Corpus Christi City Council Meeting Summary - September 9, 2025

The Corpus Christi City Council convened on Tuesday, September 9, 2025, at 11:30 a.m. in Council Chambers and adjourned at approximately 11:26 p.m. The marathon meeting covered the FY 2025-2026 operating and capital budgets, property tax rate, water and wastewater rate increases, a street maintenance fee, a new tax increment reinvestment zone, a water reuse briefing, and a late-night debate over launching an outside investigation into alleged fraud related to the Homewood Suites incentive. The council also entered executive session under Texas Government Code § 551.071 to consult with attorneys regarding the fraud allegation.

Consent Calendar

• Approved the September 2, 2025 Regular Meeting Minutes (Item 24).
• Approved Items 25-34 en bloc, including: water well cross-connection requirements; acceptance of a Motor Vehicle Crime Prevention Authority grant ($894,028 with city match); a zoning change at 14454 Northwest Boulevard; purchase of a bomb detection robot upgrade ($267,738); a Xylem Dewatering Solutions service agreement (up to $894,750 if options exercised); a Naval Air Station Corpus Christi perimeter fence construction contract ($1,022,900); excess liability and workers’ compensation policy renewal ($1,059,799); a one-year Sister City services agreement with the United Corpus Christi Chamber of Commerce; an amendment for Padre Isles Property Owners Association park maintenance and water wells; and an FAA Airport Grant No. 74 appropriation ($587,173 total).

Public Comments & Testimony

• Budget input process: Speakers Steve Clepper, Jasmine Evans, and Mark Minster criticized the budget input sessions as too late and dismissive of resident concerns. Clepper also called for service-level budgeting and more transparency.
• Tax rate: Rachel Gowed, president of the Corpus Christi Taxpayers Association, opposed the property tax increase, arguing the city has shown irresponsible spending. Mark Minster said residential valuations can rise 10-15% annually and unfairly burden homeowners.
• Water rates and fluoride: Multiple medical professionals, including Dr. Carl Sarau of the Nueces County Medical Society, pediatricians Vanessa Gonzalez and Dr. Silko, and Dr. Gonzalez of the Nueces Valley Dental Society, urged the council to preserve fluoridation, citing a 50% rise in dental surgeries after the city eliminated fluoride in 2011. Other speakers argued rate options burden working-class residents and questioned why large industrial users are not paying more.
• Reclaimed water: Residents including Blanch Royal, Gary Hutchins, and Susan Upshaw spoke about the difficulty of accessing reclaimed water, long waits, and concerns about the proposed $15-$30 fees. Some opposed the fee, while Robin Cox thanked staff for working to provide water.
• Vacant building ordinance: John Martinez of the Coastal Bend Association of Realtors said the group was working with staff and requested additional time to refine the ordinance.
• Parks fees: Alina Martinez noted the average Texas income and argued latchkey fee increases affect families struggling to afford food and shelter.
• Street maintenance fee: Tom Whitehurst and Steve Clipper supported the street fee as a transparent, dedicated funding source; Rachel Caballero and Julian Hernandez opposed it, with Hernandez urging a voter-approved property tax route instead.
• Marriott incentive: Susie Sardania questioned approving an incentive for a developer connected to litigation against the city; Stephen Krebs, a retired Hilton executive, vouched for the owner’s record and community commitment.
• TIRZ No. 7: Rachel Caballero and Robin Cox opposed the new reinvestment zone, arguing taxpayer money should not subsidize new development while existing areas decline.
• General public comment: More than 30 speakers addressed issues including the canceled Inner Harbor desalination project, police conduct at the prior meeting, library closures, food truck regulations, water marketing, homelessness, and a proposed overhaul of the public comment sign-up website.

Discussion Items

• Item 1 – Ethics Commission appointment: The council attempted to fill one vacancy but only received five votes for an applicant; six votes are required, so the appointment was postponed to a later meeting.
• Item 2 – FY 2025-2026 Operating Budget: The Office of Management and Budget presented amendments from the prior week, including removal of the stormwater rate increase, reduction of the Inner Harbor Project CIP, halving the after-hour Kid Power rate increase, and eliminating a proposed administration fee. The council voted to reconsider item 2 to accept the schedule of adjustments, then approved the operating budget as amended.
• Item 3 – FY 2025-2026 Capital Budget: The capital budget was amended to remove the Inner Harbor Project, reducing the total from $764 million across 243 projects to $553,964,906 across 242 projects. Approved as amended.
• Item 4 – Property Tax Rate: The council adopted a property tax rate of $0.599774 per $100 valuation, effectively a 0.23% increase over the no-new-revenue rate. A 60% favorable vote was required; the motion carried.
• Item 5 – Property Tax Revenue Ratification: Ratified the $6,061,319 property tax revenue increase reflected in the FY 2025-2026 operating budget.
• Item 8 – Water Rates: Staff originally recommended a $4.78 monthly increase for the average residential customer using 6,000 gallons. Councilman Hernandez moved to adopt a lower option three ($3.28 increase), which would cut the Owen Stevens generator replacement program by $1.2 million. That motion failed, and the council approved staff’s option one, a $4.78 increase, effective January 1, 2026. Financial advisor Victor warned that not approving rates could negatively affect the city’s bond rating.
• Item 13 – Wastewater Rates: Staff recommended a $4.20 monthly increase for the average residential customer. An amendment to adopt option three ($3.26 increase, eliminating nine maintenance positions) failed; option one was approved. Presentations noted the EPA consent decree, reduction of sanitary sewer overflows from 1,420 in 2008 to 28 in 2025, and $30 million in savings from doing work in-house.
• Item 14 – Recycled/Reclaimed Water Fees: The council voted to amend the ordinance to remove the fee for reclaimed water pickup at the Oso Wastewater Treatment Plant, then approved the ordinance as amended. The fee removal will be funded from reserves for one year.
• Item 16 – Vacant Building Registration: The council adopted alternative two, which removes the proposed registration fee and makes corresponding budget cuts, and will revisit the ordinance language on September 23 after further stakeholder input.
• Item 19 – Parks and Recreation Fees: A motion to remove after-hour Kid Power and Latchkey fee increases and eliminate the administration fee was approved, requiring reduction of a vacant parks maintenance crew. The parks fee ordinance was then approved as amended.
• Item 21 – Rapid Pavement Program: Approved the FY 2027-2031 program list of streets planned for reconstruction.
• Item 22 – Street Maintenance Fee: Staff proposed re-establishing a $6.67 monthly street maintenance fee to generate about $11 million from January to September 2026 and $15 million in FY 2027. After extensive debate, the motion to approve failed. Councilman Hernandez suggested pursuing a voter-approved property tax increase instead.
• Item 23 – Water Reuse Project Briefing: Gulf Coast Authority and Ardurra presented a concept to deliver 11-16 million gallons per day of reclaimed water to the Nueces River or large volume users within 18-24 months at an estimated $4.30-$5.10 per 1,000 gallons and roughly $160 million total cost. The briefing was informational, but council members expressed strong interest in developing an MOU.
• Item 35 – Marriott Dual Branded Hotels Incentive: The council approved an economic development agreement with Padre Island North, LLC for up to $2,000,000 over five years for a 205-room dual-branded Marriott (Courtyard & Residence Inn) with conference center and restaurant. The developer plans 73 primary jobs at an average salary of $30,000 and a $34 million capital investment. Some council members noted the EDC recommendation was $1.25 million but the Type B board approved $2 million.
• Item 38 – Reinvestment Zone Number Seven (London Area TIRZ): Approved on first reading a new TIRZ for largely undeveloped land, with only 50% of new tax revenue reinvested, a 25-year term, and subzones requiring annexation and city sewer connection. Estimated new taxable revenue over the zone’s life is $2-3 billion, generating about $140 million in new tax revenue.
• Item 39 – Audit Committee Meeting Broadcast: Approved the live broadcast of Audit Committee meetings, funded from the FY 2025-2026 City Auditor budget at an estimated cost of just over $7,000 per year.
• Item 40 – Homewood Suites Fraud Allegation Investigation: The council considered a City Auditor memorandum recommending an outside investigation into possible fraud involving altered FEMA documents and the $2 million incentive for the Homewood Suites project. After lengthy discussion, Councilman Hernandez moved to refer the matter to the city attorney to hire outside counsel from outside Corpus Christi to investigate. The motion passed after the city secretary clarified that abstentions do not count toward the vote; council members Everett Roy, Sylvia Campos, and Roland Barrera recused or abstained due to involvement in related litigation.

Executive Session

• The council held an executive session under Texas Government Code § 551.071 to consult with attorneys concerning legal issues related to the request for an outside agency investigation on the Homewood Suites fraud allegation.

Key Outcomes

• Adopted the FY 2025-2026 operating budget as amended.
• Adopted the FY 2025-2026 capital budget of $553,964,906 as amended.
• Set the FY 2025-2026 property tax rate at $0.599774 per $100 valuation.
• Approved water rate increase of $4.78/month for average residential customers, effective January 1, 2026.
• Approved wastewater rate increase of $4.20/month for average residential customers, effective January 1, 2026.
• Removed the reclaimed water pickup fee and approved the rest of the recycled water ordinance.
• Approved the vacant building ordinance with alternative budget reductions, to be revisited September 23.
• Approved the parks fee ordinance with no increase to after-hour Kid Power or Latchkey fees and no administration fee.
• Rejected re-establishment of the street maintenance fee.
• Approved the London-area TIRZ ordinance on first reading.
• Approved live broadcasting of Audit Committee meetings.
• Directed the city attorney to hire outside counsel to investigate the Homewood Suites fraud allegation.
• Deferred the Ethics Commission appointment due to insufficient votes.