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New sales tax to build revenue in North Hays

New sales tax to build revenue in North Hays
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A new revenue stream that could take pressure off of homeowners within the Emergency Service District No. 6 (ESD 6) was given the go-ahead by voters May 6.


With more than 70 percent approval during the election, ESD 6, which is the North Hays County Fire Rescue, will implement sales and use tax in areas that are not at the state maximum 8.25 percent rate.


Scott Collard, ESD 6 chief, said he was pleased with the community showing “tremendous support” for the initiative.


“It’s going to open doors for us in the future and allow us to provide services based on growth,” Collard said.


With the new rate, Collard said it prevents the district from raising the 7.95 cent ad valorem rate on homeowners.


Collard said the key was ensuring homeowners aren’t shouldering the burden for providing service to a growing district. He added that was the “kind of balance” Collard wanted to see, as a taxpayer himself.


“The services are vital to the overall health of the community. Having the option to not just put the burden on the property tax owners is a huge win for everyone,” Collard said. “That helps spread services out that everyone is receiving or the ability to receive. It’s only fair that everyone has to help fund services.”


Collard said the proposition followed the trend of improving public safety services in the Hays County area. He cited Hays County’s bond initiative, which was approved by voters in November 2016.


He said one of the primary drivers for the focus on improving public safety services is growth that’s coming into the area.


“Everything that’s going on, the buildings that are being built, the people coming in, that drives up the responses we have to make and causes us to react to provide different levels of service,” Collard said.


He added the majority of citizens understood the need and that districts must “address it.”


New businesses moving into the district could play a role in adding to the ESD’s coffers.


ESD 6 services a 244 square mile area, which consists of more than 30,000 people.


What those funds go toward remains to be seen, as the district is in a holding pattern to complete post-election paperwork.


Collard said the district wants to see “good numbers” before they begin allocating funds toward the purchase of new apparatus or facilities.


He said ESD 6 is starting to craft a committee that will spotlight what apparatus, if any, is needed that would “benefit the community the most and is the most cost effective way to do it.”


“The next step is getting together and looking at all of the options on the table and putting together a solid plan that’s going to meet needs and is fiscally responsible,” Collard said.


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