San Antonio utility proposes four-year rate plan to fund major water infrastructure upgrades

San Antonio — At a special San Antonio City Council session on May 7, 2026, officials from the city's water utility presented a proposed four-year capital improvement program (CIP) and asked the council to consider phased rate adjustments through 2029 to pay for repairs, upgrades and federally- and state-required changes.

Robert Puente, the staff presenter, said the package responds to higher costs since 2020, recent state mandates and drought-driven infrastructure stress. "Estamos presentando un programa de capital para proteger el futuro de San Antonio," he said, describing the plan as a way to "proteger la calidad del agua y la confianza del público." He told the council the system is operating amid "la peor sequía desde 1950," a condition he said makes investments urgent.

Why it matters: Staff said the CIP will fund major projects — including treatment-plant expansions, storage increases and a recycling center — and relies heavily on long-term debt. The presentation cited multi-year totals for large projects and said the utility faces both federal (EPA) and state mandates for lead and copper compliance. Staff said public meetings are scheduled May 20 and the City Council is slated to vote June 11; if the council approves the rate change, staff said new rates could take effect July 1, 2026.

What the plan would do: Puente outlined a four-year rate plan intended to spread the cost of projects that in many cases require multi-year construction. He said the utility has invested in modern meters and leak-detection technology and reported improvements in response times — from an average of 14 days to about two days for repairs in 2025 — but that many pipelines and components remain at or beyond expected service life.

Council scrutiny and affordability concerns: Council members repeatedly questioned the timing, size and distributional effects of the increases. One council member summarized a staff-provided loss estimate: "son serían 21,000,000,000 de galones," a figure the councilor used to emphasize how much water the city loses to breaks and leaks. Council members asked for maps showing which 77 miles of pipe staff plans to replace over five years and for district-level breakdowns of bill impacts.

Several council members said they were worried about low-income and fixed-income households. Staff responded the plan includes an expansion of the utility's assistance program — raising eligibility from 125% to 150% of federal poverty levels — which staff said could double the number of qualifying families. Puente also said staff will provide more detailed, district-level data before the June vote.

Questions about costs and governance: Council members also raised questions about executive bonuses and staffing. One council speaker asked why a leadership bonus would be in the context of proposed rate increases. Staff replied they would address personnel and evaluation timing, and that some staffing additions are intended for ongoing leak detection and repair rather than temporary roles.

Legal and technical mandates: In the presentation staff cited federal and state mandates on lead and copper and noted some projects respond directly to those compliance requirements. Council members requested a column identifying which projects are mandated by state or federal rules.

Next steps: Staff repeated the public-outreach schedule (community meetings and a May 20 briefing) and the council set a June 11 date to consider ordinance action. No formal vote or motion occurred during the special session.

The council session adjourned at 6:58 p.m.

Sources: Presentation and Q&A at the May 7, 2026 San Antonio City Council special session. All direct quotes are from presenters and council members recorded in the meeting transcript.