San Angelo holds water and sewer rates flat in $67 million FY27 utility budget

San Angelo holds water and sewer rates flat in $67 million FY27 utility budgetThe San Angelo City Council unanimously adopted its FY 2026-2027 budget, maintaining current water and wastewater rates supported by strong reserves, while advancing $8.3 million in combined utility capital projects.

The council approved a $41 million operating budget for the Water Fund and an $18 million operating budget for Water Reclamation.

Finance Director Jonathan Flores confirmed there are no planned increases for water or sewer fees in the upcoming fiscal year.

The budget allocates $6.2 million for Water/Supply Capital Projects and $2.1 million for Water Reclamation Capital Projects.

The Water Fund maintains a robust balance of $56.4 million, a figure highlighted during public comments on municipal spending.

The San Angelo City Council unanimously approved the city's FY 2026-2027 budget on September 9, 2026, locking in flat rates for water and wastewater customers for the upcoming fiscal year. Finance Director Jonathan Flores confirmed during his presentation that the city conducted a review of user fees and is "not planning on going up on our water fees or our sewer fees." The newly adopted budget outlines $41 million in total expenditures for the Water Operating Fund and $18 million for the Water Reclamation Operating Fund. Additionally, the Stormwater Fund is budgeted at $3.68 million for FY 2027, with $3.38 million of that revenue generated by the city's stormwater fee. On the capital side, the city has allocated $6.2 million for Water/Supply Capital Projects and $2.1 million for Water Reclamation Capital Projects to support ongoing infrastructure needs. The decision to hold rates steady is underpinned by strong reserves. The Water Fund boasts a projected ending balance of $56.4 million for FY 2027. The robust reserve was noted by residents during public comment, with one speaker questioning the city's broader spending priorities and fee implementations given the healthy water utility balances. While water and sewer rates remain unchanged, customers will see a change to their overall municipal bill. The council narrowly approved a new Right-of-Way Infrastructure Fee, which will be collected via the monthly water utility bill beginning January 1, 2027, to fund municipal street maintenance.