McAllen holiday parade costs far exceed budget, topping $1.1M

McALLEN, TX -- A holiday parade staged earlier this month by the city of McAllen and budgeted at $146,000 cost more than seven times that amount, according to receipts and invoices reviewed by a newspaper.

The Dec. 6 parade cost more than $1.1 million, a figure that officials in the Rio Grande Valley said sponsors would cover almost half of through cash and in-kind contributions but could provide no information in support, The Monitor reported Sunday.

Joe Vera III, the assistant city manager who organized the event, said some things are one-time expenses, like moving utilities along the parade route to accommodate the parade floats and balloons. Some $240,000 was spent to move traffic signal lights and another $200,000 to bury utility lines.

"This is an expense that had to occur for this parade to go through this route for years to come," he said.

Records show celebrities who appeared at the parade were paid $71,500 - half the original overall budget. They included TV celebrities Cristela Alonzo and Mario Lopez, who each pocketed at least $15,000 for the three-hour parade.

Another $204,000 went to the Hidalgo County Water Improvement District 3 when construction crews accidentally drilled in the district's property without permission.

"As far as producing the parade I wasn't looking at a lot of those one-time expenses, such as utilities," Vera said.

But the newspaper said the records showed that even if none of the site work or utilities was included in the expenses, the materials, artwork, props, balloons, celebrities, promotional banners and meals for city employees working on floats accounted for around $381,000, more than double the budget.

City Commissioner John Ingram, a parade critic, acknowledged it was a public relations success but said he's concerned about the expenses. Another city commissioner, Hilda Salinas, contended the money was well spent.

"We will make our best concerted effort in keeping the costs down and we are aware of our responsibility for the minimal cost as can be had for a parade of that magnitude," she said.

Vera said the true economic impact of the event is still to come.

"The goal from day one was that we produce a destination type of event that's going to draw people to McAllen from South Texas and Mexico," he said.