Mayor Villalobos touts safety, growth and a $578 million budget in McAllen’s 2026 State of the City

Mayor Javier Villalobos delivered McAllen’s 2026 State of the City address, crediting city staff, nonprofit partners and local businesses for improvements across public safety, housing and economic development. He told an audience of more than 1,300 that the city’s ‘‘next is now’’ approach includes a $578 million budget for the 2026 fiscal year that funds over 120 capital improvement projects and provides 238 days of working capital, which Villalobos said exceeds required reserves.

Villalobos said McAllen reported a decline in crime to a multidecade low, credited coordinated work by the police, fire and public‑works departments, and highlighted investments such as the opening of Fire Station No. 8. He described McAllen as a comparatively affordable place to raise a family — citing a median first‑time buyer price of $275,000 and an average commute of about 18 minutes — and emphasized programs aimed at housing stability, including $11.5 million in grant funding used to launch a tenant‑based rental assistance program to help low‑income households.

On economic activity, the mayor cited growth in new business applications and taxable retail sales that generated roughly $99.98 million in tax revenue last year. He said the city issued 810 commercial permits valued at about $265.5 million and close to 1,300 residential construction permits totaling more than $241 million. (Transcript figures included a formatting error for a combined total that appears implausible; the article uses the commercial and residential figures stated separately.)

Villalobos also highlighted investments in parks, library programs and higher education partnerships, including new nursing and health‑care education capacity in the region. He closed by thanking sponsors, city staff and community partners and saying the city will continue work on long‑term projects to support families and economic opportunity.

The next procedural step is the continued implementation of capital projects included in the 2026 budget; no formal votes were recorded during the event.