Rockport City Council Budget Workshop #1 – February 5, 2026

The Rockport City Council held its first budget workshop for fiscal year 2026-2027 on Thursday, February 5, 2026, from 9:00 AM to approximately 12:45 PM (with a 15-minute break at 10:35 AM and a lunch break at 12:00 PM). City Manager Vanessa Shrauner led the workshop, during which all city departments presented their responsibilities, current work plans, needs, and goals for the upcoming budget. Discussions focused on staffing requests, capital investments, and strategic priorities. No formal votes were taken; the workshop served as a discussion and direction session.

Discussion Items

• City Manager (Vanessa Shrauner): Responsibilities include administering policies, coordinating departments, and intergovernmental relations. Current work plan items: finalizing downtown drainage litigation, implementing the Concho Street drainage deal with the Navigation District, setting up a tourist board with updated interlocal agreements, and increasing state legislative involvement. Requested an increase in the travel and training budget to attend state-level meetings. Staff focus for the coming year will be interdepartmental communications and an informal efficiency study of each department.

• City Secretary (Shelley Goodwin): Covers legislative, administrative, and community relations duties. Budget needs: a full-time assistant city secretary (shared duties), additional funds for open records requests (postage, etc.), a website upgrade, and increased civic engagement funds (used for programs like “Hooked on Rockport”). Goals: complete the Laserfiche records program, revamp the HOT grant program, and review and codify all city ordinances to resolve conflicts and outdated language. Councilmember Anderson noted the codification backlog inherited by the office.

• Human Resources (Casey Fernandez): Manages employee lifecycle, city insurance, and vendor relations. HR is in its third year with BambooHR and second year with Brins & Benefits for employee insurance. Brins & Benefits helped reduce a 19% renewal increase to about 6% and resolved a retiree insurance issue. Budget need: a full-time position split between HR assistance and payroll clerk duties (shared with Finance). City Manager noted they plan to reclassify an existing unfilled position to cover this need. Councilmember Anderson asked about employee feedback on Brins & Benefits; Casey noted increased use of Teladoc and the Purple Card and positive informal feedback. Councilmember Hattman shared a personal positive experience with Brins & Benefits on an appeal.

• Tourism (Megan Gordon): Focus on generating overnight visitors to increase HOT tax revenue. Accomplishments: launched new website, annual paid advertising plan, meetings business outreach (attended Destination Southwest event where 20 of 24 meeting planners had never heard of Rockport). Budget needs: a part-time or contract person (possibly a graphic design intern from the school), a data partner for tourism economic analysis, ongoing meeting market advertising, and funding for a PR agency to reach statewide markets. Goals: achieve Tourism Friendly designation from the governor’s office, create a mobile visitor center, and revise HOT tax grant policy. Councilmember Anderson asked about airport collaboration; Megan noted the municipal airport is a potential asset. All tourism spending would come from HOT funds, not general fund. Councilmember Rangel supported the idea of partnering with the school for graphic design.

• Building & Development (Kimberly Henry): Separated into three budgets: administrative/development, building codes/inspections, and code enforcement. Administrative side handles plats, rezonings, CUPs, and oversees four boards. Completed a new Development Guide (presented at State of the City). Needs: enhanced education/training budget, update the Development Guide with impact fees and floodplain management info. Building inspections: recently certified a new plumbing inspector. Needs: a part-time permit tech (lower priority for this year), additional training for permit tech. Code Enforcement: three officers plus short-term rental (STR) responsibilities. Budget need: a new full-time position focused solely on STR registration and compliance to free up code enforcement officers for traditional duties (health, safety, junk vehicles, etc.). Noted that STRs generated 52% of the $1.2 million in HOT revenue for FY 2024-25, with 550 registered STRs but still about 100 unregistered. Councilmember Anderson expressed amazement at the revenue and supported the STR position. The City Manager noted the discussion would continue at the HOT budget meeting.

• Finance (Robbie Williams): Responsibilities include budget preparation (approx. $60 million), grant utilization over $1 million/year, and reporting. Current work plan: complete FY 2025 audit by end of March, implement water/wastewater study, TERS account setup (city’s portion ~$10,000 deposit this year), finalize FEMA grants (on an expedited schedule). Budget need: the shared payroll clerk position with HR to relieve the senior accountant. Also requested training funds and computer setup for that position. Goals: cross-functional training, clear Harvey FEMA backlog, and phase out post-65 retiree insurance benefits (grandfathering current employees). Councilmember Anderson asked for more detail on the retiree insurance phase-out; it will be brought for formal approval.

• Utility Billing (presented by Robbie Williams on behalf of Jamie): Responsibilities: accurate billing for 11,000+ customers, coordinating with Corpus Christi Gas on transition (not seamless). Budget need: training funds and a utility billing rewrite to improve customer understanding and reduce calls. Goals: implement the billing rewrite and a water cost pass-through.

• Information Technology (Robert Arkansan): Responsible for all electronic systems; only two staff. Current work plan reactive due to staffing shortage. Budget needs: a network administrator/systems/cybersecurity position, a battery backup refresh for servers (12 years old, 10 units at ~$3,000 each). Councilmember Anderson asked about using AI to reduce workload; discussions included the need for an AI policy and exploring TML training.

• Municipal Court (Chris Yellow): Responsibilities include processing citations, warrants (800 behind), court dockets, and compliance. Budget need: a part-time clerk, additional training for Level III certification. Councilmember Anderson asked about fine/fee revenue caps; Chris noted fees were revised 7-8 months ago and may be at maximum. Councilmember Anderson encouraged a review to maximize revenue.

• Parks & Recreation (Bethany): Maintains parks, pool, athletic fields. Current work plan: new Park Ranger program, explore disc golf, birding trails, increase parking at Memorial Park, plan Rockport Ren Fair, develop a 40-acre sports complex plan, and create a new 10-year master plan. Budget needs: investment in parks equipment (playscape at Memorial Park is top priority). Councilmember Rangel supported playground upgrades. Pool: increased rental revenue by opening Sundays for day parties. Pursuing Texas Parks & Wildlife grants. Councilmember Anderson supported the playscape and emphasized park needs.

• Police Department (Chief Anderson): Divided into administration, CID, and patrol. Admin request: radios ($500,000 for 54 units – 27 officers each with vehicle and portable – plus system upgrade to TxDOT’s GATOR system), a 30x50 metal building for training/range ($80,000), and AEDs for all patrol vehicles. CID: no budget requests this year; working on SOPs. Patrol: requesting five new patrol officers (four covered by COPS grant – city’s year-one match $140,000, year-two $170,000, year-three $190,000; then full city cost). Total first-year cost for five officers including vehicles/equipment: approx. $1 million. Current crime rate: 40 crimes per 1,000 residents (national avg. 33), property crime high. Chief noted two officer vacancies, three new vehicles received but lacking radios/cameras (needs $35k per vehicle for these). Discussion on equipment and AEDs. Councilmember Rangel offered to seek donations for AEDs. Chief noted interoperability with regional agencies through the radio upgrade. Councilmember Anderson supported the requests and suggested a recruiting package highlighting Rockport amenities.

• Public Safety Communications (Lee): Operates 24/7 with 12 full-time staff (no new positions since 2004). Handles ~39,000 calls for service annually, including 19,000 911 calls (many accidental) and 50,000 non-emergency calls. High turnover rate due to stress and shift work; training program extended to 4-5 months. Budget need: no requests, but noted overtime budget must be increased annually due to turnover. Councilmember Anderson asked if turnover is monetary; Lee said no, it’s job-related. Councilmember Anderson expressed concern about “extreme overtime”; Lee confirmed staff manage it well and overtime is sought after.

• Public Works (Ryan): 37 employees; admin, building maintenance, streets/drainage, fleet, wastewater, water distribution. Admin request: one full-time or two part-time custodians for new City Hall (cost comparison with contract service shows in-house cheaper). Streets/drainage: No new CIP requests; focus on completing current projects (Water Street, Magnolia, Market Street, etc.) and start planning downtown Austin Street rehab. Fleet: no additional funds requested; maintaining the vehicle replacement plan is crucial. Councilmember Anderson asked about custodial outsourcing; Ryan noted previous analysis favored in-house. Wastewater and water distribution: no new capital requests; only need flexible line items for maintenance cost increases.

• City Council Strategic Plan Review (conducted throughout): Discussion on AI integration (Councilmember Anderson initiated), post-65 retiree benefits phase-out (Finance proposal), and the need for updated interlocal agreements. The strategic plan will be updated based on these discussions.

Key Outcomes

• Direction to staff: Bring forward a proposal to phase out post-65 retiree insurance for new hires, with grandfathering for current employees, for formal council vote.
• Direction to staff: Continue to pursue an AI policy and explore TML training on AI integration.
• Direction to staff: For the HOT budget meeting, prepare a detailed proposal for a dedicated STR compliance position, funded through HOT funds and registration fees.
• Direction to staff: For the budget, prepare the requested part-time payroll clerk/HR assistant through reclassification of an existing unfilled position.
• Direction to staff: Police department to proceed with radio replacement plan (approx. $500,000), training building ($80,000), and explore grants/donations for AEDs. Consider COPS grant for five new officers; council expressed support but noted need for fiscal planning for future year obligations.
• Direction to staff: Park department to prioritize playground upgrades at Memorial Park; pursue state grants.
• Direction to staff: City Secretary’s office to continue codification updates and report progress.
• No formal decisions were made; all items will be refined and presented in future budget meetings and formal sessions.