<\/p>\n
Robert Puente, president and CEO of San Antonio Water System, speaks to the San Antonio City Council during a special meeting in May to discuss the utility’s rate hike request.\u00a0<\/p>\n
Katina Zentz\/San Antonio Express-News<\/p>\n
City Council Member Jalen McKee-Rodriguez asks a question to SAWS President and CEO Robert\u00a0Puente during a May meeting to discuss the utility’s rate increase request.\u00a0<\/p>\n
Katina Zentz\/San Antonio Express-News<\/p>\n
The San Antonio City Council on Thursday decided to wait until the fall to make a decision on a proposed increase to city water and sewer rates \u2014\u00a0 a move San Antonio Water System officials said will result in them seeking a higher increase.\u00a0<\/p>\n
<\/p>\n
SAWS leaders have been discussing a plans to seek a rate hike since last summer, and the utility’s board of trustees voted unanimously in May to approve a plan that would raise rates up to 32.8% over four years. \u00a0<\/p>\n
Article continues below this ad<\/p>\n
But because SAWS is owned by the city, the council has the final say on the rates the utility charges its customers. Last week, city staffers recommended a lower range of rate hikes, ultimately raising bills between 26% and 30% by 2029.<\/p>\n
Six council members voted Thursday to push back the vote until October: Sukh Kaur, Jalen McKee-Rodriguez, Edward\u00a0Mungia, Marina Alderete Gavito, Misty Spears and Marc Whyte.\u00a0\u00a0<\/p>\n
SAWS CEO and President Robert\u00a0Puente said the delay means SAWS will have to re-assess the proposed hikes and the rates will probably be “adjusted upward.”\u00a0<\/p>\n
Article continues below this ad<\/p>\n
“I doubt if contractors will hold their prices,” he said, as projects will be delayed. “Prices never go down, they always go up, so some of these projects will be more expensive.”\u00a0<\/p>\n
If there is no rate increase approved in 2026, SAWS would need to ask for a 16.1% increase in 2027 to achieve the same revenue it would have under the four-year plan, said Cecilia\u00a0Velasquez, SAWS chief financial officer.<\/p>\n
‘Real targets and real timelines’<\/p>\n
The council’s decision to delay a vote on the rate hikes came after\u00a0Kaur sent a letter to Puente on Wednesday night, listing problems with the utility\u2019s operations and policies and included specific requests for briefings, plans and responses.\u00a0<\/p>\n
Article continues below this ad<\/p>\n
“Before the council can consider approving a rate increase, SAWS must provide substantive responses to the following concerns,” the letter said, according to a copy obtained by the Express-News in response to an open records request. “We are prepared to work constructively with SAWS leadership. These are not unreasonable asks; they are the minimum required to move forward responsibly on a rate increase that will affect every San Antonio\u00a0ratepayer.” <\/p>\n
It\u2019s unclear exactly who that \u201cwe\u201d refers to. While the letter said it was from \u201cseveral San Antonio City Council members,\u201d none were identified by name. During the meeting,\u00a0Alderete Gavito and Mungia said they contributed to the list, while McKee-Rodriguez said he had seen the document and agreed with much of it.<\/p>\n
The letter mentioned issues related to construction projects, pavement damage and coordination with the city. It also asked for changes to the Uplift affordability program, to impact fees paid by developers and to a specific contract for removing\u00a0biosolids, which is the material removed from sewage in the wastewater treatment process.\u00a0<\/p>\n
\u201cI 100% agree that you all need these funds for these infrastructure improvements,\u201d\u00a0Kaur said during the meeting. \u201cAt the same time, it is our responsibility and what we were elected to do is our due diligence.\u201d\u00a0<\/p>\n
Article continues below this ad<\/p>\n
She said she wants SAWS to return in October with \u201creal targets\u201d and \u201creal timelines\u201d to address council members’ concerns.\u00a0<\/p>\n
The request comes as the City Council is also considering a property tax increase to close budget gaps, and CPS Energy included a potential rate increase in its own budget, though it has not asked the council to approve that yet.<\/p>\n
‘These are necessary projects’<\/p>\n
The current rate hike proposal, which was the result of a compromise between SAWS and city staff earlier this month, would have raised the average customer bill from $56.68 currently to $60.59 later this year, and ultimately up to $73.60 in 2029. There would be no changes to rates for customers in Uplift, and eligibility for that program would increase from 125% of federal poverty level to 150%.\u00a0<\/p>\n
Article continues below this ad<\/p>\n
The proposed rates were slightly lower than those originally requested by SAWS, after city financial staff conducted a review of the utility’s budget and request.\u00a0<\/p>\n
That review suggested changes in three main categories: eliminating current vacancies in the water metering department, lowering the amount budgeted for a particular water contract, and removing funding budgeted in anticipation of future CPS Energy rate hikes.\u00a0<\/p>\n
There were no proposed changes from the city to the utility\u2019s capital improvement plan, which makes up the bulk of SAWS’ planned spending from the rate increase.\u00a0<\/p>\n
Article continues below this ad<\/p>\n
\u201cThese are not discretionary projects, these are necessary projects,\u201d Puente told the council Thursday.\u00a0<\/p>\n
The utility says the higher rates are needed to support $3.2 billion in infrastructure projects over the next five years, including about $502 million of work at the Steven M. Clouse Water Recycling Center, the utility\u2019s largest sewage treatment facility. That plant was built in 1987 and original equipment there needs to be replaced, SAWS has said.\u00a0<\/p>\n
SAWS has also said the rate increase is needed to replace aging water mains, which are costing the utility billions of gallons of water each year from breaks and leaks. In 2025, that amounted to about 16.5 billion gallons, SAWS said \u2014 down from a high of more than 21 billion gallons in 2023, but still more water lost than it brings in from the Vista Ridge pipeline, one of the utility\u2019s key water sources.<\/p>\n
Under the current capital plan, almost $462 million would go to reducing water loss, SAWS said, and another $290 million would go to expanding water supply, including aquifer storage and desalination expansions, if the increase is improved.\u00a0<\/p>\n
Article continues below this ad<\/p>\n
In recent months, council members have pressed SAWS on why the money and work is needed now, and some have accused the utility of failing to address the problems previously, before they become so urgent.\u00a0<\/p>\n