Page 15 - APPROVED ANNUAL BUDGET BOOK FY 21-22

Adopted Budget 2022 City of McAllen, Texas

McAllen Tax Rate; Overall Impact on Citizens’ Ad Valorem Taxes
This year, the city maintained its property tax rate of 0�4956 per $100 of valuation� Citizens across the United States
have taken note of rapidly rising home values given the Pandemic’s increased dependence upon the home as a place
for not just raising a family, but for home-schooling and “work from home” needs as well� As such, values of single-
family homes in particular have had notable increases� However, even with increased prices locally, McAllen remains
an attractive place to reside offering a high quality of life, but with costs of living much more affordable than other
metros in Texas and the rest of the nation�
McAllen share of the total local property tax rate (2.5547$100) is only 19.40%

McAllen’s Share of Property Tax Bill

Overall revenues

In addition to the Sales Tax and Property Tax revenues, the City will continue to utilize dedicated revenue for specific
purposes� Details of these revenues are listed in the Executive Summary section on pages 17-20�

Another useful source of information for assessing the area’s economy is the McAllen Area Economic Pulse published
by the McAllen Chamber of Commerce, a copy of which has been included in the Supplemental Section of this budget,
pages 381-383 and includes data for the entire McAllen Metro of Hidalgo County, Texas� The report’s “Economic
Index” for the Metro has increased from 185�8 in 2020 to 203�4, primarily due to a continued recovery from the effects
of Covid, and includes an increase in retail sales of 20%, airline boarding’s increase of 125�6%, an increase in lodging
tax receipts of 38�3%, an increase in motor vehicle purchases of 20%, and new home purchases up by nearly 42%�

CURRENT YEAR ISSUES

This year, we are anticipating that General Fund revenues will increase by 2�8% over last year’s adjusted budget� When
compared to the preceding fiscal year FY 19-20, it increased by 7.7%. Transfers-in are budgeted to decrease 35.7%.
In this year’s budget, expenditures were increased by $4�2M or 3�5% 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 17-31 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 a 2% increase to city employee’s wages/salaries� In addition, the City Commission
approved a Compensation Study and was implemented on October 1, 2021�

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