San Antonio City Council B Session with SAWS on 2026 Budget and Rate Increases - February 4, 2026
San Antonio City Council B Session with SAWS on 2026 Budget and Rate Increases - February 4, 2026
On Wednesday, February 4, 2026, from 2:05 PM to 5:07 PM, the San Antonio City Council held a B session to discuss the San Antonio Water System (SAWS) 2026 budget amendment and potential rate increases. SAWS leadership presented historical rate context, operational challenges, a five-year $3.2 billion capital improvement plan, and the findings of a cost-of-service study recommending cumulative rate increases of approximately 30% for water and 35% for wastewater over five years. Council members expressed cautious support for necessary infrastructure investments while raising concerns about affordability, water loss, aging infrastructure, equity among customer classes, and the need for transparent project prioritization. No formal vote was taken; the council requested additional details before SAWS returns with a final recommendation.
Public Comments & Testimony
- No public comments were transcribed in the meeting record. The meeting adjourned with a note that 47 individuals had signed up for public comment, but no such comments were presented in the transcript.
Discussion Items
- SAWS Presentation: Chair Jolene Jameson opened with an overview of board accountability, benchmarking, and the CEO scorecard. CFO Doug Evanson detailed rate history, the impact of inflation (CPI up ~25% since 2020, construction costs up 43%), Winter Storm Uri ($340 million), federal mandates (lead and copper rules), and a $200 million water loss reduction initiative. The cost-of-service study by Corollo Engineers recommended increasing potable water rate revenue by ~30% and wastewater by ~35% cumulatively from 2026-2030, with a 7.9% residential increase in 2026. COO Andrea Beamer presented the capital program, emphasizing replacement of aging water and sewer mains (56 miles of water mains over 4 years), wastewater treatment plant upgrades (many original plants from 1987 or earlier), compliance with SB3 generator mandates, and other major projects.
- Council Concerns and Questions:
- Mayor Jones and multiple council members stressed the need to minimize rate impacts on vulnerable residents given economic pressures from proposed federal cuts (One Big Beautiful Bill, Medicare, Medicaid, SNAP).
- Councilwoman Alderete Gavito highlighted water loss as a major issue, noting that in 2024 SAWS lost nearly 20 billion gallons of water, contributing to street damage and resident frustration. She asked for quantification of the cost of water loss to the system. SAWS responded that water loss has decreased 10% from 2023 levels and that the goal is to cut losses in half within 10 years.
- Councilman White questioned the Corollo study, arguing it validates SAWS’s self-reported needs rather than independently evaluating the necessity of projects. He requested a clear breakdown of “must-do” vs. “nice-to-do” projects. He also noted that Vista Ridge water costs $100 million annually but all water is used, and asked about potential revenue from selling water. SAWS responded that during drought there is no excess water.
- Councilman McKee Rodriguez cited recent conflicts with SAWS leadership, including water shutoffs at apartment complexes and coordination issues on bond projects, and stated that support for a rate increase would require a change in leadership philosophy.
- Councilman Via Gran asked about connecting customers still on septic tanks, and recommended a rate restructuring that incentivizes conservation, especially for high-use residential and commercial customers.
- Councilman Spears requested specific project maps, timelines, and contractor information. She also noted constituent complaints about smart meters causing higher bills; SAWS explained that new meters detect usage more accurately and can alert customers to leaks.
- Councilman Galvan questioned the general class rate structure, arguing that large commercial users should pay higher rates, not lower, given their high water use. SAWS clarified that the base-excess rate structure charges peak users more, and that general class customers are charged a cost-of-service rate that covers their system burden.
- Councilman Castillo emphasized the importance of the Plumbers to People pilot program (approved by SAWS board the previous day) and asked about the impact of not approving a rate increase on planned water management improvements. SAWS noted that without rate increases, key initiatives like additional leak response crews and water main replacement could be jeopardized.
- Councilman Mungia asked about the cumulative impact of past rate increases (approximately 30% from 2016-2020) and the current need for additional increases. He requested a list of the top 25 commercial water users and expressed concern about the cost of connecting new homes to water lines.
- Councilwoman Koor asked for example bills for different customer types to contextualize the impact, and questioned why water system O&M costs are higher than wastewater. SAWS explained that water systems require many pump stations and are energy-intensive, while wastewater uses gravity flow.
Key Outcomes
- No formal vote was taken. The meeting was a discussion session for council input.
- SAWS will provide additional information requested by council, including:
- A prioritized list of projects with maps, timelines, and cost estimates, differentiating between mandatory and deferred maintenance.
- A breakdown of rate impacts by customer class, including example bills.
- Data on the top 25 commercial water users.
- Analysis of the water loss reduction program’s cost per mile and expected savings.
- Information on state and federal mandates (e.g., lead and copper rule, SB3) and their impact on capital needs.
- Planning assumptions for the Uplift assistance program given potential federal changes.
- SAWS will incorporate council feedback into a revised rate proposal and return to the council for further consideration. The SAWS board is expected to make a final recommendation in the coming months.
Meeting Transcript
Good afternoon. The time is now 2.05 p.m. on Wednesday, February 4th, 2026, in the City of San Antonio. B session is called to order. Madam Clerk, please call roll. Councilmember Corr. Councilmember McKee Rodriguez. Present. Councilmember Via Gran. Here. Councilmember Mughia. Present. Councilmember Castillo. Here. Councilmember Galvane. Councilmember Alderete Gavito. Here. Councilmember Mesa Gonzalez. Present. Councilmember Spears. Councilmember White. Mayor Jones. Here. Mayor, we have Quorum. Great. Thanks, Madam Clerk. So this afternoon we'll hear from the San Antonio Water System. And I understand we have some board members here as well. As we know, you know, the ability to own our utilities is a strategic advantage. We also have the responsibility to ensure that we have utilities that are meeting the demand, not only today and and into the future. This is a timely discussion, as you will hear, given the large number of capital projects that need to be addressed to ensure that we are providing that service to the community and remaining economically competitive. But we also recognize unfortunately the economic environment where we will see, for example, the implementation of the One Big Beautiful Bill, cuts to Medicare, Medicaid Chip, and SNAP. So we are cognizant of any uh rate increase either by this utility or by CPS that would impact the most vulnerable. And of course, we look at uh each of these uh um uh the presentation today through that lens. Um okay, Eric, over to you to get us started. Thank you. Thank you, Mayor. Good afternoon, Mayor and Council. So um, as the mayor laid out, um SAWS has been going through their own discussions uh in advance of uh council uh discussion uh regarding their 2026 budget and uh potential impact on on SAS rates. Uh yesterday the SAW staff uh saw his board had a meeting and uh in response to a number of the issues that or questions that the board had uh from their January meeting. Uh in today's meeting is is really there's it's it's a long presentation but but full of a lot of uh important information and they'll present let kind of and lay out to you all the 2026 uh budget amendment and uh potential rate impacts um and they've also incorporated within the presentation um uh responses to the memorandum that was submitted by uh council members um Govito uh Spears and and White. Um the SARS board is still in their in their uh their gathering input phase, and I think that's one of the reasons why the uh many of the board members are here today. Um with that I'm gonna turn it over to Jolene uh Jameson, uh the chair uh to start us off. Good afternoon. I'm Jillian Jameson, and I want to open by thanking you for the opportunity to be here today. Uh but I first like to thank Councilwoman Castillo for coming to the board meeting on yesterday. We were able to approve uh two pilots, pilot plumbers to people in our sewer lateral program to help customers with uh much needed lateral and um sewer support for their homes. So thank you for being with us on yesterday. Um we look forward to the successful implementation of both of those programs, and and of course, it doesn't just impact council district five, but all of our SAWS customers. So joining me today are members of the Board of Trustees.
openpublica.com