McAllen, Texas Considers Property Tax Reduction and $652 Million Budget

At a time when foreclosure rates are a growing concern among the population, officials in the city of McAllen are contemplating a small cut in the property tax rate, which would still generate sufficient funds to meet the city’s needs and maintain a healthy surplus in its emergency fund. Roel “Roy” Rodriguez, McAllen’s city manager, has proposed that the city commission approve a $652 million budget along with a reduction in the property tax rate.

Rodriguez stated, following his meeting with the city commission, that a decrease in the property tax rate had been proposed, from 0.4572 to 0.4499 per $100 of valuation. He expressed, “I want to remind the public that this is the third consecutive year the city commission has approved a tax rate reduction.”

McAllen’s financial outlook is so strong that the city will have an emergency fund covering nearly eight months of operations, far exceeding the 140 days of reserves required by city policy. Additionally, McAllen will be able to set aside more than $94.4 million in its unassigned fund balance, enough to cover approximately 232 days of operations.

Moreover, according to the budget book, sales tax revenues significantly offset property taxes, as they represent 43% of the general fund, while property taxes from McAllen homes and businesses account for approximately 34% of the general fund. This is in addition to another 23% from “other” revenues, which include charges for services, franchise fees, licenses, permits, and investment earnings.

Regarding expenditures, the largest portion of allocations goes to public safety, with $78.7 million spent on public safety in fiscal year 24-25, which begins on October 1. Quality of life departments will also see an increase in their budget, with more than $10.5 million allocated for the parks department and over $5.8 million combined for the three branches of the McAllen Library System.

While most comments were positive, as this property tax reduction can help many struggling homeowners, even saving their homes from foreclosure, some voices expressed concern about this reduction, claiming that McAllen will lose nearly half a million dollars in revenue. This same concern extended to the emergency fund, as some experts argue that it is too large and that part of it could have been reallocated to other areas.

Available Foreclosures:

McAllen: 15 homes available.

By Elías DaSilva | 13 de Noviembre de 2024.