FY 2027 Proposed Budget Workshop: All Funds and General Fund Overview - August 13, 2026

On August 13, 2026, the City Council of Corpus Christi held a workshop to review the City Manager's Proposed FY 2027 Budget. The workshop focused on the All Funds Budget Overview and the General Fund Proposed Budget. No formal actions were taken, but council members provided feedback on several proposed fee adjustments, expenditures, and funding priorities.

Discussion Items

• Budget Presentation – Amy Rodriguez, Director of Management and Budget, presented the FY27 proposed budget totaling $1.4 billion ($1 billion operating, $450 million capital). The General Fund budget is $360 million, a 3.5% increase over FY26. The budget is balanced despite an initial $900,000 revenue shortfall, achieved through sales tax forecast improvements, reduced costs, and increased fees.
• Property Tax and Revenue Trends – Property tax values remained flat; sales tax growth is forecast at 1% for FY27. The city’s property tax rate has not increased for four years and remains lower than before the four-cent residential street dedication. A homestead property in CCISD pays 27 cents per dollar of property tax to the city.
• Proposed Fee Changes – Several departments proposed fee adjustments: Fire department new fees for battery energy storage systems review, emergency radio system plan review/inspection, high-piled storage plan review, early assistance meetings, and hazardous materials cleanup (minimum $100). Code compliance proposed a $20 citation fee increase (from $25 to $35) for a projected $55,000 revenue. Parks and Recreation proposed reducing natural grass field rental rates (from $60 to $35 per hour without lights; $80 to $55 with lights) and establishing separate rates for artificial turf ($55 without lights, $75 with lights). Solid Waste proposed a $30 minimum disposal fee for residential loads exceeding two cubic yards, and new fees for compost/mulch sales.
• Mandated Expenditures – Police and fire CBA increases (4% each), final phase of police initiative (adding 2 positions, $235,000), digitization of birth records ($2.4 million, from state-established reserves), and November election costs.
• Enhancements and Reductions – Police academy (July 2027, $552,000), fire academy (9 months), net-zero repositioning of a heavy vehicle mechanic. General fund reductions include transferring two planning positions to HOT fund, one planner to Development Services, and creating a Gulf Beach Operations Fund for beach costs.
• Abatement Funding Debate – Multiple council members (Scott, Campos, Cantu, Vaughn) emphasized the need for code enforcement abatement (vacant lot cleanup, demolition). Currently no funding in FY27. Staff proposed increasing the solid waste fee by $0.25/month ($300,000) or $0.50/month ($500,000) to fund abatement. Councilmember Cantu noted a backlog of 2,600 properties requiring mowing at ~$250 per occurrence. Councilmember Vaughn opposed a city-wide fee and supported revisiting a vacant property fee. Councilmember Hernandez also opposed the binary choice.
• Parks Field Rental Fees – Council questioned the reduction in natural grass rates (from $60 to $35) despite high tournament revenue earned by users. Parks staff stated the rates are based on market studies and are subsidized at 20% after the change.
• City Care (Health Benefits) Fund – The fund is running a deficit due to 63% claims increase since FY22. The city is implementing a 15% premium increase for civilians, reducing HSA contributions, and introducing a new clinic (NextLevel) to reduce costs. The projected ending fund balance is $6.4 million, down from an anticipated $11 million deficit.
• Miscellaneous – Council discussed street maintenance and residential street reconstruction fund projections (next workshop for details); HOT and SHOT fund balances; convention center complex fund decrease; and the proposed COLA vs merit pay for civilian employees (Councilmember Hernandez preferred merit pay; staff noted insufficient funds for performance system).

Key Outcomes

• Abatement Funding – Council indicated strong support for restoring code enforcement abatement funding. Two options were discussed: a $0.25–$0.50 per month solid waste fee increase (staff recommendation) or a vacant property fee (previously rejected). Council directed staff to bring back a vacant property fee proposal, along with possible cuts to other departments if needed.
• Fee Proposals – Council members expressed mixed views:
  • Councilmember Scott supported increasing the after-school kids' program fee from $25 to $35 (mostly state-funded).
  • Councilmember Vaughn opposed the solid waste minimum disposal fee, fearing it would discourage proper disposal and increase illegal dumping.
  • Councilmember Cantu opposed the Parks & Rec nonprofit field rental fee increase and the after-school program fee increase.
• Future Budget Workshops – Staff will provide separate line-item budgets for the Mayor’s office and City Council (currently combined). Additional workshops on street funds and other topics are scheduled.
• Municipal Court and Other Funds – The Parking Improvement Fund will be closed out in FY27. The Golf Beach Operations Fund is a new special revenue fund. The City Care fund health plan changes will be discussed at a future council meeting.
• Next Steps – Council will continue budget deliberations, with a final vote on the FY27 Budget expected later in the year. Staff will resend the line-item budget to council members and will revisit the format for public budget input sessions due to low attendance.