The recent dip in sales tax revenues will be reflected in the proposed Mineola Economic Development Corp. 2024-25 budget.

With two months left in the fiscal, sales tax revenue is down slightly from the year before. Sales tax collections are the MEDC’s primary revenue source.

The July report from the state comptroller’s office (see related story) shows Mineola sales tax collections for the calendar year at $1,752,892, down by 1.8% or $32,000. The MEDC receives one-third of that tax income.

It will be the first time since 2013-14 that the city’s sales tax revenue has not risen year over year. Sales tax income topped $3 million for the first time last year and could be close to that figure again this year depending on the final two months.

Its other primary revenue source is interest on its funds. The fund balance was $1,410,7887 and projected to be $1,236,323 at year-end.

MEDC Director Mercy Rushing noted at Thursday’s board meeting that $200,000 in incentives remains on the books for the hotel project off Hwy. 69 South which has been stalled for several years.

New this year is the expense of $115,000 for the Peoples Communications fiber internet service project, which will continue to be funded for three more years.

MEDC will budget $100,000 for the Mineola Nature Preserve, which will also be funded in the city’s general fund.

Pay raises are proposed at a total of 5%, with 3% as a cost-of-living increase and the other 2% based on merit.

The MEDC budget must receive final approval from the city council. It includes $98,000 for economic development projects, a figure which Rushing said is used to present a balanced budget. Cash reserves could still be used if a major project comes along.

The board welcomed Janell Abbott as a new director.