LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session May 26, 2001 TO: Honorable Bill Ratliff, Lieutenant Governor Honorable James E. "Pete" Laney, Speaker of the House FROM: John Keel, Director, Legislative Budget Board IN RE: SB1173 by Wentworth (Relating to authorizing the issuance of not more than $9 million in revenue bonds for the benefit of the Fleet Admiral Chester W. Nimitz Memorial Naval Museum.), Conference Committee Report ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB1173, Conference Committee Report: negative impact of * * $(1,863,000) 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 $(900,000) * * 2003 (963,000) * * 2004 (936,000) * * 2005 (909,000) * * 2006 (882,000) * **************************************************** All Funds, Five-Year Impact: ************************************************************************** *Fiscal Probable Probable Revenue Probable * * Year Savings/(Cost) from Gain/(Loss) from Savings/(Cost) from * * General Revenue Fund Bond Proceeds Bond Proceeds * * 0001 0854 0854 * * 2002 $(900,000) $9,000,000 $(3,000,000) * * 2003 (963,000) 0 (3,000,000) * * 2004 (936,000) 0 (3,000,000) * * 2005 (909,000) 0 0 * * 2006 (882,000) 0 0 * ************************************************************************** Fiscal Analysis The bill authorizes the Texas Parks and Wildlife Department, by resolution of the Parks and Wildlife Commission, to request the Texas Public Finance Authority to issue $9.0 million in revenue bonds or other revenue obligations to finance the repair, renovation, improvement, expansion and equipment for the Admiral Nimitz Museum. The Parks and Wildlife Department would be required to deposit the proceeds to General Revenue-Dedicated Account No. 5004, Texas Parks and Wildlife Conservation and Capital. The cost of implementing the provisions of this bill would be approximately $900,000 in annual debt service requirement. Debt service requirements are normally budgeted out of the General Revenue Fund. Methodology It is assumed that one bond issue in the amount of $9.0 million would take place on September 1, 2001. A six (6) percent interest rate is assumed, as is a 20 year level debt service amortization. The Parks and Wildlife Department has estimated that all bond proceeds would be spent or committed within three years. For purposes of this fiscal analysis, it was assumed that expenditures would be evenly distributed over this three year period. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 347 Texas Public Finance Authority, 802 Texas Parks and Wildlife Department, 304 Comptroller of Public Accounts LBB Staff: JK, SD, JO, ZS