Corpus Christi advances water and wastewater rate hikes to fund alternative supplies and EPA mandates

Corpus Christi advances water and wastewater rate hikes to fund alternative supplies and EPA mandatesThe city council approved the FY2027 adjustments to support ongoing capital programs and new water supply projects, despite a surprise dissenting vote from the mayor over ratepayer impacts.

Water rates will increase by $2.48 per month for a typical residential user, with 36% of the adjustment driven by new water supply projects including groundwater and wastewater reuse.

Wastewater rates will rise by $1.87 per month, largely to cover debt service for ongoing infrastructure rehabilitation tied to a $750 million EPA consent decree.

Mayor Paulette Guajardo voted against the water rate increase, arguing the city should pursue more grant funding to offset citizen costs.

Other council members defended the increases as necessary to maintain the utility’s bond ratings and pay for previously approved capital improvement plans.

The Corpus Christi City Council has approved water and wastewater rate increases for the 2027 fiscal year, securing funding for a massive portfolio of new water supply projects and federally mandated wastewater upgrades. The adjustments passed following a tense debate, overcoming unexpected opposition from the city's mayor. Under the approved changes, a typical residential water customer will see a monthly increase of $2.48, while high-end large volume industrial users will face an additional $67,629 per month. Corpus Christi Water Chief Operating Officer Nick Winkleman told the council that 36% of the water rate adjustment is driven by new water supply projects—including the Nueces Groundwater program, brackish reverse osmosis treatment, and wastewater reuse initiatives. Another 21% covers prior approved capital improvement projects, while 22% is allocated for debt service coverage. Wastewater rates will also rise, adding $1.87 to an average residential monthly bill. Winkleman noted that the wastewater adjustment is driven entirely by capital needs, with 52% attributed to debt service coverage and 48% to prior approved capital projects. Councilman Gil Hernandez pointed out that the wastewater utility's debt is heavily tied to a $750 million EPA consent decree required to correct decades of deferred maintenance across the city's six treatment plants. The rate approvals exposed a rift on the council regarding how to finance the city's aggressive infrastructure overhaul. Mayor Paulette Guajardo cast a surprise dissenting vote against the water rates, arguing that families and businesses are already carrying a tremendous financial burden. She criticized the council for previously rejecting up to $120 million in grant opportunities, stating that the city must do more to offset costs for ratepayers before raising rates. The mayor's opposition drew sharp rebukes from several council members, who warned that failing to raise revenues to cover existing debt obligations could trigger credit rating downgrades. Councilwoman Carolyn Vaughn emphasized that the council had already authorized the capital projects driving the rate hikes. "We voted on them knowing that we were going to have to raise rates because that's the only way you can pay for them," Vaughn said. Hernandez echoed the concern over the utility's borrowing, noting that debt service now consumes roughly 36% of the water department's $200 million budget. "Our hands are tied," Hernandez said. "Once you borrow that money, you've got to pay it back. There's no choice in that matter." Despite the division, the council ultimately approved both the water and wastewater rate ordinances, keeping the city's infrastructure funding plans—and its ongoing three-year phase-in to cover legacy stormwater debt—on track for 2027.