LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
May 8, 2001
TO: Honorable J.E. "Buster" Brown, Chair, Senate Committee on
Natural Resources
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB3096 by Counts (Relating to the development of a water
supply reservoir project at a site known as the Post
Reservoir site in Garza County, Texas.), As Engrossed
**************************************************************************
* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3096, As Engrossed: positive impact of $0 through the biennium *
* ending August 31, 2003. *
* *
* 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 Net Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $0 *
* 2003 0 *
* 2004 (3,510,000) *
* 2005 (3,510,000) *
* 2006 (3,510,000) *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Savings/(Cost) from *
* General Revenue Fund *
* 0001 *
* 2002 $0 *
* 2003 0 *
* 2004 (3,510,000) *
* 2005 (3,510,000) *
* 2006 (3,510,000) *
*****************************************************
Fiscal Analysis
The bill authorizes the Water Development Board to use the state
participation loan program to acquire up to a 100 percent interest in
the Post Reservoir project. The bill specifies that the project shall
receive priority for existing and uncommitted bond authorization in the
state participation account.
Methodology
The Water Development Board estimates that the Post Reservoir project
would cost a total of $54 million to construct, and that state
participation bonds would be issued to cover this entire cost in 2004.
The Board also estimates that annual debt service estimates for $50
million in state participation debt requires $3.25 million in debt
service per year. Based on these amounts, and assuming the bonds would
be repaid over 34 years, it is estimated that annual debt service costs
for the Post Reservoir project would total $3,510,000 per year beginning
in fiscal year 2004. This estimate assumes that all costs would be paid
using General Revenue.
Local Government Impact
Because the bill would not have statewide impact on units of local
government of the same type or class, no comment from this office is
required by the rules of the Senate as to its probable fiscal
implication on units of local government.
Source Agencies: 580 Texas Water Development Board
LBB Staff: JK, CL, TL