Corpus Christi Approves Higher Utility and Tax Rates

Calculator, notebooks, and pencils on a desk with the word “TAX PLAN,” symbolizing budgeting as Corpus Christi approves higher rates.

Water Bills Rising for Residents

Corpus Christi approves higher water bills for residents beginning next year. On Sept. 9, the City Council voted 7-2 in favor of a staff-recommended rate hike. This move raises the average residential bill by $4.78 per month, increasing it from about $37.29 to $42.07.

Mayor Paulette Guajardo and council members Carolyn Vaughn, Eric Cantu, Everett Roy, Mark Scott, Roland Barrera, and Sylvia Campos supported the measure, while council members Gil Hernandez and Kaylynn Paxson opposed it.

Earlier in the meeting, Hernandez and Paxson pushed for a smaller $3.28 increase, but their proposal narrowly failed in a 5-4 vote. That plan would have required $1.2 million in budget cuts, including reducing funding for a generator replacement at the O.N. Stevens Water Treatment Plant.

Ultimately, Corpus Christi approves higher rates under the weight of inflation, infrastructure upgrades, and legacy stormwater debt. The city’s contract with Formosa Plastics, which requires 2,500 acre-feet of water annually, also played a major role in driving the increase.

Wastewater Rates Climb Too

Water isn’t the only bill rising. Wastewater charges will also increase by $4.20 a month, pushing the average bill from $59.32 to $63.52. The city calculated this adjustment using a 5,000-gallon winter-quarter average.

The wastewater hike also passed with a 7-2 vote, supported by the same majority. Paxson and Hernandez again dissented, favoring a more minor $3.26 increase. Their alternative would have meant cutting $1.7 million from the budget, including scaling back enhancements to the city’s major maintenance program.

Street Fee Proposal Rejected

While water and wastewater rates are going up, residents have avoided an additional street fee. The council voted 5-4 against reinstating a $6.60 monthly charge for street maintenance.

This fee, which had previously existed for about a decade, was discontinued in 2023. At that time, it generated around $12 million annually. The new proposal aimed to cover a projected $15 million shortfall in the street repair program starting in 2027.

Supporters argued that dedicated funding for residential streets was necessary, but opponents felt it would overburden residents already facing higher utility bills. Some members suggested placing any future fee on the ballot for voter approval.

Property Taxes Hold Steady

Unlike utility rates, property tax rates will stay the same at about 59.9 cents per $100 valuation. However, whether homeowners see higher bills depends on changes to property appraisals and exemptions.

Even without an official rate increase, the city expects to collect $6 million more in property taxes due to growth in the tax base. Newly added properties alone account for about $2.7 million in additional revenue.

Six council members supported holding the current tax rate steady, while three voted in dissent.

Recycled Water Program Remains Free

One relief for residents came with the council’s decision to reject new fees for recycled water used in lawns and landscaping. Last week, the council had signaled support for a fee structure ranging from $15 to $30 per pickup of treated effluent from the Oso Wastewater Treatment Plant.

However, the measure failed on final approval. The council’s reversal means residents and businesses can continue accessing the recycled water program without additional costs — a move welcomed during ongoing Stage 3 drought restrictions.

What This Means for Residents

In summary, the council’s budget decisions bring a mixed bag for Corpus Christi households. Utility bills will rise by nearly $9 a month, but property taxes remain steady, and no new street or recycled water fees will apply.

While the increases aim to secure the city’s financial health and protect its bond ratings, the burden on residents is clear. Moving forward, the debate over balancing city infrastructure needs with household affordability will likely continue.

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