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