ESD2 takes final action on tax rate increase, budget, and votes to pay off fire house note

ESD1 Battalion Chief David Powers, designated to take charge of managing fire protection in Devine, attended the ESD2 board meeting Friday. (Photo by Anton Riecher)

By Anton Riecher
At a public meeting held Sept. 16, the Medina County Emergency Services District No. 2 board of commissioners took final action to approve 2025 ad valorem tax rate of 10 cents per $100 valuation, effectively a 43 percent increase.
On a motion by board vice president Jeff Howard, seconded by assistant treasurer Jerry Stevens, the tax hike was approved by a 4-0-1 vote. Board secretary Abigail Beadle was absent for the vote.
The approved rate represents the maximum that state tax law allows an ESD to set its rate. It also exceeds the voter approval tax rate calculated at $.0630, leaving the district vulnerable to a possible election petition.
Also approved was a 2025-2026 budget of $1.3 million, including $900,000 to cover the management takeover of local fire protection by Medina County’s Castroville-based ESD1 led by Fire Chief Clint Cooke. As with the tax rate, the budget was approved by a 4-0-1 vote following a motion by Stevens, seconded by board treasurer Ken Nighswander.
Complete video coverage of the board meeting is posted on the Devine News YouTube channel.
Not including the new management contract, the new budget represents a $179,100 increase over the previous budget, ESD2 bookkeeper Nancy Pepper said. Revenue over expense leaves a $293,000 surplus, not including an upcoming $80,000 forensic audit ordered in the investigation of recent financial improprieties.
On hand for the meeting was ESD1 Battalion Chief David Powell, scheduled to take charge of Devine fire operations effective this past Monday,Sept. 22.
“My last day as a battalion chief (in Castroville) is Sunday morning at 0600 hours,” Powell said.
Devine Fire Assistant Chief Scott DeLucia confirmed to the ESD2 board that Jessica Martinez, named chief by the Devine volunteer fire department after the resignation of Greg Atkinson last February, has herself resigned effective October 1.
Of the two district residents to comment during the public hearing preceding the tax rate vote, both spoke in support of the rate hike. Former city council member Debbie Randall said she supported the increase despite being a retiree living on a fixed income.
“How I see it is this raise in the tax rate is allowing our community to have a much better level of service from our fire and EMS, so much more than we’ve had in the past,” she said.
According to her calculations, a homeowner with a $100,000 home can expect to pay $31.30 more a year. The owner of a $300,000 home can expect to pay $94 more a year, or $7.84 a month.
Former county commissioners Jerry Beck, currently serving on the ESD4 board, said that older homeowners will have the increase offset by the new homestead exemption approved by the district this year.
“So it won’t be that big a deal for all of us,” Beck said.
In other financial matters, the board voted 4-0 to amend the current 2024-2025 operating budget by adding $100,000 to the sales tax revenue account. As of August, sales tax revenue stood at $448,000 with another $35,000 received in August, ESD2 bookkeeper Nancy Pepper reported. Already $48,124 more than expected. September sale tax revenue is $35,991.
Included in the $100,000 amendment is $85,000 in additional funds given to the Devine Volunteer Fire Department, plus $9,000 in interest and sinking fees not included in the budget, $3,500 in website development and $2,000 as a financial cushion, Pepper said.
“That’s pretty close to what our budget was with some changes here and there,” Pepper said.
As of August, revenue for the current budget stands five percent short of the projected amount, Pepper said. The district ended the fiscal year with $438,000 in revenue over expenses.
With the balance on the note for the DVFD DuBose Fire House standing at $81,687 as of August, Pepper recommended paying it off to save the interest on continuing monthly payments. The move would leave nearly $40,000 in the district’s interest and sinking account.
“We need to leave some money in there because we keep that account open for delinquent taxes that will be coming in,” she said.
She recommended taking $35, 000 from interest and sinking and the balance due from the general fund. On a motion by Nighswander, seconded by Howard, the board voted 4-0 to pay off the note.
A financial report by provided by the Devine Fire Department Volunteer Association president Eric Quintanilla showed an opening balance of…LOGIN TO CONTINUE READING at www.devinenewsmembers.com. You will get instant access to our full E-edition, and begin getting the newspaper delivered to your home next week for $36 a year in Medina County. Support important local city, county, and school news like this!