ESD No. 5: Where will the money go?

ELLIS COUNTY – When the upcoming May election rolls around in less than a month, Ellis County Emergency Service District No. 5 will have two propositions on the ballot.

Proposition A is to authorize an increase in the maximum ad valorem tax rate that ESD #5 may impose on property within the district at a rate that will not exceed $0.10 per one hundred dollars ($100) valuation.

Proposition B is for the adoption of a local sales and use tax in ESD #5 at a rate not to exceed 2% in any location in the District.

ESD 5 Commissioner Dallas Dial, who is in his fifth year on the board explained how ESD # 5 plans on spending the increased tax revenue if Proposition’s A and B pass. 

Under the current contract with the city of Ferris, 55 to 60 percent of all collected tax funds go directly into the city’s general fund. Dial said a portion of the remaining 40 to 45 percent goes to the maintenance and upkeep of ESD # 5’s fire station, which is located in Ferris on Ewing.

“Just as an example of the cost of maintenance of the fire station, ESD #5 has to have the concrete driveway cut out and replaced, the cost of this will be approximately $22,000,” Dial explained.  

He also reminded that all the district’s citizens – both inside and outside the city limits – have a paid membership with CareFlite. 

“This and the housing of CareFlite paramedics are paid for from the tax revenue collected by ESD #5,” Dial added. “This allows the City of Ferris to have an ambulance stationed in Ferris full-time. The remaining amount of tax revenue is deposited into a savings account at our local Commercial State Bank in Ferris for future purchases of fire fighting equipment, emergency and non-emergency contingency funds.”

Emergency contingency funds are, as explained by Dial for equipment like the new two way radios that are being mandated by the state. There are also the non-emergency contingency funds such as a gym membership for the city of Ferris firefighters.

“All of the tax revenue collected by the ESD #5 is spent on servicing the city,” Dial concluded. “Ferris Fire Department and CareFlite, our first response medical and ambulance services.”

Ferris City Manager, Brooks Williams had noted last month Prop A doesn’t work out well for the 1,800 homes that are paying both Ferris taxes and ESD #5 taxes.

“There are approximately 1,800 properties in the city limits that are included in the ESD,” said Williams. “There are 3,100 properties in the county that are the ESD. This will require tax payers in the city to pay $.10/$100 of valuation, up from $.03/$100 valuation. Citizens within the city limits will be paying more in taxes, while already having a professional fire fighting service available to them.”

Dial said at time there had not been an increase since ESD #5 was formed 25 years ago. There was a new contract negotiated this year between the City of Ferris and the ESD, but the election results on May 1 will determine whether voters decide to change that contract.

If the propositions do pass, it is the hope of Ferris Mayor Fred Pontley and City Manager Williams that ESD #5 will start sharing financially where the money is being spent. Pontley said earlier, “If they get the money – will they be able to show where it goes? They haven’t done that for the last six years.”

As for the sales tax increase, that will only include county districts since inside the city limits the amount is already maxed out, which means no increase to the city’s sales tax. 

Dial commented last month on Proposition B this tax increase will ensure the rural area of the ESD #5 district will continue to have the same quality of fire protection and emergency medical service as in the city limits.