LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session March 28, 1997 TO: Honorable Eddie Lucio, Jr., Chair IN RE: Senate Bill No. 834, Committee Report 1st House, as amended Committee on Intergovernmental Relations By: Armbrister Senate 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 imminent domain.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB834-Committee Report 1st House, as amended 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