Austin, Texas
                                   FISCAL NOTE
                               75th Regular Session
                                  March 26, 1997
      TO: Honorable Eddie Lucio, Jr., Chair            IN RE:  Senate Bill No. 834
          Committee on Intergovernmental Relations                              By: Armbrister
          Austin, Texas
         FROM:  John Keel, Director    
In response to your request for a Fiscal Note on SB834 ( Relating 
to the authority of a county to operate a water or sewer utility 
in unincorporated areas of a county, including the authority 
to issue bonds and to acquire property through eminent domain.) 
this office has detemined the following:
         Biennial Net Impact to General Revenue Funds by SB834-As Introduced
No fiscal implication to the State is anticipated.

This bill would provide the authority to acquire, own, operate, 
or maintain a water or sewer utility to counties which currently 
lack such authority.  In addition, the bill would allow such 
counties to issue bonds payable from the revenue generated by 
such systems.

A county which would choose to acquire, own, 
operate or maintain a water or sewer utility could encounter 
costs associated with equipment, facilities, staff, right-of-way, 
operating expenses, etc.  Such a county would also be expected 
to generate revenues from a water or sewer system, which would 
offset costs incurred and provide a means for the county to 
repay debt related to a system.  The net cost or benefit of 
such a system to a county would depend on the initial capital 
outlays required, operating expenses, and potential revenues 
from system users.
   Source:            Agencies:   582   Natural Resources Conservation Commission
                      LBB Staff:   JK ,TL