There were decidedly mixed reactions for the San Antonio Water System as it unveiled its planned 10% plus two year water rate hike, first revealed earlier this week by 1200 WOAI news, at a City Council work session on Wednesday, News Radio 1200 WOAI reports.
Northeast side Councilman Clayton Perry pointed out that the 5.8% 2018 rate increase is significantly higher than the 4.9% SAWS had indicated that it would request.
"Our neighbors are consistently hit with an increase in annual fees from government entities and it is adding up," Perry said.
Northwest side Councilman Greg Brockhouse has already expressed concern about SAWS requesting a rate increase after handing CEO Robert Puente a $99,000 bonus, equal to about twice the average San Antonio annual salary.
"I think SAWS needs to examine everything, including its bonus structures, before they come in and ask for money," Brockhouse said.
The massive bonus has raised questions about whether the SAWS board is 'responsible' enough to handle the sharply higher rates.
SAWS says the money is needed for sewer improvements which are mandated under an EPA order, as well as plans to automate meter reading, and to pay for the huge Vista Ridge water supply contract.
Perry said it is interesting that when SAWS tries to justify its rate increases, it says the additional costs will 'only average $3 to $5 a month,' but when City officials rejected his proposal for a homestead tax exemption to give a break to homeowners facing sharply higher property values, he was told that the homestead exemption 'would only save people a few dollars a month.'
And Perry suggested that the City, which owns SAWS, may have another interest in approving the rate increase.
"If this rate increase passes, it would bring the City an additional $543,000 payment from SAWS,' Perry said. "I am asking the City to forego the portion we would have received with any additional SAWS rate increase. Why is increasing our general fund more important than the tax relief our neighbors deserve?"