Page 22 - Approved Annual Budget FY 2019-2020_Flat

electric companies to be $4.5M, a slight decrease from last year. Total franchise taxes are estimated at $6.4M, a
5.9% decrease from last year.

Transfer-In - Bridge
The City of McAllen and the City of Hidalgo share in surplus net revenues generated by the McAllen
International Toll Bridge Fund at the rates of 64% and 36%, respectively and the new Anzalduas International
Crossing at the rates of 44% and 33%, respectively with the City of Mission sharing at 23%—based upon an
agreement reached in 2003. Fiscal year 2011 began with a slight decrease in revenue from $4.18M down to
$4.17M from the previous year. Growth in surplus revenues rose at a brisk pace thereafter due to increases in
southbound traffic and periodic car toll rate increases as reflected in the years of 2012 through 2017. Since the
instability of Mexico, southbound crossings have declined thus the City anticipates a drop in crossing resulting in a
decrease of net surplus revenue. As the amount allocable to the City is not transferred to the General Fund until
approximately sixty (60) days after fiscal year end, it is not recognized as revenue, in the General Fund, until the
subsequent year—therefore, a time lag of one fiscal year. The amount budgeted as a transfer-in to the City’s
General Fund from the McAllen International Toll Bridge Fund is $5.2M, a decrease of $170K from last year’s
adjusted budget.

McAllen International Toll Bridge - Surplus Revenues
Shared Between the Cities of McAllen & Hidalgo
(in Millions)

$10.0
$8.0
$6.0
$4.0
$2.0
$-
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 est
City of Hidalgo $2.78 $2.76 $2.97 $3.23 $3.43 $3.72 $3.74 $3.73 $3.63 $3.41
City of McAllen $4.18 $4.17 $4.61 $4.71 $5.15 $5.67 $5.70 $5.71 $5.71 $5.23
Fiscal Year Ending

Oil & Gas Royalties
The oil and gas royalties have been budgeted at $480K—no changes from last year’ adjusted budget.

Transfer-In – Development Corp
Under the 4B designation, the Development Corp is authorized to provide for the operating and maintenance
expenditures relating to qualifying capital projects, which it originally funded. This year the Development Corp
will again fund a portion of the operating expenses of the Police Department, which operates from the Public
Safety Building, funded largely by the Development Corp, through a transfer to the General Fund, which amounts
to $3.5M.

Expenditures

Due to a one-time expense of $3.8M to capitalize lease equipment, the expense has been omitted from the
following sections to reflect a true comparison from last year’s amended budget.

This year’s General Fund appropriation, including expenditures and transfers-out, is $125.6M, a $4.5M increase
from last year’s adjusted budget. Total Operations are budgeted at $117M, an increase of $4.8.M from last years’
adjusted budget. The following chart depicts how the expenditures are allocated among functions as well as the
transfers-out.

Executive Summary Page xi