LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 30, 1997 TO: Honorable Tony J. Goolsby, Chair IN RE: Senate Bill No. 1301, Committee Report 2nd House, Substituted Committee on House Administration By: Harris House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB1301 ( relating to parking, vehicle traffic, and security in the Capitol Complex) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB1301-Committee Report 2nd House, Substituted Implementing the provisions of the bill would result in a net negative impact of $(2,796,019) to General Revenue Related Funds through the biennium ending August 31, 1999. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. Fiscal Analysis The bill would provide authority for the installation of parking meters in the Capitol Complex; it would also designate that revenues from the meters be equally divided between the State Preservation Board (Capitol Fund) and Department of Public Safety (State Parking Fund 125), after the Capitol Fund is reimbursed for the cost of the installation. The bill would authorize the issuance of bonds to finance the construction of parking garages in the Capitol Complex. The bill would authorize the State Preservation Board to charge a fee for parking in a facility designated for visitors. Revenue from the fee would be credited to the Capitol Fund. If revenue bonds are issued for construction of the facility, the State Preservation Board would be required to transfer parking fee revenue to the Texas Public Finance Authority to pay debt service on not more than one-half of the amount of bonds issued for the visitor's parking garage. Methodolgy The parking meter installation costs of approximately $329,000 are based on the Department of Public Safety's estimate of 814 parking meters being installed in the Capitol Complex area. The State Preservation Board expects to initially pay for this cost from its Capitol Fund, to be reimbursed in full by the first revenues collected from the meters. The Department of Public Safety estimates that annual revenues collected from the use of the parking meters will total $1,562,880. The estimated costs and revenues assume that the bill would become effective immediately upon enactment. The Texas Public Finance Authority estimates the total amount of bond proceeds needed to finance the construction of the parking garages is $38.8 million. The estimated debt service on these bonds is $1.7 million in fiscal year 1998 and $3.5 in fiscal year 1999. The State Preservation Board estimates that the revenues from a fee charged for use of the visitor's parking facility will be $1,276,800 per year, to be credited to the Capitol Fund. The transfer from the Capitol Fund to the General Revenue Fund to pay one-half the debt service on only the visitor's parking garage is approximately $311,567 in fiscal year 1998 and $641,500 in fiscal year 1999. The State Preservation Board estimates that the cost to operate the visitor's parking garage would be $270,000 per year. The probable fiscal implications of implementing the provisions of the bill during each of the first five years following passage is estimated as follows: Six Year Impact: Fiscal Year Probable Probable Revenue Probable Revenue Probable Savings/(Cost) Gain/(Loss) from Gain/(Loss) from Savings/(Cost) from Capitol New - General Capitol Fund - from General Fund - Outside Revenue Related Outside Treasury Revenue Fund Treasury - State Parking Fund 125 OUTSIDE NEW-GR OUTSIDE 0001 1997 ($329,078) $0 $0 $0 1997 (270,000) 616,901 2,222,779 (1,681,551) 1999 (270,000) 781,440 2,058,240 (3,465,875) 2000 (270,000) 781,440 2,058,240 (3,469,987) 2001 (270,000) 781,440 2,058,240 (3,464,949) 2002 (270,000) 781,440 2,058,240 (3,470,199) Fiscal Year Probable Revenue Probable Revenue Gain/(Loss) from Gain/(Loss) from Capitol Fund - General Revenue Outside Treasury Fund OUTSIDE 0001 1997 $0 $0 1998 (311,566) 311,566 1999 (641,500) 641,500 2000 (644,312) 644,312 2001 (641,312) 641,312 2002 (642,500) 642,500 Net Impact on General Revenue Related Funds: The probable fiscal implication to General Revenue related funds during each of the first five years is estimated as follows: Fiscal Year Probable Net Postive/(Negative) General Revenue Related Funds Funds 1997 $0 1998 (753,084) 1999 (2,042,935) 2000 (2,044,235) 2001 (2,042,197) 2002 (2,046,259) Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. No fiscal implication to units of local government is anticipated. Source: Agencies: 809 Preservation Board 405 Department of Public Safety 303 General Services Commission LBB Staff: JK ,RR ,DM