LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                              April 28, 1999
  
  
          TO:  Honorable Tom Ramsay, Chair, House Committee on County
               Affairs
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB 821  by Armbrister (Relating to the authority of a
               county to operate a water or sewer utility system;
               granting the power of eminent domain and the authority
               to issue bonds.), Committee Report 2nd 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.
  
  
Source Agencies:   
LBB Staff:         JK, TL, DE