Mineola school trustees approved a $17.4 million budget and a property tax rate of 96.31 cents per $100 valuation last Tuesday.

The rate is falling more than eight cents thanks to higher property values in the district.

Business manager William Bjork noted that the tax rate was $1.17 three years ago and has declined each year since.

The balanced budget includes a three percent pay raise.

The district ended last year with $8.3 million in the bank and a projected balance of $7.4 million as of Aug. 31.

Bjork noted that the original budget for last year of just over $17 million had actual expenditures of $19.1 million, thanks primarily to the band hall expansion project of $1.8 million.

The district made up about half of that deficit thanks to better than expected tax collections, the sale of $350,000 in timber from district land on NE Loop 564 and federal COVID relief funds that allowed for the payment of $370,000 in counseling services.

Bjork said revenues were estimated conservatively not knowing the impact of the pandemic, but property tax collections came in well over 97% compared to the budget of 95%.

This year’s budget is based on 97% collections.

One of the state requirements for school district fund balances is designating funds.

This year the board set $5 million as designated for future building projects.

Superintendent Cody Mize noted that the state legislature has added funding for virtual learning during its recent special session, and districts are awaiting word on the details. Proposals include making the funding available for districts that have a state rating of C or better, with the funding capped by percentage of students.

The ongoing federal relief dollars are expected to help the district continue to rebuild its fund balance, essentially paying for the band hall construction project, over the next two years.