LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session May 3, 2001 TO: Honorable Frank Madla, Chair, Senate Committee on Intergovernmental Relations FROM: John Keel, Director, Legislative Budget Board IN RE: HB3172 by Thompson (Relating to the authority of a county to establish public improvement districts.), As Engrossed ************************************************************************** * No fiscal implication to the State is anticipated. * ************************************************************************** The bill would allow counties to establish public improvement districts if petitioned to do so and following required posting notices, feasibility studies, hearings, and a vote of approval by the majority of the county's governing body. Costs would be covered by special assessments levied against the property in the area of the improvement district; interest on the assessments, not to exceed 1 percent higher than the actual interest rate paid on public debt used to finance improvements; by levying a tax to support the special improvement district fund; through grant-in-aid; or by issuing temporary notes or revenue or general obligation bonds. Under existing statute, only municipalities are authorized to establish a public improvement district. The same requirements for a municipality to establish and fund a public improvement district would apply to counties under the provisions of the bill. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: LBB Staff: JK, DB