City Council Workshop: FY 2026 Budget Overview & Fire Chief Briefing

The City of Corpus Christi City Council convened for a workshop on August 7, 2025, from 9:00 AM to approximately 1:00 PM. The workshop was purely informational; no action was taken and no public comment was solicited. The council reviewed the proposed FY 2026 budget and heard a detailed operational briefing from the Fire Department.

Budget Overview: FY 2026 Proposed Budget

• Total Budget: $1.6 billion proposed, a 12% decrease from the current $1.8 billion budget.
• Operating Budget: Down 5% ($49 million) citywide.
• General Fund: Increased by 0.8%, roughly flat with the current year.
• Balanced Budget: The $7 million shortfall was eliminated through $4 million in departmental reductions, $1.5 million in user fee adjustments, and unanticipated higher property tax revenue.
• Street Funding: Proposed to increase by 11% ($14 million) for FY26, but this relies on bond funds. A significant funding cliff is expected in FY27, threatening to increase the street repair cycle from 8 years back to 30 years unless a new revenue source (such as a street user fee) is adopted.

General Fund Expenditure Details

• Public Safety: The dominant expense, over half of the general fund. The budget adds 5 police officers and 5 firefighters, plus funding for their respective academies.
• Mandated Increases: Year 3 of the police contract (3% raise) and Year 2 of the fire contract (3% raise) are included.
• Enhancements: Funding for a homeless services position, a grant writer, and increased support for Animal Care Services (free spay/neuter vouchers, vet services).
• Fee Increases ($1.5M total):
  • Fire: Ambulance fees adjusted for inflation.
  • Police: New registration fees for outside agency academy training.
  • Animal Care: Increased impound, boarding, and vaccine fees (not raised since 2015/2018).
  • Parks & Rec: Increased fees for after-school programs, parties, pavilions, and vendor permits (not raised since 2018/2021).
• TMRS Proposal: The proposed budget includes changes to the Texas Municipal Retirement System, moving to an 8% employee contribution (from 7%) and changing the Cost of Living Adjustment (COLA) from automatic annually to an annual council vote.

Council Deliberation & Key Speaker Positions

• Vacant Building Registration: A proposed fee on vacant nuisance properties generated significant debate. Councilman Hernandez strongly opposed it, arguing it is a "fee on top of a fee" and that property taxes should cover city services. Fire Chief Brandon Wade and Development Services Director Michael Dice countered that the fee is crucial for public safety, offsetting the high cost of repeated fire and code enforcement responses to dilapidated structures that endanger neighborhoods and firefighters.
• Street User Fee: Councilman Scott, Councilwoman Gompels, and others expressed interest in reviving the street user fee to prevent the street maintenance cycle from lengthening, specifically warning of the impending FY27 funding cliff.
• Park Fees & Constituent Impact: Councilwoman Vaughn expressed robust concern over the cumulative impact of park fee increases on low-income families, describing the city as "fee happy." Councilman Badeta countered that fees must keep pace with inflation to avoid general taxpayers subsidizing specific park users.
• Sidewalk Connectivity: Councilwomen Gompels, Paxson, and Campos prioritized sidewalk connectivity, advocating for including a significant sidewalk component in the upcoming bond program (2026) rather than waiting for a costly citywide assessment.
• Ambulance & EMS Fees: Councilwoman Vaughn worried about the burden on the elderly and uninsured. Deputy Fire Chief Kenny Urban detailed the city's charity care program (100% write-off for qualified uninsured) and explained that state law prevents balance billing, noting gross charges represent the cost of service and are heavily reduced by insurers and government programs.
• Animal Care Services (ACS): Councilman Canthu proposed a small monthly fee on utility bills to fund animal shelter operations and spay/neuter programs. Mayor Guajardo expressed a preference for finding funding for additional Animal Control Officers within the existing budget rather than adding new fees.
• Audit Software: An unbudgeted request for $25K annual software subscriptions was presented to the full council after the audit committee met. Councilman Badeta supported the software, while Councilwoman Paxson and Councilman Scott noted concerns about the timing and process of the request.

Fire Chief Briefing (Chief Brandon Wade)

• Operational Profile: 455 uniformed firefighters, 18 stations, minimum daily staffing of 108.
• Workload: Estimated 63,000 total incidents for FY25, including 47,900 EMS calls and 29,500 transports. Unit responses are projected at 113,000.
• Structure Fires & Hazards: Estimated 339 structure fires. Electrical issues are the leading cause. Vacant, dilapidated buildings are a significant and high-risk operational hazard for crews.
• Response Times: The department responds to 87% of calls within the national standard of 8 minutes (goal is 90%).
• Prevention & Inspection: Fire prevention inspections dropped over the past three years due to staffing gaps but the office is now fully staffed. The department has enhanced its role in special event safety (food trucks, festivals) using gas monitors.
• Deployments: Crews deployed to major disasters in Florida, California, and the Texas Hill Country; all costs are reimbursed by the state, providing critical training without local financial impact.
• Health & Safety: Over 300 firefighters completed the first annual round of mandatory occupational cancer screenings following a recent council and legislative mandate.
• Council Appreciation: The entire council expressed deep appreciation for the Fire Department's service, professionalism, and the training gained from state deployments.

Key Outcomes & Next Steps

• Workshop Purpose: No votes were cast; the session was strictly for information and council discussion.
• Follow-up: Staff will provide weekly response memos to the council collating answers to all questions raised during the workshop.
• Upcoming Meetings:
  • Workshop #2: Water, Wastewater operating budget and rates (August 13/14).
  • Workshop #3: Street Funding and Capital Improvement Program.
  • Seven community input sessions are scheduled across the city.
• Future Policy Priorities: The council will deliberate on a street user fee, animal shelter funding models, sidewalk improvements in the 2026 bond program, and final adjustments to the budget before adoption in September.