San Antonio Water System Board Approves 2027 Budget with Proposed Rate Hikes

The San Antonio Water System (SAWS) board recently approved its 2027 budget, which includes a series of proposed rate increases for both residential and general class customers. This decision moves the plan to the San Antonio City Council for a final vote scheduled for Thursday. The utility aims to raise the average residential monthly bill by 6.9%, or $3.91, in 2027, with further adjustments planned through 2030.

These rate hikes are designed to generate an additional $54 million in revenue by 2028, supporting a $2.6 billion infrastructure improvement plan. This plan prioritizes wastewater, environmental compliance, and bolstering future water supply. SAWS had previously proposed a larger plan, which was scaled back after pushback from city council members regarding resident cost increases.

For general class customers, including businesses and apartments, rates are projected to increase by 5.1% in 2027 and a substantial 33% by 2030. The utility also noted lower-than-projected revenues from impact fees, which developers pay when connecting new homes or customers to the system. SAWS collected $103 million in 2025 and $109 million in 2026, falling short of the $139 million projection, and budgets $110 million for 2027 as large construction projects slow. This indicates rising costs for new development and operations in the region.