SAWS Board Approved $1.1 Billion Budget for 2027
The utility's proposed rate hikes could increase monthly residential water costs for local businesses and residents.
Updated on Oct. 6, 2026 in Utilities
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The San Antonio Water System board approved a $1.1 billion budget for 2027 and requested a multi-year residential rate increase. The proposal seeks a 23.7% to 30% rate hike through 2030 to fund aging infrastructure repairs.
Why it matters
The utility requires additional revenue to fund $566.9 million in capital projects for 2027, driven by the need to comply with environmental regulations and address failing water systems. Failing to secure this funding could force SAWS to cut its planned capital program to $200 million, potentially stalling critical service upgrades.
The utility proposes raising residential rates by 23.7% to 30% through 2030 to support $2.4 billion in planned capital projects. Additionally, recycled and chilled water rates are set to increase by 10% and 8% respectively in 2027.
The players
San Antonio Water System
A municipal utility responsible for water and wastewater service provision for the San Antonio area.
San Antonio City Council
The local governing body responsible for setting city ordinance and final approval on utility rate changes.
The details
The rate hike is designed to cover rising costs for replacing aging water mains and upgrading infrastructure. If approved, the average residential monthly bill will rise from $56.68 to $60.59 in 2027, reaching up to $73.60 by 2030. SAWS is also mandated by city ordinance to transfer 4% of gross revenue—projected at $38.7 million in 2027—to the San Antonio general fund.
Timeline
June 2026: City Council voted 6-5 to delay the rate hike consideration.
October 6, 2026: The SAWS board approved the 2027 budget and the rate request.
October 8, 2026: San Antonio City Council is scheduled to vote on the rate hike request.
2027: Planned start year for the rate increases and capital projects.
2030: Final year of the proposed multi-year rate increase plan.
Market Landscape
This budget approval highlights the tension between maintaining aging utility infrastructure and the mandatory 4% gross revenue transfer to the San Antonio general fund. The request follows a pattern of municipal utilities seeking multi-year increases to offset capital project costs.
Operators should incorporate projected water rate increases of up to 30% by 2030 into their long-term financial planning. Monitor the outcome of the October 8 council vote to determine if current operating budgets require immediate adjustment for 2027.
The takeaway
Large-scale utility rate adjustments often move in multi-year cycles to address infrastructure deficits. Track the San Antonio City Council vote this week as a primary signal for your 2027 utility expense forecasting.
Further reading
For more on the regulatory and infrastructure developments affecting the region, visit Utilities.
Source note: This article includes information reported by San Antonio Express-News.
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