Sugar Land officials voted to amend the fiscal year 2025 budget to reflect lower assessed property values and adopted the fiscal year 2026 budget, which includes projected incremental revenues of about $2.26 million.

The amendment to the FY25 budget and adoption of the FY26 budget were approved by voice vote after staff presented updated assessed values, estimated tax revenues and a brief summary of proposed FY26 expenditures. Kimberly, director of parks and recreation, also briefed the body on the city's upcoming events and explained that those events will be funded from the special events fund rather than the tourism fund for FY26.

City staff said the FY25 amendment responds to a net decline in certified assessed value and changes in exemptions. The presentation noted an assessed-value decrease of roughly $5,300,000 on the certified roll and a set of additional homestead and over-65 exemptions added to the roll. "We did see the assessed value come down by about 5,300,000.0," a finance staff member said during the presentation. The staff member also said the city adopted a tax rate of 35.321 cents while related jurisdictions adopted slightly lower rates, and that the combination of lower values and lower tax rates produced roughly a $69,000 decrease in total incremental tax revenue for the participating entities.

Staff reported that, combining revenues and expenditures, the FY25 ending fund balance was anticipated to be negative under the original budget; to avoid a deficit, the plan is to reduce expenditures—specifically a planned assignment to the Sugar Land Development Corporation—so the fund closes at or above net zero. "To avoid that, what we're planning for for fiscal year end is to reduce on the expenditure side, specifically the SLDC assignment," the staff member said.

For FY26 the staff presentation projected a substantial rebound in assessed values after a year of commercial protests. The presenter said the city sees roughly $74,000,000 in incremental assessed value between tax years 2024 and 2025 (restoring values toward earlier levels) and, using assumed tax rates for the city, LID and Fort Bend County, estimated about $2,260,000 in incremental revenue for the full fiscal year. "So for fiscal year, '26, the same tax rate, Senior Sugar Land's proposed tax rate is 36.321. The LID, we're assuming that they're going to keep their 11.8¢ there and Fort Bend County of 42.2¢. Combining those incremental tax revenues ... we're looking at roughly 2,260,000.00 in incremental values for the entire fiscal year," the finance presenter said.

Staff noted FY26 proposed expenditures for the fund are modest—just under $19,000—covering property and liability insurance, the annual audit and approximately $16,000 in administrative cost allocation for city staff services. The presenter said that items the group usually funds—about $350,000 for certain Town Square POA events and roughly $1.5 million typically assigned to sales tax corporations—are not included in this specific fund's FY26 budget. Instead, the city will cover the usual city-sponsored events from a separate special events fund.

Kimberly, director of parks and recreation, summarized events supported historically by the tourism-related fund and explained the funding change for FY26. She said the tourism fund (TIRS) had been supporting Town Square events at a level of $70,000. "Since 2010, the, TIRS 1 has been supporting some of Sugar Land's events, the ones that we've put on, right here at the plaza," Kimberly said. She described the December tree-lighting (which drew an estimated 8,000–10,000 attendees) and the Fall Fest (typically about 3,000 attendees) and noted that, for FY26, those events will be paid from the special events fund and by sponsorships rather than TIRS tourism funding.

The body voted by voice to (1) approve the minutes of the June 8, 2025 meeting, (2) amend the FY25 budget to the projection presented and (3) approve the FY26 budget as proposed. Each motion passed on unanimous voice votes recorded as "Aye"; individual roll-call votes were not recorded in the transcript.

Meeting business concluded with a motion to adjourn.

Ending: The adopted FY26 budget shows projected additional revenue and retains a small proposed expenditure line for administration; staff said they will reassess actual collections through the end of the calendar year and return at a later meeting if additional amendments are needed.