San Antonio City Council Considers SAWS Rate Proposal for FY2026-2029 – May 7, 2026

The San Antonio City Council held a special session on May 7, 2026, to receive a briefing from the San Antonio Water System (SAWS) on its proposed four-year rate adjustment for fiscal years 2026 through 2029. The meeting, which began at 4:57 PM and adjourned at 6:58 PM, was the first of three sessions before a council vote scheduled for June 11, 2026. SAWS President and CEO Robert Puente and board chair Jelynne Burley presented the capital program, emphasizing the need to invest in aging infrastructure, meet regulatory mandates, and improve water loss management.

Discussion Items

SAWS Presentation Highlights

• Capital Program: SAWS outlined a $3.2 billion, five-year capital improvement plan (CIP) to address aging wastewater treatment plants (e.g., Stephen M. Klaus plant from 1987, Leon Creek from 1965), replace water mains, expand the Aquifer Storage and Recovery (ASR) facility from 30 to 60 million gallons per day, and comply with state and federal mandates.
• Rate Impact: The average residential customer (using 6,705 gallons water, 5,052 gallons wastewater) would see a $4.47/month increase in 2026 (7.9%). Over the four years, the cumulative increase would be about $19/month. 70% of residential customers use less than the average and would experience a lower impact.
• Affordability: The proposed rate adjustment includes expanding the Uplift assistance program eligibility from 125% to 150% of the federal poverty level, potentially doubling the number of eligible families. Additional funding for programs like Project Aguila, Plumbers to People, and Laterals to People was also included (e.g., Project Aguila from $400,000 to $600,000). Uplift customers would not see a rate increase.
• Water Loss: SAWS reported 7,400 breaks and leaks in 2023, costing an estimated $70 million in lost revenue. Response times have improved from 14 days (2023) to 2 days (2025) through increased staffing (37 new positions, including leak detection teams). The leak detection team grew from 6 to 16 staff, and 60% of time is now spent on proactive leak detection. Non-revenue water targets aim for a 50% reduction by 2035.
• Historical Context: SAWS noted they deferred rate increases since 2019, absorbed costs from COVID-19, Winter Storm Uri ($340 million mandate), and new EPA Lead and Copper rules, all while implementing a $200 million Connect H2O meter program and delivering an 11.8% rate decrease in 2022. The current request is the first since then.

Council Member Positions and Comments

• Mayor Jones: Emphasized the risk of infrastructure failure and noted that the four-year plan is the most cost-effective approach, as spreading the costs reduces the annual burden. He also highlighted the need for interagency data sharing with CPS Energy to target vulnerable residents.
• Councilmember Aldrete y Vito (District 7): Expressed strong concern about water loss (21 billion gallons in 2023, costing $70 million) and questioned the timing given other cost pressures. He requested a two-year rate plan option and announced a SAWS town hall on May 18. He also noted the CEO bonus announcement as a public trust issue.
• Councilmember Galvan (District 6): Asked for detailed affordability data, including tier breakdowns for low-usage customers, and sought to understand how the Uplift program could be made automatic enrollment. She appreciated SAWS' community outreach.
• Councilmember Spears (District 9): Asked about staffing sustainability and whether the efficiency study could lead to lower rates. She requested data on incentive programs for water conservation.
• Councilmember White (District 9): Expressed concern about the total $19/month increase, comparing it to a week's worth of groceries. He requested the percentage of household income spent on water (SAWS responded: currently 1.1%, rising to 1.18% with the increase). He also asked about uncollected revenues (outstanding delinquencies of $27 million) and a two-year plan, but SAWS argued a four-year plan provides rate stability and avoids larger future increases.
• Councilmember Mesa Gonzalez (District 8): Emphasized the need for transparency and protecting low-income residents. She asked about mandate-related CIP projects and requested information on general customer (business) rate impacts by size.
• Councilmember McKee Rodriguez (District 2): Voiced concerns about trust and timing, citing the CEO bonus and unresolved issues like Grayson Heights. He acknowledged SAWS' fair rate structure (no incentive for high water use) and the Uplift program, but said he needed more confidence before supporting the increase.
• Councilmember Castillo (District 5): Expressed support for the investment, noting the need to avoid "kicking the can down the road." He praised SAWS' community engagement and the expansion of Uplift. He also highlighted the importance of safe, quality water for over 2 million residents.
• Councilmember Corr (District 1): Requested more details on SAWS' internal efficiency cuts, and asked for data on customers not enrolled in Uplift but eligible (approximately 40% of eligible are enrolled). She also raised coordination issues between SAWS and city public works projects.
• Councilmember Viagran (District 3): Strongly supported the rate adjustment, arguing that neglected infrastructure disproportionately impacts the South Side. She highlighted benefits like reducing odors from Salado Creek and addressing septic tank issues. She advocated for communication on conservation programs.

Key Outcomes

• No vote was taken; this was a briefing session. The scheduled next steps are: SAWS board vote on the rate plan on May 19, 2026; city staff recommendation to council on May 20, 2026; and council vote on the rate plan on June 11, 2026.
• Council members requested additional data: tier breakdowns for residential and general customers, geographic maps of priority pipe replacements (77 miles), heat maps of septic tank areas, impact on school districts, and analysis of the impact on residents at various income levels.
• SAWS committed to sharing the efficiency study (draft received, final expected before June 11) and to providing requested information. The newly established Capital Projects Committee, chaired by Ed Belmarez, will review the capital delivery program.
• The mayor's office and SAWS will work on a data-sharing agreement with CPS Energy to cross-reference vulnerable customer data for targeted outreach.

This summary is based on the transcript of the May 7, 2026 city council special session. No agenda or minutes were available.