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in Hidalgo County, it is located at the intersection of U. S. Highway 83 and State Highway 336—
approximately 230 miles south of San Antonio, 150 miles northeast of Monterrey, Nuevo Leon, Mexico,
a city with a population of over 4.5 million including the surrounding suburbs, and just 7 miles north of
Reynosa, Tamaulipas, Mexico. Within a 150-mile radius of McAllen, its trade area represents almost 10
million people. According to the 2010 census, McAllen’s estimated population was 129,877. Using the
latest census number as a new base, it is estimated that as of September 30, 2019 and 2020, the population
has grown to 149,189 and 151,352 respectively. The projected population for September 2021 is 153,546.

As an indication of economic activity, Sales Tax increase in Fiscal Year 2019 after a steady increase in the
previous year. The Sales Tax revenue reflects a decline after a statewide stay-at-home order and businesses
across several sectors were closed to combat the spread of the virus Covid-19. The Fiscal Year 2020 Sales
Tax ended with a decrease of 4.51% compared to previous year. Overall revenues to the City increased
and greatly surpassed - their previous peak which occurred in 2014-15.

Total Sales Tax - McAllen
Comparison to '14-'15 (peak)

$75,000,000
$70,000,000

$65,000,000
$60,000,000

$55,000,000
$50,000,000

$45,000,000

$40,000,000
2014-15 BASELINE 2015-16 2016-17 2017-18 2018-19 2019-20

At the MSA level, according to the Texas Workforce Commission, over the last 10 years the McAllen-
Edinburg-Mission MSA employment has grown from 282,273 in 2010 to 315,273 in 2020—a 12% increase.
At this level, the unemployment rate is 10.2%. Some of the more significant employment numbers by
industry include government, trade, transportation and utilities, education and health services; professional
and business services; and leisure and hospitality.

The City’s location allows it to take advantage of The Maquiladora “Twin Plant” Program, under which
U.S. firms locate manufacturing facilities in Mexico accompanied by warehousing facilities in McAllen’s
foreign trade zone. From 1988 through 2020 (the latest year available) on a calendar year basis, the
McAllen Economic Development Corporation has been responsible for bringing 331 new companies,
including, expansions, has created 25,706 jobs in McAllen. This effort has also resulted in 371 new
companies, including expansions, has created 93,262 new jobs in Reynosa. Overall, 227,115 jobs have
been created.

2020-2021 Budget Message ii