SAWS Staff Proposes 2010 Budget with No Rate Increase
(10/6/09)
San Antonio Water System Board of Trustees heard from staff today on a proposed budget for 2010 that would not require a rate increase.
"The proposed 2010 SAWS budget provides for operation and maintenance (O&M) needs as well as for the continued investment in replacing and upgrading infrastructure," stated Doug Evanson, SAWS Senior Vice President and Chief Financial Officer.
The proposed $205 million O&M budget is $2.9 million less than in 2009. It is highlighted by a freeze in pay for SAWS employees next year, without sacrificing a high level of service to customers.
The capital budget for water, wastewater and water supply infrastructure is proposed at $297.7 million. The plan accommodates maintenance and growth of the water and wastewater systems, initial expenditures on the Regional Carrizo and Brackish Desalination projects, and the purchase of additional Edwards water rights.
SAWS staff also proposed a line item that would appear on monthly bills to cover the cost of increased fees from the state's environmental regulatory agency, the Texas Commission on Environmental Quality (TCEQ).
"We're proud to boast customer rates that are among the lowest in the State of Texas. However, we anticipate being faced with increased fees from TCEQ starting in 2010," said Robert R. Puente, SAWS President/CEO.
In response to fewer appropriated dollars from the state legislature, TCEQ has increased its fees to water and wastewater utilities across the state in order to generate over $18 million in operating revenue. SAWS projects its 2010 state-imposed fees to increase by 335%, or $1.2 million, and proposes itemizing the fees on its monthly bill.
"We expect these state fees to continue to increase over the coming years, so we think our customers should see what the state is charging," added Puente.
If approved by the SAWS Board and San Antonio City Council, the TCEQ pass-through fee on the SAWS monthly bill would amount to approximately 27 cents per SAWS water connection, and approximately 8 cents per SAWS sewer connection.
The TCEQ fees would be passed directly through to customers on their monthly bills, similar to the storm water fee imposed by the City of San Antonio and the permit fee imposed by the Edwards Aquifer Authority. Neither is controlled by SAWS, but appear as separate line items on the SAWS bill.
"No rate increase is great news for our customers. I'm also glad to see that the proposed budget addresses Mayor Castro's desire for significant additions to our water portfolio," said SAWS Chairman Alex Briseño. "We look forward to a thorough review of this budget proposal."
The SAWS Board will deliberate over the proposed budget and TCEQ pass-through fee during the coming month, and is expected to vote on the proposals during its Board Meeting on November 3rd.
SAWS will ask the San Antonio City Council to vote on the proposed TCEQ pass-through fee later in November. If approved, it is expected to appear on the SAWS monthly bill starting in January 2010.
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