Page 24 - City of McAllen - Approved Annual Budget Book FY 24-25

City of McAllen, Texas Adopted Budget 2025

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SPECIAL REVENUE FUNDS

Hotel Occupancy Tax Fund

The Hotel Occupancy Tax Fund was established to account for hotel occupancy tax collections within the City.
The Hotel Occupancy Tax Fund is estimated to generate $5�56M in hotel occupancy tax revenues—an increase of
16% from last year’s budget. The Chamber of Commerce will continue to be allocated 2¢ ( $1.5M); 4¢ ( $3.0M) to
the Convention Center; and 1¢ ( $757K) allocated to the Performing Arts Center to support operations. An additional
$300K will be allocated to the Marketing Fund� This total allocation translates to a minimal fund balance being
projected by year end�

Venue Tax Fund
The Venue Tax Fund was established to account an additional 2% for hotel occupancy tax collections within the City
for the construction and operating of a Performing Arts Center.
The Venue Tax Fund is estimated to generate $1�6M in hotel occupancy tax revenues� The City held an election
increasing the Hotel Tax from 7% to 9% of which the additional 2% was allocated to the Venue Tax fund for the
construction of the new Performing Arts Facility� This year’s funds will be used to meet the debt requirements ($803K)
and a transfer to the Performing Arts Center Fund ($573K) to support operations�
McAllen Marketing Fund

The McAllen Marketing Fund was established to account for the revenues received and expenditures for the purpose
of centralizing the City marketing.

This fund will receive a $500K contribution from the McAllen Chamber of Commerce and $569K in transfers from
various funds�The fund will appropriate $1M for advertising costs� The ending fund balance is estimated to be $531K�

City Special Events Fund

The City Special Events Fund was established to account for the revenues received and expenditures for special events
organized by the City.

This fund is expected to generate $215K in revenue related to the McAllen Marathon event� $185K has been
appropriated to account for the costs associated with the McAllen Marathon�

Development Corporation of McAllen, Inc. (Development Corp) Fund
The Development Corp of McAllen, Inc. (4B) was established to account for the additional ½ cent sales tax for economic
development.
The Development Corp Fund was established in fiscal year 1997-98 to account for the revenues from the additional
½¢ sales tax rate for economic development, approved by the voters in May 1997� Sales tax revenues this year are
estimated at $243M, which is proportional to the estimate provided in the General Fund from its 1½¢ rate� Expenditures
include funding for outside agencies, Business District Improvements, Drainage Improvements, Industrial Incentive
programs and cultural activities� Funding for programs and projects are listed on pages 190-192�

Christmas Parade Fund

The Christmas Parade Fund was established to account for the revenues received and expenditures appropriated for
the annual Christmas Parade.

The Christmas Parade Fund is expected to generate total revenue of $1�3M� A total of $1�4M is expected to be
appropriated for the Christmas Parade� The remaining fund balance is estimated to be $1�1M�

EB-5 Regional Center Fund
The EB-5 Regional Center Fund is used to account for revenues and expenses to operate an EB-5 Regional Center
under the U.S. Citizenship and Immigration Services (USCIS) for the purpose of stimulating the U.S. economy through
job creation and capital investment by foreign investors, who benefit by being granted preference in obtaining visas.

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