LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 13, 1997 TO: Honorable Fred M. Bosse, Chair IN RE: House Bill No. 2363 Committee on Land and Resource Management By: Hilbert House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB2363 ( Relating to the provision of services in certain annexed areas.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB2363-As Introduced No fiscal implication to the State is anticipated. It is expected that there would be some additional costs to municipalities associated with preparing more detailed service plans, most of which could presumably be absorbed by existing staff. Municipalities could see increased costs associated with providing services equal to or better than those existing before annexation, depending on the nature of services provided and the municipality's determination of the necessity of such services. For example, if a municipality which normally provides solid waste collection services only once per week annexed an area with collections twice weekly, the municipality would be required to make additional allocations in the newly annexed area to maintain previous levels of service. There could be some increased costs to municipalities associated with the requirement for independent third party review of a service plan. The cost associated with a municipality paying a service provider whose property is condemned or rendered useless by the municipality after annexation would depend on whether a municipality chose to utilize all equipment and property of such previous service providers, and the value of such property. In cases where a municipality determined that substantial portion of such property was not needed, the cost to municipalities could be substantial. Source: Agencies: 582 Natural Resources Conservation Commission 304 Comptroller of Public Accounts LBB Staff: JK ,BB ,TL