31/08/2023
★TOPIC 10. THE DOWNSIDE OF AN ESD
As a political subdivision of the State, an ESD is another layer of government that will need to spend taxpayer money for overhead expenses, thus reducing the amount of taxpayer money funding the fire departments. Overhead / administrative costs in some ESDs may appear reasonable, and others may appear to be out of line.
Appointed 5-member ESD Board of Commissioners who have significant power and no accountability to the taxpayers or our County’s elected officials
o Authority whether or not to establish exemptions (homestead, +65, disabled, veteran)
o Authority to grant tax abatements and/or accept donations in lieu of taxes
o Authority to call for sales tax election (once petitioned by 5% of the ESD’s registered voters)
o Authority to bill individuals, entities, insurance companies, etc., for emergency services rendered
o If presented with a dissolution petition by registered voters, a hearing will be called, and the Board will make the sole decision whether to grant or deny the petition. 775.052 (more on this later)
o Authority on whether or not to pay themselves a stipend
o The above are just a few examples of their authority
Ad valorem tax increases at a time when families are struggling to pay for necessities like food, utilities, medicine, and fuel, especially those on fixed incomes.
ASSETS: This can get complicated: Anything purchased with taxpayer funds remains the property of the taxpayers (ESD). This sounds right! Whoever paid for it owns it. However, if an ESD spends taxpayer money to repair equipment or facilities owned by a volunteer fire department, most authorities agree the ESD then owns a proportionate interest in the asset. The way we understand this, let’s say a VFD owns a firetruck, and the ESD spends taxpayer money to replace the motor, or the VFD owns the firetruck, and the ESD spends money to replace the skid unit. In these instances, the ESD would own a proportionate share of the firetruck. This was verified by a VFD Fire Chief whose department contracts with an ESD. If this is incorrect, someone please speak up
There is no guarantee homeowner’s insurance premiums will be reduced with a lower ISO score. Even if premiums are reduced, the lower ISO score does not apply to homes located more than 5 road miles from a fire station or 1000 ft from a hydrant.
Property without structures (farmland) and homeowners without insurance would see no benefit in a “potential” lower insurance premium
There are ESDs across Texas in the news due to conflicts with volunteer fire departments. Most recently, in Brazos County, the ESD, rather than renew their contract with Brazos County VFD, put them on a month-to-month basis while trying to work through an agreement. Key Takeaway: No entity knowingly enters into an agreement expecting conflict, but it does happen.
