Development News for Heath, Texas

Finance Board Reviews FY27 Budget Process, Mid-Year Financials, and Investment Services

The Finance and Audit Advisory Board received an update on the FY27 proposed budget development process, which included a timeline of key dates such as budget kickoff meetings, internal reviews, preliminary budget submission to City Council, public hearings, and final adoption. Key assumptions and drivers for the FY27 budget were also discussed, including preliminary tax values showing an increase, a proposed utility rate increase, a new solid waste contract, increased building and maintenance costs due to new facilities, and staffing needs for public safety facilities, with an estimated six to twelve new public safety officers being considered. The board also reviewed the mid-year financial report, discussing revenue and expense analyses for the general fund and utility fund, noting areas performing well (green) and those needing further explanation (red), particularly concerning development fees for plan reviews which have become an issue due to a change in state law impacting how fees are calculated. Discussions also covered sales tax collections, overall expense trends, and the need for improved internal controls and software reconciliation for credit card transactions. Lastly, the board heard presentations and discussed proposals from two firms, Hilltop Securities and Valeview Consulting, for investment portfolio management services, with a preliminary recommendation leaning towards Valeview Consulting due to cost-effectiveness and personalized service, although concerns about their technology and cyber protections were noted.