McAllen, City Commission, Budget Workshop, Tax Rate, McAllen Development Corporation
Staff Report
McAllen TX - The McAllen City Commission held a budget workshop Aug. 18, during which city staff recommended maintaining the current tax rate and presented details of the proposed fiscal year budget.
City staff recommended keeping the tax rate at .448989, unchanged from the current rate. Mayor Javier Villalobos confirmed the rate is anticipated to stay the same at this time. There had been discussion of a possible 3-cent increase during previous budget workshops.
Staff said the proposed budget is balanced, with revenue exceeding expenses by roughly $800,000 to $900,000. The overall budget is about $665 million, an increase from the prior year.
Agency Funding
Staff presented recommended general fund agency funding allocations, including $107,000 for Amigos del Valle, $5,000 for Comfort House, $20,000 for the Museum of South Texas History, $10,000 for the McAllen Town Band, $225,000 for the McAllen Symphony Orchestra, $72,000 for the chamber of commerce, $1.1 million for the Boys and Girls Club, $950,000 for the International Museum of Art & Science, $140,000 for the Heritage Center, and $35,000 for CASA.
Staff also presented agency funding recommended out of the McAllen Development Corporation, including $20,000 for Comfort House, $1.1 million for the McAllen Affordable Development Corporation, $100,000 for the Lift Fund, $450,000 for South Texas College’s advanced training and apprenticeship program, $500,000 for South Texas College’s nursing program, $550,000 for VIVA, $200,000 for Nuevo Milenio Clinic, $400,000 for the Boys and Girls Club, $270,000 for Christian’s Manor, and $450,000 for Texas A&M University.
Development Corporation Projects
Staff outlined recurring and new projects funded through the development corporation, including $10,269,000 in rollover projects from the prior year and $7.5 million in agency agreements. New projects recommended for funding include a roundabout on Wisconsin Road at $4.66 million, a new short course driving range at $8 million, a storm sewer outfall project at $650,000, and a $1 million one-time appropriation for equipment at the new University of Texas Rio Grande Valley cancer research center.
Next Steps
Staff said a wrap-up of the budget process, including any changes requested by the commission, will be presented at the Aug. 24 regular city commission workshop. That meeting will also include an initial hearing on the tax rate, requiring a roll call vote. Following that vote, the proposed rate will be published, with final adoption of the budget and tax rate expected at the end of September.
Staff also said additional workshops will be scheduled over the coming months to discuss a debt capacity analysis and a longer-range plan for major capital projects.
Source - McAllen City Commission Budget Workshop, Aug. 18, 2026