City Council Workshop on Streets and Stormwater FY2026 Budget - August 21, 2025

The Corpus Christi City Council held a workshop on August 21, 2025, to discuss the proposed FY2026 budget for Public Works, focusing on streets and stormwater. Presentations covered the Streets and Stormwater funds, including achievements, pavement condition index (PCI) results, a proposed street user fee, a sidewalk plan, developer participation, and stormwater fee rate projections. Council members asked questions and expressed various positions on funding strategies, but no formal action was taken.

Discussion Items

• Street Maintenance and RPP Funding: Ernie from Public Works presented the FY2026 proposed streets budget of $143.9 million, an 11% increase from FY2025. The presentation highlighted PCI improvements, with two of five districts reaching PCIs above 70. The Rapid Pavement Program (RPP) funding shortfall was discussed: without the street fee, residential street funding would drop to $16 million in FY2027, reducing repairs from 30 miles per year to 16 miles per year. Re-establishing the street user fee at $6.67 per month (from the sunset rate of $5.38) could generate $15 million annually to close the gap.
• Street User Fee Debate: Several council members commented on the street user fee. Mayor Paulette Guajardo noted that the fee was not recommended by staff two years ago but is now presented, expressing that fees are not permanent solutions. Councilman Gil Hernandez opposed the fee, suggesting using budget policy changes (e.g., shifting fund balance from 20% to 17%) or including $24 million in each bond package. Councilwoman Carolyn Vaughn supported maintaining funding to avoid regressing, stating the fee worked before and should not have been sunset. Councilwoman Kaelin Paxton asked about creative alternatives to avoid adding fees, such as using fund reserves.
• Sidewalk Program: Ernie outlined a proposed sidewalk repair program, similar to the RPP's pavement-only approach, prioritizing neighborhoods by using the existing RPP list. Challenges include tie-ins with old driveways, ADA compliance, and encroachments. Estimated replacement cost is $800,000 per block (average 1,500-foot block). No dedicated funding source exists, and staff recommended updating design standards before implementation.
• Developer Participation: The city requests $2.8 million for FY2026 developer participation for oversized streets and drainage crossings. Current funding comes from certificates of obligation; Councilman Hernandez suggested including participation in future bond packages instead.
• Stormwater Fund and Fee: The FY2026 stormwater budget is $32.2 million. Ernie presented productivity rate audits using new software (Cartograph, Sam SERA), showing higher actual outputs than previously reported. The stormwater fee is proposed to remain unchanged for FY2026 but will need increases in FY2027 (1%), FY2028 (4%), and FY2029 (2%) to cover growing debt service. Council members questioned the reserve balance and the equity of the fee methodology (based on lot size divided by 2, not actual impervious cover). The mayor requested a cost-of-service study to ensure fairness.
• Tree Trimming on Private Property: Councilman Hernandez questioned stormwater crews trimming trees on private property along Costores. Staff explained they issue notices under the MS4 permit to prevent damage to sidewalks and curbs, but will issue citations if needed.

Key Outcomes

• No votes were taken; the workshop was informational only.
• Council directed staff to explore alternative funding sources for streets, including using the reserve fund balance (17–20% policy), bond allocations, and the 1/8-cent sales tax (Type B funds) for eligible projects with economic development components.
• Staff will provide a follow-up on the feasibility of a cost-of-service study for the stormwater fee and details on how the 1/8-cent sales tax can be used for future stormwater debt service.
• The sidewalk plan will be further developed using a prioritization method tied to the RPP list, with updated design standards to follow.
• Productivity rates from new software will be tracked annually to inform future stormwater fee adjustments.