LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 21, 1997
         
         
      TO: Honorable Fred M. Bosse, Chair            IN RE:  Senate Bill No. 727, As Engrossed
          Committee on Land and Resource Management                              By: Gallegos
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB727 ( Relating 
to contracts between municipal utility districts located in 
extraterritorial areas and municipalities.) this office has 
detemined the following:
         
         Biennial Net Impact to General Revenue Funds by SB727-As Engrossed
         

No fiscal implication to the State is anticipated.
         

         
 
          
This bill would allow a municipality and a special district 
in that municipality's extraterritorial jurisdiction to enter 
into contracts for the joint funding of services in lieu of 
annexation, if the voters of such a district approve such a 
contract.

The cost of an election to approve a contract would 
depend on the number of residents living in a district.  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.

Since it is anticipated 
that a municipality and a special district would agree upon 
terms that would allocate sufficient revenues to each party 
to cover the costs associated with providing the services required 
under the contract, no significant fiscal implication is expected 
to a municipality or a special district as a result of such 
a contract being approved by voters.  Requiring that such contracts 
be submitted to voters for approval, however, could limit the 
contracting abilities of a municipality and a special district. 
  
          
   Source:            Agencies:   
                                         
                      LBB Staff:   BB ,TL