Proposition B

Proposition B, a citizen-initiated proposed amendment to the City Charter concerning water rates for industrial customers during certain drought stages.

Background on the Existing “Drought Surcharge Exemption Fee”

Since 2018, participating large-volume industrial water customers have paid a City Council-approved Drought Surcharge Exemption Fee in addition to their regular water bills.

The Drought Surcharge Exemption Fee (DSEF) is a voluntary program approved by the Corpus Christi City Council and became effective on October 1, 2018, under Section 55-159.1 of the City Code.

The current fee is $0.31 per 1,000 gallons of water consumed and is projected to generate approximately $6 million in fiscal year 2026.

Participating industrial customers pay this fee year-round, even when the City is not experiencing drought conditions. Participants paying the DSEF are not subject to drought surcharges during Drought Stages 2 and 3, and are exempt from city water curtailment during Drought Stages 1, 2, and 3 if curtailment is enacted.

What is Proposition B?

Proposition B is a citizen-initiated proposed amendment to the City Charter that would require termination of the City's existing Drought Surcharge Exemption Fee program and establish new mandatory drought surcharges for large industrial water users during specified drought stages.

If Proposition B is approved:

The existing voluntary, year-round drought surcharge exemption fee program would be terminated, and the City would be required to give notice of termination within 30 days after voter approval. The termination would take effect no later than the end of the five-year notice period.
Upon termination of the existing DSEF program, qualifying large industrial water users would be subject to mandatory surcharges on water use above specified limits during Stage 2, Stage 3, and Water Emergency conditions.
These mandatory surcharges would not apply during Stage 1 or when no drought stage is declared.
Implementation of Proposition B may result in legal and regulatory challenges involving existing water service agreements and public utility regulations.

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