LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 2, 1997 TO: Honorable Fred M. Bosse, Chair IN RE: House Bill No. 3178 Committee on Land and Resource Management By: Lewis, Ron House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB3178 ( Relating to limiting the area that may be included within the extraterritorial jurisdiction of certain municipalities.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB3178-As Introduced No fiscal implication to the State is anticipated. In a municipality located in whole or in part within a county with a population of 240,000 or less, this bill would remove from that municipality's extraterritorial jurisdiction (ETJ) land located outside the county in which a majority of the land area of the municipality is located if that area is separated from the municipality's corporate boundaries by a navigable stream. The City of Port Arthur anticipates that this bill could reduce revenues to the city associated with an area in Orange County which would be removed from the city's ETJ. This area currently produces $909,025 per year in "in lieu of tax" payments, and the city estimates that this revenue could be lost if this bill is enacted. The City of Corpus Christi expects that this bill would restrict the city's ability to enter into industrial district agreements in the city's ETJ in San Patricio County. This would limit the city's ability to produce revenues for services provided in the city's ETJ and impair the city's ability to negotiate to attract economic development to the area. Corpus Christi also anticipates that this bill would restrict the city's ability to exercise development regulation in the city's ETJ located in neighboring counties, reducing the city's ability to impede the growth of improperly designed subdivisions in the watershed providing the city's water supply, thereby decreasing water quality and increasing the cost of providing water for the entire region. Source: Agencies: 304 Comptroller of Public Accounts LBB Staff: JK ,BB ,TL