LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 2, 2001
  
  
          TO:  Honorable Frank Madla, Chair, Senate Committee on
               Intergovernmental Relations
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB958  by Burnam (Relating to the annexation of county
               roads.), As Engrossed
  
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*  No fiscal implication to the State is anticipated.                    *
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Local Government Impact
  
The bill would require a city proposing to annex any portion of a paved
county road to also annex the entire width of the county road and the
adjacent right-of-way. If a municipality included any portion of a paved
county road in its annexation plan prior to September 1, 2001, the
municipality would be required to amend its plan on or before December 1,
2001. The requirement to annex the entire width of the road and the
adjacent right-of-way would apply to an area that is not included in an
annexation plan during the period between December 31, 1999 and December
31, 2002 if the first hearing notice is published on or after September
1, 2001.

According to cities contacted by the Comptroller of Public Accounts, the
cities would incur additional costs for fire and police services,
resurfacing of roads, and maintenance. The City of Odessa reported that
the cost of resurfacing roads in their area is $9,152 per mile and occurs
every eight years.

The Texas Municipal League (TML) reported that, in addition to
resurfacing, mowing, and road maintenance, there would be the cost of
overlays. Overlays cost $5,000 to $6,000 per mile. The most significant
costs would be for bringing county roads into compliance with city
specifications.  Thereafter, TML estimates costs would range from $1,400
to $2,000 per mile annually.

The Texas Association of Counties reported that maintenance on a paved
road with a 10-inch base costs $30,000 per mile and that a paved road
with a 4-inch base costs $3,200 per mile for maintenance every three or
four years.

Overall, costs for cities would be significant and would vary depending
on the number of miles of road and the type of surface.
  
  
Source Agencies:   304   Comptroller of Public Accounts
LBB Staff:         JK, TB, CL, DB