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By Roberto Hugo González | Texas Border Business
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During his recent presentation at the McAllen Chamber of Commerce’s Government Affairs Series, City Manager Isaac J. “Ike” Tawil announced that the McAllen City Commission approved a new city budget that includes a modest tax-rate reduction, made possible by steady increases in local property values and continued economic expansion.
“We lowered your tax rate a tick—so you’re welcome for that,” Tawil told attendees with a smile. “The exciting thing is we could do that because the value in McAllen continues to increase.” He attributed that growth to what he described as “a commission that challenges us to create a community of opportunity and excitement—a community where there is always something happening.”
According to Tawil, McAllen’s financial health reflects the city’s disciplined budgeting and targeted investments in infrastructure, safety, and quality of life. “As a municipality, as a government, I view our job as being the fuel for that engine,” he said. “We are going to invest in what you need to be successful.”
The city manager explained that much of McAllen’s fiscal strength comes from its focus on supporting local enterprise. “You are the mom-and-pops, the local businesses, the banks, the industrial developers—you are the ones growing this community,” he told the audience. “The credit goes to you for recognizing the opportunity that’s here and taking advantage of it.”
McAllen’s budget strategy emphasizes reinvesting “excess dollars” into community priorities that promote business growth and quality of life. Tawil cited public safety as the city’s most significant expenditure, calling it the cornerstone of McAllen’s success. “Public safety is first and foremost in this community,” he said. “It’s not an accident that McAllen ranks as one of the safest cities in the United States.”
The city’s focus on responsible spending was also evident in its management of federal funding during the post-pandemic recovery. McAllen received substantial support through the American Rescue Plan Act (ARPA), which was used primarily for drainage infrastructure projects and essential city services. “That funding is gone now,” Tawil noted, “so as we think about budgeting and what’s next for McAllen, building opportunity and a stronger base is going to be critical for our continued growth.”
Tawil emphasized that long-term fiscal planning must balance economic development with sustainability. He referenced recent and upcoming projects—such as the Boeye Reservoir redevelopment and the $300 million McAllen Public Utility desalination initiative—as examples of how investment today supports future growth and stability. “We’re not just spending; we’re building the foundation for decades ahead,” he said.
Local business leaders in attendance welcomed the update as a sign of continued confidence. Elizabeth Suarez, President and CEO of the McAllen Chamber of Commerce and the McAllen Economic Development Corporation, praised the city’s strategy, noting that “McAllen’s growth story is built on strong partnerships between government and business.”
Tawil closed his presentation by reaffirming the city’s commitment to prudent financial management and community engagement. “The City Commission has charged us with making McAllen a place of opportunity,” he said. “We take that seriously. Every decision we make is aimed at helping our residents and businesses succeed.”
Through a balanced approach of fiscal discipline, public investment, and collaboration, McAllen’s leadership continues to position the city as one of the most economically resilient communities in South Texas.
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