Fair Oaks Ranch council approves 10-year interlocal deal with ESD 4 for fire and EMS; payments phase in to parity

The Fair Oaks Ranch City Council on Sept. 4 approved a 10-year interlocal agreement with Bexar County Emergency Services District No. 4 (ESD 4) to provide fire and emergency medical services to the city, moving the city onto a multi-year payment schedule that phases toward parity with the district's tax rate.

City Manager Scott Heisingay summarized the negotiations after the meeting's executive session, saying the agreement phases payments over four years and then ties the city's contributions to the district's adopted tax rates beginning in fiscal year 2029-30. "This is the culmination of a few months of negotiation and really a couple years of study about the current status and future of the city's emergency services," Heisingay said.

The contract sets a goal response time under 10 minutes and requires quarterly payments from the city to ESD 4. Heisingay gave the council the financial picture the district presented: the city now pays about $600,000 per year combined for fire and EMS; under the interlocal the city's long-term annual cost is projected to rise toward an estimated $3.3 million by year 10. Heisingay described the 10-year total as an estimated $25 million in payments to ESD 4 over the term.

Ron Heygood, president of the ESD 4 board, told the council the district's plan reflects rising costs and growth in the area. "A basic fireman, with EMT training that's a $110,000 a piece," Heygood said, adding that new apparatus and stations have multimillion-dollar price tags. He said ESD 4's adopted tax rate for the coming year is roughly 6.4 cents per $100 valuation and that the district's planning projects increases toward about 9 cents as services expand.

Residents and council members asked about the budgetary impact and the district's plans for additional stations and personnel. Heisingay and Heygood said the phased schedule was intended to let the city meet voter-approval tax limits while enabling ESD 4 to budget for more stations, apparatus and staff. Heygood said he expects a third ESD station to be built within three to four years once funding and staffing are in place.

Council discussion noted alternatives had been explored, including the cost of standing up a municipal fire department, and concluded the interlocal offered the most practical path to sustain and expand emergency coverage.

After discussion the council moved and approved a resolution authorizing the mayor and city manager to execute the interlocal agreement with ESD 4. The motion passed on a voice vote; no roll-call tally was recorded in the transcript.

The agreement requires the city to budget progressively higher annual payments, with the contract's formal schedule specifying the phased amounts for years 1— and then year-to-year budgeting linked to ESD 4's adopted tax rate beginning in year 5. Council members said they expect regular updates on station siting, ISO-related work and staffing plans as ESD 4 implements the expansion.

The city manager said staff will return with implementation details and that the interlocal can be revisited under its termination provisions, which require at least one year's notice by either party.

Actions taken: The council approved a resolution authorizing the mayor and city manager to execute the interlocal agreement with Bexar County Emergency Services District No. 4; the motion was approved on a voice vote.