An Emergency Services District (“ESD”) is a local political subdivision of the State created by an election(s), that provides fire, rescue, EMS and other emergency services. Emergency Services Districts (ESDs) are authorized by the Texas Constitution, Article 3, Section 48-e, and Chapter 775 of the Texas Health & Safety Code. There are more than 340 emergency services districts

operating in Texas across 90 counties.

Orange County Emergency Services District No. 4 (“OCESD 4”, or the "District") is a

governmental entity that collects property tax to fund two (2) fire stations; these entities then provide fire suppression and emergency medical services to the residents within the District’s boundaries, and to neighboring reciprocal mutual aid partners as needed. These property taxes

fund stations, apparatus, personnel, and equipment the fire department utilizes to provide fire protection for the community.

The taxes collected come from an ad valorem tax, commonly known as property tax.

Emergency Services Districts are capped by the Texas Constitution at $0.10/$100 valuation of taxable property; the 2024 tax rate was set at $0.072944/$100. Often, this revenue source alone is insufficient to meet the emergency response needs of districts, and boards seek additional funding outside of property tax.

Through sound fiscal management and good stewardship, the Board of Commissioners of

Orange County Emergency Services District No. 4 has been able to purchase and maintain thecurrent training, apparatus, and equipment to protect the community up to this point while managing their capital reserve for scheduled, long-term expenditures. However, there are three

major issues facing the District which require additional funding:

• Recruitment and retention programs for qualified, certified fire department staffing
• Building of stations on District-acquired land, for comprehensive response modeling
• Replace apparatus to modernize and upgrade the aging fleet

As the Board considers the next 10 years of growth and emergency response, long-term

strategic goals have been drafted to highlight the next steps in anticipating the needs of the District.

OCESD 4 has seen tremendous population and commercial change over the past decade. Because of this, the number of calls the District has responded to has evolved over the last 10 years. The total number of calls in 2022 was 481 while the total call volume for 2024 was 1,332 for an increase of 277 percent. OCESD 4 has been using the District’s capital reserves and ad valorem (property) tax rate to forecast and plan for equipment purchases and maintenance for

the foreseeable future, as increased costs for apparatus and longer lead times require more expenditure than in previous years.

By levying a Sales and Use Tax, OCESD 4 would be shifting a portion of the funding for

emergency services from property owners to anyone buying taxable goods and services in the District. The current property tax rate approved by voters is $0.072944/$100 valuation. The District is unable to increase the property tax rate beyond the state maximum of $0.10 and is hesitant to increase property tax burden on residents. After careful consideration, the Board of

Commissioners has chosen to seek additional funding through a sales and use tax now while it is available to the district.

The Board of Commissioners has considered several sources of additional funding, and believes the best option would be the implementation of a sales and use tax in the District. In Texas, the state captures $0.0625 (6.25%) on every dollar spent but allows other local government entities, such as OCESD4to capture up to $.02 (2%), with a state maximum of $0.0825 (8.25%),

to support community services. If the District levied up to a one and one-half percent (1.5%) Sales and Use Tax, it could supplement the existing funding of emergency services from solely

depending on residents’ property taxes, to those people traveling to and through the OCESD 4 community, who may also use and benefit from local emergency services.

Residents and visitors making purchases in areas where a city or the county has “carved out” an

overlay are already paying the state maximum of eight and a quarter percent (8.25%) sales and

use tax. To clarify, no area within the District can go above the state sales and use tax cap as a result of this election proposition. If so approved by voters, this proposition would only affect residents and visitors making purchases in areas not currently capturing the state maximum, meaning the remaining sales tax collections beyond the state-required capture would stay within the District for local emergency response services and initiatives.

Whether or not the sales tax measure passes, the OCESD 4 Board of Commissioners will

continue to serve the residents within the District boundaries, but their ability to address the issues facing the District’s growth requirements and staffing goals would be limited, as outlined

above.

The May 3, 2025 ballot will ask residents of the District to vote for or against a Local Sales and

Use Tax, for the entity known as Orange County Emergency Services District. It will read as follows:

Proposition:

“The adoption of a local sales and use tax in Orange County Emergency Service District No. 4 at a rate not to exceed one and one-half (1.5%) in any location in the district.”

Voters will need to be looking for this language if they wish to cast their vote regarding the sales and use tax for OCESD 4.

Voting schedules and locations for the May 3 ,2025, election can be found at this official OrangeCounty website: https://orangetexas.gov/238/Election-Eleccion

Good! The goal is for the residents to have all the information at their disposal when voting

approaches. https://www.ocesd4.com/