County and city officials both want a share of a proposed sales tax. Here's why.

With the fall election six months away, who may capture two expiring sales taxes has the potential to become as competitive as the races on the ballot.

Officials from both the city of Corpus Christi and Nueces County are seeking what would be millions of dollars in revenue from the two 1/8-cent sales taxes. Both are currently city-collected, and any changes prior to their expiration would need to go through voters.

Approved in an election about 20 years ago, a 1/8-cent sales tax supports improvements at the American Bank Center arena, and a separate 1/8-cent sales tax is earmarked for improvements to the downtown seawall.

The terms for both end within the next two years – meaning that there is opportunity for the sales taxes, if blessed by voters, to go toward other projects.

It’s estimated the existing sales taxes will bring in about $9 million this year – and if approved by voters for a 25-year term, anticipated to generate about $256 million, according to city documents.

Nueces County officials said last week that they had attempted to partner with the city on a sales tax proposition, but have not been successful so far.

Nueces County Commissioner Brent Chesney – who has been the most vocal on the court about pursuing sales tax dollars – has said a city sales tax initiative that failed last November indicated that a proposition benefitting all residents of Nueces County would fare better with voters.

The county also has needs, Chesney said, and the county represents more people.

He would prefer to partner with the city on a proposition that would coordinate efforts “and not have competing ballot initiatives on the ballot,” he told court members last week.

“But at the same time,” he said, “If they say no, they don’t want to partner, … then to me, at least, it’s a no-lose proposition for this county.”

City officials, meanwhile, have said it is too late in the process – which started shortly after last November’s election and has included public meetings and engagement sessions – to launch those discussions.

In a message to the Caller-Times, City Manager Peter Zanoni wrote that city officials “are committed to our ongoing collaboration and partnership with Nueces County,” naming among existing efforts public safety mutual aid responses, roadwork and access to public health resources.

“However, we are too far into the Type A Sales Tax renewal process to forfeit the tax to Nueces County or partner with them on alternative uses,” he wrote. “We feel it would confuse the voters at this late juncture to introduce new concepts and partnerships with Nueces County for a fall 2024 sales tax election.”

Where the tax may go

The city wants voters to reauthorize the existing sales taxes for a range of projects that would expand on their current uses.

While talks are ongoing and a proposal has not been finalized, discussion has largely centered around expanding the currently authorized uses of the existing voter-approved sales tax.

One possibility raised would be to use the revenue that currently goes solely to the arena and expand eligible projects to improve the American Bank Center as a whole – as well as potentially some of the city-owned museum facilities in the surrounding area.

Another that has surfaced often in discussion has been potentially broadening the scope of the seawall sales tax to include flood mitigation projects around the city that would foster economic development.

A refined proposal on what may go on the ballot is still pending additional public feedback and City Council input and is not anticipated to be presented until June, with a final decision in August when the election is called.

Chesney last week proposed that an arrangement like an interlocal agreement with the city, in which the city would commit a percentage of sales tax revenue to the county, would be worth considering.

However, commissioners are also “making preparations in case they tell us they’re not interested,” he said.

Chesney has said county projects – such as roadwork and beach investments –would appeal to more voters than what was proposed by the city in the fall, describing the city’s previous proposal as having “failed miserably.”

Last November, it was turned down by nearly 70% of voters.

Projects that had been proposed at that time included expanding and renovating the American Bank Center complex – meaning the convention center, arena and Selena auditorium – boosting flight options out of the Corpus Christi International Airport, and improving certain parks and certain streets identified as supporting economic development.

Although critics cited a range of reasons that the proposition failed, among them was what was described as inadequate public input as well as eligibility for using sales tax revenue as incentives for a potential public-private hotel near the convention center.

The current proposition in consideration for the fall does not include a hotel.

City Councilman Gil Hernandez – who was among the most critical of the city’s proposition last November – said he did not believe the city would face the same issues this election.

He had asked prior to the sales tax initiative being put on the November ballot that it be pulled because of negative feedback early on in the process, as well as criticism that the proposition was vague, he said.

This time around, though, Hernandez said it would be a “different scenario” for the city.

The county, though, could be in a similar position as the city has been previously “of not having a coherent plan for what they want,” he said.

Potential options ahead

In the court’s Wednesday meeting, commissioners formally requested that their legal counsel bring to officials “options on available vehicles to collect 1/8-cent sales tax.”

Although research is pending, one that may be explored is the county creating a special district, according to officials.

Details on a potential special district – including legal questions related to the processes involved, the practical impacts of two competing measures on the ballot and the effect that could be anticipated should it be formed – were not immediately clear late last week.

Mayor Paulette Guajardo said Thursday that she anticipated meeting with Nueces County Judge Connie Scott on Monday to talk about the county’s requests, adding that city officials were open to further discussion.

“The city has immense needs that exceed most of our revenue streams,” Guajardo said. “But we certainly understand that the county also has the same needs … we each have responsibilities to meet those needs.”

Scott could not immediately be reached for comment Friday morning or Thursday.

Several councilmembers said Thursday it was late in the process to discuss partnering on a sales tax initiative.

For the city’s part, voters who cast ballots last November “gave us feedback and said simplicity and clarity are best for a future sales tax venue election,” wrote Zanoni in his message to the Caller-Times.

Some councilmembers, as well as commissioners, have suggested there may be a way for the county and city to explore consolidating the municipal detention center and the county jail. Whether that would be feasible, and if so, using what financial mechanisms, hasn’t yet been in deep discussions.

Nueces County Commissioner John Marez said Friday that he did not intend to campaign against the city’s sales tax initiatives, but instead is interested in learning about options for revenue sources.

He added that part of the appeal with sales tax is that it helps to share costs for needed projects with visitors.

Community input

A series of town hall meetings has been scheduled by city officials for community feedback on its proposed sales tax reauthorizations, as well as a potential bond project package.

All are scheduled for between 6 p.m. and 7:30 p.m.:

• Monday, May 13: Ethyl Everly Senior Center, 654 Graham Rd.

• Wednesday, May 15: CCW Building, Choke Canyon Room, 2726 Holly Rd.

• Monday, May 20: Northwest Senior Center, 9725 Up River Rd.

• May 22: Del Mar College – Oso Creek campus, culinary arts building, 7002 Yorktown Blvd.

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This article originally appeared on Corpus Christi Caller Times: Competing sales tax initiatives may be on the way for 2024 election