McAllen commission adopts $578 million budget, sets 2025 property tax rate and approves several ordinances

The McAllen City Commission on Tuesday evening adopted a $578,000,000 combined budget for fiscal 2025–26 and set the city’s 2025 property tax rate at 0.448989 per $100 valuation. The commission also approved amendments to the solid-waste ordinance, changes to utility rates and a package of routine land and easement items.

The approved budget reduces the tax rate slightly from last year and funds capital projects and operations across city departments. "The ordinance will be adopting the rate of 0.448989 per 100 valuation," said Becky, a city staff member, during the tax-rate presentation. The adopted rate exceeds the no-new-revenue rate the city calculated for 2025 but remains below the voter-approval threshold the staff provided to the commission.

Why this matters: The budget and tax-rate decisions determine how much property owners pay and which capital projects the city will complete. The adopted budget funds major capital projects the city listed in its presentation, while the tax-rate action preserves financing for operations and debt service.

Key details - Combined budget: $578,000,000 (approved). - General Fund appropriations: $161,000,000. - Fund balance: $102,400,000 (leaving 238 days of working capital, above the 140-day minimum cited by staff). - Capital projects highlighted in the presentation include: $30,000,000 for North water treatment plant work; $16,600,000 for airport terminal improvements; $16,000,000 for the Buoy Reservoir; $12,700,000 for runway and taxiway safety work at the airport; $9,300,000 for Quinta Mazatlan; $7,300,000 for Lark sewer improvements; $6,700,000 for McAllen lateral channel drainage; $5,200,000 for a recycling center upgrade; and $4,500,000 for Tres Lagos reclaimed water elevated tower construction. - New positions: four positions added across the general fund and sanitation fund and one full-time position elsewhere as presented.

The commission voted by roll call to adopt the budget and then held a separate recorded vote to adopt the property tax ordinance. "Adoption of this ordinance is necessary to levy and collect property taxes for the upcoming fiscal year," Becky said. The staff memo attached to the item included the motion language used by the commissioner who moved the ordinance.

Votes at a glance - Ordinance adopting the 2025–26 annual budget: approved (roll-call vote). - Ordinance setting the 2025 property tax rate at 0.448989 per $100 valuation: approved (record vote). - Ordinance amending the solid-waste ordinance to reduce the residential recycling fee to $0.25: approved. - Ordinance amending utility rates (Article 3, Division 3, Chapter 106): approved. - Abandonment of a 20-by-171-foot utility easement in Botello Industrial Park (Lot 11 at 6613 S. 27th): approved. - Contractual agreement allowing VSR Investments to defer certain public improvements along Los Abalos Road: approved.

What commissioners and staff said Becky (city staff member): "This year's proposed rate exceeds a no new revenue rate, which was 0.415975, but does not exceed the voter approval rate of 0.469527." (Transcript excerpt.) Angie Rodriguez, director of management and budget, was thanked by staff for her role in preparing the budget.

Process and next steps The adopted budget takes effect according to the city’s fiscal calendar. The tax ordinance was adopted by recorded vote as required by the tax-notice provisions cited in the staff presentation. The utility and solid-waste ordinance amendments take effect on the dates specified in each ordinance as posted by the city clerk.

Ending The commission completed additional routine business, including appointments and investment-policy items, and moved to an executive session as the meeting concluded.