San Antonio Water System (SAWS) staff presented the utility’s proposed 2025 operating budget and a capital improvement program that staff described as a multiyear investment to maintain treatment plants, replace aging mains, expand backup generation and advance conservation and metering projects.

SAWS staff said the capital program is forecasted at roughly $606 million to $625 million in the plan presented to the board; staff said about $400 million of that could be financed with new debt over the coming years and that the plan anticipates significant cash and financing components. Staff highlighted a range of specific projects and cost estimates presented to the board: a meter modernization program (identified in the presentation at about $215 million), a multi‑year program to replace water mains (presented with a figure near $151.3 million), investments in generators and resiliency (staff said 36 generators are planned over five years and that the generators program represents a multiyear, multi‑hundred‑million‑dollar effort), and plant and treatment expansions including an estimated $32 million for aquifer storage and recovery (ASR) work and other projects such as blower and treatment improvements described at roughly $77 million.

A SAWS presenter told the board that operating and chemical costs have risen materially and that the utility is budgeting to produce more water while absorbing increased input costs. Staff cited examples of input‑cost increases presented to the board: chlorine up about 41 percent, lime up about 79 percent and other treatment chemical increases that have driven up operating projections.

Board members pressed staff on reserve levels and debt assumptions. SAWS staff said cash on hand is equivalent to roughly 490 days of operating expense under the current calculation; other board discussion referenced alternative measures near 550 days depending on the accounting method used. Staff explained the utility’s policy target of balancing about 50 percent cash and 50 percent debt on capital programs where feasible.

Councilmembers and board members asked about contractor incentives, construction coordination with city public works and the impact of growth on connections and staffing. SAWS staff said they have used incentive structures in some contracts to encourage timely completion and that the utility plans to coordinate more closely with city public works on large capital projects.

When asked whether the capital plan would require customer rate increases, SAWS staff said additional rate action is likely in the 2026–27 timeframe. "Yes, probably for 2026 and 2027," a SAWS presenter told the board when asked about the need for future rate adjustments. Staff emphasized that projected rate work would be driven by capital financing needs, generator and resiliency projects, and replacement of aging infrastructure across thousands of miles of pipe.

Staff also summarized customer assistance efforts: the Uplift assistance program launched in 2023 was cited as a tool to mitigate customer impacts, and staff described waiving late fees and other customer support measures. SAWS compared its residential charges to peer cities and said its bills remain lower than those in some other major Texas utilities, but presenters acknowledged affordability concerns and asked for continued coordination with city policy and funding sources.

The presentation closed with staff committing to return with additional maps and details about generator siting, breakdowns of restricted versus unrestricted funds, and further analysis of contractor incentives and timing. No formal board vote on the budget was recorded at the meeting; staff said the budget will be presented to City Council for review and approval per the city's adoption calendar.