McALLEN, Texas – McAllen commissioners will review a proposed $622 million municipal budget Wednesday that includes a recommended 3-cent increase in the city’s property-tax rate and approximately $240 million in capital projects.
The workshop is scheduled for 4 p.m. at Champion Lakes Golf Course, 2701 S. Ware Road. The proposal covers the fiscal year beginning Oct. 1.
The current citywide budget is about $578 million. McAllen’s proposed general fund includes approximately $170 million in revenue and $169 million in expenses, leaving a projected $1.6 million operating surplus.
Sales taxes are expected to provide about 43% of general-fund revenue, while property taxes account for roughly 36%. The city estimates sales-tax collections of approximately $103 million across its funds.
The draft includes five new general-fund positions and a 3% cost-of-living adjustment for employees. Operating expenses would rise approximately 4.8% when the proposed adjustment is included.
McAllen projects a general-fund ending balance near $110 million, equal to about 242 days of working capital. The city also carries approximately $100 million in debt with annual debt-service costs near $5 million.
The workshop is part of the public budget process. Commissioners can change the proposal before adopting the budget and tax rate.
