Hays County ESD 9 looks to increase property taxes; decision delayed after pushback

ESD 9 commissioners were set to vote on a proposed tax rate during an Aug. 13 meeting. The proposed tax rate would jump to $0.06237 per $100 valuation for fiscal year 2025-26.

The proposed rate is an almost 24% increase from the current FY 2024-25 total tax rate of $0.05044 per $100 valuation.

Commissioners did not take action on approving the FY 2025-26 budget and the proposed tax rate, after Hays Emergency Medical Services Association union members representing staff from San Marcos Hays County EMS pointed out errors in the public hearing notice. ESD 9 is contracted with SMHCEMS for EMS services within Kyle.

ESD 9 failed to publish the time of the public hearing on their public notice and noted the wrong tax code, marking Tax Code Section 26.075 regarding petition elections related to tax rates, instead of Tax Code 26.06, detailing requirements for notice, hearing and voting on a tax increase.

“If the board cannot publish legally compliant tax notices, how does the public trust their lives in your hands,” Gregory Humphries, Hays County EMS Association treasurer, said during public comment.

Humphries said he is also concerned over ESD 9 commissioners’ transparency in why they want to pursue the tax rate increase.

Commissioners later decided to push the public hearing in order to comply with notice requirements.

ESD 9 District Administrator David Smith said commissioners are working to take accountability for the error.

“We’re going to make mistakes, but we want to recognize it,” he said. “Let’s go fix it. We’ve got work to do around here.”

A new date for the public hearing has not been decided. Additionally, despite the tax rate hike, the proposed rate falls below the rate that would require voter approval through an election.

Those for

ESD 9 District Administrator David Smith said the tax rate increase was proposed to fund increased contractual costs with San Marcos Hays County EMS, the corporation that provides EMS services to many Hays County areas. ESD 9 is facing a 4% increase in their contract expenses, Smith said, although the dollar amount is unclear.

SMHCEMS Chief Jill Rosales told Community Impact that the contract is increasing due to rising cost-of-living expenses and standard contract increases year over year.

Smith said the revenue from the raised tax rate would also fund costs to purchase aging ambulances and medical equipment. He also stated the purchases would allow the district to have full ownership of the ambulances and medical equipment.

“When you're in a contractual relationship with multiple entities, you don't have a say,” he told Community Impact. “You have to have a general agreement, and you don't get to put your priorities first. It becomes what's the group's priorities.”

He said ESD 9 owning their equipment would also set the district further on the path of splitting from the SMHCEMS corporation, a decision the district is currently in the process of pursuing.

ESD 9 does not have a definitive timeline on a separation from the company yet, he said, but a more detailed plan would likely be determined in the coming months. Smith said the SMHCEMS contract ends Sept. 30 and that negotiations for a future contract are in progress.

"While we cannot share details at this stage, our priority is ensuring continuity of quality EMS services for the community," he said in an Aug. 22 email to Community Impact.

Those against

In addition to the public notice errors, community members and SMHCEMS union members voiced concern about the tax rate increase and what that means for the bigger picture of EMS services in Hays County.

San Marcos City Council member Alyssa Garza said she opposes the tax rate increase and its potential impacts on SMHCEMS if ESD 9 officially breaks off from the company.

“San Marcos Hays County EMS has provided exceptional, reliable service to this region for over 40 years,” she said. “The proposed 27% [tax on average homestead] increase would spend over 42 million in the first year to create a separate EMS department that offers no measurable improvement in service for residents already facing rising costs.”

San Marcos CISD trustee Miguel Arredondo said that while he is familiar with the task of tackling budget constraints, he believes that the tax rate, and looming departure from SMHCEMS, is in response to union organizing.

“I believe that [the proposed budget and tax rate] punishes workers for organizing, threatens over 80 good union jobs and diverts millions from this system we already know works,” he said in public comment.

ESD 9 officials said union organizing would be subject to state and federal law if the district were to become independent, but "[unionizing] will be looked at in the future," Smith said in a Aug. 22 email to Community Impact.

Other community members voiced concern over Diane Hervol’s role as both ESD 9 board president and board member of SMHCEMS and potential conflicts of interest. Community Impact has not received a response from Hervol as of 11 a.m. Aug. 18.

SMHCEMS Chief Jill Rosales said that while, “the split doesn’t make [her] happy,” she hopes for a smooth transition, particularly for her staff. She said she hopes ESD 9 would be able to transfer over SMHCEMS employees that work in Kyle, as they know “the quirks” of the area and have built relationships with community members and officials.

“I have staff that has amazing customer service, and they have worked really hard to provide amazing service,” she told Community Impact. “ The only way that care can continue is where we have the people who know how to do the job, doing the job. ... Having that tenured staff that has the experience in this community is the important part.”

Keep in mind

ESD 9 would not be the first district to split from SMHCEMS. In April, North Hays ESD No. 1 officially parted from the company, after a monthslong period of transition.

North Hays EMS decided to pursue plans to sever their SMHCEMS ties beginning in November 2024, due to chief leadership and management concerns, North Hays EMS Chief Bob Luddy said in a previous interview with Community Impact. North Hays EMS is also looking to increase taxes with a tax rate election this November.

Before North Hays EMS’ decision to leave, Smith served as SMHCEMS chief. He later resigned from the company in December, shortly after a 90% vote of no confidence, as previously reported by Community Impact.

This story will be updated when more information becomes available.