LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 18, 2001 TO: Honorable Frank Madla, Chair, Senate Committee on Intergovernmental Relations FROM: John Keel, Director, Legislative Budget Board IN RE: SB1716 by Van de Putte (Relating to the authority of a county to establish public improvement districts.), Committee Report 1st House, as amended ************************************************************************** * No fiscal implication to the State is anticipated. * ************************************************************************** The bill would allow counties to establish public improvement districts if petitioned to do so and following required posting notices, feasibility studies, hearings, and a vote of approval by the majority of the county's governing body. Costs would be covered by special assessments levied against the property in the area of the improvement district; interest on the assessments, not to exceed 1 percent higher than the actual interest rate paid on public debt used to finance improvements; by levying a tax to support the special improvement district fund; through grant-in-aid; or by issuing temporary notes or revenue or general obligation bonds. Under existing statute, only municipalities are authorized to establish a public improvement district. The same requirements for a municipality to establish and fund a public improvement district would apply to counties under the provisions of the bill. The bill would also remove from statute the requirement for an assessment plan to provide that at least 10 percent of the cost of an improvement be paid by special assessments against property in the improvement district. Additionally, provisions of the bill would require delinquent installments of assessments on property in the improvement area to incur interest, penalties, and attorneys' fees in the same manner as delinquent ad valorem taxes. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: LBB Staff: JK, DB