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Consider adopting Ordinance No. 3980 amending portions of Appendix A - Fee Schedule and Chapter 30 Emergency Services of the Code of Ordinances to reduce Emergency Medical Services (EMS) rates to comply with State law; and take appropriate action.
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REQUESTOR:
Finance Department
BACKGROUND:
On August 19, 2025, the City Council adopted Ordinance No. 3942, which included adjustments to various fees within Appendix A - Fee Schedule, including the City’s Emergency Medical Services (EMS) rates. These updated EMS rates became effective on October 1, 2025.
Subsequently, during the 89th Texas Legislative Session, the State enacted Senate Bill 916, which applies to all EMS rate adjustments effective on or after September 1, 2025. This legislation limits how much a political subdivision may increase EMS rates, stating that:
“A political subdivision may annually adjust a rate submitted under Section 38.006 by not more than the lesser of:
(1) the Medicare Ambulance Inflation Factor; or
(2) 10 percent of the provider’s previous calendar year rates.”
For 2025, the Medicare Ambulance Inflation Factor (AIF) was set at 2.4 percent. Because the City’s EMS rate adjustments under Ordinance No. 3942 exceed that limitation, they are now considered out of compliance with the new State law.
DISCUSSION:
To ensure compliance with Senate Bill 916 and maintain eligibility for state and federal reimbursements, the attached ordinance amends Appendix A - Fee Schedule to decrease the EMS transport and mileage rates back to their previous approved levels.
This corrective action aligns the City’s Code of Ordinances with State law and protects the City from potential audit or reimbursement issues.
FISCAL IMPACT:
Minor reduction in revenue from reduced EMS fees.
DISTRICT:
Citywide
POSSIBLE COUNCIL ACTION:
1. I move to approve Ordinance No. 3980 as presented.
2. I move to approve Ordinance No. 3980 with modifications.
3. I move to table the issue for further study or take no action.
ATTACHMENT(S):
1. Ordinance No. 3980