LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 20, 2001
TO: Honorable Rodney Ellis, Chair, Senate Committee on Finance
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.), Committee Report 1st House,
Substituted
**************************************************************************
* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB1173, Committee Report 1st House, Substituted: 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, ZS