PRESENTER: Presenter
Jared Werner, Assistant City Manager
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SUBJECT: Title
Approval of a contract modification between the City of New Braunfels and Emergency Services District No. 7.
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DEPARTMENT: CMO & New Braunfels Fire Department
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COUNCIL DISTRICTS IMPACTED: N/A
BACKGROUND INFORMATION:
During FY 2025, the City Manager’s Office, in partnership with the leadership of the New Braunfels Fire Department (NBFD), has been actively engaged in ongoing discussions and with Emergency Services District No. 7 (ESD7) to revise and strengthen the existing services agreement for fire protection and emergency medical services. ESD7 encompasses approximately 80 square miles of territory located outside the City limits but within the NBFD service area. All NBFD stations and response units are dispatched to incidents within ESD7 as needed, and calls from this area currently account for approximately 11% of the department’s total annual call volume.
The existing agreement between the City and ESD7 has historically been structured based on a pro-rata share of NBFD’s operational expenses, with an understanding of ESD7’s limited revenue capacity-up until recently, the district’s only source of funding was property tax revenue. However, recognizing the rapid growth and increasing demand for emergency services within its jurisdiction, ESD7 proactively held a successful sales tax election in recent years. The passage of that election has significantly improved the district’s financial standing and has enabled it to begin receiving local sales tax revenues in addition to its ad valorem tax base.
This new revenue stream allows ESD7 to expand its level of financial participation in the shared service arrangement. As a result, City and ESD7 leadership have worked collaboratively to revise the methodology used in the services agreement to more accurately and comprehensively reflect the true cost of providing emergency services. This includes not only direct operational costs (such as personnel, fuel, and supplies), but also indirect costs such as administration, and capital use of facilities and apparatus.
The revised agreement, as detailed in the attached contract, ensures that NBFD can continue to deliver high-quality, responsive emergency services to all residents and visitors within ESD7 while protecting the fiscal health of the City. It also serves as a model of regional cooperation and long-term planning, reinforcing both organizations’ commitment to public safety.
ISSUE:
N/A
STRATEGIC PLAN REFERENCE:
☐Economic Mobility ☐Enhanced Connectivity ☐Community Identity
☒Organizational Excellence ☒Community Well-Being ☐N/A
FISCAL IMPACT:
The revised methodology for calculating ESD7’s payment for fire and EMS services is expected to result in a significant increase in annual revenue to the City, projected between $800,000 and $900,000. This increase is directly tied to the more comprehensive and equitable cost allocation approach outlined in the updated agreement, which now includes indirect costs and a pro-rata share of facility and equipment usage. However, as outlined in the FY 2026 Proposed Budget, this additional revenue will be treated as one-time in nature for budgeting purposes-at least in the near term.
Rather than being used to support ongoing operations immediately, these funds have been earmarked for critical one-time initiatives in FY 2026. This conservative budgeting approach reflects both the City’s long-standing fiscal discipline and the need to prepare for future obligations. Specifically, these funds are being strategically reserved to support the phased absorption of twelve firefighter positions that are currently funded through a federal SAFER grant. That grant funding is set to expire by FY 2028, at which point the full cost of those positions-approximately $1.3 million annually-will become the City’s responsibility
Recommendation
RECOMMENDATION:
Staff recommends approval