San Antonio City Council Approves Water Rate Hike to Fund $2.6 Billion Infrastructure Plan

San Antonio's City Council has approved a new water rate increase, set to take effect in 2027, which will raise average residential monthly bills by 6.9%, or $3.91. This decision, passed in an 8-3 vote, follows a four-month delay and aims to fund the San Antonio Water System's (SAWS) ambitious five-year, $2.6 billion capital improvement plan. The plan is crucial for upgrading the city's aging water and wastewater infrastructure, with significant allocations for wastewater ($1.3 billion), water delivery ($940.6 million), and water supply improvements ($399.8 million).

For businesses and apartment complexes, categorized as general class customers, rates will increase by 5.1% in 2027, with a projected cumulative rise of 33% by 2030. This financial adjustment is expected to generate an additional $54 million in revenue for SAWS in 2027. While some council members expressed concerns about the rising cost of living, the utility emphasized the necessity of these funds for critical infrastructure development. SAWS also plans to expand its Uplift Program to support low-income customers. Developers and property owners in San Antonio should anticipate these increased utility costs impacting future project feasibility and operational budgets.