LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
May 14, 1997
TO: Honorable Bill Ratliff, Chair IN RE: House Bill No. 3189,
As Engrossed
Committee on Finance By: Kuempel
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB3189 ( relating
to the authority of the Parks and Wildlife Department to issue
revenue bonds) this office has detemined the following:
Biennial Net Impact to General Revenue Funds by HB3189-As Engrossed
Implementing the provisions of the bill would result in a net
impact of $0 to General Revenue Related Funds through the biennium
ending August 31, 1999.
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
Fiscal Analysis
The bill would amend the Parks and Wildlife Code to authorize
the Texas Parks and Wildlife Department to request the issuance
of up to $60 million in revenue bonds. The bonds would be issued
by the Texas Public Finance Authority and would be used for
the repair, renovation, improvement, and equipping of parks
and wildlife facilities. The bond proceeds would be deposited
to the credit of the Texas Parks and Wildlife Capital GR-Account
5004.
The bill would take effect September 1, 1997.
Methodolgy
The bonds issued by the department would be revenue bonds and
would thus be supported directly by the revenues of the facilities
constructed or improved. Unless otherwise specified in the
indenture, holders of these revenue bonds would have no claims
on the issuer's other resources.
The cost of debt service
in the following table is provided for illustrative purposes
only as the bill does not specify the increments of the bond
issuance. It assumes that the $60 million of bond authority
that would be granted upon passage of the bill would be issued
in four $15 million annual installments. The estimate also
assumes that the debt service would be paid out of the GR-dedicated
Texas Parks and Wildlife Capital Account 5004. The following
are the total estimated debt service payment amounts (principal
and interest) that will be incurred on $15 million bond issues,
each with a 20 year maturity, issued annually for four years.
It is assumed that the bonds will be fixed-rate and tax-exempt,
issued in the 1998 fiscal year, and will remain outstanding
for 20 years, paying level annual debt service amounts.
The probable fiscal implications of implementing the provisions
of the bill during each of the first five years following passage
is estimated as follows:
Five Year Impact:
Fiscal Year Probable Debt
Service (Cost)
from Texas Parks
and Wildlife
Capital Account/
GR-Dedicated
5004
1998 ($1,288,998)
1998 (2,581,543)
2000 (3,872,698)
2001 (5,160,813)
2002 (5,160,180)
Net Impact on General Revenue Related Funds:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 $0
1999 0
2000 0
2001 0
2002 0
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
No fiscal implication to units of local government is anticipated.
Source: Agencies: 802 Parks and Wildlife Department
347 Texas Public Finance Authority
352 Bond Review Board
304 Comptroller of Public Accounts
LBB Staff: JK ,RR ,SM