City Council Receives FY 2026 Budget Forecast

CORPUS CHRISTI, TX – At yesterday’s regularly scheduled City Council meeting, Mayor Paulette Guajardo and the City Council received a preliminary General Fund Forecast for FY 2026 that projects an approximate $7 million gap in revenues to expenditures for the upcoming fiscal year, which begins October 1, 2025. This initial forecast is a best practice and a key step in beginning the budget process, setting service delivery expectations for the coming fiscal year.

The gap is a result of a combination of less property tax revenue, a result of providing substantial property tax relief to families and seniors, and higher costs for delivering current services due to inflation and mandated operational and contractual requirements. 

Additionally, city staff continue to closely monitor the potential impact of legislative changes at the State level and policy changes at the Federal level.

The city is considering three options to close the gap: increasing revenues, cutting expenses, or a combination of both.

In February, city departments initiated a critical operational analysis to identify efficiencies and savings opportunities. The budget process will proceed with a City Council budget goal-setting workshop in May, followed by discussions with individual city departments, community input sessions, and Council workshops, culminating in adopting the FY 2026 budget in September. This multi-faceted approach underscores the city's commitment to responsible fiscal management as it navigates potential financial challenges.

For more information, media representatives can contact Robert Gonzales, Public Information Manager, at 361-826-3233 or robertg8@cctexas.com.