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The City has included as part of the Proposed Operating Budget cycle a multi- year plan. It will summarize
general methods the City should follow over the long-term to maintain and increase the ability of the City
to deliver services over maintaining and increasing revenues and monitoring the cost of services.

Growth
McAllen’s rapid growth in the recent decades has been accompanied by economic prosperity, but the
speed of growth presents its own challenges. Although much has been done to provide an adequate
transportation system that continuously alleviates traffic congestion within the City as well as an adequate
drainage system, there is much to be done.

Quality of Life Issues
The City has been developing over time from a small-to-medium sized city toward a larger city status,
which has brought about an increased emphasis on quality of life issues. In 2019’s Citizen Survey, McAllen
was ranked very high by its citizens for quality of life.

Economic Development
As has been noted, the City’s economic progress over the last 10-15 years has been truly remarkable by
almost any standard, including growth in taxable values, job growth, and personal/family income.

Financing Capital Costs
On May 5, 2018, City of McAllen voters approved a bond proposition for $22 million for drainage
improvements. Over the next five years, the City of McAllen will embark on an impressive schedule to
complete 23 projects. In addition, the citizens approved another bond proposition for $3 million for
traffic control improvements. Prior to this, a significant amount of capital projects has been financed on a
pay-as-you-go basis using surpluses generated by the General Fund as well as monies funded by State and
Federal Grants.

Balancing Demands for Service vs. the Tax Rate
As the City considers all of the requests for additional facilities and services, it must view them in relation
to a balanced property tax rate—at a level that is supported by citizens and taxpayers. Texas Senate Bill 2
(S.B2) will now limit cities ability to increase property tax rates beyond 3.5% annually.

While all these issues are indeed challenges that must be addressed, they are indicative of a city on the
grow and are considered favorable.

DISTINGUISHED BUDGET AWARD

The Government Finance Officers Association of the United States and Canada (GFOA) presented a
Distinguished Budget Presentation Award to the City of McAllen, Texas for its annual budget for the fiscal
year beginning October 1, 2019. To receive this award, a governmental unit must publish a budget
document that meets program criteria as a policy document, as an operations guide, as a financial plan,
and as a communications device.

This award is valid for a period of one year only. We believe our current budget continues to conform to
program requirements, and we are submitting it to GFOA to determine its eligibility for another award.

2020-2021 Budget Message vii