What has been done to respond to revenue shortfalls?

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 to respond to anticipated declines in various city revenues – most notably sales tax revenue, which is a major funding source for the city’s operating budget. Actions and strategies, which are in accordance with the strong financial management practices that have earned Sugar Land recognition as a financial leader across the nation and by bond rating agencies, include:

  • reducing departmental expenditures to continue line-item reductions identified in FY20;
  • managing vacancies and continuing a non-public safety hiring freeze, with the potential to eliminate vacant positions if necessary;
  • reducing and delaying major expenditures, such as infrastructure rehabilitation and fleet and high-tech equipment replacements, until there is more economic certainty; and
  • focusing on critical infrastructure projects – including implementation of the Integrated Water Resource Plan (IWRP) to further secure the city’s future water supply and a limited number of projects approved by voters in 2019 to address 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?