Page 13 - Budget FY 2022-2023 - Update

Adopted Budget 2023 City of McAllen, Texas

JAVIER VILLALOBOS, Mayor
JOAQUIN “J.J.” ZAMORA, Mayor Pro Tem & Commissioner District 2
TONY AGUIRRE, JR., Commissioner District 1
J. OMAR QUINTANILLA, Commissioner District 3
RODOLFO “RUDY” CASTILLO, Commissioner District 4
VICTOR "SEBY" HADDAD, Commissioner District 5
PEPE CABEZA DE VACA, Commissioner District 6
ROEL "ROY" RODRIGUEZ, P.E., City Manager

October 1, 2022

Honorable Mayor
Members of the City Commission
Public Utility Board of Trustees
Citizens of McAllen
City of McAllen
McAllen, Texas 78505
We are pleased to present the Official Budget for the City of McAllen for the fiscal year ending September 30, 2023,
which was adopted on September 26, 2022. Copies are available for inspection at the City Secretary’s Office, the
McAllen Public Library, the Hidalgo County Clerk’s Office as well as the City’s website, www.mcallen.net.
The Fiscal Year 2023 Adopted Consolidated Annual Budget, comprised of all funds excluding transfers, totals $641
million� The General Fund is $132 million in total operations expense, a 4�9% increase over the prior year operating
expenses� The budget is balanced and reduces the City’s property tax rate by 1�57 cents per $100 valuation� This
is the first property tax rate decrease since FY 2020.
GUIDELINES FOR DEVELOPING THIS YEAR’S BUDGET

The budget has been developed consistent with the City’s Mission Statement: “Dedicated to consistently providing
high quality services and quality of life to all who live, work and visit the City of McAllen�” The budget complements the
Strategic Business Plan and will be implemented by City staff according to our Core Values – Integrity, Accountability
and Commitment�

The budget process and resulting official document reflect the “Recommended Budget Practices” of the National
Advisory Council on State and Local Government Budgeting (NACSLGB), which include a written Strategic Plan as a
foundation, with linkages to departmental goals as an integral part of the budget process� It also calls for providing
performance measurements to enable evaluation of the extent to which the City services perform�

LOCATION AND ECONOMY
The City’s history and location have shaped its unique economy� Incorporated in 1911 and the largest city 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, 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
2020 census, McAllen’s estimated population was 142,210�

Trade with Mexico, including the impact of the Renegotiated North American Free Trade Agreement (NAFTA) now
known as the new United States-Mexico-Canada Agreement (USMCA), has also played a major role in increasing
economic activity, including employment for the City as well as the State of Texas� During 2021, Texas exported
$122�7 billion to Mexico and imported $108�4 billion from Mexico making it our number one trading partner� As
USMCA continues to mature, the City of McAllen’s international toll bridges connecting Hidalgo, Texas with Reynosa,
Tamaulipas as well as Anzalduas connecting Mission, Texas to Reynosa, Tamaulipas will continue to facilitate trade
between Mexico and the United States�

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