Page 19 - Budget FY 2022-2023 - Update

Adopted Budget 2023 City of McAllen, Texas

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 2022-2023, including all funds—Governmental (General, Special Revenue, Debt
Service and Capital Projects Funds) and Proprietary (Enterprise and Internal Service Funds), anticipates raising
$575�5M in revenues and transfers in while spending $260�5M for operations, $358�5M for capital expenditures and
$22�0M for debt service, leaving an estimated combined fund balance and working capital of $213�9M�

GENERAL FUND

The General Fund is used to account for resources traditionally associated with the 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 $145�1M, a decrease by $8�05M, 5�26% less than
last year’s amended budget� The decrease is primarily attributable to a reduction of the transfer-in from the American
Rescue Plan Fund of $14�3M; which is offset by an increase of $615K in Sales Tax, an increase of $3�9M in Property
Tax, and an increase of $989K in the transfer-in from the Toll Bridge Fund�

As illustrated in the following graph, five major revenue/transfer-in line items account for $132M, which is 91% of
the total�

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

9%
9%
9%
4%
4%
4%
3%
3%
3%
3% 35%
3%
3%
35%
35%
Current Property Tax
Sales Tax
Franchise Taxes - Electric
Operating Transfers-In - Bridge
Charges for Services
Other

46%
46%
46%

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