Voters who live in the Winnie-Stowell area narrowly approved the creation of the Chambers County Emergency Service District No. 1 in May. 

Soon they’ll likely be asked to approve the use of local sales tax to help support the service district, which was created to help fund the local volunteer fire department.

Commissioners appointed to the service district’s board of directors met last week to discuss their plans concerning the proposed sales tax election.

Beaumont attorney Hubert Oxford III, whose firm is helping the commissioners work through the legalities of developing the emergency service district, advised the board it should consider set a fiscal year that begins Oct. 1 when tax notices are sent out and to be in line with other service districts statewide.

The board voted unanimously to set the service district’s fiscal year to begin on Oct. 1 and end Sept. 30 the following year.Oxford also advised the board to start thinking about what tax rate it should set to fund the service district.“We’re not going to survive without a property tax,” he assured commissioners.

The emergency service district can charge taxpayers up to three cents for every $100 worth of property they own to fund the service district. However, Fire Chief Lenard T. Bettis Jr. said prior to May’s election that the service district would likely only levy a one-cent per $100 value tax rate.

A one-cent tax rate would generate about $32,000 annually and would cost the owner of a $100,000 home about $10 annually.

The Emergency Service District No. 1 essentially follows the boundaries of East Chambers ISD and includes about $320 million in taxable property.

Prior to last Thursday's board meeting, Bettis said the board may choose to ask for a lower property tax rate. “What we want to do is zero-out the property tax," he explained. That's because the board will likely ask voters sometime in November to approve the use of local sales tax revenue to support the service district. 

The state allows communities and emergency service districts to use a portion of the sales tax revenue collected by local merchants each month to fund economic development projects or help finance EMS services or fire departments.The $32,000 generated by the proposed one-cent property tax is not enough to fund the fire department, Bettis said last May.

However, the money generated by sales tax would amount to several hundred thousand dollars annually, more than enough to pay for new equipment, training and other necessities of the fire department, he said.

"In order to get sales tax (revenue) we are required by law to create an emergency service district. To create an emergency service district we are required to pass a tax rate," Bettis explained back then.

Beaumont attorney Joshua Heinz, an associate of Oxford's, said the good thing about using sales tax revenue to support the service district is that most of the sales tax will come from people passing through the area.

"A lot of the sales tax will come from travelers who stop to gas up or eat or who stay in local hotels," he said in May. "Basically, people who don't even live in the Winnie area will be helping to support our local fire department."Voters have to approve the use of the sales tax.

Oxford advised the board to keep the property tax on the table in case voters turn down the proposal to use sales tax revenue to support the emergency service district."We'll have to have some property tax," he stated.

If the board chooses to set a property tax, then commissioners should adopt the tax at the earliest possible opportunity so that tax bills can be sent out to taxpayers in October, he said.

Between now and when the property tax money starts pouring into the service district's coffers, the board will need money to operate the district and pay bills, Oxford told the board.

The board also reviewed possible businesses expenses, including $4,000 in legal fees, $4,000 in other county fees and $5,000 in fees to educate the public, such as mail-outs, sponsoring a booth are local events in order to hand out information materials and brochures on what the emergency service district is and hopes to accomplish. 

The board also will be required to be insured, which could cost upwards of $1,720 annually for $25,000 in coverage. 

The board also mulled hiring an administrative assistant to file paperwork, submit bills, keep track of records, send notices of meetings, and record and file the minutes of the monthly board meetings.In all, the board can expect to pay out some $23,500 in "must-needs" expenses, much of that before the property tax is passed, the finance committee determined. Therefore, the board agreed to seek out a $15,000 loan from a local lending institution.

The board voted to take the loan out at a local bank that offers the lowest interest rate and lowest checking account service fees. Once the property tax revenue comes in, the bank loan will be repaid.The board also voted to set up the service district's office at the Winnie Volunteer Fire Department, name the Hometown Press as the service district's newspaper of record, and announce the location of the service district's headquarters in the Hometown Press.

"I still have a problem with hiring someone" as administrative assistant, said Kenneth Thibodeaux.

"We need to hold off spending money; We're going to borrow $15,000 and then turn around and hire someone? It doesn't make sense.""Look at all this stuff (paperwork)," Melissa Hodges said. 

Board President David Murrell said the job would be "very part time."

Board member Brad Crone said the position will likely only pay about $10 per hour for 10 hours per month and will save the volunteer board members from having to spend more time filing paperwork, claims, and recording minutes.

The board stopped short of adopting a tax rate last week but plans to discuss the issue further at its next meeting.Oxford said the board needs to vote during the Sept. 24 meeting on whether or not to impose a property tax.The board will continue their discussion on the proposed property tax during their next meeting on Aug. 11.

 The meetings are open to the public and are held at the Chambers County Annex in Winnie.