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

The San Antonio City Council has approved a multi-year water rate increase, with an average 6.9% hike for residents set to begin in 2027. This decision, reached after a four-month delay and subsequent negotiations, will fund the San Antonio Water System's (SAWS) ambitious five-year, $2.6 billion capital improvement plan. The plan is crucial for enhancing the city's water and wastewater infrastructure, allocating $1.3 billion for wastewater, $940.6 million for water delivery, and $399.8 million for water supply improvements.

While the initial proposal faced pushback, the council ultimately approved the plan with minor adjustments to future rate caps in 2029 and 2030. Residential bills are projected to increase by $3.91 in 2027 and $3.94 in 2028, with an estimated total increase of $13.45 to $16.54 by 2030. Businesses and apartments, categorized as general class customers, will see a 5.1% increase in 2027, escalating to 33% by 2030.

To mitigate impacts on vulnerable populations, SAWS will expand its Uplift Program, offering reduced rates to residents earning up to 150% of the federal poverty level. An auto-enrollment pilot program is also being rolled out in three districts. For developers, architects, and property owners in San Antonio, these approved rate increases signify higher operating costs and contribute to the financing of vital infrastructure upgrades that support future growth and development.