By Joni Simon
Contributing Writer

Twice in the recent past, Fair Oaks Ranch City Council studied the pros and cons of a sales tax for the city. Each time, they tabled the idea. During a town hall meeting Nov. 8, Mayor Pro Tem Dan Kasprowicz said now is the right time to take action.

“As a part of our city’s recent annexations, we currently have major commercial development, which will offer the opportunity to add sales taxes as a revenue stream to the city,” he said. “The amount is debatable, but could be sizeable. We estimate the new IH-10 businesses will initially generate in the range of $100,000 per year in city sales tax revenue beginning in late 2008.”

Businesses at the new strip include a pub, a health spa and a cleaners, according to the mayor pro tem. In addition, the Fair Oaks Ranch Golf and Country Club is expected to generate funds - one reason why resident Tom Elinger said he opposed the proposed sales tax.

“This is a tax on our country club, which is a major asset to our city. It’s a plus for property values,” Elinger said. “Besides, I’m kind of proud of the fact that we’re one of the few cities in the state without a sales tax.”

Kasprowicz said the sales tax would be determined by the size of the individual’s country club charges. For instance, a $500 bill coupled with a one percent sales tax would generate $5 a month.

“We shouldn’t be taxing ourselves for what we do within our city limits,” Elinger said, adding, “If you do put this on the ballot, don’t put us in a confusing situation, where we’re voting ‘yes’ for no tax.”

The next step in the process is a committee recommendation Dec. 20, 2007. On Jan. 17, 2008, council will consider ordering a special election for May 8.

A city sales tax would provide a growing revenue source that can continue to keep the property tax at a low rate in Fair Oaks Ranch as well as provide needed funds for street improvements, drainage upgrades and improvements, traffic signals as well as emergency services, city officials said..

City Administrator Roy Thomas said taxpayers now pay for an ambulance to station itself in Fair Oaks Ranch with the possibility of its being called out of the city for an emergency in an unincorporated area.

“Sometimes you wait two minutes for another one to arrive, sometimes you wait 20 minutes,” Thomas said.

That level of service costs the city about $57,000 a year. A permanently residing ambulance would cost the city over $400,000, while a full-blown EMS service would cost in the millions, he added.

“We’ve been very blessed over the years. We’ve never had a person sustain a serious injury due to a delay,” the city administrator said, adding that the city’s own police department responds to emergency calls and the Leon Springs Volunteer Fire Department offers back-up support with a first responder service.

In addition, Thomas told about 25 residents attending the town hall meeting Nov. 8 that city officials are expecting to pay more for fire service now that the Emergency Service District has passed and taxpayers in nearby unincorporated areas, who previously paid voluntary dues, are now paying seven cents per $100 valuation. The bill for fire service in Fair Oaks Ranch, a city that contracts with the LSVFD, could be over $125,000 this year with increases up to $600,000 in future years.

“Because of the road situation - there is no convenient way to get here from Bergheim. You just get out the weanies and have a good time,” Thomas said in response to the possibility of contracting with the volunteer fire department there.

“Been there and done that” and “We won’t go there” were the responses Kasprowicz and Thomas respectively gave when asked about looking into contracting services with the city of Boerne.

Current sales taxes in neighboring Boerne, Kerrville and New Braunfels are .015 percent in each municipality, while Bulverde rate is .010 per cent.

If passed, the collection of sales taxes will begin in the third calendar quarter of 2008 and would begin to be an estimated part of the city revenue for the 2008/2009 budget cycle.