LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
March 5, 1997
TO: Honorable Eddie Lucio, Jr., Chair IN RE: Senate Bill No. 727
Committee on Intergovernmental Relations By: Gallegos
Senate
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 Introduced
No fiscal implication to the State is anticipated.
This bill would allow a municipality and and a municipal utility
district (MUD) in that municipality's extraterritorial jurisdiction
(ETJ) to enter into contracts for the joint funding of services
in lieu of annexation. It would also require a municipality
assessing taxes in the ETJ to notify the comptroller of the
changes in the municipality's boundaries.
The fiscal implications
of this bill would depend on the terms of a contract executed
under the provisions of the bill. Such a contract would define
the terms for revenue-sharing and cost-sharing between the municipality
and the utility district. Since it is anticipated that a municipality
and a MUD 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 MUD as a result
of this bill's enactment.
Source: Agencies: 304 Comptroller of Public Accounts
LBB Staff: JK ,TL ,BR