Speaker numbers apply only to this recording.
The Corpus Christi City Council held a workshop on July 8, 2026, to review the proposed FY2027 operating and capital budgets for Corpus Christi Water (CCW), as well as proposed water and wastewater rate adjustments. No formal action was taken; the workshop served as an information session, with a second workshop scheduled for July 16, 2026, covering the consent decree and other topics. First reading of the rate ordinances is set for July 21, 2026, and second reading for July 28, 2026.
Wastewater Fund Overview: Nick Winkleman, CCW Chief Operating Officer, presented the wastewater budget, highlighting capital projects including the OSO ($110 million) and Greenwood ($102 million) wastewater treatment plant upgrades. The FY27 operating budget is $111.1 million, a decrease of $2.5 million from FY26, attributed to operational efficiencies and reduced chemical costs. Proposed wastewater rates for a typical residential customer (5,000 gallons per month) would increase from $63.52 to $65.39 (a $1.87 monthly increase). The rate study incorporated the third year of phasing in stormwater legacy debt, with 50% funded through wastewater rates.
Water Fund Overview: The water fund budget for FY27 totals $229.3 million, reflecting increased costs for brackish water reverse osmosis system operations, groundwater well field operations, and chemical costs. Capital improvements include the ongoing New Oasis groundwater program, brackish water conveyance, and treatment plant upgrades. Proposed water rates for a typical residential customer (6,000 gallons per month) would increase from $42.07 to $44.55 (a $2.48 monthly increase). The primary driver is $56.8 million in new revenue requirements, largely from new water supply projects debt service. Of the $2.48 increase, approximately $0.89 is attributable to the new water supply projects.
Rate Structure Changes: New Gen Solutions consultants detailed the cost-of-service methodology. Changes include aligning commercial and large-volume customers closer to their cost of service; large-volume users (e.g., 260 million gallons/month) see a monthly increase of about $67,630, while median large-volume users (90 million gallons) see an increase of about $23,500. The minimum charge for outside-city wastewater customers is lower due to no benefit from stormwater infrastructure. Minimum charges will now apply to meter sizes up to 30 inches and larger to better recover costs from larger customers.
Utility Assistance Program: The presentation included a proposal to bring the utility assistance program in-house with two new positions, funded through the gas department allocation. A future water symposium is planned to raise additional funds. City Manager Peter Zanoni noted that the program will have expanded eligibility guidelines to be more inclusive.
Staffing: The water fund requests eight new positions (one utility billing for gas department integration, two for in-house utility assistance, five for groundwater well field operations and maintenance). The wastewater fund requests eight positions for the wastewater effluent program, which are fully reimbursed through effluent contracts. Councilmember Hernandez requested a historical list of staffing additions over the past eight years.
Infrastructure and Operations: CCW reported replacing 78,548 linear feet of water distribution pipe in FY26 and has a 94% on-schedule rate for capital projects. In-house crews and contractors are used for repairs; a new process to recover costs from third-party damages (e.g., AT&T) is being developed.
Consistent cadence. Okay, good morning, everyone. I'd like to call this meeting to order. Okay. Mr. Kanthu is not feeling well. He'll be absent. Gillard Nandis. Kaelin Paxon. There she is. Okay. Everett Roy. Okay, absent. Mark Scott. Carolyn Bond. City Manager Peter Zanoni. Present. City Attorney Moz Resley. Mayor and Council, a quorum of the council and the required charter officers are present to conduct the meeting. Great. Thank you, Ms. Wetza. So this morning we have one item, and it is an overview of Corpus Christi Water, the fiscal year 2027 operating and capital improvement program proposed budget and water rates and wastewater rates. So just to let the public know, we will be, you know, there will be a presentation on both of those, uh, our water and wastewater rates. Um we are we will have a second uh water workshop next Thursday at 9 a.m. And that will carry over or anything from today could carry over to next Thursday. Um, although we do have a slotted amount of time today to um ask plenty of questions and and um uh go through these presentations thoroughly. Um if if any council member is needing more typically we have two uh we have two two um opportunities to ask questions, but if we need a third one, I'm going to allow that being that we're discussing water, which is such an important topic. So, Ms. Ruther will do up to three. Should someone need that. Um, and so with that, I am going to turn it over to Nick Winkleman to start the presentation. Good morning, Mayor and Council. Nick Winkleman Chief Operating Officer, Corpus Christi Water. I do want to uh thank uh some of the members who are here with me, the the team that's helped develop this. Uh Wes Nebgen is here, director. Uh Camille Terrace, assistant director of finance for CCW. Esteban Ramos, assistant director of water supply for CCW. We also have Rudy Mora, who's our assistant director of wastewater. Rudy is not here today because he is working uh he's working at the wastewater plants trying to make sure our improvements continue. Additionally, we have Andy McCartney and Richard Campbell from New Gen Solutions. New Gen is our rate modeler, and they've worked with us for a number of years now, and we're very pleased to have them on our team. Additionally, I want to thank uh um the the finance and the budget office and Amy is here today. Thank you for being here, Amy. Uh we're appreciative of their support. All of this was done uh ahead of the normal schedule.