About

The Sugar Land City Council convened Aug. 3 for a meeting focusing on this upcoming year’s budget and potential capital improvements, according to meeting documents.

The gist

During the meeting, the discussion focused upon the proposed fiscal year 2023-24 budget and five-year capital improvement program 2024-28, which included funds and forecasts for the city budget, according to detailed city documents.

The proposed budget for FY 2023-24 includes $288 million for operations and $65 million for capital projects. Additionally, the Five-Year Capital Improvement Program outlines a total investment of $291 million, with $65 million allocated for projects in FY 2023-24.

However, as of August, City Council members have not specified what those “capital projects” will be.

Only the first year of the capital improvement program would be funded in the annual budget, while the subsequent years are for planning purposes and are subject to change based on the available information at the time or the needs of the community, according to city officials' statements during the meeting.

The timeline

The proposed budget and capital improvement program will undergo further review through a series of workshops throughout August. Moreover, there will be a public hearing scheduled Aug. 15 where residents can provide their feedback on the proposed budget.

Another public hearing specifically addressing the proposed tax rate will take place Sept. 12. The final adoption of the budget and tax rate is slated for Sept. 19 to comply with the city charter standards, which requires the budget to be approved by Sept. 23, according to the city website.

Get involved

City Council encourages active citizen engagement in the budget review process. To address the council, residents must complete a request to speak form and submit it to the city secretary before the start of the meeting. Each speaker is limited to three minutes, with translations provided for speakers requiring a translator.

For more information about the proposed budget and supporting documentation, residents can visit the city's official website, www.sugarlandtx.gov, and access the meeting agendas.

Sugar Land city officials presented a proposed budget of $353 million for fiscal year 2023-24, which will begin Oct. 1. The new budget allocation includes $288 million for operational expenses and $65 million for various capital projects, according to a news release.

The outlook

The primary focus of the new budget is to ensure the city's continued financial and operational stability, aiming for long-term sustainability, according to a city news release. The goal is to balance investments in both operations and capital funding to enhance resiliency for FY 2023-24 and beyond, according to the release.

Sugar Land City Manager Michael Goodrum expressed his vision for the city's future.

“Our proposed budget emphasizes our pursuit of becoming trailblazers as we seek to provide city residents and businesses a life better than they can even imagine,” he said.

The impact

The proposed budget centers on the following “strategic outcomes” as prioritized and labeled by the Sugar Land City Council, according to the news release:

• Finance: strong and viable
• Community: safe and secure
• Economy: thriving and vibrant
• Culture: dynamic and fun
• People: welcoming and engaged
• Infrastructure: strong and resilient
• Transportation: connected and convenient
• Government: respected and influential

To mitigate the impact of an anticipated tax rate increase, Sugar Land raised the homestead exemption to 15% for 2023, as previously reported by Community Impact.

This exemption increase will partially counterbalance the expected tax rate rise of approximately $0.035-$0.35 per $100 valuation, necessary to implement voter-approved bond projects, according to the release.

Additionally, the proposed capital improvement program for 2024-28 amounts to $291 million with $65 million allocated for the FY 2023-24 budget. This includes funding for two 2019 bond projects: the Emergency operations center/public safety dispatch and public safety facilities rehabilitation. Furthermore, strategic funding is provided for other critical projects addressing public safety and mobility priorities, according to the release.

Additionally, the rate for residential solid waste services is $19.85 per month, and it will increase by 99 cents to $20.84 per month starting in January.

Get involved

To involve the community in the budgetary process, a series of budget workshops open to the public will be conducted throughout August at Sugar Land City Hall. Public hearings are scheduled until the end of September, where residents can provide feedback on the proposed budget and tax rate before their final approval. As per the city charter, the budget adoption must be completed by Sugar Land City Council no later than Sept. 25.

Both S&P and Fitch Ratings recently reviewed the City's credit rating for the waterworks and sewer system revenue bonds and affirmed their 'AA' rating.  The outlook for the system is stable.