Heath meeting summaries, agendas, and minutes

Heath City Council to weigh budget, tax rate increase for FY 2026-27

Heath city officials are moving toward adopting a new budget and a higher property tax rate for the 2026-27 fiscal year, with several public hearings and votes scheduled in the coming days. All items below come from published agendas; minutes have not yet been released, so no final decisions have been reported.

Budget and tax rate

The City Council held its first budget work session on July 30 and again on August 5, reviewing a proposed tax rate of $0.281436 per $100 of valuation. That rate would be up from the current $0.275650. Under the proposal, the tax on a median-valued homestead would rise from $2,134.24 to $2,251.49 per year. The city's "no new revenue" rate—the rate that would bring in the same revenue as the prior year—is listed as $0.269792 per $100.

On August 8, the council published an agenda for a meeting scheduled for August 11 that includes public hearings and ordinances to:

• Levy the ad valorem tax rate of $0.281436 per $100 for Tax Year 2026
• Adopt the FY 2026-2027 Master Fee Schedule
• Approve the FY 2026-2027 Budget and Plan of Municipal Services
• Ratify the property tax increase reflected in the budget
• Set the city's compensation program and pay plan effective October 1, 2026

A separate public hearing on the proposed budget and tax rate was also listed on the July 29 council agenda, along with a grant application to the Texas Water Development Board for a Water Supply and Infrastructure Grant.

Zoning and planning

The Planning & Zoning Commission is scheduled to hold a public hearing on August 13 (agenda published August 7) to consider allowing HUD-code manufactured homes in the MF-8 High Density Multi-Family district. The commission will also vote on a replat request (RP-26-7) by Cathey Custom Homes to create Lots 3R and 9R from two tracts in Hilltop Estates (4.2 and 3.86 acres, SF zoning), and will appoint its chairman, vice-chairman, and secretary for the coming year.

The City Council's July 29 agenda also included zoning requests for properties at 400 Heathland Crossing, 1500 Laurence Drive, and 531 Hubbard Drive, plus final plat approval for the Founders Reserve tract (22.357 acres). No action has been reported on these items.

Other council business

A special council meeting on July 29 included an executive session to discuss a citizen complaint and appointments to several boards and commissions, including the Planning and Zoning Commission, HMBC/HEDC, Park Board, Board of Adjustment, Architectural Review Board, Take Area Appeal Panel, and Municipal Court. The agenda indicates the council may take action after reconvening in open session, but no minutes have been published.

Coming up

No upcoming meetings are listed in the next 14 days beyond the August 11 City Council meeting described above. Residents interested in the budget and tax rate may want to attend that meeting or check the city's website for any additional sessions.

Heath Boards and Council Packed Budget, Tax Rate, and Zoning Items Into Late July

Heath residents saw a flurry of government activity in late July, with multiple boards and the City Council scheduled to tackle the proposed Fiscal Year 2026-2027 budget, a new property tax rate, several zoning changes, and appointments to city commissions. All meetings listed below are agenda-only — minutes have not yet been published, so no outcomes, votes, or final decisions can be confirmed from the available record.

City Council: Tax Rate, Budget, and Zoning

The Heath City Council had the busiest schedule. A July 30 budget work session included a proposed 2026/2027 tax rate of $0.281436 per $100 of assessed value, compared with the No New Revenue Rate of $0.269792 per $100 of value. The agenda also included a taxpayer impact statement comparing the adopted 2025/2026 rate to the proposed 2026/2027 rate.

The Council's July 28 regular meeting agenda listed public hearings on five zoning changes, including rezoning 3.03 acres at 400 Heathland Crossing from PD-SF-43 to SF-43, rezoning 4.126 acres at 400 Heathland Crossing and 1500 Laurence Drive to PD-SF-43, and amending the Future Land Use Map for those same parcels from Medium Density Residential to Rural Estate. Two agricultural-to-residential conversions on Hubbard Drive were also on the agenda.

Council was also scheduled to discuss and possibly act on a resolution proposing the FY 2026-27 ad valorem tax rate and setting a public hearing for August 11, 2026, and to consider a final plat for Founders Reserve, a 22.357-acre tract at Laurence Drive and FM-549. A grant application to the Texas Water Development Board for the Water Supply and Infrastructure Grant was also listed.

A July 29 special meeting agenda included an executive session briefing on a citizen complaint and discussion of appointments and re-appointments to the Planning and Zoning Commission, HMBC/HEDC, Park Board, Board of Adjustment, Architectural Review Board, Take Area Appeal Panel, and Municipal Court.

HMBC and HEDC: Property, Budget Priorities, and Staffing

The Heath Municipal Benefits Corporation and Heath Economic Development Corporation met jointly on July 21-22. Agenda items included approval of May 19, 2026 meeting minutes, discussion and action on entry monuments, beautification initiatives in The Reserve, and maintenance of properties at 217 Laurence Drive and 305 Laurence Drive. The boards were also scheduled to review sales tax reporting and collection within Heath, discuss FY 2026-2027 budget priorities, and receive an update on the 1880 project. An executive session was listed to deliberate on real-property transactions, financial incentives for business prospects, and the appointment, employment, or dismissal of the Director of Economic Development. No dollar amounts were specified in the agenda.

Finance and Audit Advisory Board

The Finance and Audit Advisory Board met July 21 to discuss and receive an update on the Proposed Budget and Plan of Municipal Services for FY 2026-2027 and to consider approval of minutes from its June 24, 2026 meeting. A public comment period was listed.

Park Board: Terry Park Rules

The Heath Park Board met July 21 with action scheduled on the rules, regulations, and usage of Terry Park. The agenda also included review of the Third Quarter 2025-2026 Parks Financial Report, a Parks and Trails of Heath Committee (PATH) report, and action on minutes from the June 15, 2026 meeting.

What This Means for Residents

The proposed tax rate and FY 2026-2027 budget will directly affect property tax bills and city services starting October 1. The zoning cases at 400 Heathland Crossing and 1500 Laurence Drive could change land use and density in those areas. The Founders Reserve final plat, if approved, would advance residential development on a 22.357-acre tract. Board appointments determine who serves on the commissions that review development, parks, and code matters.

Coming Up

No upcoming meetings are listed for the next 14 days. Residents should watch for the August 11, 2026 public hearing on the proposed ad valorem tax rate, which was referenced in the July 28 City Council agenda. Minutes from the late July meetings should be published in the coming weeks and will confirm what was actually decided.

Heath Council Recommends $40.5M Water Infrastructure Financing; Finance Board Backs Investment Manager

Heath's City Council has recommended moving forward with $40.5 million in Certificates of Obligation to fund Phase I of the Water Bridge Plan, covering new wells and storage tanks. The decision came during a joint work session with the Finance & Audit Advisory Board, where Mayor McClure confirmed council alignment on Phase I, which carries a 10-year call option. A second phase totaling $21.5 million was deferred for re-evaluation in approximately 12 months, pending review of rate impacts and alternative funding sources that could affect monthly utility bills.

Finance Board Recommends Valley View Consulting

Separately, the Finance & Audit Advisory Board recommended that City Council approve Valley View Consulting for investment portfolio management services at an annual cost of $30,000. The board noted the cost would be funded through increased interest earnings to support city operations. The board also received updates on the FY 2026-2027 budget development process and the March 2026 mid-year financial report.

A subsequent Finance & Audit Advisory Board meeting was scheduled to discuss an external investment advisor for treasury management, review the April 2026 financial report, and discuss the Certificates of Obligation Series 2026 investment strategy. Minutes from that meeting have not yet been published.

Planning & Zoning to Consider Multiple Rezoning Cases

The Planning & Zoning Commission has multiple zoning items on its agenda, though minutes have not yet been published. Continued public hearings include rezoning 40 acres at 531 Hubbard Drive from AG to SF-43 (Case ZA-2026-3), rezoning 20.99 acres with RCAD Property ID 10470 from AG to SF-43 (Case ZA-2026-4), and rezoning 3.03 acres at 400 Heathland Crossing from PD-SF-43 to SF-43 (Case ZA-26-2).

New public hearings are scheduled for rezoning 400 Heathland Crossing and 1500 Laurence Drive to PD-SF-43 and amending the Future Land Use Map for those properties to Rural Estate. The commission will also discuss and vote on a final plat for the Founders Reserve subdivision, covering 22.357 acres near Laurence Drive and FM-549. All commission decisions would be forwarded to City Council for final adoption.

Park Board Agenda Includes PATH Funds Discussion

The Park Board was scheduled to discuss and potentially act on using existing PATH funds to benefit the Mayor's Ball. The agenda also included approval of minutes from May 18 and May 28, review of the Second Quarter 2025-2026 Parks Financial Report, updates on special events including the Independence Day Parade and the grand opening of Towne Center Park, and discussion of rules and regulations for Terry Park. Minutes have not yet been published.

City Council Budget Discussion Ahead

The City Council's July 14 agenda includes a presentation of the Proposed Budget and Plan of Municipal Services for Fiscal Year 2026-27. Other scheduled items include a grant application for Marsha's Happy Haven and Terry Lane Trail Project, purchase of a 2026 Ford F-550 truck chassis and crane upfitting package, an Interlocal Agreement with Rockwall Independent School District for School Resource Officer Services, and consulting services for rewriting the City's Zoning Ordinance and Subdivision Regulations. Minutes have not yet been published.

Coming Up

No upcoming meetings are listed for the next 14 days.

Heath finance board recommends Valley View Consulting for investment management; council rezoning hearings pending

The Heath Finance & Audit Advisory Board has recommended that City Council approve Valley View Consulting as the city's investment portfolio management firm at an annual cost of $30,000, according to official minutes from the board's July 2 meeting.

The board noted the $30,000 annual cost would be funded through increased interest earnings to support city operations. The recommendation now goes to the City Council for final action.

Finance & Audit Advisory Board — July 2

The board received an update on the FY 2026-2027 budget development process and reviewed the March 2026 mid-year financial report. The investment management discussion was the only action item recorded in the minutes; the board recommended Valley View Consulting for the portfolio management role.

City Council — June 24 (outcomes not yet published)

The City Council agenda for June 24 listed public hearings on three rezoning cases:

• **ZA-26-2**: 400 Heathland Crossing, from PD-SF-43 to SF-43.
• **ZA-2026-3**: 531 Hubbard Drive, 40 acres, from agricultural to SF-43 single-family residential.
• **ZA-2026-4**: Parcel 10470, 20.99 acres, from agricultural to SF-43.

The council was also scheduled to act on several contracts and agreements:

• A change order to the Hill & Wilkinson contract for the Town Center Park project.
• A bid award and contract for construction of an elevated water storage tank.
• A professional services agreement for design of the Terry Lane sidewalk project.

An update on DPS Stations 30 & 31 construction was also listed for discussion. Minutes from this meeting have not yet been published, so outcomes are not available.

Board of Adjustment — June 26 (outcomes not yet published)

The Board of Adjustment was scheduled to hold a public hearing on Case BA-26-2, a variance request for Lot 6, Block E/1, Cove Ridge Acres #1, at 1204 Stonewall Trail. The request sought to allow a 3-foot encroachment into the required 15-foot side yard setback under Section 159.22(E)(8)(a) of city code.

The board was also set to approve minutes from its May 7, 2026 meeting. Minutes from the June 26 meeting have not yet been published.

Planning & Zoning Commission — July 7 agenda (outcomes not yet published)

The Planning & Zoning Commission has scheduled continued public hearings on two rezoning cases that also appear on the council's June 24 agenda:

• Rezoning 40 acres at 531 Hubbard Drive from agricultural to SF-43.
• Rezoning 20.99 acres (RCAD Property ID 10470) from agricultural to SF-43.

Two new hearings are also listed:

• A rezoning of 400 Heathland Crossing and 1500 Laurence Drive to PD-SF-43.
• An amendment to the Future Land Use Map for those properties to Rural Estate.

The commission is also scheduled to discuss and act on a Final Plat for Founders Reserve, a 22.357-acre subdivision near Laurence Drive and FM-549. All commission decisions will be forwarded to City Council for final adoption. Minutes have not yet been published.

Coming up

No upcoming meetings are listed for the next 14 days. Residents seeking outcomes from the June 24 council meeting, June 26 Board of Adjustment meeting, and July 7 Planning & Zoning meeting should watch for published minutes on the city's official website.

Finance board recommends Valley View Consulting for city investment management at $30,000 per year; zoning hearings proceed

The Heath Finance & Audit Advisory Board on July 2 recommended that the City Council hire Valley View Consulting to manage the city’s investment portfolio at an annual cost of $30,000. The board heard that the fee would be offset by additional interest earnings the firm is expected to generate, directing more revenue toward city operations. The recommendation now goes to the council for a final decision.

In other city business this week, three rezoning requests that could transform large agricultural tracts into single-family neighborhoods advanced to public hearings, while a homeowner’s request for a side-yard variance also drew attention. All other actions remained at the discussion or hearing stage, with no votes taken by the council or the planning and zoning commission.

Finance board recommends investment manager

During its July 2 meeting, the Finance & Audit Advisory Board received updates on the FY 2026-2027 budget development process and the March 2026 mid-year financial report. Members then voted to recommend Valley View Consulting for investment portfolio management services. The board noted that the $30,000 annual contract cost would be funded through increased interest earnings, which would in turn support city operations. No vote tally was immediately available from the meeting minutes. The recommendation now awaits City Council approval.

Rezoning hearings set for Hubbard Drive area

The Heath City Council and the Planning & Zoning Commission each held public hearings this week on three rezoning cases that would convert farmland to single-family residential use:

• A 40-acre tract at 531 Hubbard Drive (ZA-2026-3) from agricultural (AG) to SF-43.
• A 20.99-acre parcel (RCAD Property ID 10470, ZA-2026-4) from AG to SF-43.
• A third case at 400 Heathland Crossing (ZA-26-2) from PD-SF-43 to SF-43.

The Planning & Zoning Commission continued its hearings on the two agricultural parcels on July 3, while also opening new hearings for a planned development rezoning at 400 Heathland Crossing and 1500 Laurence Drive, and an associated amendment to the city’s Future Land Use Map. None of these zoning changes have been voted on; all will be forwarded to the City Council for a final decision.

The City Council’s June 24 agenda also included votes on several capital projects, but official minutes were not yet available. Those items included a change order for the Town Center Park project, a contract to build an elevated water storage tank, and a professional services agreement for the Terry Lane sidewalk design. An update on construction of DPS Stations 30 and 31 was also on the discussion calendar.

Variance sought for Stonewall Trail home

The Board of Adjustment held a public hearing on June 26 on a variance request (Case BA-26-2) for a property at 1204 Stonewall Trail in the Cove Ridge Acres subdivision. The homeowner is seeking permission to encroach 3 feet into the required 15-foot side-yard setback under city code. No decision was reported; the board also considered approval of its May 7, 2026, meeting minutes.

Coming up

No public meetings were listed on the city’s calendar for the two weeks following July 5. The council is expected to consider the investment management recommendation and the zoning cases later this year when final votes are scheduled.