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Disaster Recovery Fee
Major storms can leave behind massive amounts of debris that must be cleared quickly to keep neighborhoods safe, restore access for emergency responders, and help the community recover. Cleanup is expensive, and outside reimbursement is never guaranteed or immediate.
To prepare for future disasters, the City is adding a $1 per month Disaster Recovery Fee to all residential utility bills beginning January 1, 2026. This dedicated fee creates a reserve fund the City can use right away after a storm, ensuring a faster, safer recovery without cutting other essential services.
- What is the Disaster Recovery Fee?
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The Disaster Recovery Fee is a $1 per month charge added to each utility bill beginning January 1, 2026. This fee creates a dedicated reserve fund the City can use to cover the costs of storm debris cleanup after major disasters.
- Why is the City adding this new fee?
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Storm cleanup is costly, and reimbursement isn’t guaranteed. For example, Hurricane Beryl cost the City nearly $6 million upfront. FEMA agreed to cover only 75% of that amount, and reimbursement can take up to two years to arrive. While the State unexpectedly stepped in to cover the remaining 25% this time, that is not something we can rely on in the future. On top of that, FEMA is under increasing financial pressure, and future reimbursements may be delayed—or may not come at all. This $1 monthly fee ensures the City has reliable, dedicated funds available immediately after a disaster, without depending on uncertain outside funding.
- How was the Disaster Recovery Fee approved?
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The Disaster Recovery Fee was added to the City’s FY2026 budget through Fee Ordinance 2382. City Council held a first reading and public hearing on September 2, 2025. A second reading was held on September 16, 2025, when City Council approved and adopted the fee.
- How much will this cost me?
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Each household will pay just $1 per month—or $12 per year.
- How will this money be used?
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All funds collected will go directly into a dedicated Disaster Recovery Fund. The money can only be used for emergency debris cleanup after major storms.
- Doesn’t FEMA cover disaster cleanup costs?
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Not always. First, not every disaster qualifies for FEMA reimbursement. Even when an event does qualify, FEMA only reimburses part of the cost, and the City must pay the full amount upfront. In the past, FEMA has reimbursed up to 90% of cleanup expenses, but that percentage has declined over time. After Hurricane Beryl, for example, FEMA covered just 75%, and the Texas Division of Emergency Management (TDEM) stepped in to cover the remaining 25%—something we cannot count on happening again. On top of that Additionally, FEMA reimbursements can take years to arrive, and the agency is under increasing financial pressure, making future funding less reliable. That’s why the City cannot depend on FEMA to fully or quickly cover cleanup costs.
- Will this fee affect my regular trash service?
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No. Your trash, recycling, and everyday services are not changing. The fee is only for emergency debris cleanup after disasters.
- Why not just pay for cleanup when a disaster happens?
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Cleanup must happen immediately for safety and health reasons. Waiting for federal or state reimbursement—or finding money elsewhere—delays the response and creates financial strain. Having this reserve means the City can act fast without cutting other services.
- What happens if there aren’t any storms for years?
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The funds will remain in the reserve and continue to build. They won’t expire or be used for anything else. That way, we’ll always be ready for the next major event, whether it happens next year or five years from now.
- Will the fee ever go up?
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Right now, the fee is set at $1 per month. The City would only consider changes if future cleanup costs significantly increased, and any changes would go through the City Council approval process.
- Can residents opt out of this fee?
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No. Disaster debris cleanup is a citywide service that benefits every resident, not just individual households. After a major storm, debris removal must happen across all neighborhoods to keep roads open, restore access for emergency responders, and protect public health. Because the entire community relies on this service, the cost is shared equally among all residents through the $1 monthly fee. This way, everyone contributes a small amount to ensure the City can provide a fast, coordinated recovery when it’s needed most.
- How does this benefit me directly?
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Your $1 per month helps make sure that when a major storm hits, debris is cleared from your neighborhood quickly and safely. Roads stay open for emergency vehicles, schools and businesses can reopen sooner, and your community is restored faster. Instead of waiting months for outside funding or facing delays while the City finds money, you can count on a reliable, coordinated cleanup that gets your community back to normal as quickly as possible.
- Why doesn’t our solid waste fee cover Emergency Debris removal?
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Your solid waste fee only covers the day-to-day services outlined in the City’s contract with Republic Services—things like weekly trash, recycling, and yard waste collection. Large-scale disaster cleanup is a fully separate service and process. After a major storm, FEMA requires use of specialized contractors for debris collection and monitoring to ensure cleanup is done safely and correctly, and so that any eligible costs can qualify for reimbursement. These debris contracts are separate from the regular solid waste program, which is why a dedicated fee and reserve are needed.
- Is this fee permanent or will it end after a certain amount of money is collected?
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This fee does not have an end date because disasters are unpredictable in both timing and severity. In recent years, storms have also grown larger and more intense, making recovery costs harder to forecast. On top of that, due to federal funding pressures, FEMA reimbursements are not guaranteed. The $1 per month fee will only cover part of cleanup expenses, but by steadily building a reserve, the City can ensure funds are available whenever the next disaster strikes—whether that’s next season or years from now.
- Are businesses paying into this fund?
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No. The Disaster Recovery Fee only covers cleanup services provided to Sugar Land residents. Businesses are responsible for managing their own debris removal, so they are not required to pay this fee.