San Antonio Water System proposes multi-year rate increases to finance wastewater and pipeline upgrade projects

Rate plan under review as SAWS outlines capital needs through 2030

San Antonio Water System (SAWS) leaders are advancing a proposal that would raise water and wastewater rates over multiple years, framing the increases as necessary to fund large-scale upgrades to aging infrastructure and treatment facilities. The proposal is expected to move through SAWS trustees and then to the San Antonio City Council for final consideration, with timing focused on the first half of 2026.

SAWS has not implemented a broad rate increase since January 2020, and a 2023 restructuring lowered typical residential water and sewer charges for many customers. In late 2025, SAWS trustees approved an interim 2026 budget that postponed final rate decisions while a cost-of-service study was completed and newly seated city leadership had more time to review priorities.

How much bills could rise under the current framework

Under figures presented publicly during the rate-setting process, the proposed adjustments would raise the average residential monthly bill from roughly $60 today to the high-$70 range by 2029, translating to an increase of about one-third over the period. Early-year changes discussed publicly include an increase that would add roughly $5 per month for an average residential customer in the first year of the plan, with additional annual adjustments thereafter.

Separate planning documents and public presentations have also described a revenue requirement of roughly 42% over five years to support projected service costs and planned investments. SAWS has indicated that customers enrolled in its income-based Uplift assistance program would not face the same rate changes.

What SAWS says the money would pay for

SAWS has tied the proposed rate plan to a capital improvement program totaling more than $3 billion by around 2030, spanning both water and wastewater systems. Public briefings have highlighted wastewater treatment plants as a primary cost driver, alongside replacement of aging sewer and water mains.

SAWS leadership has also pointed to operational and regulatory risk if upgrades are deferred, including the possibility of permit violations and heightened environmental oversight tied to treatment performance.

• Upgrades to wastewater treatment facilities and recycled-water plants
• Repair and replacement of aging sewer and water pipelines
• Long-term water-supply resilience projects, including expansion planning at the H2Oaks aquifer storage and recovery system

SAWS’ rate-setting pathway requires trustee review before a City Council vote, and officials have indicated that the proposal may be refined as questions from stakeholders and elected officials are addressed.

Decision points ahead for City Council and customers

Once the cost-of-service analysis is finalized, SAWS is expected to present a formal rate ordinance for trustee action and then City Council deliberation. Council members will weigh the scope and duration of any multi-year plan, with options discussed publicly that range from shorter-term adjustments to longer schedules extending through 2029.

Separately, city budget discussions have included the possibility of increasing SAWS’ transfer to the city’s general fund from 4% to up to 5% of gross revenue, a change that could affect SAWS’ overall financial picture as capital needs and affordability concerns converge in the rate debate.