Budget Process
The City of Sugar Land is a leader in financial strength and stewardship. The City’s focus on resiliency and innovative constraint has enabled us to maintain our financial strengths and continue providing the high quality services that are important to our residents – even during challenging swings in the economy. Our approach in the City Manager's FY19 filed budget continues this focus – particularly in public safety, infrastructure and the modernization of important accountability tools.
The FY2019 annual budget and capital improvements program was filed on July 17, 2018. Since then, a series of budget workshops, public hearings and discussions have been held with the City Council on the proposed budget.
- Jul 24- General Capital Projects
- Aug 2- General Fund, Compensation & Benefits
- Aug 7- Follow Up Discussion
- Aug 9- Debt Service Fund, Property Taxes, Other Funds
- Aug 21- Public Hearing on Budget
- Aug 23- Enterprise Funds & CIP, Public Safety Training Facility
Filed Budget
The FY19 filed budget totaled $245.4 million, and based on the certified tax roll for 2018, can be funded with a flat tax rate of 31.762 cents, which is a 2.63% increase over the effective tax rate under the state-mandated truth-in-taxation calculations. Through the budget workshops, City Council considered several changes and requested that the following be incorporated into the final budget for adoption.
General Fund
Expenditures:
- City calendar funding: Remove -$50,000
- State of the city funding: Remove -$25,000
- Funding for suite catering: Add +$12,000
Debt Service Fund
Expenditures:
- Adjusted due to changes in Capital Projects
Capital Projects Funds
- Settlers Park Mesquite North Drainage Improvements
- Accelerate from FY20/21 design/construct to FY19/20 design/construct
- Public Safety Training Facility
- Expand phase I project and increase funding by $1.7 million in FY19
- Phase II in FY20/21 depending on available funding (PAYG)
Tax Rate to Fund Filed Budget
Based on the certified tax roll and changes to FY19 sales tax revenue, the filed budget with the amendments described above can be funded with a flat tax rate of 31.762 cents. Feedback to date indicates that there is sufficient support from the City Council to approve the FY19 budget as filed and amended above with a flat tax rate.
Other Considerations: Park Bonds
The filed budget did not include $10.26 million in funding for three park projects that remain from the 2013 voter approved GO bond election. The three projects are:
- Brazos River Park Phase II- Mid-Lake
- Ditch H Trail
- First Colony Trails
Tax Rate to Fund Park Bonds
City Council voted to publish a proposed 2018 tax rate of 32.762 cents in the Notice of Proposed 2018 Tax Rate to allow for the park bond projects to be potentially included in the final budget for adoption, depending on feedback received from the public.
Two public hearings were held on the 2018 proposed tax rate, one on August 28th and the second scheduled on September 4th. City Council can adopt a tax rate lower than the published proposed rate, but may not exceed it.
Staff needs clarification from City Council to determine if there is sufficient support to approve the budget with the park bond projects added in, along with the increase to the tax rate to support them.
Recommendation
Staff will review the changes to the filed FY19 budget and request direction from City Council on any additional changes to be included in the FY2019 budget and Five Year Capital Improvement Program for adoption on September 18, 2018. Adoption of a tax rate to fund the filed budget - with or without the addition of the park bond projects, requires approval of 60% of City Council, so staff is requesting direction in advance of the meeting to ensure the budget that is brought forward for approval meets the City Council's direction.