Taxpayers in the Mineola school district will see a 20-cent property tax increase this year thanks to a $29.855 million school bond passed in May.

But the rate will be almost four cents less than advertised, thanks to a $107 million increase in the value of property in the district.

The school board will hold a public hearing Wednesday, Aug. 31 at 6 p.m. to discuss the proposed $18.7 million budget for 2022-23 and the planned $1.165 tax rate planned to fund it.

The school bond was advertised on a $1.20 property tax rate, based on 96 cents for maintenance and operations (M&O) and 24 cents to repay the bonds.

The higher values in the district reduced the M&O rate to a proposed $.9429 and the debt service rate to $.2221.

Also during that May election, voters statewide approved an increase in the homestead exemption from school taxes from $25,000 to $40,000.

At Monday’s board meeting, Business Manager William Bjork explained that exemption lowered the taxable values in the district by $15 million, but the corresponding revenue loss will be made up by the state.

The final value for properties in the district is $742 million compared to $634 million a year ago.

That allowed the budget to retain all the requested items, Bjork said, including a restoration of employee benefits and a three percent pay raise.

He noted that the proposed property tax rate is actually less than the district’s rate just three years ago of $1.17, when the district had no debt service.

During his monthly financial report, Bjork said the district received the proceeds from the bonds on Aug. 8, and in the first week earned $13,000 in interest. He said he is working with the construction manager to develop a timetable for payments so that the district can most effectively invest its construction money.

He also noted that although the program that allowed all students to eat free breakfast and lunch at school was no longer available, another program offers the same option, and the district is going to continue offering those free meals.

It will require the district to serve more students than it did last year.

In his monthly report, Superintendent Cody Mize said the district has 183 transfer students so far, which includes 50 children of district employees.

He said the bond election, the recent news that the district was rated as an “A” by the state and other good things going on seems to be attracting interest in the district.

He noted that much of the new enrollment is in the lower grades, meaning families want to move here.

Trustees also approved five days off for employees who must take a mandatory leave due to COVID-19.