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