Page 28 - Budget FY 2022-2023 - Update

City of McAllen, Texas Adopted Budget 2023

The General Obligation Street Improvement Construction Fund accounts for the G�O� Series 2014 issue in the amount
of $15M for street improvements throughout the City as well as acquisition of Right of Way� This year additional
funding was obtained from the Texas Department of Transportation in the amount of $1�1M� Seven projects will be
undertaken for street and associated drainage improvements in the amount of $2�8M� Page 230 lists the streets to
be improved�

General Obligation Sports Facility Construction Fund
The General Obligation Sports Facility Construction Fund was established to account for general obligation tax note
proceeds used for the construction of a Youth and Girls Softball Complex.
The General Obligation Sports Facility Construction Funds, which account for the G�O� Series 2014 issue in the
amount of $15M� The construction of the Baseball Complex and the Girls Softball Complex have been completed�
The fund is expected to be phased out after the completion of the restroom facilities�

Certificate of Obligation Series 2014 Construction Fund
The Certificate of Obligation Series 2014 Construction Fund was established to account for certificate of obligation
tax note proceeds to subsidize the construction of capital facilities except those financed by proprietary fund types.
The Certificate of Obligation Series 2014 Performing Arts Fund was for additional funding on the construction of a
New Performing Arts Facility� This fund has no activity and is expected to be phased out�

Information Technology Fund
The Information Technology Fund was established to account for information technology projects, which have
demonstrated the economic feasibility of the project. The revenues generated or expenditures saved through the use
of each project are transferred back to this fund as a renewable funding source for these types of projects.

The Information Technology Fund generates $65K in revenue, mostly attributed to a Fiber Optic Lease� $270K has
been appropriated for computer equipment, software and projects this year�

Traffic/Drainage Bond Fund
The Traffic/Drainage Bond fund was established with Ordinance 2018-56 to account for all General Obligation Bond
Series 2018 proceeds for Traffic and Drainage Improvements within the City Limits.
The Traffic/Drainage Bond was initially issued Bond proceeds in the amount $25M. This year, $453K will be allocated
for one traffic improvement project, and $13.3M will be allocated for twenty-one drainage improvements projects.
A detailed listing of the projects that will be constructed can be found on page 228�

Infrastructure and Improvements Fund

The Infrastructure and Improvements Fund was established to account for resources used for the acquisition and/or
construction of capital for improvements to the City.

The Infrastructure and Improvements Fund received resources from the American Rescue Plan Act through transfers
from the General Fund� This year, the fund expects to receive another transfer of $1�6M to fund a total of $38�7M in
projects. A detailed listing of the projects that will be undertaken can be found on page 234�
Water Depreciation Fund

This section also includes the working capital summaries for Water Depreciation Fund, which was established for the
sole purpose of replacing fixed assets. Funding for this fund is based on 35% of the monthly depreciation cost and is
transferred in from the Water Fund revenues.
Over twenty years ago, the McAllen Public Utility Board (MPUB) began setting aside 50% of actual depreciation from
the Water Fund in order to accumulate monies to be used for asset replacement. During the financial planning for the
Series 2000 bond issue, the MPUB carefully considered and decided to reduce the funded depreciation requirement
to 35%� This year it is estimated the Water Fund will transfer $1�8M into this fund� This fund will provide $1�4M for
replacements and $3�3M for projects, leaving a fund balance of $1�1M�

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