Corpus Christi City Council discusses drought exemption fees for industry, no vote taken

By Ryan Hopper

KIII-TV Corpus Christi

January 27, 2026

City leaders spent part of Tuesday’s council meeting revisiting the city’s drought exemption fee program for industrial water users — but no vote was taken on whether to change or remove the fee.

The exemption fee was created as a conservation measure during drought conditions and applies to high-volume industrial water users. Instead of paying escalating drought rates, qualifying businesses pay an upfront fee that goes into a city-managed fund earmarked for future water projects.

Councilwoman Carolyn Vaughn, who helped bring the item back before council, said the goal was not to eliminate the fee, but to better explain how the program works — both to the public and to fellow council members.

“I don’t think we’re giving industry a break here,” Vaughn said. “I think they are putting money into this fund to use for water things later on, water solutions down the road. I don’t know how much we got in there, but it’s a good amount, so I think it’s important that the public sees that they are contributing.”

Councilwoman Kaylynn Paxton estimated the fund currently holds about $25 million, money she says could be used for long-term water infrastructure projects, including desalination.

Paxton also addressed concerns from residents who question why industrial users are allowed to pay a fixed drought fee while residential water rates continue to rise during dry conditions.

“Everybody is trying to do their part to conserve water, and so I understand the sentiment, ‘If they can do it, then why can’t I do it?’” Paxton said. “So if we were to change this, we would have to give our partners five years’ notice so they can build that into their operations plan. That puts us at this point where whether you approve it today or sunset it, you’re five years away from seeing a change.”

As of Tuesday evening, council members had only discussed the issue and had not taken formal action. The matter could return for a future vote after additional public discussion.