Mineola City Council got a second look at a draft budget Monday.

The proposed budget is balanced with no new property tax revenue.

City Manager Mercy Rushing and Finance Director Cindy Karch reviewed the figures, which show the city has substantial reserves and is nearing the goal to have three months worth of operations in the bank.

Rushing said some of those reserves may be used to help balance the budget, but hopefully no more than what was added to the bottom line this year.

Projections are for the general fund to end the year Sept. 30 with a balance of $970,160 and the water fund $1,172,223.

The property tax rate, which is expected to decrease this year due to rising property values, has gone up less than two cents in the past 10 years, Rushing noted.

During that time sales tax has overtaken property taxes as the top revenue generator, with 35% of the budget compared to 31%.

The police and street departments make up the bulk of the general budget, with a projected $1,621,00 budgeted for police and $1,286,000 for streets.

The city is seeking a Community Development Block grant, which if approved, would pay for completing McDaniel St. from Jones to Baker, a drainage study on Read St., rehabbing Stone from Boundry to Front, rehabbing South Newsom and rehabbing Lowe.

Other street projects to be paid from the general fund include Kings Lane, University and Sycamore in Ward One; Meadowbrook, Graham, Rainbow and Ryan in Ward Two; and Engle, Hart and McWhorter in Ward Three.

“We’ll do as many streets as we can all over town.” Rushing said.

Hotel-motel taxes, which help fund the city’s marketing department, were up seven percent for the year. But they dropped in the most recent quarter by 34%, an economic impact of the COVID-19 shutdowns.

Another COVID impact was the lack of late fees charged on water and sewer accounts for three months.

Karch noted the water and sewer fund revenues are projected to remain flat in the budget.

She also outlined the percentage of debt service for each area.

The water and sewer fund is budgeted for $908,223 in debt service for 34% of the budget, the general fund $254,513 for 16% and the economic development corporation $275,288 for 37%.