Budget & Strategy

City Manager's Proposed Budget and Five-Year CIP

The proposed budget and CIP for Fiscal Year 2022-2023 was filed with City Council on July 19, 2022. The proposed budget continues the legacy of leadership in conservative, resilient and responsible stewardship of the City's financial resources. This is accomplished through strategic investment in priority areas, strategies to promote financial & operational sustainability and results in a structurally balanced, sustainable budget that meets policy requirements.

The proposed budget totals $379.7 million including $280.7 million in operating budget and $99 million in capital projects. The proposed Five-Year CIP, which totals $294 million, continues the City's commitment to fulfill the 2019 GO bond election by advancing funding in FY23 for the remaining drainage and public safety projects. Due to the growth in assessed valuation, this can be accomplished without a tax rate increase.

The budget continues investments in the Integrated Water Resources Plan, and thanks to a 2 year delay in the 60% Groundwater Reduction Mandate from the Fort Bend Subsidence District, the planned utility rate increase is lower than anticipated- resulting in about $7 per month to the average residential user.

Financial Leadership

Financial leadership that is conservative and resilient provides a foundation that balances economic uncertainties and new opportunities to provide residents with exceptional value, confidence and transparency. The focus of this year’s budget is an investment in strategic priorities and services that provide high value to the Sugar Land community today and into the future.  

To stay relevant and preserve the quality of life for current and future residents, we’ve identified a vision for future success.  

  • Sugar Land is a leader in financial management, providing our taxpayers with exceptional value, confidence, and transparency. Our focus is on resiliency and adaptability, innovation, efficiency and superior bond rating. 
  • Sugar Land is a safe community that enhances the quality of life for residents and visitors. 
  • Sugar Land is focused on re-invigorating entrepreneurial spirit to keep us moving forward. We recognize that the future starts now and are committed to engaging the community to re-imagine our city. 
  • Sugar Land delivers a broad range of destination venues, facilities, and businesses that offer entertainment and activities for residents and visitors. 
  • Sugar Land builds relationships within our community through engagement efforts. 
  • Sugar Land continues to maintain and develop comprehensive, sustainable, and resilient infrastructure that adapts to a dynamic environment.  
  • Sugar Land takes a multifaceted approach by innovating mobility to connect people, places and the future through sustained investment, regional partnerships, engagement and technology.  
  • Sugar Land is respected for having strong relationships with our community and at all levels of government because we are transparent and deliver on our public commitments. 

Priorities for FY23 include investments in our championship workforce, public safety, infrastructure and continued implementation of voter-approved G.O. Bonds that address community priorities such as drainage, mobility and public safety to help us meet our community’s needs now and into the future. We must seek to stay relevant and preserve the quality of life in Sugar Land for our residents. The proposed budget provides for future success and ensures continued financial strength and resiliency through a long-range financial plan that meets all fund balance and bond coverage requirements.  

Public Safety Investment

The proposed budget includes the addition of new positions targeted to enhance public safety services. New equipment is budgeted as well as replacement of aging equipment, upgrades to technology and facility improvements across the City.  

Personnel Changes

As a service provider, the City's budget is driven by personnel costs- approximately 70% of the budget comes from personnel providing services from Public Safety to Public Works. The FY23 budget advances the last phase of the Public Safety Compensation plan. New positions support Fire/EMS, Fleet, Police, Tourism, Utilities, Grants, Engineering, Planning & Economic Development. 

Increases to benefits costs are fully funded by the City to offset employee increases, and salary structures will adjust by CPI- which do not result in across the board increases. With continued inflationary pressures, compensation will continue to be evaluated into FY23 and beyond - to ensure the City can effectively recruit, retain and fairly compensate employees.

FY23 Proposed Budget

Fund FY23 Budget FY22 Budget $ Change % Change
General Fund
$ 109,080,833
$ 102,096,890
$6,983,943
6.8%
Debt Service Funds
32,077,836
30,099,480
1,978,356
6.6%
Utility Fund
50,840,493
48,221,656
2,618,837
5.4%
Airport Fund
30,865,314
15,764,159
15,101,155
95.8%
Solid Waste Fund
8,699,287
8,764,587
-65,300
-0.7%
Economic Development
15,908,372
14,616,157
1,292,215
8.8%
Other Funds
33,231,680
20,387,812
12,843,868
63.0%
Total Operating
$ 280,703,814
$ 239,950,741
$ 40,753,074
17.0%
Capital Projects
98,947,000
59,099,965
39,847,035
67.4%
Total All Funds
$ 379,650,815
$ 299,050,706
$ 80,600,109
27.0%