Corpus Christi City Council Meeting - August 26, 2025

The Corpus Christi City Council met on August 26, 2025, at 11:30 AM, with Mayor Pro Tem Mark Scott presiding due to the mayor's absence. The meeting covered consent agenda approvals, a significant discussion on amending financial budgetary policies to set the general fund reserve floor at 20%, an extensive update on alternative water supply projects, and public comments on a wide range of topics including water resources, libraries, and city transparency.

Consent Calendar

• Approved the August 13, 2025 Budget Workshop Minutes and August 19, 2025 Regular Meeting Minutes.
• Approved Zoning Case No. ZN8634, rezoning property at 602 Saratoga Boulevard to RS-4.5/PUD.
• Authorized purchase and installation of a virtual reality training simulator for the Police Training Academy from V-Armed, up to $383,000.
• Authorized purchase of one Ford F-450 for the Police Bomb Squad through TIPS Cooperative, total $112,007.75.
• Authorized a one-year service agreement with Roland Mendiola dba National Auto Glass for windshield repairs, up to $129,250 annually, with options for two additional years.

Public Comments & Testimony

Numerous residents spoke during the general public comment period at approximately 5:30 PM. Key themes included:

• Water Projects: Several speakers opposed the Inner Harbor desalination project, citing high costs, environmental risks, and a lack of transparency. Some expressed support for alternative water sources such as groundwater and reuse projects. A speaker highlighted potential conflicts of interest and alleged forged documents in a separate city project.
• Libraries: Residents urged the council not to reduce library funding, presenting a petition with over 460 signatures opposing cuts to the Hart Library and other branches.
• Budget Priorities: Community members advocated for reallocating funds from law enforcement to social services, mental health, housing, and parks. Concerns were raised about the proportion of the budget spent on police versus quality-of-life programs.
• Food Truck Regulations: A food truck operator requested clarification on fire code requirements, noting existing state regulations.
• BMX Park: A resident highlighted the economic benefits of a sanctioned BMX track in Salinas Park, citing potential tourism revenue.
• Other: Calls for a citywide day of prayer for rain, opposition to water sales to industries during drought, and requests for more accessible public comment processes.

Discussion Items

Financial Budgetary Policies (Item 6)

• Finance Director Satya Yasana presented options for amending the unassigned fund balance policy, recommending a floor of 20% (Option 1) versus maintaining the current 17-20% range (Option 2). Historical data showed the city has effectively maintained 20% reserves for five years. Financial advisors recommended a minimum of 20% with a target range of 20-25% and a restoration plan if reserves dip below the floor. Peer cities showed varying reserve levels, with coastal cities often holding 90 days or more of operating expenses.
• Council discussion included the need for a restoration plan if the reserve falls below 20%. Councilmember Paxton suggested adding long-term goal language to reach 25%. Councilmember Campos supported Option 2 to allow flexibility and potentially fund sidewalk pilot projects. Councilmember Roy favored Option 1 for financial stability. Councilmember Hernandez questioned if lowering the floor would impact bond ratings.
• Motion: Councilmember Scott moved for Option 1 (floor 20%), seconded. After debate, the motion passed with the understanding that language for a restoration plan and a long-term goal of 25% would be added in future budget cycles.

Alternative Water Supply Projects Update (Item 7)

• Drew Molly, along with water staff, presented updates on multiple projects:
  • Nueces River Groundwater Wells: Phase 1 is operational, discharging 5-7 MGD into the river. Eight eastern wells and development of a western well field are ongoing. Capital costs to date are $18 million, offset by a $30 million state grant. A hydrogeologist confirmed sustained yields: eastern field 11 MGD, western field up to 17 MGD long-term. A potential Phase 2 would require a brackish RO plant at O.N. Stevens, costing ~$350 million, delivering up to 28 MGD by 2028.
  • Evangeline Groundwater Project: Purchase of water rights for $169 million, infrastructure cost ~$200 million, timeline 2029. Scalable from 12 to 24 MGD. Discussion on treatment needs.
  • Harbor Island Seawater Project: Permits submitted, timeline 2029-2032. Reservation fees discussed (e.g., $821,000 annually for 30 MGD, non-refundable until water delivery). Councilmember Vaughan clarified that the fee may apply to future water purchases.
  • Water Supply Dashboard: A new tool projecting water supply under conservative rainfall assumptions. Current projections show combined Choke Canyon/Lake Corpus Christi reaching zero by May 2027 without additional sources. With groundwater wells, the date extends to May 2029. Combining all supplies (including Harbor Island) could avoid curtailment.
• Council discussion covered cost comparisons, feasibility of combining RO facilities, concerns about aquifer sustainability, and the need for updated drought contingency metrics. Councilmember Campos reiterated concerns about industry water use during drought.

Key Outcomes

• Resolution 25-1238 Adopted: The council approved amending the Financial Budgetary Policies to set a minimum unassigned fund balance of 20% of total annual general fund appropriations (Option 1). The motion included direction to add a restoration plan if the reserve falls below 20% and a long-term goal to increase reserves to 25% in future budgets. Vote: Passed.
• Water Projects Direction: No formal vote was taken on water project specifics. The council received the update and will continue discussions. Staff will bring forward further analysis, including a presentation on the Nueces River well field hydrogeological report and a meeting with Harbor Island partners.
• Public Engagement: The council acknowledged the public's concerns and pledged to consider alternative water sources and budget priorities in upcoming decisions. The next council meeting is scheduled for September 2, 2025, where the budget and potential desalination funding will be addressed.