McAllen CityCommission, Budget, TaxRate, DowntownRevitalization, TresLagos, PublicSafety
Staff Report
McAllen TX - The McAllen City Commission on Monday adopted a $647 million budget for fiscal year 2026-27 and held the property tax rate steady at $0.448989 per $100 valuation while also hearing a draft revitalization strategy for downtown and the entertainment district.
The budget, approved unanimously on a roll-call vote, includes a 3% cost-of-living adjustment for city staff, a general fund of $180 million, an unassigned ending fund balance of $109 million representing 235 days of working capital, and 12 new positions to fund operations at the Center for Urban Ecology.
City Manager praised budget staff before the vote. “Angie and Sonia put hours, countless hours, into helping me prepare the budget,” he said. “I know both of them worked on days when they were sick, had medical procedures, and were just tremendous this year.”
Commissioner Tony Aguirre credited the commission and staff for avoiding a tax increase. “When we first began, I think we were looking at possibly having to raise the taxes for a little bit, but everybody working together as a team — here we go again — so we don’t have to,” he said. “I think this is a great budget.”
Commissioner Rolly Rios echoed those sentiments and credited McAllen’s long-term fiscal leadership. “In over 40 years, this city has only had four city managers,” Rios said. “That’s about consistency and excellence in every fiscal year.”
The adopted tax rate of $0.448989 per $100 — comprising a maintenance and operations rate of $0.413293 and a debt service rate of $0.035696 — is the same as the prior year but is greater than the no-new-revenue rate by approximately 0.95%, as required by state law to be disclosed. The rate is below the voter-approval rate of $0.517054.
Downtown Revitalization Plan Presented
Earlier in the evening during a workshop session, MEND Collaborative presented a draft Downtown and Entertainment District Revitalization Strategy to the commission.
The study area runs from U.S. Business 83 on the north to Jackson Avenue on the south, and from Bicentennial Boulevard on the west to 10th Street on the east. MEND conducted two rounds of community engagement, including an online survey with 442 responses and a mapping exercise with 96 comments.
The strategy is built around four goals — Revitalization, Mobility, Public Realm, and Culture — and includes six priority recommendations: a sector-based development framework; reinvestment of parking revenues into downtown; creation of a new downtown park and expansion of Archer Park; diversification of the entertainment district’s business mix; establishment of a clear downtown identity; and expansion of the Refresh 50/50 program, which currently offers a $25,000 matching grant.
Funding strategies discussed included a Municipal Management District, Tax Increment Reinvestment Zone, Parking Benefit District, Historic Tax Credits, and New Market Tax Credits. Commissioners also discussed housing opportunities on underutilized lots and resources for small business assistance. The city manager noted staff is already working on trees and shade, trash facilities, benches, and artwork for a parking garage. A final report is expected within a few weeks.
Proclamations
The commission recognized Physician Assistant Week, Oct. 6–12, with a proclamation presented by Commissioner Rios and accepted by Cassandra Wetstone, president of the Rio Grande Valley Physician Assistant Society.
“When the city of McAllen recognizes PA Week, you are recognizing more than 600 PAs who show up every day to care for patients across the Rio Grande Valley,” Wetstone said.
Commissioner Aguirre presented a proclamation for Week Without Driving, Oct. 1–8.
Matty’s Pumpkin Patch CUP Denied
The commission denied a conditional use permit for Matty’s Pumpkin Patch at 6712 N. Benson Road after a neighbor testified against the seasonal operation, citing dust from an overflow parking lot on an adjacent agricultural property, prior code violations, an animal disposal incident, and an agreement with the owner that she said was not honored.
The city attorney told commissioners that code enforcement had responded on multiple occasions before a civil enforcement action was filed, resulting in an agreed temporary injunction in December 2024 that remains in place. Planning and Zoning had recommended disapproval.
Commissioner Michael Fallek, who represents the district, moved to deny the permit. “I still look at prior history and more importantly the current conditions as they stand with regards to the concerns and the complaints received from the citizens immediately living around that property,” Fallek said. The motion carried.
Other Action Items
The commission approved an annual update and assessment plan for the Tres Lagos Public Improvement District. The development’s appraised value reached $595 million, exceeding the original projection of $585.5 million. Shops at Tres Lagos reported 97% occupancy, and a new Texas A&M nursing school has opened within the district. Assessments were unchanged.
Commissioners also approved a recreation organization registration agreement between the city and RCX Sports for youth hockey league play and equipment reimbursement tied to a Dallas Stars partnership; a license agreement with the Warren Group for landscaping and an awning at 804 S. Main St. in the city right-of-way; and an interlocal agreement with Palm Valley Animal Society for regional animal shelter operations at an annual cost of $875,000, reduced from the prior rate of $950,000.
The commission also authorized the city manager and city attorney to proceed as directed in three executive session items.