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.