Budget & Strategy

City Council Adopts FY24 Budget, Capital Improvement Program and Tax Rate

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 adopted budget includes $291 million for operations and $62 million for capital projects. 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. 

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 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.

The adopted documents can be found below:

City Manager files FY24 Proposed Budget and Five Year CIP

The City Manager recently submitted a proposed $353 million budget for fiscal year 2024. The proposed budget includes $288 million for operations and $65 million for capital projects.  The Five-Year Capital Improvements Program totals $291.5 million.

The proposal follows guidelines in the City Council-adopted Financial Management Policy Statements and focuses on strategies and priorities identified by residents. The budget will be reviewed with City Council through a series of workshops in August, with a public hearing on August 15, 2023.

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.
Fund
FY24 Adopted
FY23 Adopted 
$ Change
% Change
General Fund
$ 119,540,407
$ 107,434,827
$ 12,105,580
11.3%
Debt Service Funds
35,077,591
32,785,464
2,292,127
7.0%
Enterprise Funds
93,185,286
93,714,092
-528,806
-0.6%
Economic Development
19,372,522
15,908,372
3,464,150
21.8%
Other Funds
22,026,191
32,989,665
-10,963,474
-33.2%
Total Operating
289,201,997
282,832,420
6,397,522
2.3%
Capital Projects
92,682,000
106,285,646
-43,603,646
-41.0%
Total Budget
$ 351,883,997
$ 389,118,066
$ -37,237,069
-9.6%