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The city council in Corpus Christi, Texas, passed a resolution establishing its intent to use proceeds from the future issuance of up to $410 million of water revenue bonds to reimburse cash-on-hand expenditures for water supply projects that will treat brackish water and tap groundwater.<\/p>\n
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In an effort to address a looming water crisis, officials in Corpus Christi, Texas, took steps late Tuesday to boost supply with projects that would eventually be financed with up to $410 million of revenue bonds.\u00a0<\/p>\n
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The city council passed a resolution establishing its intent to use proceeds from water revenue bonds that might not be sold until 2027 to reimburse cash-on-hand expenditures for projects that will treat brackish water and tap groundwater.<\/p>\n
Corpus Christi Water, the primary water supplier for a seven-county region, is experiencing stage three drought conditions<\/a> that triggered water-use restrictions. A Level 1 water emergency, indicating the system is 180 days from supply not meeting demand, is projected for November. A water supply dashboard on the city’s website<\/a> shows two western reservoirs being depleted during the first half of 2027.<\/p>\n The city was hit in December with downgrades and negative outlooks<\/a> by Moody’s Ratings, which pointed to accelerated water depletion risk and a narrow timeframe to implement solutions before supply fails to meet demand.<\/p>\n In October, Fitch Ratings and S&P Global Ratings revised their outlooks on Corpus Christi’s utility system revenue bonds to negative<\/a> from stable, signaling concerns over the city’s ability to boost its water supply.\u00a0<\/p>\n A $175 million project approved by the city council for a containerized brackish water treatment plant project is expected to deliver 3.91 million gallons daily of treated water in 11 months, rising to 21.3 million gallons a day in two years.\u00a0<\/p>\n The council also approved $38 million for groundwater rights and $197 million in contracts for the Evangeline Groundwater Project, which faces a potential legal challenge, subject to a hearing on the standing of entities opposing permits for the project.\u00a0<\/p>\n A few council members raised concerns over escalating costs in the city’s hunt for water.\u00a0<\/p>\n “This is a lot of money that we’re spending, and I’m really fearful that we’re going to bankrupt the city,” Council Member Carolyn Vaughn said. “What’s going to happen when it rains? And we will get rain eventually, we always do, and it fills our reservoir. Who’s going to pay for all these alternative supplies?”\u00a0<\/p>\n Nick Winkelmann, Corpus Christi Water’s chief operating officer, said the city will “end up with a diversified water supply that this community can count on going forward.”<\/p>\n An inner harbor seawater desalination project is coming back to the council for consideration next week, according to the agenda posted for the Feb. 24 meeting.\u00a0<\/p>\n