McALLEN — Its ongoing projects, record-breaking revenues, continued investment and overall growth were all highlights in Mayor Javier Villalobos’ state of the city address Wednesday.
Villalobos’ review of the city’s progress over the last year — in spite of rising inflation through the post-pandemic recovery — were detailed under the theme of “Momentus: the Power of McAllen.”
Foregoing the use of the podium for this year’s address, Villalobos paced the stage as he touted record sales tax revenue with retail in the city generating $91 million during the last fiscal year.
“McAllen rose through the ranks of the nation’s top 20 cities in total sales tax revenue and ranked number four in total sales tax per capita,” Villalobos said. “For perspective, McAllen nearly doubled the total per capita sales tax revenue of Dallas, San Antonio, and Austin.”
He noted the city adopted the largest budget in the city’s history for the 2022-2023 fiscal year, totaling $641 million, and adopted a lower property tax rate.
“Cutting property taxes helps ease the sting of economic pressures and makes McAllen an even more desirable place for people to raise a family, to buy a home, or simply retire,” Villalobos said. “As one of the Valley’s cities with the lowest property tax burdens, McAllen is creating the blueprint for fiscally responsible prosperity.”
The city’s budget also included a $133 million general fund which provides more than 220 days worth of working capital. By its own policies, the city is only required to maintain 140 days worth of working capital on reserve.
It also included a 3% cost of living adjustment to city employees and a 4% increase to firefighters and police officers.
The city commissioners highlighted different aspects of the city’s priorities and accomplishments.
District 2 Commissioner Joaquin “J.J.” Zamora spoke of the city’s investment into the acquisition of land — 1,288 acres of land — for industrial growth and future expansion.
Tony Aguirre, commissioner for District 1, highlighted city’s partnerships that enabled improvements to McAllen International Airport, ports of entry and helped form sister-city agreements.
“In McAllen, we value our partnerships with cities in Mexico for the cultural and economic opportunities they bring to our powerful city,” Aguirre said. “These partnerships foster important business and leisure opportunities.”
Villalobos listed local projects the city played a role in launching through “the power of partnerships.”
The city partnered with the University of Texas Rio Grande Valley to create the university’s cancer and surgery center which is receiving advisory services from MD Anderson Cancer Center.
It also partnered with South Texas College to expand their nursing program.
With the help of federal and state partners, the city was finally able to break ground on the $83 million project to expand the Anzalduas International Bridge in September. The project will convert the bridge into a full-service commercial port of entry.
Speaking of ports of entry, Villalobos said northbound crossings increased by 27% and southbound crossings increased by 51%.
District 3 City Commissioner Omar Quintanilla stressed the significance of infrastructure, pointing to the $6.6 million investment for the Daffodil Road expansion project that will include four additional lanes, five-foot sidewalks, new storm drainage and sewer improvements.
Last year, the city also conducted a traffic study to improve the timing of traffic signals.
Villalobos said the city completed more than $12.4 million of drainage projects in 2022. This year, the city is investing more than $22 million in 42 drainage projects.
Speaking on the city’s efforts to improve quality of life, District 4 Commissioner Rudy Castillo noted various of the city’s events like the McAllen Holiday Parade, the McAllen Marathon, Carfest, the Independence Day celebration, Fiesta de Palmas and the MXLAN festival among others.
Villalobos said the McAllen Parks and Recreation Department is investing into a campground where guests will have access to hiking trails, fishing docks, archery alleys, birding blinds, campsites, and picnic shelters.
He said the department is also aiming to build splash pads in every city district and improve the city’s walking and biking trails.
Victor “Seby” Haddad, commissioner for District 5, talked about the city’s investment into the community by funding improvements to the Children’s Bereavement Center of the Rio Grande Valley and to Palm Valley Animal Shelter.
Villalobos added that the city will be increasing the budget for their Imagine Tomorrow program by 33% this year. The program is meant to incentivize home and lot repairs, demolitions and renovations of older homes.
District 6 Commissioner Pepe Cabeza de Vaca touched on additional resources for the McAllen Fire Department including a new fire station on Shary Road and a new training facility.
Concluding his address, Villalobos celebrated the increase in construction throughout the city.
He announced the city issued 1,643 residential permits in 2022, totaling more than $215.3 million. That year, it also issued 791 commercial permits for a value of more than $175.9 million in construction.
“And ladies and gentlemen, that is momentous growth!” Villalobos said.
He recognized City Manager Roel “Roy” Rodriguez for leading the city in that growth.
The mayor again emphasized the challenges the city faced due to high fuel costs, supply chain disruptions and inflation.
“As mayor, and on behalf of my fellow city commissioners, I am both humbled and inspired to pursue momentous goals for McAllen,” he said. “And we are ready to face any challenge.”
