LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session March 12, 2001 TO: Honorable Carlos F. Truan, Chair, Senate Committee on Veteran Affairs & Military Installations FROM: John Keel, Director, Legislative Budget Board IN RE: SB911 by Madla (Relating to the purposes and duties of defense base development authorities.), As Introduced ************************************************************************** * No fiscal implication to the State is anticipated. * ************************************************************************** Local Government Impact The bill would expand the duties of a defense base development authority to include carrying out a base efficiency project. A base efficiency project is defined as a joint project between a local municipality and the United States Department of Defense with the intended purpose of helping bases operate more efficiently at a lower cost through the use of improved capital asset management, and a greater reliance upon the public or private sector for less costly base support services. Authorities which are created to carry out base efficiency projects may not operate a defense base that has been closed or realigned under the Defense Base Closure and Realignment Act of 1990. The bill would take effect September 1, 2001. The Comptroller of Public Accounts contacted a representative from the City of San Antonio who stated that the bill would have a neutral fiscal impact upon the city. With the Brooks City - Base Efficiency Project, the entire Brooks Air Force Base real property would be conveyed to the City of San Antonio. The land and required facilities would then be leased back by the base. The city would be responsible for providing sanitation, road maintenance, parks and recreation support, fire protection, and building maintenance. This would allow the base to take advantage of the economies of scale achieved by the city, and would reduce the duplication of assets and efforts. By reducing the overall cost of the mission to the federal government, the City of San Antonio would have a better chance of retaining the base in operation. The increased load on city services would probably cause the city to incur some up-front capital costs but it is expected these would be offset over time with the increased customer base. Source Agencies: 304 Comptroller of Public Accounts LBB Staff: JK, RB, DB