Hidalgo County Audit Shows Deficiencies, Problems With Reporting
Edinburg, Hidalgo County Commissioners Court, Hidalgo County Drainage District No. 1, Annual Audit, Delinquent Tax Collections
Arnoldo Mata
Edinburg TX – The Hidalgo County Drainage District No. 1 Board of Directors and the Hidalgo County Commissioners Court met Sept. 15, hearing annual financial audits for both entities, receiving several proclamations on community health and safety issues, and taking up dozens of routine contract, grant and personnel items. Precinct 1 Commissioner David Fuentes was absent for both meetings.
County Financial Reports
County Auditor Letty Chavez presented the county’s fiscal year 2027 revenue estimate, required under the Texas Local Government Code. She said the county’s projected general fund unassigned fund balance for the end of 2026 is approximately $91.5 million, representing about 23% of appropriated expenditures, above the county’s required policy minimum of 10% to 15%. She estimated 2027 general fund revenues at approximately $367.1 million, based on the proposed tax rate of 0.5691 and an estimated property tax revenue of about $317.8 million, using a 96% collection rate.
County Audit
Luis Lopez, with Burton McComber and Longoria, also presented the county’s 2025 annual comprehensive financial report and single audit, issuing an unmodified opinion. He said the county’s general fund unassigned fund balance stood at $69,786,115 as of Dec. 31, 2025, about 21% of expenditures, exceeding the county’s policy minimum. Lopez flagged the county’s self-funded health benefits plan, whose net position decreased by approximately $3.9 million during the year, as an area warranting continued attention amid rising healthcare costs generally. The single audit identified four significant deficiencies, including findings related to the timeliness of required federal and state reporting, though Lopez noted the county had no repeat findings from the prior year and no material weaknesses. The court voted to accept the report.
Tax Collection Reports
Kelly Salazar, with the law firm Linebarger Goggan Blair & Sampson, presented the county’s delinquent tax collection report for the period of July 2025 through June 2026. Salazar said the delinquent tax roll as of July 2025 totaled approximately $44.8 million across more than 54,000 accounts, of which about $28.3 million was considered actively collectible. The firm reported making more than 56,000 phone calls, conducting more than 4,500 in-person visits, and sending more than 124,000 mail pieces and 50,000 text messages to delinquent taxpayers during the year. The firm filed more than 1,400 lawsuits and obtained 430 judgments, and reported selling 33 properties through tax sales, none of which were occupied homestead properties. Salazar said overall collections increased by more than $2.8 million compared to the prior fiscal year. Judge Cortez asked the firm to provide a detailed breakdown of delinquent accounts held by residents 65 and older, saying the county needs to track that population’s impact on future revenue.
Hidalgo County Tax Assessor-Collector Paul Villarreal presented the county’s annual property tax and motor vehicle collections reports. Villarreal said total property tax collections for fiscal year 2025-26 were $359,506,620.67, with the current collection rate at 94.05%, compared to 94.39% the prior year. Motor Vehicle Manager Santos Castilleja reported the department processed 980,621 transactions in 2025, generating $276,976,745.88 in collections, an increase of more than $24 million, or 9.5%, over the prior year. Castilleja said the county’s total net motor vehicle collections, including commissions and road and bridge funds, were approximately $28.2 million for the year, a 6.21% increase. He also reported 758,111 vehicles were registered in Hidalgo County in 2025, a 7.02% increase over the previous year. One commissioner noted the county is not compensated for processing registrations for the Regional Mobility Authority, and was told that would likely require a change in state law to address.
Public Comments
Resident Fern McClarty asked staff to clarify several consent agenda and budget items during the meeting, including a courthouse renovation change order, a roadway encroachment agreement near the courthouse, and a proposed $20,000 expenditure for a “Social Fest” event. Staff explained that the courthouse item related to a 20-day extension for asbestos abatement work, and that Social Fest is a two-day social media marketing and creator conference held at the McAllen Convention Center, now in its second year, expected to draw thousands of attendees.
During open forum, McClarty criticized a proposed 16.6% salary increase for county commissioners and a 15% increase for the county judge, compared to a proposed 5% increase for general county staff, saying commissioner salaries could rise close to $200,000 including car allowance. She also noted the county’s proposed property tax increase of 9.78% and questioned commissioners’ ability to serve full-time while holding other jobs.
Veterans Suicide Prevention
Jessica Grogan, chief of mental health for the VA Valley Coastal Bend, and Josie Cavazos, Veterans Justice Outreach Coordinator, asked the court for support placing signage for the Veterans Crisis Line, 988 press 1, in public locations and county buildings. Grogan said veteran suicide deaths have declined from a widely cited rate of 22 per day nationally to about 17.5 per day, but noted that roughly 60% of veterans who die by suicide are not engaged with VA services. The court approved accepting a donation of 50 signs from the VA.
National Day of Remembrance for Murder Victims
The court proclaimed Sept. 25, 2026, as National Day of Remembrance for Murder Victims, noting that Texas’ homicide rate declined 13% in 2025, the third consecutive annual decline, with 1,464 murders reported statewide and approximately 39 in the Rio Grande Valley, affecting more than 390 relatives. The proclamation recognized the 14th annual candlelight vigil hosted by the Rio Grande Valley Family and Friends of Murdered Children, set for Sept. 25 from 6 p.m. to 8 p.m. at the Jose “Pepe” Salinas Memorial Recreation Center in Pharr, under the theme “Every Candle Tells a Story.”
Robert Garcia, founder and CEO of the organization, thanked Hidalgo County Criminal District Attorney Terry Palacios and his staff for their continued support. A subsequent speaker discussed the role of law enforcement and prosecutors in supporting victims’ families, noting that while officers and prosecutors must balance their investigative and courtroom responsibilities, organizations like Garcia’s exist solely to provide emotional support to victims’ families.
Valley Voter Awareness Month
The court proclaimed September 2026 as Valley Voter Awareness Month and Sept. 15, 2026, as National Voter Registration Day. Hidalgo County Elections Administrator Hilda Salinas said the county currently has 466,000 registered voters, and recognized voter registration staff members Iliana Espitia, Jenny Renteria, Viviana Martinez, Madison Lial and Jennifer Rodriguez.
Puppy Mill Awareness Day
The court proclaimed Sept. 19, 2026, as Puppy Mill Awareness Day, noting an estimated 13,000 puppies are imported into Texas annually for sale through pet stores, and that Texas remains the top state in the nation for euthanizing healthy and treatable shelter animals. Becca Chavez, representing Yaqui Animal Rescue, Palm Valley Animal Society, Paws for Help, the county Health Department and Donna North High School, urged residents to choose adoption over purchasing commercially bred puppies.
National Opioid and Substance Use Awareness Day
The court proclaimed Sept. 21, 2026, as National Opioid and Substance Use Awareness Day. Dr. Ivan Melendez, Hidalgo County health authority, said the county’s Narcan vending machine program, funded through opioid settlement funds, has shown measurable results, noting emergency department overdose visits dropped from more than 30 during the same period last year to eight this year since the machines were installed, with 100 units of Narcan dispensed within the first two weeks. Melendez said national opioid overdose deaths, which peaked around 120,000 annually following the COVID-19 pandemic, have declined for three consecutive years to about 80,000 annually, though he emphasized the toll remains significant. “No one chooses to be a drug addict,” Melendez said. “No one chooses to destroy their life by being a drug addict… It’s a real problem.”
County Auditor’s Office Recognition
The court recognized the County Auditor’s Office for receiving the GFOA’s Certificate of Achievement for its 2024 annual report. County Auditor Rick recognized staff members First Assistant Auditor Ray Cantu, Finance Director Merle Munoz, Director of Audits Yvonne Torres, Finance Supervisors Claudia Ortiz and Ray Morin, Compliance Audit Supervisor Karen Ramirez, Revenue Audit Supervisor Araceli, Grant Supervisors Isabel and Minerva, and Accounts Payable Supervisor Zoraida Camilla.
Hidalgo County Future Leaders Council
The court approved a resolution formally recognizing the Hidalgo County Future Leaders Council, a new young adult-led civic engagement initiative intended to support Judge Cortez’s goal of retaining and developing young talent in the county. Skylar Howe, a spokesperson for the inaugural 16-member council, thanked the court for the opportunity. “This resolution represents a belief that when young people are given an opportunity to serve, they can rise to the occasion,” Howe said.
Domestic Relations Office “Caring Connections Closet”
The court approved a proposal from the county’s Domestic Relations Office to establish a donation-based “Caring Connections Closet” providing diapers, hygiene products, and household necessities to families served by the office. DRO Director Ira Trejo said the office regularly encounters families struggling to meet basic needs, noting the annual cost of raising one child is estimated at $17,256, compared to an estimated $15,080 in annual income for a minimum-wage worker. The program will rely entirely on community donations, with no county funding requested. Those interested in donating can contact the Domestic Relations Office at 956-292-7048.
Grants and Contracts
The court approved a $210,000 grant from the Hogg Foundation to Probate Court No. 1 for a Rio Grande Valley policy initiative related to mental health and aging services. The court also approved two grants for the District Attorney’s Office: a $49,500 victim coordinator and liaison grant, and a $100,000 forensic evidence testing grant from the Office of the Governor’s Criminal Justice Division.
The court approved an Operation Lone Star grant of $90,000 for Constable Precinct 3, and an interlocal agreement with La Joya ISD for a truancy prevention program.
The court approved numerous purchasing items, including a $140,000 consultation services contract with Creative Corrections for a correctional action plan, an approximately $8.2 million construction contract with Aecom Group for a 2012 Community Rehabilitation Center facility project in Precinct 4, and change orders totaling more than $280,000 for the county’s Juvenile Mental Health Facility renovation project. The court also approved selecting Leti Garcia as the new agent of record for the county’s self-funded medical plan.
Personnel Actions
The court approved several department-specific personnel actions, including the creation of a deputy sheriff position and a criminal intelligence research analyst position funded through an Auto Theft Task Force grant, the deletion of several vacant positions in the WIC program, Facilities Management, and Precinct 1, and the creation of a crew leader position in Precinct 2’s Road and Bridge department.
Budget Update
Budget staff told the court the proposed fiscal year 2027 budget would be formally submitted to the County Clerk’s Office on Sept. 16 for public inspection. The court’s final budget adoption and tax rate adoption are scheduled for Sept. 22 at 2 p.m.
Legal Settlements
The court approved several legal settlements, including a negotiated settlement in Ashley Gonzalez, et al. v. Hidalgo County, subject to trial court approval; an $89,902.94 settlement in Labatt Food Services LLC v. Hidalgo County; and a $376.55 settlement offer in a claim filed by Romualdo Garza. The court also assigned two additional cases, Hidalgo County v. Marta Viviana Garcia Cordova and Hidalgo County v. Bobby Lou Herrera, to the District Attorney’s Civil Division for subrogation purposes.
Drainage District No. 1
The district’s engineering staff reported receiving a notice to proceed from the Texas Water Development Board for the Willacy County Lateral G project, a partnership in which Hidalgo County will be reimbursed approximately $1.4 million for construction work performed to assist the neighboring county, with those funds to be reinvested in local drainage improvements.
Staff announced the district will host a joint event for Hidalgo and Starr county municipalities and departments on Sept. 23 from 9 a.m. to 10:30 a.m., featuring a keynote address from McAllen Deputy City Manager Michelle Rivera.
The county’s tax office presented the district’s annual tax collections report for fiscal year 2025-26, showing total collections of $71,689,990.31, an increase of about $5.66 million in current-year collections compared to the previous year. The current collection rate was 93.93%, compared to 94.23% the prior year.
Luis Lopez, a partner with Burton McComber and Longoria LLP, presented the district’s 2025 annual comprehensive financial report and single audit, issuing an unmodified, or “clean,” opinion. Lopez said the district’s unassigned general fund balance stood at $27,757,581 as of Dec. 31, 2025, equivalent to about 330 days of operating reserves, well above the 90-day minimum recommended by the Government Finance Officers Association. Lopez noted the district’s fund balance grew by $1,723,735 during the year and that the district spent approximately $44.4 million on drainage and flood control infrastructure projects. Lopez also congratulated the district for again earning the GFOA’s Certificate of Achievement for Excellence in Financial Reporting for its 2024 report. The board voted to accept the audit.
The board held a public hearing on the drainage district’s proposed 2026 tax rate of 0.1123; no members of the public spoke, and the hearing was closed. The board also reviewed a proposed 2027 budget of $35,735,872, which includes approximately $1.8 million for heavy equipment, including an excavator, motor grader and mini excavators, and $529,000 for additional vehicle equipment. County Judge Richard Cortez asked staff to review an approximately $70,000 increase in fees charged by the Hidalgo County Appraisal District for collection services.
The board approved several construction contracts and change orders, including a roughly $5.9 million contract with Synergy Development and Construction for the South Lateral Drain Improvements Phase 3 project, and a change order adding approximately $52,857 and 95 additional calendar days to the North Main Drain Expansion Phase 2 project.
Judge Cortez raised concerns about inconsistency in fees paid to special commissioners appointed in condemnation proceedings, which are set individually by different judges, and asked legal counsel to work with the courts on a possible recommended fee policy.
The court’s next regular sessions are scheduled for Sept. 22, when the fiscal year 2027 budget and tax rate are expected to be formally adopted, and Sept. 29.