Breaking it down
City Manager Scott Huizenga said the city of Fair Oaks Ranch does not own or operate its own fire department, instead using contracts to provide emergency services to residents.
The city entered its first formal agreement with ESD No. 4 starting in 2021, costing $362,927 at the start of the agreement and increasing to $528,581 by its end in fiscal year 2024-25. The city paid $602,081 for EMS services in FY 2024-25.
In a new agreement, the city will begin with a contract of $1.1 million, nearly doubling the cost of the service, which includes fire and EMS services.
Huizenga said negotiations have been ongoing since July when ESD No. 4 requested that Fair Oaks Ranch pay a parity at the tax rate set by the ESD. Calculations shared by city staff showed that the city would pay an amount equal to $0.02150 per $100 valuation rate, while the ESD passed a rate of $0.064607 per $100 valuation for the upcoming fiscal year.
Rather than increasing the amount paid to ESD No. 4 all at once, the new agreement will incrementally increase the city's payment over the next four years, followed by a payment based on the district’s tax rate. Over the next 10 years, the city is expected to pay $24.7 million for emergency services through the ESD.
“While we acknowledge that we are not paying the same rate that ESD residents are, the city cannot triple its expenditures effectively in one year,” Huizenga said.
Huizenga said while there is a significant increase in payment, city staff believes this is the best option for the city after comparing other emergency service options.
What they’re saying
During the meeting, resident Seth Mitchell asked why ESD No. 4 was projecting tax increases over the next 10 years.
ESD No. 4 board President Ron Heygood said only two ESDs out of the 12 in Bexar County have a lower tax rate than $0.10 per $100 valuation.
To accommodate area growth, the district would need to gradually increase the rate. While Fair Oaks Ranch is not in the tax zone for the district, the contract pays for services to the city.
