City manager files Sugar Land’s proposed FY2026 budget and five-year CIP; workshops scheduled

Shalei Steadman, director of budget, presented the City Manager’s proposed fiscal year 2026 operating budget and the 2026–2030 capital improvement program to the Sugar Land City Council on July 15. The item was presented for receipt and filing only; no council vote was required.

Steadman said the submission fulfills the city charter requirement that a proposed budget be delivered annually and outlined priorities including public safety, development, workforce investment and data infrastructure. She said the proposed budget maintains no new FTEs in the general fund while including investments such as sending three EMTs to paramedic school annually, continued investment in a first-responder drone program, funding for operation and maintenance (O&M) of the new public safety training facility, and a proposed 3% merit pool and 3.5% market adjustment for compensation.

Steadman presented key figures: general fund revenues of $136.9 million and general fund expenditures of $140.7 million; total operating funds of $335.95 million; and a proposed total FY2026 budget of $519.84 million. The proposed capital improvement program totals projects of about $766.0 million across five years with FY2026 capital projects totaling approximately $183.9 million, including roughly $74.3 million of GO-bond projects tied to the November 5, 2024, voter-approved $350 million general obligation bond program. The utility enterprise fund projects $125.6 million in revenues and proposes a 3% water/wastewater rate increase (about $3 per month for a typical residential user), and the airport and solid-waste funds have separate proposed adjustments.

Steadman said staff identified $4.7 million in personnel savings and $2.6 million in operational efficiencies during internal reviews; she said a series of public budget workshops are scheduled in August (Thursdays, 7:30–10:30 a.m.) with final budget adoption expected in mid-September per calendar milestones she listed. Council members thanked staff and raised resident concerns about property tax burdens; Council member Singhal relayed constituent expectations that the property-tax rate not be increased and said he looked forward to working with colleagues in budget workshops.

This was a receipt-for-filing presentation; staff will return with detailed workshops, department presentations and ordinance readings according to the schedule Steadman outlined.