On May 7, voters passed Proposition 1 in support of Hutto Fire Rescue, also known as Williamson County Emergency Services District No. 3, with approximately 60 percent of voters favoring a sales tax increase.

The measure will add a 2 percent sales tax to items purchased outside Hutto’s city limits but within the ESD No. 3 service area. This will be in addition to the existing tax of $0.10 per $100 of assessed property value paid by all residents in ESD No. 3.

“We’re very happy the voters supported the proposition,” ESD No. 3 board President Bill Brown said.

The ESD No. 3 board plans to use the money collected toward building and staffing a second fire station south of the railroad tracks along Hwy. 79 to include at least one truck and 12 firefighters providing 24/7 coverage.

ESD No. 3 provides coverage for approximately 43,000 citizens inside and outside the city limits. According to fire officials, approximately 250 businesses will be impacted by the sales tax increase.

Earlier this year, Hutto City Council members asked ESD No. 3 to delay the measure and offered approximately $100,000 in extra funding. ESD No. 3 board members rejected the offer saying it was not sufficient.

Hutto Fire Rescue Chief Scott Kerwood said rejecting the city’s one-time offer of $100,000 is equal to future annual sales tax projections estimated by the State Comptroller’s office.

“Actually, it’s the same amount, but they [city] only did it for one year. The estimate of $100,000 annually that comes from the Comptroller is from here on,” Kerwood said. “What this has done is it has made the ESD No. 3 an equal partner at the table with the city of Hutto and the Hutto Economic Development Corporation.”

The city of Hutto already collects the maximum allowable sales tax at 8.25 percent, and it uses the additional two percent for general revenue, including contributions to resources such as the emergency services district.

Since residents inside the city already pay the maximum allowable rate, they were not allowed to vote on the referendum.

Moving forward, Kerwood said he has received approval to work with an outside agency, Sales Tax Assurance, to help ESD No. 3 navigate required paperwork and process notifications informing residents and businesses in the ETJ of the sales tax increase.

“We are not looking to even begin receiving the first payment until probably around December. We’re a long way out before we even get any type of funding to see what that funding will bring in, and at the same time, we have to look at anticipated revenues to get into the planning phase of putting in that additional station,” Kerwood said.

Brown said he hopes everyone can work well together and move forward.