Heath council hears update on water "bridge" plan; staff to pursue funding and return with bond proposal

At its Jan. 28 meeting, the Heath City Council received a presentation updating the city's "water bridge" plan and a feasibility study being prepared by Grantham & Associates to increase the city's local water supply.

The study aims to reduce Heath's reliance on purchased water from the City of Rockwall under the city's 2021 contract. City staff said the plan centers on adding well capacity and storage'including a proposed 1,500,000‑gallon elevated storage tank and additional wells identified in the master water plan.

Why it matters: Heath currently buys water under a contract adopted in 2021. Staff and the consulting firm are seeking to develop local sources and storage so the city can meet summertime demand spikes and reduce long‑term rate pressure. The council directed staff to pursue available funding avenues and return with a bond package and formal recommendations.

Mr. Reid, the staff presenter, told the council that the city remains on its 2021 contract for 6,000,000 gallons and that summer demands strain that allocation. He described the consultant's recommended components as storage and well capacity, noting a 1,500,000‑gallon elevated tank planned for an area identified in the master water plan and multiple new wells and a potential 3,000,000‑gallon ground storage tank that could be deferred pending study results.

Staff said they had submitted preliminary materials to the Texas Commission on Environmental Quality and expected formal comments by Feb. 3; the city intends to open bids on the first well package on Feb. 6. "We expect to come back on the 3rd, respond with our documents," Mr. Reid said. He added the bid openings on Feb. 6 would provide "real hard data" on project costs that staff will use to prepare a bond package.

On financing, staff described utility revenue bonds as the likely vehicle and said bond debt would be incorporated into a rate study. "So they would be baked into your rate study," a staff member said. The city also reported conversations with the Texas Water Development Board and related state programs: some low‑interest or 0% loans may be available but staff said forgivable grants are unlikely because Heath scores low on forgiveness criteria tied to community income levels. A city speaker summarized: "There is funding available'we could see through 0 interest or low interest loans...not the forgivable loans."

Council members asked about accelerating the schedule, bundling well construction to reduce mobilization costs and seeking federal and state grant opportunities. One council member urged staff to "turn over every rock" looking for grant money to reduce the bond burden on ratepayers; staff responded that they could pursue grant writers and contingency‑based grant services and return the results with the bond proposal.

Staff gave a target that the first new well could be producing water in the summer months if permitting, award and construction proceed on the schedule discussed; a speaker said, "We'd like to see just water by July," while warning that final test pumps and permanent installations could push actual service dates later.

No formal council action was taken on this item. Staff said they would respond to TCEQ comments, open bids Feb. 6, prepare cost estimates and bring a bond and rate study package back to council for formal consideration.

Ending: Staff reiterated that the feasibility study from Grantham & Associates is expected to conclude in March and that staff will use those cost estimates to draft bond documents and funding recommendations for council review.