SAWS advances $3.2 billion capital plan with new oversight committee and proposed rate hikes

SAWS advances $3.2 billion capital plan with new oversight committee and proposed rate hikesThe San Antonio Water System is preparing to execute a five-year infrastructure program focused on critical wastewater upgrades, prompting a four-year rate adjustment plan and the creation of a dedicated Capital Projects Committee to mitigate delivery risks.

The 2026-2030 CIP totals $3.2 billion, representing a 14% increase over the previous five-year cycle that is largely adjusted for inflation.

A proposed 2026 budget amendment includes $349.8 million in additional capital projects, with 94% allocated to wastewater treatment facilities.

To fund the program, SAWS is advancing a rate plan that implements firm increases for 2026 and 2027, raising the average residential bill by 7.9% ($4.47) in 2026.

The Board approved the creation of a Capital Projects Committee to oversee project delivery methods, schedules, and risk profiles.

The San Antonio Water System (SAWS) is moving forward with a $3.2 billion Capital Improvement Program (CIP) for 2026-2030. During an April 7 public hearing, SAWS staff presented a 2026 budget amendment and corresponding rate plan to support the massive infrastructure push. The utility is advancing "Option 3" of its rate proposals, which establishes firm rate increases for 2026 and 2027, while leaving 2028 and 2029 rates subject to future validation. The 2026 amended budget includes $15.6 million in additional operations and maintenance costs and $349.8 million in additional capital projects. Staff noted that 94% of the added capital funding is dedicated to wastewater treatment projects. If approved by the City Council in June, the new rates will appear on customer bills in July, raising the average residential bill by $4.47, or 7.9%. President and CEO Robert Puente addressed concerns regarding the utility's capacity to deliver the $3.2 billion program. He noted that SAWS successfully executed a $2.8 billion CIP over the previous five years, making the new plan a 14% increase that is largely in line with inflation for construction materials and labor. "We are not taking on more work. We are delivering the same volume of projects in an inflation-adjusted environment," Puente stated. Acknowledging that some capital and resiliency projects missed milestones in 2025, Puente outlined a shift toward a "risk-informed planning model" with tighter project controls. To institutionalize this oversight, the Board of Trustees approved the creation of a Capital Projects Committee. The advisory body will evaluate staff-recommended project delivery methods—which currently include design-bid-build, design-build, construction manager at risk, and progressive design-build—and establish risk profiles to mitigate implementation barriers. The capital push comes as SAWS reports strong financial health. In a briefing on the 2025 Annual Comprehensive Financial Report, the Chief Financial Officer noted the utility ended the year with 459 days of cash on hand and a net position ratio of 51.3%. However, staff acknowledged that without rate adjustments, bonded debt coverage would drop, projected to hover around 1.6 to 1.7 times in 2026 without the new revenues.