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McAllen reviews eight‑year drainage‑utility report; staff cites $9.6M collected and $7.2M in pipeline projects

McAllen City Commission · April 27, 2026
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Summary

Deputy City Engineer Mario Cruz reported that the drainage utility fee (adopted March 2018) has raised about $9.56 million over eight years and supported completed and underway drainage projects; commissioners asked staff to correct how the fee is labeled on some utility bills.

Deputy City Engineer Mario Cruz presented the McAllen City Commission with an eight‑year update of the city’s drainage utility fee, reviewing revenue, completed projects and planned work funded by the fee. “The drainage utility fee…was adopted in March 2018,” Cruz said, noting the charge is billed on utility accounts and is calculated by equivalent runoff unit (ERU); the minimum charge is $1 and the maximum is $75 per parcel.

Cruz said the utility has collected approximately $9,565,000 over eight years and has used those funds for design and construction. He said nine projects are complete (about $3.222 million in completed work) and several large projects are under construction, including the Balboa pump station, the Harvey pump station and the MacAllen lateral project. Cruz identified a group of forthcoming projects that staff estimates could total about $7.2 million, including a roughly $1.3 million Thoris Acres roadway‑drainage improvement and a northeast lateral where right‑of‑way is being acquired.

A commissioner raised a transparency concern after a resident reported the drainage fee showed on a printed bill as a “miscellaneous” charge. Cruz acknowledged the labeling issue and said staff would investigate and update the bill itemization for clarity.

Cruz also described a large detention/retention area adjacent to the south wastewater treatment plant that staff said is dug and in use for channel drains; the project’s capacity was described in the meeting as about "half a million" cubic yards. The deputy engineer said the retention area and the planned trade‑zone lateral will work together to increase stormwater capacity in the affected southside areas.

Staff presented a map of projects in the budget packet (not included in the last‑minute slide) and welcomed commissioner feedback. No formal policy vote occurred; staff said ongoing design, construction and billing corrections will continue as part of program implementation.