LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 23, 1997
TO: Honorable Fred M. Bosse, Chair IN RE: Senate Bill No. 727, Committee Report 2nd House, Substituted
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-Committee Report 2nd House, Substituted
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,
if requested by petition of 10 percent of voters in a district,
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: JK ,BB ,TL