City of McAllen Explains Property Tax Rate Increase
McALLEN — As the City of McAllen goes through its annual budget process with the McAllen City Commissioners, highlighting the various projects that make up the proposed revenue and expenses for the upcoming 2019-2020 fiscal years, one critical aspect included in the bottom line is the expected property tax increase McAllen property owners will face. This property tax rate increase is directly related to the 2018 bond election, in which McAllen voters approved $25 million in bonds for the City of McAllen for various drainage and traffic improvements projects.
During the time leading up to the bond election, the City of McAllen hosted various town hall meetings and other community outreach efforts, letting McAllen homeowners know that if voters approved both bonds, they could expect a tax rate increase of $2.00 per month, equaling to about $24 per year, per average home. Those calculations were based on an average home price of $128,000.
This year, McAllen property owners will in fact pay a tax rate increase of $1.75 per month, which is less than what was projected and coming out to $21.04 a year on the same average home. Favorable credit rating and interest rates allowed City officials to purchase bonds at a lower price than expected, leading to the lower tax rate increase for McAllen property owners than originally anticipated.
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