The San Antonio Water System (SAWS) has moved forward with a proposal to raise customer rates over the next several years to support a planned $3.2 billion investment in its water and wastewater network. On May 19 the SAWS board voted unanimously, 7-0, to forward the rate proposal to the San Antonio City Council, which must give final approval. The utility describes the increases as phased and targeted so the financial impact on customers is spread out.
The plan would produce additional revenue over the coming four years and is intended to cover essential work such as pipe replacement, pump station upgrades and rehabilitation at multiple water recycling plants. SAWS officials emphasize the goal is to avoid emergencies and regulatory penalties by proactively maintaining infrastructure.
Timeline and city review
After the board vote on May 19, the next steps are public hearings and a council decision. SAWS said the City Council will take up the matter at a meeting scheduled for either June 10 or June 11, with a final A session vote planned for June 18. Residents may register to speak once the city posts the meeting agendas on its website. Until the council acts, the proposed adjustments remain recommendations rather than law.
How the increases would be phased
SAWS has proposed annual rate adjustments for four years. The utility will set increases for 2026 and 2027 now, then revisit the expected changes for 2028 and 2029 after assessing actual revenue and evolving project needs. Officials framed this approach as prudent budgeting: locking in near-term increases while retaining flexibility for later years depending on financial results and borrowing needs.
Revenue and financing strategy
The projected rate changes are not intended to cover the entire $3.2 billion capital plan immediately. Instead, the increases would generate nearly $300 million over four years, creating a base that allows SAWS to begin borrowing for projects. Utility leaders noted SAWS invested about $2.6 billion in infrastructure over the past five years without raising rates, but said reserves have limits and preserving credit ratings is now a priority.
Who pays and who is protected
SAWS rates vary based on customer classification, meter size, water use and whether an address lies inside city limits. To help customers estimate changes, SAWS offers an online rate calculator. Utility communications staff point out that much of the data the calculator needs appears on the second page of a customer’s bill, including meter size and impervious cover figures used for stormwater fees.
Uplift program and low-income protections
Importantly, households enrolled in SAWS’ Uplift Program will not see bill increases under the current proposal. SAWS is expanding eligibility from 125% of the federal poverty level to 150% of the federal poverty level, a change that raises the threshold and allows more low-income families to enroll. For example, a family of four with an income up to $49,500 annually now could qualify. Under the Uplift structure, a typical 5,000-gallon monthly user pays $12.97, while a 10,000-gallon user pays $33.35.
Expected impacts for typical customers
SAWS staff provided usage estimates to show likely bill changes. Most households have a 5/8-inch meter. Using national residential water use estimates, SAWS conservation experts modeled that a two-person household typically uses roughly 4,300–4,600 gallons per month, while a family of four averages about 5,800–6,700 gallons. For a standard 5/8-inch meter inside city limits, the calculator shows a modest rise of about $4 per month in the first year and roughly $16 per month by 2029 for that common usage profile.
Outdoor watering and high-use customers
Outdoor irrigation drives many of the highest residential bills. SAWS estimates a single yard-watering event uses around 2,000 gallons; a weekly session permitted under current drought rules adds roughly 8,000 gallons monthly. Those customers would see larger increases, with the calculator indicating a near $14 monthly uptick in the initial year. SAWS also noted that outdoor usage patterns vary by neighborhood and irrigation intensity.
Apartment buildings, businesses and other classes
Residents of buildings with four or more units typically do not receive individual SAWS bills; landlords get the utility statement as a general class customer. Some complexes use submeters and pass actual usage through to tenants, while others allocate costs by a ratio tied to square footage or occupancy. The Texas Public Utility Commission allows tenants to see utility bills to verify charges from landlords.
Businesses are also billed as general class customers with rates influenced by their prior year’s use. SAWS reported that the average general class account uses about 77,193 gallons per month, a figure that spans a wide range of customer types. On average, SAWS projects general class bills will rise about 6.1% in the first year and by roughly 33% cumulatively by 2029; irrigation-only accounts face a projected average increase near 32% across the 2026–2029 window.
Why the work is considered urgent
SAWS leaders stressed that postponing capital projects risks equipment failures and regulatory violations. At the May 19 meeting, a SAWS vice president warned that delays at treatment facilities could trigger enforcement actions from state and federal agencies. The utility’s chief legal officer highlighted potential fines that range into the tens of thousands per day for violations and can be substantially higher under consent decrees, underlining the financial and service risk of deferring maintenance.
With the SAWS board’s unanimous recommendation now in the hands of City Council, the community will have opportunities to comment at the June meetings before a final vote. If approved, the staged increases will begin financing the next phase of upgrades across San Antonio’s water and wastewater system.