Mineola residents could see higher property taxes and water rates in the coming fiscal year as the City Council considers how to fund the city’s 2026-27 budget.
The council unanimously approved a proposed 2026 property tax rate during a special meeting Monday, Aug. 10. Officials emphasized that the proposed rate cannot be exceeded when the final tax rate is adopted.
City Manager Cindy Karch said that while a proposed 3% increase in water rates and an 9.92% increase in property taxes may initially appear significant, the annual impact on the average homeowner would be approximately $95 in additional property taxes, assuming the homeowner has no exemptions.
Karch said the proposed new tax rate is 0.522357 (per $100 valuation).
According to the City of Mineola’s taxpayer impact statement, the proposed budget will create more revenue than last year’s budget. Property tax revenue added to this year’s tax roll is projected to be $100,523.
The proposed water rate increase would amount to around $3.63 more per month. No proposed water rate was adopted during the meeting.
City officials explained that the proposed changes are intended to result in smaller rate increases now rather than potentially requiring a larger increase in the future.
Mayor Jayne Lankford acknowledged the difficulty of the decisions before the council, saying the council members had Mineola’s best interests at heart.
Mayor Pro Tem Terry Eaton made the motion to approve the proposed property tax rate, which was seconded by Council Member Cassandra Sampson.
Residents will have an opportunity to comment on the proposed tax rate during a public hearing scheduled for Sept. 21. The final tax rate will be considered for adoption following the required public hearing process.
The council also discussed the proposed 2026-27 fiscal year budget and how various changes could affect the upcoming fiscal year.
Another item involved the city’s ambulance membership agreement with UT Health East Texas EMS. Under the current agreement, Mineola residents can receive ambulance transportation originating within the city limits without an out-of-pocket cost. The city currently pays approximately $37,500 annually for the membership, a cost that has remained unchanged for at least 11 years.
Council members discussed the agreement and potential changes, noting that any decision would not affect ambulance service in Mineola.
Council Member Mitchell Tuck expressed concern that increasing the tax rate while potentially removing a city service could be viewed unfavorably by residents.
Eaton made a motion to postpone action on the ambulance contract until additional information could be provided. The motion, seconded by Council Member Jimmy Alexander, was approved unanimously. The council will revisit the agreement at a later date.