San Antonio

Stage 2 Squeeze, Alamo Heights Races Toward $8 Million Water Debt Deal

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Published on June 10, 2026
Stage 2 Squeeze, Alamo Heights Races Toward $8 Million Water Debt DealSource: Google Street View

Alamo Heights officials quietly teed up a major money move for the city’s water system on Tuesday, posting action-taken minutes from the latest council meeting that point straight to a big-ticket financing vote next month. The minutes spotlight a July 13 agenda item that would authorize the city to issue a multi-million dollar debt package for water and sewer work, even as Stage 2 watering limits remain in place.

The city shared the materials in a brief post on its official X account, linking residents to the council packet and action minutes for a closer look. As posted by City of Alamo Heights, the notice steers readers to the newly available documents online.

Council Moves Toward $8 Million Water Financing

The city’s formal notice states that the council intends to consider issuing Combination Tax and Revenue Certificates of Obligation in an amount not to exceed $8,000,000. The money would go toward construction, acquisition and equipment for the city’s waterworks and sewer system.

The notice explains that the certificates would be repaid through ad valorem taxes, along with a lien on any surplus revenues from the water system. Council is scheduled to consider an ordinance authorizing the debt at its July 13 meeting. According to the City of Alamo Heights, the proposed certificates would have a maximum maturity date of August 15, 2047 and the filing includes details on the city’s existing outstanding obligations.

Legal And Budget Implications

The notice explicitly cites state law, stating that it is issued "in accordance with Section 271.049, as amended, Texas Local Government Code." That reference points to the statute that lays out notice and disclosure requirements when a city signals its intent to levy taxes or pledge system revenues to repay certificates of obligation. In other words, Alamo Heights is taking the formal procedural steps needed before it can lock in long-term financing tied to both property taxes and water system income.

Why Watering Rules Are Still In Place

The Edwards Aquifer Authority recently moved the San Antonio Pool to Stage 2 permit restrictions after changes in aquifer indicators. That shift reduces authorized withdrawals for permitted pumpers and requires them to submit monthly reports of their pumping totals. Per the Edwards Aquifer Authority, the agency regulates how much water permit holders can pull from the aquifer but does not enforce lawn-watering rules, which are left to cities and local water providers.

What Stage 2 Means For Residents

Alamo Heights has its own set of Stage 2 rules that ride on top of the EAA’s pumping cutbacks. The city’s public announcement outlines limits on outdoor irrigation, restricting watering to specific days and hours, while allowing exemptions for hand-held hoses. It also calls for conservation measures for pools, ornamental fountains and vehicle washing.

Businesses are pulled into the effort too. The guidance asks restaurants and other establishments to adopt conservation practices such as serving water only when customers request it, and it directs residents to contact Public Works with any questions. According to the City of Alamo Heights, these measures took effect last Tuesday and are tied directly to the EAA’s mandatory pumping restrictions.

The council plans to take up the certificates of obligation at its regular meeting on Monday, July 13 at 5:30 p.m. in City Hall at 6116 Broadway. Residents can attend in person or review the posted packet and action minutes ahead of time. City officials say they will update the online documents as votes and follow-up actions occur and are encouraging anyone with questions about the water restrictions or the proposed financing plan to contact City Hall or Public Works before the July meeting.