Budget Finance

City Council adopts $353 million budget for FY24

Sugar Land City Council adopted a $353 million budget for fiscal year 2024 and a tax rate of 35 cents after a series of workshops and public hearings.  The fiscal year begins Oct. 1. 

The adopted budget includes $291 million for operations and $62 million for capital projects. The adopted budget and capital improvement program follows guidelines in the City Council-adopted Financial Management Policy Statements and focuses on strategies and priorities identified by residents.

“The budget provides for future success, ensures continued financial and operational stability and is structurally balanced and sustainable into the future,” said City Manager Michael W. Goodrum. “There is tremendous alignment between what City Council identified as their highest priorities for the community and what city staff identified as areas crucial for the organization to focus on.”

The approved budget further establishes the city’s leadership in conservative, resilient and responsible stewardship through strategic investment in priority areas. The goal is to balance investment in both operations and capital funding to increase the city’s resiliency in fiscal year 2024 and into the future. 

Since the budget was filed on July 18, changes have been made to reflect certified property tax rolls from the county’s Central Appraisal District, as well as the verification of the required Truth in Taxation calculations. 

The budget focuses on the following strategic outcomes identified by City Council:

  1. Finance: strong and viable
  2. Community: safe and secure
  3. Economy: thriving and vibrant
  4. Culture: dynamic and fun
  5. People: welcoming and engaged
  6. Infrastructure: strong and resilient
  7. Transportation: connected and convenient
  8. Government: respected and influential

The city continues to be recognized as a leader in financial stewardship, with strategies specifically tailored to the community and designed to maximize both the conservative nature of the city’s finances and to offset the residential tax burden. With increasing residential values, the city raised the homestead exemption to 15 percent for 2023, partially offsetting a small tax rate increase of $0.0035 that results in a total rate of 35 cents. The tax rate increase funds projects approved by voters in a 2019 GO bond election to address community priorities such as drainage and mobility. Sugar Land has one of the lowest residential tax burdens per capita in comparison to peer cities, in addition to the fact that Sugar Land’s tax rate represents only a small percentage of the total average residential tax burden. 

The focus of the budget is an investment in priorities and services that provide high value to the Sugar Land community today and into the future, including public safety, redevelopment, data-based decision making and a championship workforce. 

The capital improvement program totals $289 million for 2024-2028. It includes $62 million in the fiscal year 2024 budget, including two 2019 GO bond projects — Emergency Operations Center/Public Safety Dispatch and Public Safety Facilities Rehabilitation. It also includes strategic funding for key projects from the 2019 GO bonds – some due to increases in construction costs, and some to more aggressively fund priorities of the city such as public safety and mobility.

The adopted utility rates for 2024 will result in an increase to a residential bill of approximately $3 per month for residential customers.  The current rate for residential solid waste services is $19.85 per month and will increase 99 cents per month to $20.84 per month beginning in January 2024.    

For more information, visit www.sugarlandtx.gov/budget

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