LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 17, 1997 TO: Honorable Eddie Lucio, Jr., Chair IN RE: Senate Bill No. 1277, Committee Report 1st House, Substituted Committee on Intergovernmental Relations By: Lucio Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB1277 ( Relating to the powers and duties of emergency services districts.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB1277-Committee Report 1st House, Substituted FN Revision 1 No fiscal implication to the State is anticipated. The bill would ensure that a district would be fairly compensated by a municipality that annexes a portion of the district's territory for the district's indebtedness associated with such annexed territory. This could increase a municipality's cost of annexing portions of such districts. The bill would also provide that a municipality purchase any real or personal property used to provide emergency services in an area disannexed by the district at the district's request. This could require a municipality to incur costs, regardless of whether the municipality determines such equipment or property to be necessary or useful to the municipality. Entitling emergency services commissioners to receives fees of office could cost emergency services districts approximately $15,000 per year in additional expenses. Such an increase could be significant to districts in Kimble and Delta County which, according to the Comptroller of Public Accounts, each operate on an annual budget of $75,000. However, a district would also be able to generate new revenues to offset some of the cost increases, if it were to charge fees for services performed, as provided by the bill. No significant implications are anticipated as a result of the bill's proposed changes to competitive bidding procedures for emergency services districts. There could be some administrative costs associated with requiring districts to file annual reports with the Secretary of State. Source: Agencies: 304 Comptroller of Public Accounts LBB Staff: JK ,TL