[{"_1":2,"_88":-5,"_89":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6477317,"mediaKeyId","5711807-67329675a8e9d568d434fc66a8c4062c","parentId",5711807,"title","City Council approves FY26 operating and capital budgets, adopts property tax first readings and approves several fee and appointment items","audioSeconds",1256,"startMs",1610000,"endMs",2866000,"viewUrl","/Search/View?dp=1&key=5711807-67329675a8e9d568d434fc66a8c4062c&start=1610&end=2866","thumbnailUrl","https://assets.pipeline.soar.com/5711807-67329675a8e9d568d434fc66a8c4062c/thumbnail_1610000.jpg","articleUrl","/articles/6477317/Texas/City-Council-approves-FY26-operating-and-capital-budgets-adopts-property-tax-first-readings-and-approves-several-fee-and-appointment-items","mediaUrl","https://secure.pipeline.soar.com/6477317-cfb5f8b1563561b31d99e48b2d3e5cc8/orig.mp4?Expires=1773569501&Signature=dQfnR7OZRqJcxiLOqY~5JsoBgURa~9YnPJfwoFdUdmE70nj1kBrux0sGtAZ8p9v~t4lvYfXKgoIBrleEZVgMuNXiQDz~gKYkTkeoNV9kbG7yfju4S8t0xLWG4YPP2NRG3sQm8FzDbNYbtH7HmMNzIeUWYMEfgH7oK5Ydpv2~LaMrnXt8hOrPv-BlA7XVEwUEtOH6eU0e2spwdBeY9ikN1SwNIl1Raqv7ObaU9SWKTxlqGWGNpJWXK~okLMdc3EnLAXWEi2RsdG1zqolmFvyvN8lJqWVh0Jd3SFMtNAnP5hJQ-SPIDFYjrb~D8iiF~XMtbcIsTC7SdMpsrQ9in3tpSw__&Key-Pair-Id=KUT5TJCACFTXG","author","City Council","date","2025-09-03T20:29:18.637Z","article","The Corpus Christi City Council voted on several budget and ordinance items including the first readings of the FY26 operating and capital budgets and a first reading to set the property tax rate for fiscal year 2026.

Budget and tax
Amy Cowley, director of Management and Budget, presented the FY26 proposed operating budget, saying the total proposed operating budget is $1,600,000,000 with $944,000,000 in operating and $692,600,000 in capital. Cowley said the proposal includes no tax-rate adjustments (the tax rate was presented separately), a proposed water, wastewater and stormwater rate adjustments, and total proposed general-fund revenues of $341,703,752 with general-fund expenses of $346,756,839. Cowley said the proposed budget includes restoration of a constituent relations coordinator position.

The council approved the first reading of the FY26 operating budget; a second reading and final vote was scheduled for Sept. 9. Cedric Gaviosana, Director of Finance and Procurement, presented the property tax proposal and recommended a tax rate of 0.599774 per $100 valuation — a 0.23% increase over the no-new-revenue rate. Council approved first reading of that tax rate. Later the council passed an ordinance ratifying that property tax increase and recognizing the city will collect $6,061,319 more property-tax revenue than in FY25 (the motion carried on the ratification ordinance).

Public comment on the budget included library advocates urging stronger funding. Julie Rogers, a District 1 resident, told council: \"Do not defund our libraries,\" and asked for continued support for early-literacy programs. Budget documents presented by staff showed the library budget increasing slightly from about $6.2 million in FY25 to about $6.5 million in FY26, and a $2 million bond-funded facility improvement at La Retama library.

Capital budget
Council approved first reading of the FY26 capital budget, which staff described as year 1 appropriations of a 10-year capital improvement plan totaling about $764 million and funded primarily by revenue bonds, general obligation bonds, grants and Type A/B economic development funds.

Fees, rates and appointments
- Animal Care Services: Council approved an ordinance updating fees in the animal code including raising daily boarding from $10 to $15, first impound from $30 to $50, second impound to $75 and adding a third-occurrence impound of $150. Staff projected an estimated $24,510 increase to general revenues. Kathleen Chapa, director of Animal Care Services, presented the item; the motion carried.

- Airport parking: The council approved an increase in short-term and covered parking at Corpus Christi International Airport from $13 to $15 per hour under a planned five-year rate structure. Kimberly Miller, assistant director for the airport, said the change aligns airport rates with comparable regional airports. Motion carried.

- Sunrise Beach RV Park: Corpus Christi Water presented a five-year fee plan for Sunrise Beach RV Park to better cover operating costs and planned capital improvements including restroom upgrades and a proposed boat ramp in later years. The council approved the ordinance. Nick Winkelman presented the item.

- Appointments: The council completed multiple board and commission appointments across Type A/Type B economic development boards, the Ethics Commission, the Marina Advisory Committee and the Water, Shore and Beach Advisory Committee. Specific appointees named in the meeting packet and announced in council included reappointments and new appointments; motions to appoint carried where noted.

Why this matters: The first readings on the operating and capital budgets and the property tax readings set the framework for FY26 revenues and spending; the fee changes and appointments affect municipal services and local boards that govern economic development and utilities oversight.

Next steps: Second readings on the budgets and tax rate are scheduled for the Sept. 9 council meeting; staff will implement fee changes and follow standard appointment onboarding processes.","mediaType","Video","parentTitle","City of Corpus Christi | City Council Meeting September 2, 2025 I Pt.1","oneSentenceSummary","At a regular meeting the council advanced first readings on the FY26 operating and capital budgets, approved a property tax rate on first reading and ratified the tax increase; it also approved animal shelter fee changes, airport parking and Sunrise Beach RV Park fee adjustments and completed multiple board and committee appointments.","taxTitle","City Council, Corpus Christi, Nueces County, Texas","taxId",77669,"location","Texas","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6477322,"City Council rejects proposed water-rate increase; staff told to identify $20 million in cuts",2665,4488000,7153000,"/Search/View?dp=1&key=5711807-67329675a8e9d568d434fc66a8c4062c&start=4488&end=7153","https://assets.pipeline.soar.com/5711807-67329675a8e9d568d434fc66a8c4062c/thumbnail_4488000.jpg","/articles/6477322/Texas/City-Council-rejects-proposed-water-rate-increase-staff-told-to-identify-20-million-in-cuts","https://secure.pipeline.soar.com/6477322-426a8a1b0018a02ac085a168618782a7/orig.mp4?Expires=1773569501&Signature=ZxjAIKBJ~yw69w-xjl1RpLVKnPUeGxNsLbLe1Knd8l0d5e8xKVR74flamdsYgjasXnGC1dQ2NLsABHFHfTQXOoEN3v67yS3d~~HWo3U3NCn476aBDD0RgltRBhdHnRrzV9uihDeRQs0Y2P-gy8SkZlfkMHcXYZovawk5O9O6sR0N3N5gEHP8JLJqbrprtes8C01MsVgRb-K-g7cC4jWIEwXm5k6TLmIdosnD63gePgchEQ0pmsdrSgNYWemyZcpPN-1Y94EgU472sGhAOEQSVylnwirttdf78Qu7JuF-yPAgL-Nx--aPhn9t3LnLlDjyZ5bCCC5vqhOFK9b-PmBPfQ__&Key-Pair-Id=KUT5TJCACFTXG","Corpus Christi City Council on Tuesday rejected a proposed set of water-rate increases intended to cover rising operating costs and long-term debt, leaving staff to identify roughly $20 million in cuts to balance the utilities fund.

The council voted against the ordinance that would have raised rates for inside-city customers, wholesale and large-volume users and added a 75¢ charge for the first 2,000 gallons of residential usage. Andy McCartney, the consultant from NewGen who led the rate study, told the council the proposal was designed to meet the utility’s business needs, including debt-service coverage and operating reserves.

The rates presented would have raised the raw-water charge from $0.95 to $1.18 per thousand gallons, added a 75¢ charge on the first 2,000 gallons of residential use (a proposal the study team reduced from a $1 proposal after stakeholder feedback) and increased volumetric and minimum charges for several customer classes. McCartney said the changes reflected large upcoming raw-water supply costs and a three-year phase-in of stormwater legacy debt to spread the burden.

City Manager Peter Zanoni warned the council that rejecting the increase requires large, immediate service reductions. \"We have to cut $20,000,000 out of the water operation to have a balanced budget,\" Zanoni said during the meeting. Nick Winkelman, director of Water Systems, presented an initial menu of possible cuts he said would total the amount: eliminating 86 positions (about 26% of CCW’s workforce), reducing maintenance-of-lines staff that respond to main breaks, ending permanent street repairs tied to water main work, removing some chemical treatments and pausing selected public outreach functions.

Winkelman described program-level effects rather than a single-line reduction: \"Total positions eliminated would be 86,\" he said, and outlined that cutting certain chemicals such as potassium permanganate and sodium chloride could cause taste-and-odor changes and increase nitrification risk in the distribution system. He said fluoride—about $500,000 annually—could also be suspended; staff noted that fluoride is not a regulatory requirement but that removing it would draw pushback from the local medical and dental community.

Councilmembers pressed for alternatives. Councilman Roberto Hernandez and others asked for lower-rate options, such as a partial increase smaller than the consultant recommendation; Councilman Tony Roy asked staff to produce a “hybrid” option that combined some revenue with program reductions. Several councilmembers said line-by-line cuts (for example, trimming advertising, rentals or temporary services) should be explored before proposing layoffs.

Public commenters expressed concern about the effects of higher rates on residents and small businesses. Julie Rogers, speaking during the budget-related public comment, tied municipal priorities to service levels but emphasized household impacts. Multiple residents who addressed water rates said the increases would strain low-income households and local businesses.

After discussion the council did not approve the ordinance. Councilmembers directed staff to return with alternatives and a menu of program and line-item reductions as well as any smaller-rate options for the September 9 meeting. Zanoni and department staff said they would prepare materials that show the specific operational consequences of each option so council could weigh service, regulatory and fiscal impacts.

Why this matters: Corpus Christi utility customers face the prospect of either rate increases tied to rising supply and debt costs or significant reductions in service and maintenance, both of which have direct effects on public health, fire and business operations. Staff emphasized that some cuts could have regulatory or public-safety consequences and that debt-service obligations limit how much managers can reduce.

Next steps: Council instructed staff to deliver alternative packages (program reductions, line-item trims and scaled rate options) for council review at the next meeting; staff also said the Public Utility Commission appeal over outside-city customer rates remains outstanding and could affect ultimate billing and credits for some customers.

","On first reading council declined the water-rate ordinance proposed for FY26. Councilmembers and staff said rejecting the rate requires about $20 million in operating reductions, including possible elimination of 86 positions and cuts to maintenance and chemical treatments that could affect water quality and service.","actionData","errors"]

Article not found

City Council approves FY26 operating and capital budgets, adopts property tax first readings and approves several fee and appointment items

City Council rejects proposed water-rate increase; staff told to identify $20 million in cuts