LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session May 10, 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.), Committee Report 2nd House, as amended ************************************************************************** * 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. If within 30 days of a county's action to approve a public improvement district a home-rule municipality objects to the district's establishment within the municipality's corporate limits or extraterritorial jurisdiction, the county may not establish the district. 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