Texas Border Business
McALLEN, Texas – Mayor Javier Villalobos delivered his State of the City Address under the theme “The McAllen Way,” highlighting growth, economic performance, and long-term planning.
Speaking to city officials, business leaders, and residents, Villalobos pointed to continued expansion and encouraged collaboration and investment in the community.
McAllen reported a record $96.8 million in retail sales tax revenue, ranking second in Texas for sales tax per capita among cities with more than 100,000 residents.
“We are proving that McAllen is a prime destination for business and investment,” Villalobos said. “Our affordability and economic strength make us a model for other cities.”
The city was also recognized as the most affordable in the United States and issued more than 1,069 commercial and 1,291 residential permits in 2024, reflecting ongoing development.
Villalobos cited public safety as a key milestone, noting McAllen reported its lowest crime rate in 37 years and was recognized as the safest city in Texas. He attributed the results to investments in law enforcement, first responders, and traffic safety.
“Our commitment to safety is unwavering,” he said.
McAllen’s $652 million budget funds more than 180 capital improvement projects focused on roads, drainage, and water diversification. Environmental efforts through the Keep McAllen Beautiful campaign mobilized more than 4,000 volunteers, removing over 554 tons of trash and converting 230 standpipes into public art.
The city is expanding higher education and workforce programs through partnerships with UTRGV and STC in healthcare, technology, and artificial intelligence. A new $49 million Texas A&M Nursing Education & Research Building will expand medical training. STC also launched AI and manufacturing courses in partnership with Intel.
“These investments are about preparing McAllen’s youth for the jobs of tomorrow,” Villalobos said.
Tourism and air travel also grew. The McAllen Holiday Parade and South Pole Festival drew more than 340,000 visitors and generated over $100 million in hospitality revenue. McAllen International Airport reported a 29% increase in passengers and added nonstop flights to Austin, Mexico City, Cancun, and Tampa. The city also expanded trade partnerships with Mexico and European nations.
Looking ahead, Villalobos outlined plans to expand green space, including a 20-acre campground and a Center for Urban Ecology, maintain fiscal discipline, and pursue sustainable development.
“If we can, we will. That’s the McAllen Way!” he said.
Read more inside this Texas Border Business issue.
See related story:
