposal.

Council concerns and governance questions: Multiple council members signaled support for infrastructure investment but sought more granular modeling, an operational/efficiency audit and clarity on priorities. One council member cited a figure of roughly 21 billion gallons of water loss in 2023 and said that loss equated to tens of millions in lost revenue; that council member also criticized the timing of board action acknowledging executive performance pay while rate increases are debated. The SAWS board chair defended the timing of an evaluation process tied to the organization’s calendar and said she accepted responsibility for the decision to disclose performance recognition on the schedule used by SAWS.

Next steps: SAWS told the council the board will vote on the rate plan May 19 and that staff will present recommendations to council May 20; council is scheduled to vote June 11. If approved, SAWS anticipated implementing new rates on July bills with revenues realized beginning in August 2026.