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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:
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.
Update on the progress the City has made on the $46 million in drainage improvements approved by voters in 2019.
City Council approved over $1 million in contracts for the third phase of Brazos River Park improvements.
On September 20th City Council approved the FY23 Annual Budget and Five Year Capital Improvement Program. They also approved a 2022 tax rate of $0.346500 per $100 taxable value.
Funding is incorporated into the budget for all FY23 capital projects. FY24-27 projects are for planning purposes only and are subject to change based on priorities, timing and funding needs as future budgets are considered by City Council each year. The five-year CIP totals $296,959,646.
City Council awarded a $727,500 contract to design phase II of a public safety training facility as approved by voters in 2019.
Sugar Land, TX – The International City/County Management Association (ICMA) recently awarded a 2021 Certification of Excellence in Performance Management to the city of Sugar Land.
Two new warehouses totaling more than 315,000 square feet will be built in the Sugar Land Business Park due to an agreement approved by the City Council with Sugar Land Industrial Properties, LLC.
The buildings will be located on 17.86 acres in the City’s master-planned industrial park, home to companies such as Schlumberger, Boise Cascade, Accredo Packaging and QuVa Pharma.
“The city of Sugar Land’s industrial sector is tremendously important to our diversified economy and primary employment base,” said Economic Development Director Elizabeth Huff. “The extremely low vacancy rate within the business park is a testament to the success of our business park – and a reflection of a critical need for new light industrial space in our market in order to continue to grow our economy.”
The developers behind the project, Johnson Development Associates, have a history of working with class “A” tenants such as Amazon, Walmart, The Home Depot, Rite Aid, Nestle Waters and Pepsi Bottling and have developed more than 22 million square feet of industrial space.
“Johnson Development Associates, Inc., part of The Johnson Group, is excited to announce our planned investment in the city of Sugar Land,” said Industrial Division Regional Director Andy Halligan. “Coupled with Sugar Land’s pro-business environment and strategic location, this development will provide a great option for companies that require new, highly functional Class-A industrial space.”
The Office of Economic Development is proactive in capitalizing on opportunities to expand, construct or relocate businesses to the city to ensure Sugar Land remains an economic powerhouse within the Houston region. These proactive efforts ensure a strong economy, support quality services for Sugar Land residents and allow the city to maintain the second lowest tax rate in the state among cities of similar size.
“Our position as a financial leader and economic powerhouse is not just about attracting new and expanding primary employment in our community but about improving the quality of life,” said Huff.
About Johnson Development Associates, Inc.
Johnson Development Associates (JDA), part of The Johnson Group, is a multi-division real estate developer of industrial, multifamily, self-storage, renewable energy and commercial properties, with a rapidly expanding national footprint. Based in Spartanburg, South Carolina, JDA’s Industrial Division has been developing distribution, e-commerce, and light manufacturing facilities since 1988. JDA has developed and managed multiple standalone sites and 25 industrial parks consisting of approximately 22 million square feet of commercial space, and has partnered with over 130 clients in the process.
About the City of Sugar Land
Known as the “Sweetest City in Texas,” Sugar Land is one of the finest cities in which to do business, live, work and visit. With some of the nation’s best master-planned communities, pristine parks and trails and world-class medical facilities, Sugar Land offers the full amenities to create your very own home sweet home. Not to mention, Sugar Land consistently ranks among the most beautiful and safest cities in the nation. Fueled by a highly educated, globally diverse and a fast-growing population, Sugar Land’s economy attracts dozens of global companies ranging from startups to Fortune 500 firms like Minute Maid and Texas Instruments. Whether it’s a piece of history, on-trend shopping or hours of family fun, Sugar Land offers something sweet for everyone. Catch a large special event at Sugar Land’s Crown Festival Park or a Skeeters baseball game at Constellation Field, which has 360 degrees of fun, including a splash pad, basketball entertainment, swimming pool, and open-air ice house and buffet. Visitors can also enjoy 100+ live entertainment acts throughout the year at the award-winning Smart Financial Centre at Sugar Land. Overall, the city’s bold, thoughtful approach to development, making life sweeter and more refined for its businesses, residents and visitors, is simply known as “The Sugar Land Way.”
