FY 2011 Sugar Land City Budget: How Bad Is It?

A cursory look at the state of the City of Sugar Land's budget, shows the city has the same revenue decline problem as other cities - with a decline in sales tax (5%) and interest income being the main culprits. Property valuation grew, but only because the city annexed River Park.

Sugar Land's fiscal year is Oct. 1 through Sept. 30. To balance the budget, reductions were made in these areas for fiscal year 2011:

• elimination of vacant staff positions without layoffs (11)
• no salary increases for City employees
• continuation of a hiring freeze (in place since 2008)
• reducing departmental operation expenses

New or increased fees:

• new Public Infrastructure Plan Review and Inspection Fee for new development projects
• increased water fees - average of $4.37 increase per month per homeowner to pay for the legislatively mandated 30% reduction in water pumped from underground wells (the city is building a surface water treatment plant to meet the mandate)
• increase of $.93 per month to homeowner's solid waste bills (new fee will be $17.63/month)

New and expanded services for fiscal year:

• new recreation center funded by a 1999 bond package (which will also bring in new fees to the city from those who use the recreation center)
• fire station #7 that will serve New Territory and Telfair, partly funded through an agreement with New Territory (residents in New Territory will pay a higher fire protection fee, as a result of this new fire station)
• City operated Convention and Visitors Bureau, funded from restricted hotel occupancy taxes

New capital improvement projects:

• the aforementioned water surface plant
• minor league baseball stadium, funded through the economic development sales tax
• Town Center pedestrian and bicycle safety and mobility (part of a larger bicycle and pedestrian plan for Sugar Land)

There is no change in the tax rate - $.30 per $100 value, the same tax rate we've had since 2007.

One of the things that is interesting about living in Sugar Land, as opposed to the City of Houston, is that the hue and cry over budget changes - particularly things like increased fees - is almost non-existent. We get community papers thrown in our yard (and they exist online), and we get a publication from the City called Sugar Land Today in the mail. There isn't usually any network TV coverage of our city government in action. Unless someone is a hyper vigilant watchdog, you pretty much find out about things like your water rate going up, after the fact.