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Home My WebLink AboutAgenda Packet City Council - 08/13/2025 ®rtif Cit of Corpus Christi 1201 Leopard Street Y Corpus Christi,TX 78401 cctexas.com _ Meeting Agenda Final City Council Workshop Wednesday,August 13,2025 9:00 AM Council Chambers FY 2026 Budget Workshop: Corpus Christi Water, FY 2026 Operating and Capital Improvement Program Proposed Budget and Rates Public Notice: ITEMS ON THIS AGENDA ARE FOR COUNCILS INFORMATIONAL PURPOSES ONLY. NO ACTION WILL BE TAKEN AND NO PUBLIC COMMENT WILL BE SOLICITED. A. Mayor Paulette Guajardo to call the meeting to order. B. City Secretary Rebecca L. Huerta to call the roll of the required Charter Officers C. BRIEFINGS Briefing information will be provided to the City Council during the Council meeting. Briefings are for Council information only. No action will be taken and no public comment will be solicited. 25-1287 Overview of Corpus Christi Water, FY 2026 Operating and Capital Improvement Program Proposed Budget and Rates sponsors: Office of Management and Budget D. Adjournment City of Corpus Christi Page 1 Printed on 811112025 Se GO � O� A H /NCOOPOR AGENDA MEMORANDUM 1852 City Council Workshop of August 13, 2025 DATE: August 13, 2025 TO: Peter Zanoni, City Manager FROM: Amy Cowley, Director of Management and Budget amyc1(o-)-cctexas.com 361-826-3796 FY 2026 Proposed Budget Workshop #2: Corpus Christi Water Operating and CIP STAFF PRESENTER(S): Name Title/Position Department 1. Drew Molly Chief Operating Officer CCW OUTSIDE PRESENTERS : 1. Andy McCartney, CPA, MBA Principal Consultant NewGen Strategies&Solutions ISSUE: This is the second of four City Council workshops to discuss the FY 2026 Proposed Operating and Capital Budget. The topic for the second workshop includes Corpus Christi Water proposed Operating, CIP Budgets and Rates. BACKGROUND: At this workshop, the City Council will be presented with the FY 2026 Proposed Budget for Water and Wastewater, to include rate recommendations. FY 2026 Budget Workshop#2: Corpus Christi Water Operating and CIP Proposed Budget. The focus of Corpus Christi Water (CCW) is 24-hour daily utility operations to provide clean and dependable water and wastewater services to customers. This entails reliable delivery of safe potable water and raw water to customers in addition to the collection, treatment, and disposal of wastewater. Rate changes are proposed for Water and Wastewater in FY 2026. The proposed rate changes achieve the City's goal of establishing a more equitable rate structure. A typical water residential customer using 6000- gallons of water a month will see a monthly increase of$4.78. The monthly increase for a typical residential Wastewater customer with a 5000-gallon winter quarter average will be $4.20. The net impact of these two is an increase of $8.98 per month. The FY 2026 combined Proposed Operating and Capital Budget for the Water and Wastewater Departments is $776.8 million and includes funding from the Water Fund, Wastewater Fund and Capital Improvement Program. The FY 2026 budget reflects Corpus Christi Water's (CCW) focus on maintaining its commitment to provide the highest level of service while minimizing inflationary impacts. CCW has requested 16 new positions in the proposed budget and 1 position transferring from Water Fund to Wastewater Fund. Water FY 2026 Proposed Capital Budget includes $248 million for the maintenance and expansion of our water sources and supply which includes the construction of the design-build funding for the new drought-resistant Inner Harbor Desalination Plant, $54 million for significant improvements to the O.N. Stevens Water Treatment Plant to increase treatment capacity and improve operational resiliency. Also included is $88 million in infrastructure and facility improvement programs that will continue to focus on pipe replacement and upgrades to existing assets. Wastewater FY 2026 Proposed Capital Budget includes $38 million for continued expansion and improvements to the six wastewater treatment plants, $16 million for the repairs and improvements at over 100 lift stations and operation facilities and $55 million for collection system infrastructure. LIST OF SUPPORTING DOCUMENTS: PowerPoint— not attached (Water and Wastewater) FY 2026 Proposed Operating Budget FY 2026 Proposed Capital Budget Schedule of Proposed Water and Wastewater Rate Changes City ofCorpus Supplemental a r Current Proposed Revenue Fee Description Fee Fee -1.changed N.changed 8 Water Department Administered by: CCW Collected by: CCW Monthly Minimum Charge-Inside City Limits- Residential&Commercial,Temporary 518"&314"meter $15.83 $17.25 8% 911n 1"meter $39.58 $43.13 8% 9% 1-1/2"meter $79.15 $86.25 8o/n 9% 2"meter $126.64 $138.00 8% 9% 3"meter $237.45 $258.75 8% 9%n 4"meter $395.75 $431.25 8W. 9% 6"meter $870.65 $948.75 8%n 9% 8"meter $1,424,70 $1,55250 8% 9% 10"meter or larger $2,374.50 $2,587.50 8% 9% Monthly Minimum Charge-Outside City Limits 513"&3/4"meter $15.83 $15.95 1% lo/o 1"meter $39.58 $39.87 1%n 1%n 1-1/2"meter $79.15 $79.73 1% 1% 2"meter $126.64 $127.56 1% 1% 3"meter $237.45 $239.17 1% 1%n 4"meter $395.75 $398.61 1% 1% 6"meter $870.65 $876.93 01% 01% 8"meter $1,424,70 $1,434.98 1% 1%n 10"meter or larger $2,374,50 $2,391.63 1% 1% Large Volume Charge-Inside City Limits First 10,000,000 $35,092.90 $45,500.00 23% 30%0 Large Volume Charge-Outside City Limits First 10,008,00❑ $35,092.90 $45,500.00 23% 30%a Raw Water-Rate Payer(Retail,Treated) $0.95 $1.18 19% 24R% Raw Water-Non-Rate Payer(Raw Only) $1.17 $1.36 14% 161% Raw Water-Public Agency(Wholesale) $1.14 $1.33 14% 17o/n All Raw Water charges are per 1,000 gallons Includes the raw water supply development fee of$0.05 per 1000 gallons Monthly Volume Charges-Inside City Limit- Residential(per 1,000 gallons) 0-2000 gallons N/A $0.75 New New 2001-6000 gallons $3.94 $4,06 3% 3T. 6001-15,000 gallons $5.91 $7.11 17% 20% 15,001-25,000 $7.88 $11.17 29% 42% 25,001+gallons $11.82 $16.24 27% 37% Monthly Volume Charges-Inside City Limit- Commercial(per 1,000 gallons) 0-2000 gallons N/A $0.75 New New 2001+gallons $3.94 $4.06 3% 3T. Monthly Volume Charges-Inside City Limit-Large Volume(per 1,000 gallons) 10,000,001+gallons $3.94 $4.34 90A 10-A Monthly Volume Charges-All Irrigation(per 1,000 gallons) All gallons $7.88 $11,17 29% 420A Monthly Volume Charges-Outside City Limit- Residential(per 1,000 gallons) 0-2000 gallons N/A $0.75 New New 2001-6000 gallons $3.94 $4.06 3% 3% 6001-15,000 gallons $5.91 $7.11 17% 200A 15,001-25,000 $7.88 $11A7 29% 42-A 25,001+gallons $11..82 $16..24 27% 370k 1 City of Corpus Christ! FY 26 Fee Changes Supplemental - i Current Proposed Revenue Fee Description Fee Fee %changed %changed Monthly Volume Charges-Outside City Limit- Commercial(per 1,000 gallons) 0-2000 gallons N/A $0.75 New, New 2001+gallons $3.94 $4.06 3% 3"!m Monthly Volume Charges-Outside City Limit-Large Volume(per 1,000 gallons) 10,000,001+gallons $3.94 $4.34 9% 10% Monthly Volume Charges-Outside City Limit-Public Agency(per 1,000 gallons) Water metered at site of treatment(Wholesale):San Patricio Municipal Water District(SPMWD}&South Texas $2.09 $1.80 -16% -14% Water Authority(STWA) Water delivered through city water lines(Network): Port A& $2 49 $2.55 2% 29. Violet 2 City of Corpus Christi FY t2026 Fee Changes Supplemental Information Current Proposed Revenue F—Wl Description Fee Fee %changed %charigad 9 Wastewater Administered by: CCw Collected by: CCw Monthly Minimum Charges-Inside City Limit Residential $35.11 $38.29 9% 9"f. Commercial $46.10 $38.29 -17% -17% Monthly Minimum Charges-Outside City Limit Residential $30.05 $33.12 10% 10% Commercial f Multi-family $39.45 $33.12 -16% -16% Monthly Volume Chargem-Inside City Limit Residential 58.07 $8.41 4% 4% Commercial s8.07 $8.41 4% 4c% Monthly Volume Charges-Outside City Limit Residential 58.07 $8.41 4% 4% Commercial f Multi-family 58.07 $8.41 4% 4% 2