San Antonio council wary of SAWS rate hike
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The City Council appears hesitant to approve a significant customer rate increase for the San Antonio Water System.
Why it matters: SAWS says it needs more funding to care for aging infrastructure and water mains that are breaking. But Mayor Gina Ortiz Jones and councilmembers say they worry about charging more in an economy that's showing signs of cracks.
By the numbers: SAWS has not yet proposed a specific amount for a rate increase.
- But a study by environmental engineering firm Carollo Engineers suggests the utility needs a nearly 30% increase for water and a nearly 43% increase for wastewater rates by 2030 to maintain the health of its system.
- The recommendations start with a 7.9% water and 6.3% wastewater rate increase in 2026.
The big picture: The water utility has faced growing costs in recent years.
- The COVID-19 pandemic led to uncollectible account balances of more than $40 million; inflation pushed up costs for construction and labor; and the 2021 winter storm resulted in a $340 million price tag for new generators at major pump stations.
- The utility has also spent $1.2 billion over the last decade-plus to replace sewer mains under an agreement with the Environmental Protection Agency.
State of play: Now, utility leaders say SAWS needs to focus on other infrastructure projects to avoid "system failure." Capital plans for the next five years total more than $3.2 billion, chief operating officer Andrea Beymer told the City Council last week.
- Plans for 2026 include more than $254 million in upgrades to the Steven M. Clouse Water Recycling Center to avoid equipment failure that SAWS says would result in regulatory violations.
Plus: 35% of SAWS' water mains are 40 or more years old. That can lead to main breaks.
- Nearly 70% of water main breaks in 2024 were of mains considered in the worst 10% of condition, per SAWS.
What they're saying: "Convincing residents of a rate increase again when everyone is feeling the squeeze is a tough sell," District 7 Councilmember Marina Alderete Gavito said at a City Council briefing last week.
- Jones said the council is "concerned with the economic picture for our most vulnerable" residents.
- SAWS is "dealing with, unfortunately, lots of delayed projects," Jones said.
How it works: Since the city owns SAWS, the council must approve any rate increases, although SAWS operates independently.
Flashback: SAWS' last rate increase took effect at the beginning of 2020, following a series of increases to help pay for the Vista Ridge Pipeline — what is now the largest non-Edwards Aquifer water source for SAWS.
- SAWS restructured its rates starting in 2023 to make large water users pay more, effectively reducing the average residential bill.
What's next: The utility could seek final City Council approval in April.