CORPUS CHRISTI, Texas — Corpus Christi residents will see higher rates on their water and wastewater bills. On Tuesday, City Council voted to move forward on a proposed increase that would raise the average water rate by $4.78. City leaders pushed wastewater rates higher by $4.20.
City leaders said the rate adjustment is necessary to keep up with aging infrastructure and to protect the city’s credit rating. The additional funds would also cover the cost of delivering an extra 17 million gallons of water per day through the Mary Rhodes Pipeline.
Victor Quiroga, the city’s financial advisor, told council members that rate adjustments play a key role in how credit agencies view Corpus Christi’s financial management.
“You need to continue making those investments so that those programs work and you’re able to provide water for your services and then get revenue for the services,” Quiroga said.
Moody’s Investors Service recently accelerated its review of the city’s financial standing, citing concerns about low reserves, inconsistent utility rate adjustments, and long-term water supply planning. A downgrade could make borrowing money more expensive, meaning taxpayers may eventually shoulder higher costs.
District 3 Councilman Eric Cantu asked whether the Tuesday vote could directly impact the city’s rating.
Quiroga cautioned that while the vote is important, credit agencies consider the city’s long-term planning and overall financial stability.
“They’re not concerned about just one action that you do one year,” Quiroga said. “They’re concerned about how you’re planning for the long term, how you’re managing your debt, how you’re managing your system.”
Many residents, however, have voiced concerns about the financial burden.
Some say an extra five dollars a month is difficult for those on fixed incomes.
“We have to watch our pennies, we really do," one resident told KRIS 6 News. "There are far more people on a tighter budget than we are. How do you think they feel too?”
Others argue commercial and industrial users should shoulder more responsibility.
"Why are we prioritizing corporations that have the ability to dispute water rates and not prioritizing the people that live paycheck to paycheck," resident, Maggie Peacock, said.
The rate hikes for water and wastewater go into effect January 1.
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