LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session May 15, 1997 TO: Honorable Eddie Lucio, Jr., Chair IN RE: House Bill No. 2850, As Engrossed Committee on Intergovernmental Relations By: Williams Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB2850 ( Relating to the exclusion from emergency service districts and rural fire prevention districts of certain territory subject to ad valorem assessments.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB2850-As Engrossed No fiscal implication to the State is anticipated. The cost associated with an election on the question of excluding territory from a district would depend on the number of residents living in the territory to be excluded. The median cost of a local election has been calculated at $.40 per resident, based on data collected in a survey conducted by the Texas Association of Counties in December 1996. A district which excludes territory could experience reduced revenues, depending on the amount of ad valorem taxes collected in an area to be excluded. A district which excludes territory, however, could realize cost savings resulting from the reduction in size of the district's service area. Source: Agencies: LBB Staff: JK ,TL