Austin, Texas
                    FISCAL NOTE, 77th Regular Session
                              April 16, 2001
          TO:  Honorable Frank Madla, Chair, Senate Committee on
               Intergovernmental Relations
        FROM:  John Keel, Director, Legislative Budget Board
       IN RE:  SB1564  by Duncan (Relating to the funding of emergency
               medical services by municipalities with a population of
               more than 5,000 in counties with a population of less
               than 60,000.), As Introduced
*  No fiscal implication to the State is anticipated.                    *
Local Government Impact
The bill would authorize certain municipalities to assess a fee, not to
exceed $2 per month, to be paid by the customers of a utility provided by
the municipality.  The fee would be placed into a proprietary fund and
could be used only for the provision of emergency medical services (EMS)
within the municipality or the county in which the municipality is
located.  The bill would take effect September 1, 2001.

Two municipalities that were identified as meeting all the eligibility
criteria for assessing the proposed fee are Big Spring and Kerrville.

A representative of the City of Big Spring said that the city currently
has 9,448 active water utility accounts.  If that number were to remain
constant and if the city were to assess the maximum $2 per month fee, the
city would realize an annual revenue gain of $226,752.  The city
currently transfers from its general revenue fund to their ambulance fund
a subsidy of $250,000 per year for EMS.  The revenue generated would
offset all but approximately $24,000 of the city's EMS expenses.

A representative of the City of Kerrville indicated the city has
approximately 9,000 water utility customers, therefore a $2 monthly fee,
if assessed, would generate $216,000 annually.  The city's EMS is
currently supported solely through EMS fees.  EMS annual expenses total
$1.4 million.

Municipalities that would choose to assess a monthly fee to assist in
covering the costs of providing emergency medical services would
experience a revenue gain.  The revenue gain would help recover some of
the costs of providing services.  The amount of gain and the impact the
gain would have on the costs of emergency medical services would vary
depending on how much monthly fee would be assessed up to the $2 per
month limit, the number of utility customers, and the EMS expenses.
Source Agencies:   
LBB Staff:         JK, DB