LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                              April 15, 1999
  
  
          TO:  Honorable Tom Ramsay, Chair, House Committee on County
               Affairs
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB 2214  by Olivo (Relating to the authority of a county
               to operate a water or sewer utility system; granting the
               power of eminent domain. ), Committee Report 1st House,
               as amended
  
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*  No significant fiscal implication to the State is anticipated.        *
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Local Government Impact
  
A county which would choose to acquire, own, operate, or maintain a water
or sewer utility could encounter costs associated with equipment,
facilities, staff, right-of-way, operating expenses, etc.  Such a county
would also be expected to generate revenues from a water or sewer system,
which would offset costs incurred and provide a means for the county to
repay debt related to a system.  The net cost or benefit of such a system
to a county would depend on the initial capital outlays required,
operating expenses and potential revenues from system users.

A county authorized by the bill to issue general obligation bonds that
would choose to issue such bonds could incur costs to the county's
general revenue fund. The annual cost would depend on the debt service
required to repay such bonds and whether a portion of the debt service
could be repaid through user fee revenue.
  
  
Source Agencies:   
LBB Staff:         JK, TL, DE