Sales and Use Tax Educational Meeting

April 18, 2024 at 6:00pm

Fire Station

545 S. Allen

Boyd, TX 76023

Building a Foundation for the Future

EDUCATIONAL INFORMATION 

The Board of Commissioners of Wise County Emergency Services District No. 1 have ordered the calling for a Sales and Use Tax proposition to be on the election ballot for May 4, 2024.  If approved by the voters, this proposition would authorize up to one and one half percent (1.5%) to be captured by the district in all unincorporated areas not yet at the maximum of 8.25%.  

What is Wise County ESD #1?

An Emergency Service District (ESD) is an independent local government created by voters through an election in a geographical area to provide fire protection, emergency medical services or both.  There are more than 300 districts operating in the state of Texas protecting more than 8 million Texans.   

Wise County ESD #1 is the government entity that collects property tax to provide funding for emergency services to the citizens within its geographical boundaries which include the communities of Boyd, Keeter, Aurora and Springtown.  

WCESD # 1 was created in 2001 by it's voters within it's geographical boundaries.  The district provides emergency services to over 89 square miles.

What services do WCESD #1 provide?

WCESD #1 provides fire protection, rescue, and emergency medical first responders to the citizens within the district's geographical boundaries.  

What is Sales and Use Tax?

Texas imposes a 6.25 percent state sales and use tax on all retail sales, leases, rentals of most goods, and other taxable services. Local taxing jurisdictions (cities, counties, special purpose districts and transit authorities) can also impose up to 2 percent sales and use tax for a maximum combined rate of 8.25 percent.

How will this impact me financially?

By levying a Sales and Use Tax, WCESD1 would be sharing a portion of its funding for emergency services from property owners to anyone buying taxable goods and services within the district's boundaries.  The current Ad Valorem tax rate is 0.03/$100 valuation.  The Board would like to prolong raising the Ad Valorem rate if possible, when other options are available. 

How will the additional funding be used?

Through sound fiscal management and good stewardship, the Board has been able to purchase and maintain the current training, apparatus, and equipment to protect the community up to this point with a limited budget.

There are five major issues facing the district which require additional funding:

1. Recruitment and retention of firefighters
2. Limited budget and rising costs
3. Population growth within the service area
4. Aging equipment and apparatus
5. Life Safety Equipment

As the Board considers the next 10 years of growth and emergency response, long term strategic plans are being drafted to highlight the next steps in anticipating the needs of the district.  

What happens if the Ballot measures do not pass?

WCESD #1 and the Board of Commissioners will continue to provide fire protection, rescue, and first response medical services to the district.  The failure of the election will hinder the Board's ability to conduct business for the district.  Over the past 10 years, the district has seen an increase in call volume of 88% while our revenue has increased by 41%.  This data shows our call volume is far outweighing our revenue stream.  Over the next 5 years, the district will have difficulty providing the level of service our citizens have come to expect.  We have seen an exponential growth in both residential and commercial throughout our district.  With this, comes the need for increased apparatus and equipment to mitigate any hazards presented to the Fire Department.  The Board of Commissioners fear that over the next 5 years, the Fire Department will not have the necessary tools to mitigate hazards presented on a daily basis.

What are the 3 most important things to know about this election?

1. With new citizens and businesses moving to our district, our community is growing.  We need to build a foundation that will ensure our fire department will grow with the growing needs of our community and the need for a higher level of fire protection is imminent.

2. Since it would be impossible for WCESD #1 to continue serving our growing community at our current funding level, this resolution calling for an election was proposed.  With it, our residences will enjoy highly motivated, highly trained, and well equipped firefighters to mitigate any emergency in your time of need.  

3. If voters within WCESD #1 do not approve, the set back will undoubtedly hinder the Board of Commissioner's ability to provide the highest level of fire protection possible to it's residences for years to come.