Sugar Land amends tax rate increase following resident pushback

Additionally, council approved $0.358827 per $100 valuation tax rate, a 1.6% increase from last year’s $0.35321. The approval came after city staff proposed a 1-cent tax rate increase for FY 2025-26, putting the rate at $0.36321 per $100 valuation.

However, with the $1 million decrease in tax revenue from adjusting the proposed rate, city officials will have to reduce spending via budget efficiencies, with council voting on amendments in October, City Manager Michael Goodrum said.

Zooming in

The budget includes a $137.43 general fund, which allots 44% toward public safety—more than any other category—including $32.03 million to the police department and $24.98 million to the fire department, according to agenda documents.

Council also approved its $766 million capital improvement plan, or CIP, for 2026-2030. The plan lays out the city’s financing and timing for projects over a five-year period.

The plan shows the city will spend $183 million for FY 2025-26, with $57.7 million going to municipal projects and $43.15 million going to airport renovations, officials said. Additionally, the proposed plan shows FY 2027-28 has the most funding allocated over the five-year period, taking up $219.3 million of the total plan cost.

What they’re saying

Sugar Land Mayor Carol McCutcheon said while the city’s property revaluation was less than previous years, meaning the city had to “tighten their belts” in certain areas, there are certain projects that are “not optional,” including:

• Investments in public safety
• A new animal shelter
• Road and sidewalk improvements
• Drainage upgrades

“As mayor, I made a commitment to listen carefully to our residents throughout this process,” McCutcheon said. I want to thank everyone who took the time to share their thoughts, concerns and ideas with me.”

Looking ahead

The FY 2025-26 budget will begin Oct. 1 and run through Sept. 30, 2026, according to budget documents.