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City of Corpus Christi considers water rate increases

It has been two years since the last time it was adjusted and city leadership said it can help make the rate fair for all customers.

CORPUS CHRISTI, Texas — The City of Corpus Christi is considering a proposed increase in water and wastewater rates.

It has been two years since the last time they were adjusted and city leadership said it can help make the rate fair for all customers.

However, some Corpus Christi City Council members oppose the rate increase and have stated that they will not support it.

City officials review potential rate changes every two years. The rate refers to the raw water charge per 1,000 gallons. While some say the proposed rates are justified for different customers, others do not want to see them increase at all.

"In this proposal, there's a recommendation to increase water rates, which I'm completely against," said Corpus Christi District 3 Council Member Roland Barrera.

Barrera said he is concerned about raising water rates for customers. He said he wants to see more about why they would need to increase. 

"We really need to clarify what it costs us to be able to provide the current water needs," Barrera said.

The City of Corpus Christi worked with a national rate modeler to develop proposed water rates based on cost of service. Costs also include infrastructure projects like water line replacement and wastewater treatment plant upgrades. 

Corpus Christi City Manager Peter Zanoni explained how the proposed water rates were determined.

"What is the cost to continue to provide the service for the next two fiscal years and then we base a rate adjustment on those costs," Zanoni said.

Inflation is also a factor in the proposed water rate increases. Zanoni said some of the city's chemical costs have doubled and equipment and labors costs also increased.

Large volume users will see a significant change to their rate. He expects pushback, but said the city did a courtesy briefing with large volume users before the City of Corpus Christi's 2023-24 Proposed Budget was presented.

"What we've seen here in Corpus Christi is that some of the customer classifications have had a price for water that wasn't equitable with other rate payers," Zanoni said.

Zanoni said the new rate structure is based on national best practices. It has the same volumetric rate for water charges for residential, commercial and large volume customers both inside and outside the city limits. He said Corpus Christi City Council will be briefed at a budget workshop later this month.

"We're looking at a rate structure, and we hope City Council considers this as well, that's fair for everybody," Zanoni said.

Zanoni said another meeting is planned next week with large volume users. Those include refinery and petrochemical companies both in and out of the city limits. That meeting will give more of an explanation on the rate structure.

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