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EXECUTIVE SUMMARY

The following discussion is a fund-by-fund narrative review of the principal resources estimated to be provided in
this year’s budget, the major budgeted uses of those resources and the resulting fund balance or working capital.
This information is then compared to that of last year’s adjusted budget. The more significant changes are
discussed, including the factors influencing those changes. This discussion should be read in conjunction with the
Budget Message, preceding it, as well as the financial presentations, which follow.

BUDGET AS A WHOLE

The City of McAllen’s budget for FY 2020-2021, including all funds—Governmental (General, Special Revenue,
Debt Service and Capital Projects Funds) and Proprietary (Enterprise and Internal Service Funds), anticipates
raising $425.2M in revenues and transfers in while spending $229.9M for operations, $170.4M for capital
expenditures and $21.5M for debt service, leaving an estimated combined fund balance and working capital of
$190M.

GENERAL FUND
The General Fund is used to account for resources traditionally associated with government, which are not required to be
accounted for in another fund.

Revenues and Transfers-In

General Fund revenues and transfers-in are expected to generate $115.7M, a decrease of $3.1M, 2.6% less than
last year’s amended budget. The decrease is primarily attributed to a reduction of $3.3M in the transfer-in from
the Development Corp Fund, due to the completed repayment of the 2015 General Obligation bond, and a
reduction of $406K in reimbursements; which is offset with an increase of $1.2M in property tax.

As illustrated in the following graph, five major revenue/transfer-in line items account for $104M, which is 90% of
the total.

Revenues & Transfers-In
Relative Significance
as a % of Total

10%
4%
4%
38%
4%

40%

Curent Property Tax Sales Tax Franchise Taxes - Electric Operating Transfers-In - Bridge Charges for Services Other

Executive Summary Page ix