LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
March 5, 1997
TO: Honorable Eddie Lucio, Jr., Chair IN RE: Senate Bill No. 858
Committee on Intergovernmental Relations By: Gallegos
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB858 ( Relating
to the provision of municipal services and the creation of special
municipal districts in areas annexed on or after December 1,
1996, by certain municipalities.) this office has detemined
the following:
Biennial Net Impact to General Revenue Funds by SB858-As Introduced
No fiscal implication to the State is anticipated.
This bill would only affect the City of Houston, the Harris
County District Court, and any "special municipal districts"
created as a result of the bill.
This bill would add Subchapter
I to Chapter 43, Local Government Code, allowing a person residing
in an annexed area to apply for a writ of mandamus, placing
the burden of proof on a municipality to show that the municipality
has not provided fewer services or a lower level of services
than were in the area immediately preceeding the date of annexation.
No significant fiscal implication is anticipated as a result
of this section.
This bill would add Subchapter J to Chapter
43, Local Government Code, which would allow the City of Houston
to create a special municipal district pursuant to an election
within the area of the proposed special district. The special
district would be created to provide services to the area, in
accordance with a municipal services agreement executed between
the City of Houston and the special municipal district.
The
City of Houston would be required to pay for the cost of an
election to create a special municipal district. The City of
Houston estimates that such an election would cost $65,000 in
an area with approximately 50,000 residents. The fiscal implications
of the creation of a special municipal district to the City
of Houston would depend on the terms of a contract executed
under the provisions of this bill, with lost revenues expected
to be offset by corresponding decreases in the cost of providing
services. A special municipal district might incur additional
initial costs associated with creating such a district; however,
it is anticipated that any operating costs would be covered
pursuant to the terms of a municipal services agreement executed
according to the provisions of this bill.
Source: Agencies: 302 Office of the Attorney General
LBB Staff: JK ,TL