The tax rate proposal, which was approved by City Council at an Aug. 19 meeting, increases the total tax rate by $0.01 to $0.36321 per $100 valuation, up from last year’s $0.35321. The increase is attributed to the $350 million general obligation bond approved by voters in November 2024, according to agenda documents.
At the proposed tax rate, the average home in Sugar Land—valued at $522,316—would see a $95 annual tax increase, a 6.2% increase from last year, according to agenda documents.
Zooming in
The proposed tax rate, which is below the no-new-revenue tax rate of $0.367991 and voter approval tax rate of $0.372420, was approved 6-1, with District 2 council member Sanjay Singhal dissenting.
“The budget need not be based on what we want,” Singhal said. “It has to be based on what we can afford.”
Instead, Singhal proposed a half-penny tax rate increase, putting the rate at $0.358210. His proposal, which failed in a 1-6 vote, would cut all extra funds for maintenance and operations and only go toward the bond.
City Manager Michael Goodrum said if the city doesn’t raise the tax rate now, it could face a 2-cent increase next year.
“If we don’t see that income coming in that you’re counting on next year, that you’re not taking this year, and we see an increase in inflation, we’re in a pickle,” District 1 council member Suzanne Whatley said. “I don’t want to see anybody have to suffer a 2-cent increase in one year because we aren’t making the right decision right now.”
What they’re saying
Several residents opposed the tax rate increase, citing the amount of money allotted to the city manager’s office and calling the tax increase an “undue tax burden on residents, especially [Sugar Land's] older residents.”
“The budget is a well-packaged and prepared document,” resident Andy Pinto said. “But when you open it and read the details, it’s like peeling an onion, with tears flowing and the distant smell of fiscal irresponsibility, financial mismanagement and financial gimmicks.”
However, former Mayor Joe Zimmerman called the group opposed to the budget an “ill-informed” minority.
“Your action here tonight requires thoughtful, deliberate and bold action on your part,” he said. “The tax increase is actually for the capital improvement plan, and it was voted for by the people.”
What’s next
City Council will host a tax rate public hearing at 5:30 p.m. Sept. 9, followed by the tax rate adoption at 5:30 p.m. Sept. 16, Director of Budget ShaLae Steadman said.
Both meetings will be held at Sugar Land City Hall, located at 2700 Town Center Blvd. N.
