LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session February 26, 1999 TO: Honorable Gary Walker, Chair, House Committee on Land & Resource Management FROM: John Keel, Director, Legislative Budget Board IN RE: HB1018 by Denny (Relating to participation of cities and counties in the National Flood Insurance Program.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB1018, As Introduced: negative impact of $(433,994) through the * * biennium ending August 31, 2001. * * * * The bill would make no appropriation but could provide the legal * * basis for an appropriation of funds to implement the provisions of * * the bill. * ************************************************************************** General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2000 $(236,722) * * 2001 (197,272) * * 2002 (197,272) * * 2003 (197,272) * * 2004 (197,272) * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *Fiscal Probable Savings/(Cost) from Change in Number of State * * Year General Revenue Fund Employees from FY 1999 * * 0001 * * 2000 $(236,722) 3.0 * * 2001 (197,272) 3.0 * * 2002 (197,272) 3.0 * * 2003 (197,272) 3.0 * * 2004 (197,272) 3.0 * *************************************************************************** Technology Impact The Full-time Equivalents (FTEs) required to implement the provisions of the bill would require computers and software at an estimated cost of $11,400 for fiscal year 2000. Fiscal Analysis The Texas Natural Resource Conservation Commission (TNRCC) is designated as the State Coordinator of the National Flood Insurance Program (NFIP). The bill would add 101 additional counties and 396 cities to the current list of communities which TNRCC assists in qualifying for the NFIP. TNRCC anticipates that the additional counties and cities will require training for participation in the NFIP. Methodology Approximately 380 local governments would require intensive and periodic assistance for participation in the NFIP under the provisions of the bill. TNRCC estimates that the bill would result in 100 visits per year to local governments, 200 community assistance contacts per year, and 15 instructional workshops per year. This estimate assumes 100 percent participation in the NFIP. Local Government Impact The bill would require the 101 counties and 396 cities currently not participating in the NFIP to adopt orders or ordinances for the county or city to be eligible for NFIP. This would require local governments to administer the permitting and inspecting processes of development located in floodplains and related enforcement. It also would require the designation of a floodplain administrator. Local governments not currently participating in NFIP could incur costs associated with floodplain administration duties and require additional staff. The cost would depend on the size of a city or county and that entity's climate, landscape and number of developments built in flood prone areas within its jurisdiction. The cost would likely be similar to cities and counties with similar size and characteristics already participating in NFIP. Two examples of existing floodplain administration departments are: Brazoria County with an annual operating budget of $76,331 and 2 FTEs and Travis County with an annual operating budget $306,174 and 5.5 FTEs. Some of the additional costs to local governments could be offset by the imposition of fees, such as permit application fees and inspection fees. Source Agencies: LBB Staff: JK, DE, DM, TL