Heath council hears FY26 budget presentation; council tables adoption to Sept. 23

City staff presented the proposed fiscal year 2025–26 budget and municipal services plan at the Heath City Council meeting on Sept. 9 and the council voted to table final action until a special session on Sept. 23.

Finance and budget staff (presented by Mr. Ayers) outlined a capital program totaling about $106 million and operating expenditures of roughly $36.9 million, driven largely by water infrastructure and roadway projects. The presentation showed an FY26 beginning fund balance of about $60.7 million, projected revenues of $118 million and projected expenditures near $106 million, resulting in an anticipated end‑of‑year fund balance of about $80.2 million.

Staff described proposed utility rate changes to address wholesale cost increases. The presentation cited a proposed 16% increase to the water base and volume rate, a 6% adjustment to the wastewater base and a 24% wastewater volume rate increase, with an estimated residential bill increase in the mid‑teens depending on usage. Consultants and staff attributed much of the wastewater increase to a 57% pass‑through increase tied to the Buffalo Creek interceptor project at the North Texas Municipal Water District; a portion of water increases were tied to district bond debt and the city’s water bridge plan.

The budget presentation proposed staffing and program changes, including adding two parks maintenance positions (converting two seasonal roles to full time), three public safety officer positions, a city engineer position, HR consultant support, and a street maintenance worker for drainage repair. Staff also outlined planned capital projects including street maintenance, Hubbard Drive Phase 4 completion, fire‑flow improvements, an elevated water tank, and shared storage with the City of Rockwall.

During the public hearing portion of the agenda no residents spoke for or against the budget. After discussion staff recommended the council table the adoption and related property tax and pay plan actions to the council’s Sept. 23 meeting; the council approved that recommendation unanimously.

Council members and staff flagged the budget’s links to wholesale water and wastewater cost increases and reiterated the city’s stated goal to become the safest city in Texas, noting proposed public safety staffing increases. Staff emphasized continuing bid work and refinement of capital estimates before final adoption.