Fiscal Year 2027 City Budget

At a glance

• What: The operating budget and the capital budget for Fiscal Year 2026-2027, which begins October 1, 2026.
• Where it stands: Both budgets were adopted on second reading on September 8, 2026. The operating budget passed 8-0 with the Mayor abstaining, after Hernandez won an amendment cutting the planned 3 percent cost-of-living raise to 1 percent plus a 2 percent merit program. The capital budget passed 5-3.
• Next: The new fiscal year starts October 1, 2026.

Operating budget

• August 27 workshop: Director Edmonds and Director Rodriguez presented the Capital Improvement Program and potential adjustments to the proposed budget (mandated general fund adjustments, funding source options, reduction options, the Hotel Occupancy Tax fund). Six members attended; Barrera, Cantu and Roy were absent. No votes at a workshop.
• September 1 (first reading, public hearing): Director Rodriguez presented the balanced budget and amendments to the general fund, street maintenance, residential street reconstruction, TIRZ 2, 3 and 4, Type B economic development, housing finance and information technology funds. No public comments. Scott moved, Vaughn seconded; passed 7-1 (Hernandez no; Mayor Guajardo absent).
• September 8 (second reading): Barrera moved and Roy seconded. The ordinance first failed to carry as a clean passage: 5 in favor (Barrera, Campos, Cantu, Roy, Scott), 3 opposed (Hernandez, Paxson, Vaughn), Mayor abstaining.
• Campos then moved to reconsider (seconded by Barrera, unanimous). Hernandez moved to amend: change the 3 percent COLA to a 1 percent COLA effective October 1, 2026 (or nearest pay period), plus eligibility for a 2 percent merit-based pay program using performance evaluations, effective January 1, 2027. Seconded by Campos; passed 5-3 (Barrera, Campos, Hernandez, Roy, Vaughn aye; Cantu, Paxson, Scott no; Mayor abstained).
• Budget as amended then passed 8-0 with the Mayor abstaining (Enactment 034004). City Manager Zanoni, Deputy City Manager Michael Rodriguez and Assistant HR Director Odette Cruz answered questions. No public comment on the budget items.

Capital budget

• September 1 (first reading, hearing): Director Rodriguez presented the program totals and funding sources and an economic development amendment. Barrera moved, Campos seconded; 7-1 (Hernandez no).
• September 8 (second reading): passed 5-3 (Hernandez, Paxson, Vaughn no; Mayor abstaining). Enactment 034006.

Sources

• City Council minutes, September 8, 2026: https://corpuschristi.legistar.com/View.ashx?M=M&ID=1425590&GUID=82D1FF25-1ADF-4400-B82A-6B96F833B439
• City Council minutes, September 1, 2026: https://corpuschristi.legistar.com/View.ashx?M=M&ID=1425588&GUID=31E44297-EAE4-45CB-B254-AE2962362054
• City Council Workshop minutes, August 27, 2026: https://corpuschristi.legistar.com/View.ashx?M=M&ID=1430978&GUID=A68CD38B-5E9D-4CD6-BBAB-67C72F96DA8D

Log

2026-09-08 - City Council

Operating budget adopted on second reading after reconsideration and the COLA amendment (1 percent COLA plus 2 percent merit pay); capital budget adopted 5-3.

2026-09-01 - City Council

Both budgets passed first reading after public hearings with no speakers; operating 7-1, capital 7-1.

2026-08-27 - City Council Work Session

Workshop on the Capital Improvement Program and possible adjustments to the proposed budget.