Sugar Land council sets proposed 2025 tax rate, schedules Sept. 9 public hearing after debate and public comment

SUGAR LAND, Texas — The Sugar Land City Council voted 6-1 on Aug. 19 to set a proposed 2025 tax rate of 0.36321 per $100 of assessed value and to hold a public hearing on the proposal at 5:30 p.m. on Sept. 9 at Sugar Land City Hall.

The vote followed nearly two hours of public comment and discussion about the city’s proposed budget, the timing of a one-cent increase tied to a voter-approved $350 million general obligation (G.O.) bond program, and concerns about rising household costs.

Shailai Stedman, the city’s director of budget, told the council that property tax provides a predictable revenue stream and explained the required state truth-in-taxation benchmarks. "Property tax is critical and stable funding source for the city, making up about one-third of the general fund revenues," Stedman said, and she outlined the formula-produced benchmarks including the "no new revenue" and "voter approval" rates used in the city’s calculations.

City Manager (name not specified in the record) said the proposed one-cent increase is the first step of a planned five-year approach to fund the G.O. bond package approved by voters and to avoid larger spikes in future years. "The penny is tied to the geo bond delivery," the City Manager said, adding that a portion of the proposed increase also helps cover maintenance-and-operations costs this year.

Several residents urged the council not to raise the tax rate. Anna Zafaras, a Sugar Land resident, told the council, "I oppose anything that has to do with raising our city taxes, without any reason at this point." Jessie Matthew, another resident, said, "I am opposed to the tax rate increase," and raised concerns about what she called high administrative salaries. Andy Pinto, who identified himself as a finance professional, described the budget as "like peeling an onion with tears flowing and the distinct smell of fiscal irresponsibility, financial mismanagement, and financial gimmicks." The remarks were part of a larger public-comment segment in which multiple speakers asked council members to reduce spending or delay tax increases.

Not all public comment opposed the increase. Joe Zimmerman, a former Sugar Land mayor who spoke in favor, reminded the council that the bond package was voter-approved: "The tax increase is actually for the capital improvement, and it was voted on by the people." Zimmerman urged the council to approve the tax adjustment to deliver projects approved by voters.

Council debate centered on two competing approaches: Council Member Sanjay Single proposed an amendment to set the proposed rate to 0.35821 (a half-cent increase directed to debt service only), arguing the council could find $1.4 million in operational savings to avoid increasing the maintenance-and-operations portion of the rate. After a roll-call vote, the amendment failed 6-1 (Single voting yes; VandeHeuer, Jacobson, Boettcher, Whatley, Miller and Mayor McCutcheon voting no).

The main motion — to set a proposed rate of 0.36321 and to set a public hearing for Sept. 9 — was made by Council Member Jacobson, seconded by Council Member Whatley and passed 6-1 (Council Member Single cast the lone dissent). Stedman noted that because the proposed rate is below the formula-derived "no new revenue" rate, the public notice will state the city is not proposing to increase 2025 property tax revenue under the state’s truth-in-taxation language; nonetheless, the council scheduled the hearing and will vote to adopt a final rate after the fiscal 2026 budget vote on Sept. 16.

Votes at a glance

- Consent agenda (Item 6): Motion by Whatley, second by Jacobson. Passed 7-0. - 7a — Contract with Branch Construction Group LLC for Lift Station 48 rehabilitation (CIP CW 2301): Award authorized in the amount of $6,305,160. Motion passed 7-0. Staff said the project includes a new wet well, a 16-inch force main and related electrical/SCADA improvements; funding comes from the utility fund balance and planned revenue bonds. - 7b — Professional services contract with PGAL Inc. for design of renovated police/courts building and new police headquarters (CIP CMU 2507): Contract for $3,848,000 approved. Motion passed 7-0. Staff described schematic-through-construction-administration services and said design/permitting will take about 12–14 months. - 7c — Purchase of a backup generator for the West Wastewater Treatment Plant (Cummins Southern Plains LLC) for $353,248.08 through a Sourcewell cooperative contract; budget amendment of $194,400 authorized to reflect grant revenue. Motion passed 7-0. Staff said the project uses a Texas Hazard Mitigation grant administered through the state and the Brazos River Authority. - 8a — Resolution No. 2540 authorizing early redemption of three bond maturities totaling $3,780,000 (payable Feb. 15, 2026): Approved 7-0. Finance staff said the early call will save an estimated $298,000 in interest. - 9a — Record vote to set proposed 2025 tax rate at 0.36321 and set public hearing on Sept. 9, 2025: Passed 6-1 (Yes: VandeHeuer, Jacobson, Boettcher, Whatley, Miller, Mayor McCutcheon; No: Single).

What happens next

The council will publish the statutorily required public notice for the proposed tax rate. A public hearing is scheduled for 5:30 p.m. on Sept. 9 at City Hall; the council plans to adopt the budget and vote to set the final tax rate on Sept. 16.