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Heath council sets FY 2026 budget hearing, records proposed tax rate and schedules tax-rate hearing
Summary
The council scheduled a Sept. 9 public hearing on the FY 2026 proposed budget, set a Sept. 23 public hearing and adoption date for the proposed tax rate, and recorded a proposed property tax rate of 0.27565 per $100 — actions approved unanimously after staff described timing and the difference between the de minimis and voter-approval rates.
The Heath City Council on Aug. 12 set two public hearings related to the fiscal year 2026 budget and recorded a proposed property tax rate the council may adopt later in September.
City finance staff presented the FY 2026 adoption calendar and explained statutory timing under the Texas Local Government Code. The council voted to set a public hearing on the proposed FY 2026 budget for Sept. 9 and directed staff to publish the required notice by Aug. 22. Council members then recorded a proposed property tax rate of 0.27565 per $100 taxable valuation and scheduled a public hearing and possible adoption of the tax rate for Sept. 23 at 6:30 p.m.
Finance staff explained the choice of rate in the context of state law. The city’s calculated de minimis rate (0.28383 per $100) exceeded the voter-approval rate and could trigger additional statutory steps; given filing timelines staff recommended moving forward with the voter-approval rate (0.275565 as calculated), and the proposed posted rate adopted by motion was 0.27565 per $100. Staff said that using the voter-approval rate reduces property tax revenue in FY 2026 by roughly $259,000 compared with the initially planned (de minimis) level; staff also said the city has excess general-fund balance to cover the difference and recommended no immediate reductions to proposed appropriations.
Council discussed procedural timing, causes for the de minimis-voter-approval difference (unused increment accumulated in prior years), and steps staff will take to adjust the FY 2027 calendar to avoid timing issues. Councilmembers emphasized the need for transparency on revenue and head-count assumptions in the budget.
Both motions — scheduling the Sept. 9 budget hearing and recording the proposed tax rate/scheduling the Sept. 23 tax-rate hearing and adoption — passed unanimously.
Key dates recorded by staff: publish hearing notices by Aug. 22; budget hearing Sept. 9; tax-rate hearing and adoption Sept. 23.
