Imperial Sugar Land (TIRZ #3)

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Imperial Sugar Land (TIRZ #3) About Sugar Land • Fort Bend County • Incorporated in 1959 • Home Rule City • Council-Manager form of government – Mayor – At Large – Two At-Large Council Members – Four District Council Members Demographics City Land Area (Sq. Mi) 42.85 Other Black ETJ Land Area (Sq. Mi) 13.26 3% White 7% 44% Hispanic 1/1/18 Population Estimate 117,869 11% Foreign Born 34% Bachelors degree or higher 55% Median Household Income $104,939 Property Tax Base- 2017 $12.98 B Asian 35% Average Home Value- 2017 $379,530 How has Sugar Land Changed? During my Tenure… FY2000 FY2018 % Change Population 62,637 117,869 +88% Area in Sq. Mi. 24.4 42.85 +76% Taxable Value $4.45B $12.98B 192% Tax Rate $0.35830 $0.31762 -11% City Employees 431 804.5 87% Operating Budget ($M) $76 $207.1 173% Fire Stations 4 7 75% Park Acreage 311 2,132 586% Certified Police Officers 99 172 74% Certified Firefighters 71 124 75% Sugar Land Town Square Award winning 32 Acre Mixed Use Public-Private Partnership • 566,000 sf of class A office space • 252,000 sf of retail and restaurant • 300 room full service Marriott hotel • Sugar Land City Hall • 167 mid-rise residential condo units Sugar Land Business Park • Light Industrial Business Park • 1,000 acres • 8.2 million sf of space • Major Tenants: – Schlumberger – Tramontina – Bechtel Equipment Corp – Baker Hughes Lake Pointe Town Center • Urban-style village- 190 acres – Located at US 59 and Highway 6 • Residential/ Town Homes • Retail: 366,000 sf – Whole Foods Market • Office & Medical 1M sf – Fluor Corporation – St. Luke’s Sugar Land Hospital – MD Anderson Cancer Center – Methodist Orthopaedic • Hotels: – Hyatt Place & Courtyard Telfair • Master Planned Community • Educational – 2,018 acres – Houston Museum of • Residential Natural Science- Sugar – Single Family Land – Telfair Lofts Apartments – FBISD Career & Technical Education • Commercial Center (Fall 2019) – Costco/ Audi/ • Office/Medical – Sprouts Market – SL Physicans Center TIRZ #4 Mixed Use Planned Development District • Home to: – Smart Financial Centre – 5 Acre Public Plaza – Texas Instruments – Fluor Corporation – University of Houston at Sugar Land – The Crown Festival Park at Sugar Land Imperial Sugar Land (TIRZ #3) • Mixed Use Development – Imperial Market • Residential – Single Family, Townhomes – Homes from $420k- $1.5M • Multi Family – Imperial Lofts – Overture at Imperial • Expansion of Mayfield Park Future Business Park • Former TDCJ Central Prison Unit • 142 Acres with One Historic Building • Acquired Sept 2016 • Demolition of non-historic structures pending in FY18 Constellation Field • Completed in 2012 • Home to the Sugar Land Skeeters • Built to AAA Club Standards Smart Financial Centre at Sugar Land • One of a Kind, State of the Art Facility • 200,000 square feet • Seating from 3,000 to 6,400 • 14 Luxury Suites • Corporate Hospitality Areas • 2,500 on-site parking spaces Smart Financial Centre at Sugar Land Smart Financial Centre First Year Performance Events ProForma Actual Shows/Events Held 93 131 Paid Attendees 260,000 352,522 Additional Benefits To City Participation Rent $ 105,044 20% of Parking Fees $ 394,378 2013 Park GO Bonds • November 2013 – Park Bond Election – First GO Bond Election since 1999 – Est Impact at $50M was 5 cents on tax rate • Total Approved $31.46 million – Brazos River Park/ Festival Site $21.46M – Hike & Bike Trails $10.00M • One Proposition Failed – Community Sports Park $18.54M – Margin of 49% to 51% 2013 Park Bond Projects • Two propositions: – Brazos River Park Phase II and Festival Site – Hike & Bike Trails • Issued $20.1M of $31.46M authorized bonds • Final issuance pending City Council direction GO Bond Project Status Project Component Status Imperial Connector Trail Complete Brazos River Park – Phase I Complete Festival Site Complete Brazos River Park – Phase II Complete Ditch H Trail – Phase I On Hold Ditch H Trail – Phase II On Hold Brazos River Park – Final Phase On Hold First Colony Trails On Hold 2017 Annexation: Greatwood & New Territory Annexation: Commitments • Financial: – Revenues generated from annexed areas support cost of services (Neutral impact to current residents) • Service Delivery: – No reduction in service levels to current residents – Annexed residents receive the same levels of service as current residents Annexation: Implementation • Expenditures in FY17 & FY18 covered by ~$10M annexation funds set aside for this purpose as a result of a Strategic Partnership Agreement approved in 2007 • Includes: – 74.5 full time equivalent positions • Approx 10% increase in staffing • 41 hired in FY17 (36 public safety) to facilitate training – Capital outlays: • Vehicles & equipment • Facility expansion/build-out Financial Management Policy Statements • Initially adopted in 2002 • Reviewed & Amended 7 times since – Policies adapt as the City grows & changes – Reviewed every 2 years – Recently conducted a series of workshops to discuss key policies for FY18 update – Adopted via City Council Resolution Financial Management Policy Statements • Adopted by City Council Resolution • Includes guidance on: – Budgeting & long range financial planning – Structural balance – Corrective actions in an economic downturn – Use of one-time funding sources – Tax rate setting guidance – Fund balance requirements – Debt structure & management Strong Financial Policies • Bond ratings – Strong policies referenced by rating agencies – Not only that they exist, but they are followed • Council provides a clear roadmap to guide staff in financial matters • Staff has a Council approved reference for planning & managing the City’s finances Strategic Planning Linked to Budget & Financial Planning • Being engaged in projects in the planning stages allows finance to build in impacts to future budgets. – Capital Improvements resulting from development agreements – Debt Capacity/ Alternate Funding Sources – Operating Budget Impact • Some Resources are Restricted – Economic Development Sales Tax – Hotel Occupancy Tax Population Growth 120 110 117.9 100 90 Thousands 89.2 80 84.5 84.5 84.5 87.0 70 76.2 79.6 60 50 40 30 20 10 - FY07 FY09 FY11 FY12 FY13 FY15 FY17 FY18 Source: FY17 CAFR and FY18 Budget Assessed Values (NAV in $ Billions) $20 17.57 $18 17.03 17.29 Billions 16.18 16.61 $16 $14 12.62 12.98 12.04 $12 10.95 10.30 9.70 $10 9.50 $8 $6 $4 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Source: FY17 CAFR; FY18 Budget and FY19-23 Estimates Tax Backed Debt as % of AV 1.1% 1.0% 1.0% 1.0% 0.9% 0.8% 0.8% 0.8% 0.8% 0.8% 0.7% 0.7% 0.7% 0.7% 0.7% 0.6% 0.5% 0.4% FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Source: FY17 CAFR Tax Backed Debt per Capita $1,100 1,048 1,011 986 $1,000 957 909 892 894 $900 883 827 838 $800 $700 $600 $500 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Source: FY17 CAFR General Government Tax Revenues 90 80 Millions 70 60 50 40 30 20 10 - 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Property Tax General Sales Tax Franchise & Other Taxes Source: FY17 CAFR General Fund Balances General Fund Ending Balance vs Policy 35 28.3 28.8 28.5 29.1 30 26.8 27.7 27.9 26.7 26.2 25.1 MILLIONS 25 20 15 18.3 18.4 15.4 16.5 13.8 13.7 13.9 14.7 10 12.0 13.0 5 - 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 General Fund Balances Minimum by Policy 25% Source: FY17 CAFR Capital Improvement Program FY18 Budget: $21.5M FY18-22 Plan: $96.4M Surface Airport Water Drainage 1% Water 2% 10% Water 19% 17% Drainage Municipal 30% 15% Parks 5% WW 20% WW Municipal 29% 6% Streets Traffic Parks 5% Traffic 19% 1% Streets 3% 18% Source: FY18-22 Capital Improvement Program Source: Debt Service Requirements from FY18Budget from Debt Service Source: Requirements Millions $10 $15 $20 $25 $30 $0 $5 2018 Debt Service Debt Requirements 2019 2020 2021 2022 Issues Supported Tax 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 Future Debt Capacity Debt Future 2033 2034 2035 2036 2037 2038 2039 2040 Investment in Infrastructure Outstanding Principal at FY End 600 Millions 500 400 300 200 100 - 2011 2012 2013 2014 2015 2016 2017 Tax Backed Utility Airport Surface Water 4A 4B Taxable Source: FY17 CAFR Investment in Infrastructure • Key Projects Funded 2011-2017 – Surface Water Treatment Plant – Constellation Field – Smart Financial Centre at Sugar Land – Park GO Bond Projects – Major Drainage and Roadway Improvements • Refunding Bonds – 2017 GO Refunding of 2011 CO’s for Surface Water saved nearly $15M- translating into $600k/year in annual debt service savings Future Capital Needs • Completion of 2013 Park Bond Projects • Emergency Operations & Dispatch Center • New Animal Shelter • Fire Apparatus Replacement • Fire Modular Training Facility • County Mobility Bond Projects (City Share) • Drainage Improvements- Harvey / others • Public Safety Training Facility • Intelligent Transportation Systems • Park Master Plan Implementation Additional Information • Please visit our website for more information on the city’s finances and capital planning: www.sugarlandtx.gov .
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