Page 16 - ANALYSIS.XLS

Some of the City’s more significant statistics, reflective of its economy, have been positive. Property values
have increased.

McAllen’s Share of Property Tax Bill

Hidalgo Dr. Dist #1 McAllen ISD So. Tx College So. Tx ISD City of McAllen
$0.1026 $1.1386 $0.1718 $0.0492 $0.4956

CURRENT YEAR ISSUES

This year, we are anticipating that General Fund revenues will increase by 1% over last year’s adjusted
budget. When compared to the preceding fiscal year FY 18-19, it decreased by 6.6%. Transfers-in are
budgeted with a decrease of 43.7%.

In this year’s budget, expenditures were increased by $1.9M or 1.7% over last year’s adjusted budget. This
increase in expenditures was adopted while taking into consideration the anticipated revenue increases and
maintaining a healthy fund balance. Refer to pages ix-xxiv of the Executive Summary for additional
information. *

During the budget process, several issues were raised:

Personnel-Related Issues

Employee Pay Raises
This year’s budget provides no increase to city employee’s wages/salaries. In addition to the days
designated and recognized as official City holidays, the City Commission approved a new floating holiday
for a total of five (5) floating holidays for all full-time City employees. In addition, the City employee’s
vacation leave structure was amended according to the years of service.

Living Wage Issue
In addition to the City funding skilled-job training to promote higher paying jobs, it has taken the lead in
setting an example by raising the City minimum wage rate for full-time employees to $12.0819 per hour
and for part-time employees, $10.1278.

2020-2021 Budget Message iv