LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session May 6, 1997 TO: Honorable David Counts, Chair IN RE: Senate Bill No. 1830, As Engrossed Committee on Natural Resources By: Shapleigh House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB1830 ( Relating to the inclusion of the territory of the Town of Clint in the Lower Valley Water District.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB1830-As Engrossed No fiscal implication to the State is anticipated. The bill would allow the Lower Valley Water District (LVWD) to annex the Town of Clint for water utility purposes. The annexation would require the town to hold an election on the question of the assumption of LVWD s outstanding bonds, notes, taxes, or other obligations and voted but unissued bonds. The bill calls for the LVWD to purchase the Clint water transmission line owned by Clint Independent School District (ISD) and whatever interest the Clint ISD owns in the water service and distribution facilities within the Town. The bill calls for existing water supply contracts and other contractual arrangements between Clint ISD and the City of El Paso's Water Utilities Public Service Board (PSB) to be terminated as of the date of annexation, to be replaced with an appropriate wholesale water supply contractual agreement between the LVWD and El Paso PSB to provide water to the annexed area. The bill calls for the LVWD to complete the construction of the necessary facilities and have an adequate water capacity and pressure to provide the annexed territory with service in accordance with the regulatory requirements of the Texas Natural Resource Conservation Commission (TNRCC). An election on the question of annexation by the LVWD would be paid for by the Town of Clint. The Town of Clint estimates such an election would cost $1,200 to $1,500. It is estimated that LVWD would experience any negative fiscal implications associated with assuming the Town of Clint's outstanding water system debt, since the Town currently has no such debt. However, LVWD would be required to pay the Clint ISD for the water transmission line at a cost estimated at $50,000 to $100,000. LVWD would consequently realize increased revenues from user fees, which could offset a portion of that cost. The Water Development Board estimates that the LVWD would be required to seek approximately $1 million in funds to implement service that meets TNRCC regulations within the Town of Clint. If LVWD is required to issue bonds to raise these funds, all customers of the LVWD would contribute to the repayment of those bonds through user fees. Source: Agencies: 582 Natural Resources Conservation Commission 580 Water Development Board 304 Comptroller of Public Accounts LBB Staff: JK ,BB ,TL