Hospital district’s prop A explained

Saving lives and getting care quicker to those outside the city limits is top of mind when it comes to the MCH ballot measure, according to supporters. It will help spread the cost of emergency services from just city property owners to also those in the county that would be most affected by expanding fire/EMS services.

The ballot prop has had specific publicity and some are expressing confusion about the Ector County Hospital District’s Prop A on the ballot.

In a nutshell what the ECHD Prop A would do: It’s the first of essentially two steps in two different elections that would move the burden of paying for emergency services off of just City of Odessa property owners and spread equally among those in the county as well.

This first step would allow ECHD the ability to raise their tax cap so that in a later election, the voters could decide on a tax rate for the expansion of fire/EMS services in Ector County.

The City of Odessa has signed a Memorandum of Understanding with ECHD and Ector Co. that would eventually lower their property tax rate to offset what in city property owners pay.

This first step is not just righting the way out of City emergency services are funded – it also benefits residents outside the city limits by getting them to the hospital faster or getting a firetruck to a structure fire more quickly, and has the potential to lower homeowners insurance rates and risk factors outside the city limits.

ECHD officials have been meeting with folks in areas outside of Odessa like Gardendale, Pleasant Farms and West Odessa. Medical Center Hospital President & CEO Russell Tippin has been part of those meetings and says it all comes down to time.

“We are seeing patients that if you lived in town and had a heart issue or a car wreck and you got here in a good amount of time you’re recovery chances increased…you are one we are able to help. If you lived outside of Odessa we noticed that their outcome was remarkably different because of the time it takes to get them back here to the hospital.”

Tippin said north, south, east and west are growing quickly and these conversations are important. “The first thought was to create an emergency services district… but then we started talking and didn’t want to create another taxing entity. …why reinvent the wheel?”

Prop A is the first step, he said. He said passage of the Prop A does not immediately change taxes. It just allows ECHD to move on to the the next part of the two steps in November 2025. Some eventual legislative approval is also needed if voters give the plan a green light.

Tippin stressed how new fire stations will be built and staffed and those will work hand in hand with current volunteer departments.

This is a partnership between ECHD, the City of Odessa and Ector County. By working together, Tippin said, out of city residents will pay their equal share for the services and will also have access to better services that will get them to the hospital faster.

ECHD has been hampered for years from bringing in more money as the patient population has exploded. As the area’s highest trauma rated hospital other area hospitals send their most complex patients to Medical Center Hospital.

Many of those hospitals collect millions more in property taxes than Medical Center is able to. MCH also gets sales tax and those two taxes are required to essentially “even each other out.” That means the hospital district cannot bring in more funds. This Prop A is the first step in addressing that.

Here are some frequently asked questions:

  1. What is the proposition on the ballot for November 2024?

We are asking voters to increase the Ector County Hospital District’s tax cap from 15 cents to 75 cents.

  1. Why is there a need to raise the tax cap? Is this related to the expansion of Fire/EMS services by MCH, the city of Odessa, and Ector County?

Yes, it is. To properly fund the expansion of Fire/EMS services, the city of Odessa will reduce their tax rate by 14 cents, and ECHD will need to increase their tax rate by 8 cents. ECHD currently has a tax rate of just over 8 cents and a tax cap at 15 cents. Legally, ECHD can not go over a 15-cent cap unless the cap is raised by voter approval. This proposition would need to be approved by voters first, before moving on to the next phase of the agreement between the three entities.

  1. What are the next steps for Fire/EMS expansion if the proposition passes?

This is step one of the process as part of the agreement with the three entities. Should this proposition pass, it would allow for ECHD to ask the voters to increase the tax rate by 8 cents in a future election (which can’t legally be done unless the cap raise is approved by voters) to help fund the beginning of expansion of Fire/EMS services in Ector County. In addition, the ECHD sales tax structured would need to be altered via voter approval as well – and then passed through legislation.

  1. How does the proposition on this election impact my taxes for 2025?

This will not impact taxes for 2025. This is simply asking to raise the tax cap to allow ECHD to raise taxes in the future, while the city will decrease its taxes, to expand Fire/EMS services in Ector County, as agreed upon by the three entities.

  1. Will raising the tax cap automatically raise the tax rate?

No. The ECHD Board of Directors votes every year to approve a tax rate for the following year. Taxpayers are protected by a maximum tax raise of 7.99% from the previous year’s tax rate, and can only be set above that limit by voter approval.

  1. What are the benefits of the proposal?

It will allow ECHD to ask voters to increase the tax rate above the current cap in a future election, to help fund the expansion of Fire/EMS services in Ector County, as agreed upon by the three entities, while allowing the city of Odessa to lower their tax rate by 14 cents.

  1. How can residents stay informed and involved in this process?

Residents can participate in stakeholder meetings and public hearings. They can also access more information at mchodessa.com/fireemsinfo.