LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session Revision 1 May 17, 2001 TO: Honorable David Counts, Chair, House Committee on Natural Resources FROM: John Keel, Director, Legislative Budget Board IN RE: SB1655 by Sibley (Relating to the creation, administration, powers, duties, operation, and financing of the Middle Trinity Groundwater Conservation District.), As Engrossed ************************************************************************** * No significant fiscal implication to the State is anticipated. * ************************************************************************** The bill would create the Middle Trinity Groundwater Conservation District which would encompass the eight counties of Bosque, Callahan, Comanche, Coryell, Eastland, Erath, Hamilton and Somervell. The district would have the powers of water districts formed under Chapter 36 of the Water Code. The district would be authorized to assess a property tax of five cents per $100 of valuation. A temporary board of directors would be charged with calling an election to confirm the establishment of the district. The bill would take effect on September 1, 2001. If the district is not confirmed by an election prior to September 1, 2003, the act would expire on that date. Local Government Impact County clerks in the eight counties were contacted about the costs of holding elections in their counties. Eastland County estimated an election in their county would cost $30,000. Coryell County estimated election costs at $20,000. In Callahan County, the costs of the most recent countywide election was $8,700. The Comanche County Clerk said election costs in that county would be approximately $8,000. Bosque County estimated election costs in their county at $6,200. Erath County election costs would run about $5,000. Hamilton and Somervell counties said elections in their counties would cost $3,000 each. The Texas Natural Resource Conservation Commission (TNRCC) estimates the costs of establishing and operating a groundwater conservation district would range from $70,000 to $150,000 per year depending on the size of the district. TNRCC assumes that revenues from fees and taxes set by the directors would cover the costs to establish and operate the districts. According to the Comptroller's most recent report on property taxes, these eight counties have property values in excess of $13 billion. The costs of a confirmation election in the eight counties could total $83,900. Source Agencies: 582 Texas Natural Resource Conservation Commission, 304 Comptroller of Public Accounts LBB Staff: JK, CL, DB