Why did Sugar Land city council pass a resolution calling on the Fort Bend tax assessor-collector to calculate the city’s voter-approval tax rate at 8 percent instead of the new 3.5 percent threshold

This action was taken before the proposed budget was filed with City Council. Recognizing the economic impacts of COVID-19 on residents and businesses, the City immediately began taking budgetary actions at the start of the global health emergency and intentionally delayed major decisions on the preparation of the Fiscal Year 2021 budget to better align with the availability of data. Such actions and strategies included moving forward with City Council consideration of a resolution directing staff to calculate the voter-approval tax rate with an 8 percent limit – consistent with past practice – in response to the disaster declaration made by the Governor in March.  Ultimately, the proposed tax rate of $0.3365 was not only below the voter-approval tax rate as calculated at 8%, but is also below what the calculation would have been at 3.5%.

There will be a series of public workshops held by City Council prior to approving the budget in September. This will include opportunities for public input. Sugar Land has the second lowest tax rate in Texas for cities our size. City Council is considering less than a half cent of the 3 cents approved by voters. The approximate half cent will be used to fund voter-approved drainage projects, with an emphasis on those addressing structural flooding.


Show All Answers

1. What is the City Budget?
2. How is the budget created?
3. How can I get involved in the budget process?
4. Does the city prepare a long-term financial plan?
5. How can I invest in municipal bonds from the City of Sugar Land?
6. How do I get a sales tax permit for a new business in Sugar Land?
7. Given economic conditions related to COVID 19, what is being done to manage the budget?
8. Has COVID 19 created revenue shortfalls for Sugar Land?
9. What has been done to respond to revenue shortfalls?
10. What tax rate is necessary to fund the budget?
11. What is the impact of the tax rate being considered to my City tax bill?
12. For fiscal year 2021, Sugar Land plans to issue less than a half cent of the 3 cents voters approved in 2019 for bond projects. How does this impact the delivery of the 2019 bond projects authorized b
13. Do I have to do anything to receive the homestead exemption?
14. What drainage projects are being funded in the proposed budget?
15. What is the IWRP?
16. How do the unfunded mandate for surface water conversion and implementation of the IWRP affect my utility bill?
17. How long has it been since the City increased utility rates?
18. Over the past few years, we have seen a significant reduction of retail sales in physical stores, the closing of businesses, etc. Has this factor been built into the projected income from sales tax?
19. Why did Sugar Land city council pass a resolution calling on the Fort Bend tax assessor-collector to calculate the city’s voter-approval tax rate at 8 percent instead of the new 3.5 percent threshold
20. Sugar Land residents have a very high tax burden. Why add more?
21. Did City Council support the bond election?
22. When will the projects be completed?
23. Why is the City holding a bond election rather than paying for the projects as we go?
24. What is the bond election's impact on Sugar Land's tax rate?
25. What are property tax impacts if the bonds are approved?
26. What is Sugar Land’s current level of debt, and what revenue sources are used to make those debt payments?
27. What checks and balances are in place to make sure that bond money is only spent on the projects as authorized by the voters?
28. How do the proposed drainage bond projects interact/coordinate with drainage projects that are ongoing within the City’s various LIDs and Fort Bend County?
29. What is the impact of the tax rate being considered to my City tax bill?