Sugar Land Parks Board heard a workshop presentation July 8 from Parks and Recreation leadership on a department-wide “financial sustainability strategy” intended to reduce reliance on the city’s general fund and align fees and services with who benefits.

Kimberly Terrell, director of parks and recreation, told the board the department partnered with a consultant that specializes in parks to classify every department activity into nine service categories and then assign direct and indirect costs to each. “We took every staff member, every penny in our budget, and we have assigned it in these different bucket categories,” Terrell said.

The presentation grouped services on a spectrum from “common good” — city-provided, broadly available items such as neighborhood parks — to “exclusive benefit” services that compete with private providers, such as private lessons. Terrell said the categorization creates a baseline subsidy goal for each service type so fees can be set to recover less of common-good costs and more of exclusive-benefit costs.

Why it matters: Terrell said the exercise gives staff a consistent standard for future fee proposals and program decisions and makes visible where tax dollars subsidize activities. “We really wanna make sure that we are reducing the dependency on the general fund and being really responsible stewards of the tax dollars,” she said.

Key details from the workshop:
- Approach: Staff and a parks-focused consultant classified all programs and facilities into nine service categories (for example: open access parks, community events, drop-in activities, education/enrichment, beginner classes, special events, intermediate activities, rentals, private/semi-private activities) and set subsidy goals by category. Terrell described the model as a “three-legged stool” of service categories, beneficiaries and cost of service.
- Cost accounting: The department assigned direct costs (materials tied to a service) and indirect costs (staff time, building overhead) to categories and compared those costs to revenues such as fees, rentals, sponsorships and donations.
- Strategy mix: Staff described multiple strategies beyond raising fees — for example, reducing building operating costs, increasing utilization through targeted outreach, seeking partnerships (Terrell cited the department’s partnership with Constellation Field and outside operators) and exploring missed fee opportunities for exclusive-benefit users.
- Timing: Terrell said staff expect to propose fee adjustments to City Council during the city’s budget process in August and provide a progress update to the Parks Board by January. “City council is working through budget season right now. And so we'll be making some recommendations to city council in August,” Terrell said.

Board reaction and questions: Board members pressed for specifics on early findings. Andy (Parks Board member) asked what surprised staff most; Terrell said she was surprised by both underused rentable rooms and by how costly building operations proved to be, noting that to meet subsidy targets with fees alone would require large increases that likely would reduce rentals. “If you triple the amount of money you’re charging, then nobody’s gonna rent it,” she said, describing the need for operational efficiencies (for example, smart HVAC or smart access) and increased marketing.

A resident suggested marketing tactics such as hosting showcase events and using social media influencers to raise awareness of underused spaces; Terrell and board members discussed targeted outreach and in‑house promotion as options.

Decisions and next steps: The session was a workshop; the Parks Board did not adopt any policy. Terrell said fee recommendations will be submitted to City Council in August as part of the fee ordinance and that staff will return with detailed updates in the months ahead.

Ending: The board took no formal vote on the strategy at the July 8 meeting. Terrell summarized the next steps as developing targeted recommendations and pursuing operational changes alongside any fee proposals.