San Antonio City Council B Session Briefing on SAWS Rate Increase Request - June 10, 2026

The meeting was called to order at 2:03 PM on Wednesday, June 10, 2026. The B session briefing provided an overview of the city staff's review of the San Antonio Water System (SAWS) proposed four-year rate plan (2026–2029). City staff presented their recommendations for modifications, based on a comprehensive analysis of SAWS operations, capital plan, and financial metrics. Councilmembers discussed the proposed rate increases, concerns about water leaks and infrastructure, affordability programs, and next steps. Action on the rate ordinance is scheduled for the June 18 A session.

Summary of SAWS Proposed Rate Plan & City Staff Recommendations

SAWS originally proposed rate increases of 7.9% (2026), 7.6% (2027), 7.1% (2028), and 6.6% (2029) for residential customers. City staff recommended adjustments after a detailed review, resulting in a revised plan: 6.9% (2026), 6.5% (2027), with a guaranteed minimum of 5.5% (2028) and 5.0% (2029), with the potential to increase up to 7% and 6.6% respectively, contingent on accountability measures and city staff review. The recommended reductions stem from several O&M adjustments:

• Elimination of 48 vacant positions in the field operations group (related to the completion of the AMI program), offsetting the addition of 37 new positions.
• Reduction of the WECO water contract budget from $8 million to $2 million due to drought conditions (a take-and-pay contract).
• Removal of a $1.2 million budgeted CPS rate increase, consistent with city budgeting practices.
• Removal of the senior lien debt assumption (reduction of $3.1 million in revenue requirement), as SAWS has historically issued junior lien debt.

City staff validated SAWS’ five-year capital improvement plan (CIP) of $3.2 billion, noting that the majority (about $2.9 billion) is focused on water delivery and wastewater. No capital projects were removed from the list. The review also endorsed SAWS' strong credit ratings (Fitch AA+, Moody's AA1, S&P AA+).

Council Discussion and Positions

Councilmember White inquired about the rationale for the reductions and the flex mechanism for 2028–29, confirming that rate increases above the minimum would require review by public utilities staff and a briefing to council but not a separate vote. Councilmember Spears questioned the sustainability of the financial model, the treatment of capitalized costs, and how excess revenues would be used. She also asked about enforceability of accountability measures; staff responded that unmet benchmarks would preclude increases above the guaranteed minimum.

Councilmember Aldarete Gavito expressed strong concerns about recurring major water leaks in her district (e.g., four leaks near Jefferson High School since 2023) and criticized that 70% of water main replacement funding is directed to districts 1, 10, 2, 3, and 4, but not her district. She questioned operations and communication across agencies. She also requested postponing the rate decision until after an audit of SAWS capital programs is completed. SAWS CEO Robert Puente responded that the audit would not address the need for the capital projects and that deferring would only delay needed increases. He noted a 19% reduction in line breaks since 2023 and improved response times.

Councilmember Massa Gonzalez commended the review, noting community tours and the necessity of investment. She asked about the senior lien debt assumption and was told it has not been used in 12 years. She expressed support for moving forward. Councilmember Galvan praised the detailed work and expressed support for the recommendations while noting discomfort with raising rates. He asked about the Uplift program expansion to 150% of federal poverty guidelines and noted that there is no cap on the number of participants. He requested more detailed data on conservation programs for general class customers and multi-family dwellers.

Councilmember Viegra emphasized water's importance for growth and conservation efforts. She urged keeping rate increases as low as possible and asked about staffing adequacy and prevention programs for homeowners. Councilmember Corr focused on Uplift enrollment: currently 1,700 families in District 1, with expansion eligibility to over 10,000. She requested a target for increased enrollment and discussed impact fees for multifamily housing.

Councilmember Castillo (District 5) stressed that proactive infrastructure investment is more cost-effective than reactive repairs, citing economic multipliers and public health risks. She noted that District 5 residents acknowledged the need for investment in water quality and infrastructure.

Mayor Jones provided a summary of a map showing work orders (14,591 work orders from 2020–2025) and water main replacements concentrated in older districts. He reiterated the urgency to avoid fines and maintain credit ratings, citing the recent downgrade of Corpus Christi’s credit outlook. He expressed confidence in the plan and support for the rate adjustment.

Key Outcomes

• City staff recommended approval of the modified four-year rate plan as presented.
• The rate ordinance is scheduled for action at the June 18 City Council A session.
• Accountability measures for 2028–29 rate increases above the guaranteed minimum will be ingrained in the ordinance.
• SAWS will continue proactive outreach to enroll eligible residents in the expanded Uplift program.
• Councilmembers will receive additional data on conservation programs, impact fees, and multi-family rental assistance opportunities.