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2011 SAFE-D Fall Workshop - Overlapping Districts


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PowerPoint giving a general overview of the process and requirements for creating an overlapping ESD under Ch. 775 of the Tex. Health & Safety Code as a result of the passage of SB 917 by the 82nd …

PowerPoint giving a general overview of the process and requirements for creating an overlapping ESD under Ch. 775 of the Tex. Health & Safety Code as a result of the passage of SB 917 by the 82nd Texas Legislature in 2011.

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  • 1. Overlapping Districts
    2011 SAFE-D Fall WorkshopSeptember 30, 2011
  • 2. Creating an Overlapping District
    Why create another ESD?
    Additional Services
    Additional Tax Revenues
    Constitutional Cap is $0.10 per District
  • 3. Single ESD
  • 4. Add Overlapping ESD
  • 5. Add Overlapping Entity
  • 6. Add Overlapping ESD
  • 7. Adjacent ESDs
  • 8. Add Overlapping ESD
  • 9. Basic Process
    Acceptance by County Commissioners Court
    Notice to Existing ESD
    Municipal Consent
    Public Hearing
    Order for Election
    Conducting the Election
    Canvassing the Election
    Order Creating the District
    And Then…
  • 10. Petition
    100 Qualified Voters, or a majority if less than 100 Qualified Voters in the Area
    Name of the District
    Boundaries of the District
    Voter Printed Name, Mailing Address, Voter ID Number, Signature, Date
    Agreement of 2 voters to pay not more than $150 of costs
  • 11. Boundaries
    May be designated by metes and bounds or other sufficient legal description
    A statement that the boundaries are coextensive with the boundaries of another political subdivision, as those boundaries exist on a particular date, is a sufficient legal description
    CAUTION: Confirm accuracy and consistency of legal description and any maps showing district.
  • 12. Use Boundaries of Existing ESD
  • 13. Use Boundaries of Multiple ESDs
  • 14. Acceptance
    Proper petition received by County Judge and filed with County Clerk
    Hearing at next regular or special session after Petition is filed
    Notice of Hearing
    Sheriff must post on Courthouse door at least 21 days in advance
    Sheriff must publish in newspaper for 2 consecutive weeks (first at least 21 days in advance)
  • 15. Notice of Hearing
    County clerk provides Sheriff with the notice of the hearing, which must state:
    that creation of a district is proposed;
    that it is to be created and is to operate under Article III, Section 48-e, of the Texas Constitution;
    the name of the proposed district;
    the district's boundaries as stated in the petition;
    place, date, and time of the hearing; and
    that persons of interest may attend and present argument.
  • 16. Evidence of Notice
    The return of each officer executing notice must:
    be endorsed or attached to a copy of the notice;
    show the execution of the notice;
    specify the dates of posting and publication; and
    include a printed copy of the published notice.
  • 17. Proposed Overlap
    Where the proposed district overlaps an existing district:
    Commissioners Court sends copy of the petition to the existing district
    Before election, existing district must adopt a statement of services detailing the services it will provide in the overlapping territory if the proposed district is created
  • 18. Statement of Services
    EMS Transport
    First Response EMS
    Hazardous Materials
    Fire Code
    Fire Marshal
    Capital Financing & Ownership
  • 19. Municipal Consent
    Municipal Consent required forarea within City Limits or ETJ
    written request to City for consent
    60 days for City to Respond
    if no consent within 90 days of request, file petition requesting services
    majority of voters
    50 percent landowners
    if refusal or no action within 6 months of petition, deemed consent
    Consent valid for 6 months
  • 20. Need Consent from City
    For City Limits and ETJ
  • 21. Special Consent Provisions
    Municipal Consent for City >1 Million and County <1.4 Million Population (San Antonio/Bexar County)
    limit the district's ability to incur debt;
    require the district to ensure that its equipment is compatible with the municipality's equipment; and
    require the district to enter into mutual aid agreements.
  • 22. Findings for Creation
    After the hearing and if Commissioners Court Finds that creation of the district
    is feasible
    will benefit the territory in the district
    will secure the public safety, welfare, and convenience, and
    will aid in conserving the real property or natural resources in the proposed district
    Then Commissioners Court shall grant the petition and fix the district's boundaries
  • 23. Findings if City Included
    If the proposed district includes municipal territory, the commissioners court must determine if the district would still promote the public safety, welfare, health and convenience of residents if the municipal territory were excluded.
    The commissioners court must make this finding in connection with each affected municipality.
  • 24. Okay if City Not Included?
    For City Limits and ETJ
  • 25. Adverse Findings
    If the Commissioners Court finds that the proposed district does not meet these requirements, the Commissioners Court must deny the petition.
    Commissioners Court decision is discretionary.
  • 26. Ordering Election
    Upon granting petition, Commissioners Court must order election
    Ballot must include any terms negotiated with an affected municipality.
    Notice of the election must be given in the same manner as the notice of the petition hearing.
    Election must be held on the first authorized uniform election date that allows sufficient time to comply with other requirements of law.
  • 27. Canvassing Election
    District Created if Majority of Votes In Favor
    Must be Majority of Voters within City Limits or ETJ in favor of creation to include those areas in District
    If such territory is excluded, creation is not defeated if the commissioners court’s required findings regarding the remaining territory are favorable to creation.
  • 28. What did Commissioners Decide?
    For City Limits and ETJ
  • 29. Canvassing Election
    Upon creation, the commissioners court shall enter in its minutes an order containing language prescribed by the statute as well as any negotiated conditions that were included on the ballot.
    If election fails, must wait one year to try again
  • 30. Order Creating District
    In form proscribed by statute
    Order should be filed in County Records together with all other records relating to creation of District
    Municipal Consents
    Order Calling Election and Making Findings regarding Creation
    Order Canvassing Election and Creating District
  • 31. Overlapping District Issues
    The existing district must provide the statement of services to the proposed district after its creation
    The new district may not provide services in the overlapping territory that duplicate the services provided by the existing district as set forth in the statement of services
  • 32. Getting Set Up
    Board Members
    Ad Valorem Taxes
    Sales Taxes
    Contracts for Services
  • 33. Board Members
    Commissioners may serve on two districts
    A commissioner serving two districts may:
    only receive compensation from one board
    and be reimbursed for expenses by both.
    May want to submit names of initial board candidates to Commissioners Court.
  • 34. Board Members
    Appointed by Commissioners Court
    May be members of the existing district(s)
    Must execute Statement and Oath
    No emolument or dual office holding issues
    Must be aware of potential conflict of interest
  • 35. Same Board Members?
  • 36. Board Members from each overlapped District?
  • 37. Ad Valorem Taxes
    Impact on Tax Rates
    Transfer of governmental functions?
    Tax Code §26.04(i) and (j)
    “agreed by written contract to transfer a distinct department, function, or activity to another taxing unit…”
    No contract transfer unless Existing District and Proposed District decide to enter into one
  • 38. Ad Valorem Taxes
    If Transfer by Contract:
    Change in Rollback Rate Calculation
    Reduces revenues used to calculate Rollback Rate for transferring district by amount of O&M revenue used to fund transferred function
    Increases revenues used to calculate Rollback Rate for receiving district by amount of O&M revenue used to fund transferred function
  • 39. Sales Tax
    Existing District keeps all Sales & Use Tax authority
    New District can seek Sales & Use Tax authority where available under 2% Local Cap
    Including possible “carve out” areas
  • 40. Overlapping ESD May Get 1%
  • 41. Overlapping ESD May Get 0.5% PLUS 1.0% Outside Local Entity
  • 42. Overlapping ESD May Get Mixed Sales Tax
  • 43. Contract for Services
    Authority under Interlocal Cooperation Act or H&S Code 775.0366 (as added by SB 917)
    May contract with others for services
    Including overlapping ESD
    ESD as contract provider may provider services that the ESD requiring services is authorized to provide
  • 44. Contract for Services
    Fire ESD Provides to EMS ESD:
    EMS Transport?
    First Response EMS?
    Medical Director?
    EMS ESD Provides to Fire ESD:
    Fire Suppression?
    Fire Code Enforcement?
    Rescue Services?
  • 45. Contract for Services
    Other Models?
    ESD Provides Building and Equipment
    ESD Provides Administration/Management
    Other Options…
  • 46. QUESTIONS?
    John J. CarltonThe Carlton Law Firm, P.L.L.C.2705 Bee Cave Road, Suite 110Austin, Texas 78746(512) 614-0901