LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session April 23, 1999 TO: Honorable Gary Walker, Chair, House Committee on Land & Resource Management FROM: John Keel, Director, Legislative Budget Board IN RE: HB 2659 by Krusee (relating to the regulation of land development by a political subdivision that affects certain property in or near certain road districts), Committee Report 1st House, Substituted ************************************************************************** * No significant fiscal implication to the State is anticipated. * ************************************************************************** This analysis assumes that the term "political subdivision" refers to a local government and therefore does not apply to any agency of the state. If the term would apply to the state, the state could potentially incur costs similar to those shown below for local governments. Local Government Impact Fiscal Analysis The bill would also require that if a political subdivision would change development regulations reducing the amount of impervious cover or total floor area allowed on at least 20 percent of the land in an assessment road district that has refinanced debt under Section 2.018, Article 726, Revised Statutes, the political subdivision would be required to pay the outstanding bonded indebtedness of the assessment road district. Methodology The bill could affect any political subdivision that has authority to regulate impervious cover or allowable floor area relating to land development in an area within a road district. Data on outstanding road district debt as of August 31, 1998 was provided by the Comptroller's office. This analysis assumes that any road district with outstanding debt has refinanced debt or would refinance debt at some point prior to a time when a political subdivision would change development regulations on land located in such a road district. The estimates in this analysis assume that the outstanding debt of a road district would be required to pay as a result of a development regulation change would be equal to its debt on August 31, 1998. If more debt would be incurred by a road district prior to a development regulation change, then the cost to a political subdivision would be greater than presented in the estimates below. If a road district would repay all or a portion of its debt prior to the enactment of more stringent development regulations by a political subdivision, there could be no cost or a lower cost to such a political subdivision. Fiscal Impact If a political subdivision would reduce allowable impervious cover or floor area development regulations in the area within one or more of the road districts listed below, the political subdivision could be required to repay the outstanding debt of the respective road district. A road district would receive revenues equal to the amount of its outstanding debt, as listed below: Denton County Road Utility District 1--$17,3 million Fort Bend Parkway Road District--$1.3 million Hidalgo County Road District 5--$550,000 Northeast Round Rock Road District 1--$8.1 million Northwest Travis County Road District 3--$7.3 million Pioneer Trail County Road District 1--$30,000 Southeast Williamson County Road District--$2.8 million Southwest Travis County Road District 1--$2.9 million Southwest Williamson County Road District 1--$2.8 million Springlake Road District 1--$200,000 Stony Point Road District--$355,000 South Montgomery County Road District 1--$589,463 Woodlands Road Utility District 1--$28.9 million Source Agencies: 304 Comptroller of Public Accounts LBB Staff: JK, DE, TL