LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
February 27, 1997
TO: Honorable Eddie Lucio, Jr., Chair IN RE: Senate Bill No. 601, Committee Report 1st House
Committee on Intergovernmental Relations By: Lindsay
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB601 ( Relating
to withdrawal of a unit from a rapid transit authority.) this
office has detemined the following:
Biennial Net Impact to General Revenue Funds by SB601-Committee Report 1st House
No significant fiscal implication to the State is anticipated.
This bill would allow a municipality belonging to the Metropolitan
Transit Authority of Harris County to withdraw, by election,
from the authority provided an election has not been held under
this section on a date earlier than the sixth anniversary of
the date of the most recent held election under this section.
The Metropolitan Transit Authority of Harris County currently
has 15 municipalities plus Harris County as members. If any
of these units were to hold an election on the question of withdrawal,
the cost of the election would depend on the population of the
entity and whether the election were being held specifically
for that purpose.
There would be no significant cost associated
with the addition of one additional item to a regularly scheduled
municipal election. It is estimated that a local option election
held specifically for the question of withdrawal would costs
approximately $.40 per resident, based on a recent survey of
local governments. Units with smaller populations might experience
somewhat higher costs per resident. For example, the City of
Humble estimates that a special election in that municipality
would cost $10,000, or $0.83 per resident.
If the voters
in a local unit of government approved a measure to withdraw
from the Metropolitan Transit Authority of Harris County, the
one-cent sales tax levy would continue until the net financial
obligation of the unit of election to the authority has been
completed. Once a unit withdraws from the authority and meets
its net financial obligation, the Metropolitan Transit Authority
of Harris County would realize a negative fiscal impact equal
to the amount of sales tax received from the unit. Annual sales
tax collected from the member units ranged from $18,000 from
Bunker Hill Village to $249.9 million from the City of Houston
for fiscal year 1996.
According to the Metropolitan Transit
Authority of Harris County, only one local government expressed
interest in withdrawing from the authority in a recent poll,
the City of Humble. Based on estimates by the Metropolitan
Transit Authority, if the City of Humble were to withdraw, it
would owe the authority approximately $12.1 million in net financial
obligations, which would be met through the continuation of
the one cent sales tax until paid. Since Humble's portion of
the sales tax remitted to the authority is approximately $6
million per year, Humble would be required to levy the one cent
sales tax for approximately two more years. Beginning two years
after such a withdrawal was complete, the Metropolitan Transit
Authority would experience a negative fiscal impact of approximately
$6 million per year.
Source: Agencies:
601 Department of Transportation
Metropolitan Transit Authority of Harris County
City of Humble
LBB Staff: JK ,TL