Half a cent of every dollar spent in Heath flows to economic development. A new overview from the city's two sales-tax-funded corporations spells out how that money can be spent.
The overview document, posted Wednesday, Sept. 30 on the Heath Economic Development Corporation (HEDC) website, details the legal authority, eligible spending categories and operating rules for both the HEDC and the Heath Municipal Benefits Corporation (HMBC).
Where the money comes from
Heath's total sales tax rate is 8.25%. The state collects 6.25%. The remaining 2% stays local: 1% goes to the City of Heath general fund, 0.5% to the HEDC for Type A projects and 0.5% to the HMBC for Type B projects.
That revenue stream is not without complications. At the boards' July 21 meeting, board member David Lane raised concerns about Heath losing sales tax revenue because the shared 75032 zip code causes some online orders to default to Rockwall instead of Heath, according to meeting minutes. Sales tax consultant NueMo recovered about $18,391 for the city in 2026.
What each corporation can fund
Type A dollars are geared toward manufacturing and industrial development. Eligible projects include manufacturing facilities, distribution centers, research and development sites, corporate headquarters, job training programs and certain infrastructure improvements.
Type B dollars cover everything Type A can fund, plus quality-of-life projects: parks, sports and athletic facilities, tourism and entertainment venues, affordable housing, public safety facilities and street, water and sewer improvements.
The boards put that broader authority to use at the same July 21 meeting, unanimously approving $500,000 for a northern entrance monument and placemaking signage at other city entry points. The vote was unanimous.
Because the overview classifies Heath as a city with fewer than 20,000 residents, the HMBC can also fund projects the board finds promote business development even if those projects do not create or retain primary jobs.
How businesses apply
A separate assistance policy published the same day outlines a two-stage application process. In Stage One, a business submits a preliminary application and executive summary. Staff then runs background and credit checks before deciding whether to advance the request.
Stage Two requires a comprehensive application, a formal board presentation and, if approved, contract negotiation followed by Heath City Council review and final approval.
Assistance can take the form of a loan, a grant or a combination. The corporations may require repayment provisions on all assistance, the policy states. Evaluation criteria include jobs created, capital investment, projected sales and property tax revenue and quality-of-life enhancements.
The policy notes that projects are considered case by case and should expand Heath's tax base without altering the city's character as a premier Dallas-Fort Worth suburb.
Governance and transparency
Both boards operate under the Texas Open Meetings Act. For Type B projects beyond the Type A list, the HMBC must hold a public hearing and wait 60 days from the first public notice before providing funds. Funding agreements of $10,000 or more require at least two separate board readings.
Board officers as of the July 21 meeting included President Mike Zilinskas, Vice President Bart Davenport and Secretary/Treasurer Douglas Barkley.
The overview cautions that it is not a substitute for legal advice and directs applicants to the Texas Municipal League's Economic Development Handbook and their own counsel.
Residents and businesses can reach the HEDC and HMBC at 200 Laurence Drive in Heath or through heathtxedc.com.
