Heath homeowners would pay about $117 more a year in property taxes under a proposed rate the City Council is set to adopt Tuesday, Aug. 11, as part of a five-item budget package that also includes a new fee schedule and a citywide pay plan.

The proposed tax rate of $0.281436 per $100 of assessed valuation represents a 2.1% increase over the current rate of $0.275650. Combined with rising home values, the owner of a median-valued home ($800,000) would owe $2,251.49 in city taxes, up $117.25 from the current year's $2,134.24 bill on a $774,259 median homestead.

The rate exceeds the voter-approval threshold of $0.271668 but equals the state's de minimis ceiling. That means an automatic election is not required, though qualified voters may still petition for one under Section 26.075 of the Texas Tax Code.

All seven council members voted unanimously to propose the rate, according to the city's official tax rate publication: Mayor Jeremiah McClure, Mayor Pro Tem Scott Dodson and council members Cindy Horne, Ryan Moorman, Mitch Ownby, Johnny Myers and Michelle Thurgood.

What the no-new-revenue alternative would mean

Had the council chosen the no-new-revenue rate of $0.269792, total city tax collections would stay flat. But because home values rose, that same median homeowner would still see a $24.13 increase, paying $2,158.37.

The gap: $93.12 per household.

What else is on the table

Beyond the tax rate, Director of Finance Jay Ayers is presenting four additional action items at the Aug. 11 meeting, according to the posted agenda:

  • FY 2026-2027 budget adoption, covering the fiscal year that begins Oct. 1
  • Tax increase ratification resolution
  • Master Fee Schedule ordinance (specific fee changes have not been published)
  • Compensation program and pay plan, effective Oct. 1

Two public hearings will precede the votes: one on the tax rate and one on the fee schedule.

Budget drivers

At the council's April 28 meeting, Ayers outlined the spending pressures behind the proposed budget: "Preliminary taxable values show an increase from the current fiscal year, approximately $200M … proposed 24% increase to water rates in accordance with the Utility Rate Study … new Waste Collection Contract … increased Building and Maintenance Operation Budget for new facilities coming online … Department of Public Safety staffing for new facilities in FY2027."

City Manager Steven Alexander presented a budget overview at the July 14 meeting, noting staff was still finalizing employee health costs, North Texas Municipal Water District rates and other assumptions. The council held a budget work session on Aug. 5 before the scheduled vote.

Citywide, the total tax levy would rise from $7,944,987 to $8,643,891 under the proposed rate, an increase of $698,904 or 8.8%.

How to weigh in

The meeting begins at 6:30 p.m. Tuesday, Aug. 11, at Heath City Hall, 200 Laurence Drive. Residents who wish to speak during the public hearings must sign in before the meeting starts, approach the podium and state their name and street address. Each speaker is limited to three minutes.