SHERMAN, Texas — A funding dispute between Sherman and Grayson County officials is raising questions about how emergency services will be paid for in rural areas outside the city.
The issue resurfaced during a March 2 Sherman City Council meeting, where officials discussed the future of the city’s contract with Grayson County to provide fire and EMS coverage outside city limits, KXII reported.
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Sherman Fire Rescue handled about 8,500 calls for service in 2025, including roughly 600 responses in unincorporated areas of Grayson County, according to KXII. Those responses are currently covered through a contract between the city and county, but the future of that agreement remains uncertain.
County leaders had hoped to establish a new revenue source to support rural fire and EMS services, but that effort stalled after voters rejected a proposed sales tax for unincorporated areas in the fall of 2025.
“This is just a continuation of the contract we’ve always had in place with Grayson County,” Sherman Fire Chief Billy Hartsfield said. “That would have brought about a new funding mechanism and possibly a new way of reimbursing fire and EMS services throughout the county for how they do their work.”
After the proposed sales tax failed, Grayson County was left without a designated source of funding for rural fire and EMS services. Sherman officials said the city is paying $30,000 a month this year to help cover those costs, but warned the arrangement is not sustainable long term.
Council Member Pamela Howeth said the current arrangement is unsustainable and suggested the city consider raising service rates so Sherman residents are not paying for emergency responses in rural areas.
During the discussion, council members also noted that some rural residents indicated they would rather call a medical helicopter themselves than pay a sales tax, though officials said that is not a practical option.
Council members also discussed billing rural households individually for emergency services. Council Member Clay Barnett suggested the city might instead contract directly with residents who want the service rather than with the county.
Officials said they have until October to find a solution.
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