County consultants warn San Patricio Navigation District lacks revenue; commissioners briefed on tax option

David Wendel, a financial consultant retained to review Navigation District No. 1, told the San Patricio County Commissioner's Court on Tuesday that the district has experienced “consistent operating losses” and that its capital assets have largely been depreciated.

Wendel said the district is projecting about $6 million in needed improvements over the next several years and estimated an unaudited ending fund balance for 2024 of roughly $417,000. He said the balance is declining and, under the preliminary 2026 budget presented, could drop to about $132,000.

“The current capital assets are nearly completely depreciated,” Wendel said, adding that relying on grants alone would be unlikely to cover the full scope of work the district lists. He told the court that one of the options is levying a maintenance tax under Chapter 62 of the Texas Water Code, but he cautioned the court that restoring a tax after years of a zero levy is legally and politically complicated.

Wendel described how Texas truth-in-taxation rules mean a previous zero levy complicates a return to taxation: a literal 0-percent increase would still calculate as zero, potentially triggering an automatic election unless a de minimis calculation applies. He also warned of the risk of a petition election that would require signatures from roughly 3 percent of registered voters in the district.

Commissioners and district representatives said the district serves a popular public marina with about 150 boat slips, two public ramps and high seasonal use, but that staffing is minimal. Patrick King and other district officials told the court that the district has a small operating staff — a secretary, a maintenance manager and one part-time worker — and that recent storms, legal costs and abandoned vessels have eroded reserves.

Commissioner Gillespie said he would not support additional funding without a recovery or management plan. “Before I would put any more money at this, I want to see a recovery plan, a manager hired to actually bring this thing back to life,” he said.

Other commissioners raised questions about alternatives to a property tax, including raising slip fees, annexation by another district, dissolution, or a public–private partnership. Wendel said annexation or dissolution are legal options but would not necessarily solve long-term sustainability without a revenue source.

District officials noted some grant progress: the district has received grant funding through county-supported programs, including a GoMesa-related grant and work funded by Bays and Estuaries programs; dredging and a roughly $750,000 dock improvement grant were cited as examples of recent assistance. County staff cautioned that some grant funds require the facility remain publicly accessible, limiting privatization as a revenue path.

The court took no formal vote on levying a tax at the meeting and asked district representatives to return with additional analyses, including a detailed recovery plan, updated audited financials when they become available, and options that would spread costs or revenue beyond the immediate district residents.

The presentation concluded with a request that the court consider the matter in future budget planning after staff and the district provide more specific proposals and timelines.