The Sugar Land City Council heard from two residents opposing tax rate hikes before approving a maximum property tax rate for the coming fiscal year at its meeting Tuesday night. The city council also authorized a municipal utility district to issue a $17.45 million bond.   Maximum property tax rate set, final rate to be adopted in September As city officials work to finalize the coming fiscal year’s city budget, council members approved a maximum property tax rate of $0.33007 per $100 valuation for fiscal year 2018, which, if enacted, would be 1.412 cents higher than this year’s rate.   The vote to adopt the tax rate is scheduled for Sept. 19 when the Fiscal Year 2018 budget is approved, according to the city’s website. “That [$0.33007 per $100 valuation] is just the maximum that can be considered,” said Jennifer Brown, Sugar Land’s director of finance. If the city were to keep its current property tax rate of $0.31595 per $100 valuation, the city would be left facing a gap of nearly $803,000, according to budget documents. “Our revenue streams for the city in fiscal year 17 and what the city is projecting for fiscal year 18 aren’t as robust as they’ve been in the past,” budget officer Justin Alderete said. “The city’s currently projecting to end the year about $2.4 million lower than our original revenue assumptions.” The city’s budget office recommended setting the maximum tax rate for consideration at $0.32233 per $100 valuation, which is the tax rate necessary to fund the budget as proposed, Brown said. However, if the highest tax rate is adopted, the city will have funds to complete various rehabilitation projects around Sugar Land. City spokesman Doug Adolph listed streets, sidewalks, drainage, parks and facilities as examples of such projects. Such rehab projects have traditionally been funded by sales tax revenue, Brown said. However, city officials are projecting sales tax revenues to remain flat for the near future. “We’ve discussed in great detail for the last several months how sales tax has impacted the city,” Alderete said. “This [tax rate of $0.33007 per $100 valuation] would fully fund the budget as well as provide enhanced funding that would be dedicated for rehabilitation efforts,” she said. “That additional revenue that would be generated would basically offset the sales tax decline in the general fund.” The motion to set the maximum tax rate at $0.33007 per $100 valuation passed with a vote of 6 to 1, with council member Amy Mitchell opposing. “Right now, my focus is on trying not to increase the tax at all, but I understand if it’s necessary, we have to have the ability to increase the tax rate,” Mitchell said. “But I don’t see why we would make some maximum above what the city recommended for the budget they presented.” “I’ve learned in the businesses I’ve managed over time, it is bad policy to try to balance your budget long-term by cutting expenses,” Mayor Joe Zimmerman said. Before council members voted, two residents spoke out in favor of cutting expenditures as opposed to raising the tax rate. One of those residents, Diana Miller, told the council she believes citizens cannot afford continued increases to their property tax bills. “Homeowners and business owners paying property taxes in Sugar Land has been facing unsustainable increases in their tax burden for the past few years,” Miller said.     Municipal Utility District Bond Council members unanimously authorized Fort Bend County Municipal Utility District No. 128, or Riverstone, to issue a bond of $17.45 million. Proceeds for the proposed bond issue will be used to retire a $11.05 million bond anticipation note that matures March 2018 and to reimburse various developers for the construction and engineering of water, wastewater, and drainage systems that serve the community, according to meeting documents.