San Antonio, TX, December 12, 2025
The San Antonio Water System (SAWS) has proposed a significant 42% revenue increase over the next five years to support vital capital improvements totaling $3.2 billion by 2030. This investment plan focuses on enhancing both water and wastewater services, including upgrades to treatment plants and water main replacements. Rate adjustments will be discussed with the city council, with potential implementation in early 2026, while SAWS aims to ensure customer affordability through community outreach.
SAWS Proposes 42% Revenue Increase for Essential Upgrades
San Antonio, TX – The San Antonio Water System (SAWS) has announced plans to increase its revenue by 42% over the next five years to fund essential capital improvements. This significant boost aims to address the utility’s projected $3.2 billion investment in system upgrades by 2030, encompassing both water and wastewater services.
Details of the Proposed Revenue Increase
SAWS officials have indicated that the proposed rate adjustments will be necessary to support the extensive capital improvement program. While specific rate hike percentages have not been disclosed, the utility emphasizes that these increases are crucial to maintain and enhance service reliability for its customers. The proposed revenue increase is part of a broader strategy to secure funding for critical infrastructure projects, including wastewater treatment plant upgrades and water main replacements.
Capital Improvement Plans and Financial Implications
The capital improvement program is projected to require $3.2 billion in investments by 2030. This includes $1.7 billion allocated for wastewater system enhancements, $1.1 billion for water system upgrades, and an additional $318 million for expanding water supply infrastructure. To finance these projects, SAWS is considering a rate increase, marking its first since 2020. The utility plans to present a detailed budget and rate proposal to the San Antonio City Council in the coming months, with potential implementation of the new rates in early 2026.
Background on SAWS and Its Financial Contributions
SAWS is a municipally owned utility serving approximately 580,000 water customers and 520,000 wastewater customers across Bexar County and parts of Atascosa and Medina counties. The utility is required to transfer 4% of its gross revenue to the city’s general fund, a practice established in 1992. In fiscal year 2026, the city is projected to receive over $36 million from SAWS, contributing to the general fund that supports various city services, including public safety, libraries, parks, and infrastructure maintenance.
Impact on Customers and Future Considerations
While the proposed revenue increase is essential for funding necessary infrastructure improvements, SAWS acknowledges the potential impact on customers. The utility is committed to ensuring that rate adjustments are implemented thoughtfully, considering the financial well-being of its customer base. Public hearings and community outreach efforts will be conducted to gather feedback and address concerns regarding the proposed rate changes.
Conclusion
The San Antonio Water System’s proposed 42% revenue increase underscores the utility’s commitment to maintaining and enhancing water and wastewater services through substantial capital investments. As the utility moves forward with these plans, it remains focused on balancing infrastructure needs with customer affordability and service quality.
FAQ
What is the San Antonio Water System (SAWS)?
SAWS is a municipally owned utility serving approximately 580,000 water customers and 520,000 wastewater customers across Bexar County and parts of Atascosa and Medina counties.
Why is SAWS proposing a 42% revenue increase?
The proposed revenue increase is necessary to fund a $3.2 billion capital improvement program by 2030, which includes upgrades to wastewater treatment plants, water main replacements, and expansion of water supply infrastructure.
How will the revenue increase affect customer rates?
Specific rate hike percentages have not been disclosed yet. SAWS plans to present a detailed budget and rate proposal to the San Antonio City Council in the coming months, with potential implementation of the new rates in early 2026.
What is SAWS’ financial contribution to the city’s general fund?
SAWS is required to transfer 4% of its gross revenue to the city’s general fund, a practice established in 1992. In fiscal year 2026, the city is projected to receive over $36 million from SAWS.
How will SAWS ensure customer affordability amid rate increases?
SAWS is committed to implementing rate adjustments thoughtfully, considering the financial well-being of its customers. Public hearings and community outreach efforts will be conducted to gather feedback and address concerns regarding the proposed rate changes.
Key Features of the Proposed Revenue Increase
| Feature | Description |
|---|---|
| Proposed Revenue Increase | 42% over the next five years to fund capital improvements |
| Capital Improvement Program | $3.2 billion investment by 2030, including wastewater and water system upgrades |
| Rate Increase Implementation | Potential implementation of new rates in early 2026 |
| SAWS Contribution to City | 4% of gross revenue transferred to the city’s general fund, projected at over $36 million in fiscal year 2026 |
| Customer Affordability Measures | Public hearings and community outreach to address concerns regarding rate changes |
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Author: STAFF HERE SAN ANTONIO WRITER
The SAN ANTONIO STAFF WRITER represents the experienced team at HERESanAntonio.com, your go-to source for actionable local news and information in San Antonio, Bexar County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Fiesta San Antonio, San Antonio Stock Show & Rodeo, and Dia de los Muertos. Our coverage extends to key organizations like the Greater San Antonio Chamber of Commerce and United Way of San Antonio and Bexar County, plus leading businesses in retail, insurance, and energy that power the local economy such as H-E-B, USAA, and Valero Energy. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREDallas.com, and HEREHouston.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
