San Antonio Water System Proposes $1.08 Billion Budget for 2025, Aims to Tackle Water Main Breaks Without Residential Rate Hikes

In a recent meeting, the San Antonio Water System (SAWS) laid out its financial plans for the coming year, ensuring residents that their pockets won't feel the burden of a residential rate increase in 2025. Instead, the focus of their $1.08 billion proposed budget—a sizable increase from years prior—will be addressing what's been plaguing the city: a rising tide of water main breaks.

The past years have seen the city's infrastructure bent and nearly broken under the pressure of severe summer heat, with 2023 witnessing the highest number of main breaks in San Antonio's history. On Tuesday, SAWS officials unveiled strategies to reduce leaks and ensure better water management to its board of trustees, outlining a robust capital improvement program for the upcoming year. San Antonio Report highlights that the utility's "non-revenue water" issue, an internal term for water lost within the system, is taking center stage in these financial allocations.

Indeed, the inflow of capital into the beleaguered system is set for an infusion of strength with $613.1 million earmarked for capital improvements. This figure includes $264.5 million dedicated to the nitty-gritty of water main upkeep, replacements, and their governing processes. But it doesn't stop at water; $81.4 million will go into the veins of the sewer system, and another $89.9 million for amping up water production capabilities. According to Jeff Haby, SAWS senior vice president of production, the investments aim to transform San Antonio, much like the utility's triumphs over "Sanitary Sewer Overflows" (SSOs) in the past decade. “Just like the SSOs, we want to become the national model” for reducing in-system leaks, Haby said in a statement obtained by San Antonio Report.

SAWS is not just pouring money into aging pipes and reservoirs—the utility is also channeling funds toward its workforce. The proposed budget includes raising the minimum living wage from $18.25 to $19 and giving a 4% pay hike for entry-level employees. This move addresses not just infrastructure resilience but economic stability for workers who are often on the front lines. It’s also aimed at preventing pay compression, ensuring that wage increases are equitably distributed across different job grades within the organization.

Additionally, SAWS plans to increase its ranks by about 80 employees in 2025, strengthening its commitment to water loss reduction and capital improvement program implementation. It's a rare instance of a utility on the offensive against the wear and tear that comes with time and elements, bolstered by new impact fees which are projected to inject an additional $39 million into its coffers for the year, as per executive vice president and chief financial officer Doug Evanson.