Residents on Tuesday will get a glimpse of how funding is proposed to be allocated within the city of Corpus Christi’s more than $1.8 billion budget.
It launches public discussions leading up to an adoption of a budget in September, ahead of the 2024-2025 fiscal year, which begins in October.
It’s anticipated to be a tighter year, City Council members and city management have said.
A memo to the City Council shows about $9.1 million in cuts are being recommended.
“City team leads collaborated closely to identify non-essential services that could be reduced to achieve a 2.6% decrease in spending,” the memo states, which would include shrinking of either programs or positions of 15 departments.
Among the primary contributors to revenue loss are a decrease in year-over-year property tax revenue, as well as the elimination of the street user fee last year, City Manager Peter Zanoni told the Caller Times last week.
It has annually brought in about $13 million.
The drop in property tax revenue is the culmination of several factors, he said – among the contributors increases in homestead and senior homestead property exemptions approved by the City Council last year, as well as additional property exemptions granted by the Texas Legislature.
It’s also attributable, in part, to less growth in property valuations compared to last year, lower reappraisals and slowing new construction, Zanoni added, describing it late last week as a little “like a double hit on our property tax revenue.”
Overall, many Texas cities are facing similar struggles in property tax revenues, he said.
Other factors playing a role are costs associated with a slew of projects and programs coming online for the first full budget year – among those to include Bill Witt Park Aquatic Center, splashpads at Cole Park, police training academies and collective bargaining agreements, Zanoni said.
“If your revenues are flat or down, and costs are up, you have to cut spending somewhere,” he said. “That’s what we’re going to recommend Tuesday.”
As proposed, the property tax rate would remain the same, according to a PowerPoint presentation released to media Monday. It is currently about 60 cents per $100 valuation.
What’s proposed for funding priorities
The operating budget, as proposed, totals nearly $991 million dollars, paired with an additional capital budget ringing in at about $867 million, according to the presentation.
Recommended budget priorities would not reduce funding for public safety departments, and would also maintain at least the same funding allocation for street repairs and maintenance as the previous year, Zanoni said.
It’s recommended that about $10 million in the general fund go to streets, partially making up for the revenue lost when the street user fee that appeared on utilities bills was eliminated, Zanoni said.
The council unanimously made the decision last year to allow the fee to sunset in December.
Additional funding to support investment of the $19 million allocated in the proposed 2025 budget is recommended to be drawn from canceling some of the city’s other planned capital projects, according to the presentation.
It’s recommended that within the budget the city maintains performance pay for all employees, as well as bringing up to market rate adjustments for roughly 100 position titles, Zanoni told the Caller-Times last week.
“What we do know is having highly qualified employees makes our business run a lot better,” Zanoni said.
What’s proposed for cuts
Details on exactly what the cuts may look like – as well as the budget as a whole – are pending the formal presentation in the City Council’s meeting Tuesday.
However, some general concepts are outlined in the PowerPoint presentation city officials released Monday.
Among the cuts are expected to be nearly 80 positions, 55 of which are currently filled, according to the document.
The city’s workforce reduction policy calls for employees whose positions are eliminated to be given priority in hiring for a new position at the city, according to officials.
“The primary objective is to ensure that all impacted employees find placements in available positions,” the memo sent to City Council states.
That includes prioritizing the employees for interviews, help with interview and resume preparation, as well as a “matching analysis to identify available comparable positions,” the document shows.
The roughly $9 million in cuts – to include some programming – mean that the city will “be doing a little bit less,” Zanoni said.
“But what we continue to do Oct. 1 and forward, we want to do it great,” he said. “… we need to have good service, high-quality service.”
Moving forward
While the city manager assembles a proposed budget following a monthslong process, it must be approved by the City Council – and it is common that there are adjustments before it is adopted annually.
Like years immediately preceding, the council is scheduled to convene for several workshops to go over departments’ proposed budgets in groups, such as public works, animal care services, libraries and the health department, according to a city calendar.
Officials are also planning a series of community input sessions to solicit feedback from residents, using an open house format as a “chance for one-on-one conversations with the City Council, department leads and other city leaders,” according to the presentation.
All community input sessions on the proposed budget will be held between 6 and 7 p.m., according to the presentation.
Below are the dates and locations of the sessions:
Aug. 5
Brewster Street Icehouse
1724 Tancahua St.
Aug. 7
The Terrace Restaurant Bar
3741 S. Alameda St.
Aug. 8
Muelle 37
4918 Ayers St.
Aug. 14
Del Mar College, Oso Campus
7002 Yorktown Blvd.
Aug. 15
In The Game Funtrackers
9605 S. Padre Island Drive
Aug. 19
Doc’s Seafood and Steaks
13309 S. Padre Island Drive
Aug. 21
Railroad Seafood and Brewery, northwest location
Highway 624
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This article originally appeared on Corpus Christi Caller Times: The city’ of Corpus Christi’s 2025 budget will be tight. Here’s why.
Amanda Smith is a dedicated U.S. correspondent with a passion for uncovering the stories that shape the nation. With a background in political science, she provides in-depth analysis and insightful commentary on domestic affairs, ensuring readers are well-informed about the latest developments across the United States.
