LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 79TH LEGISLATIVE REGULAR SESSION

March 10, 2005

TO:	Honorable Robert Puente, Chair, House Committee on Natural Resources
FROM:	John S. O'Brien, Deputy Director, Legislative Budget Board
IN RE:	HB1517 by Baxter (Relating to the annexation by a municipality of a water district in its extraterritorial jurisdiction.), As Introduced

No fiscal implication to the State is anticipated.

The bill would amend the Local Government Code to prohibit a municipality from annexing a part of a defined area in a water control and improvement district that has adopted a tax plan under the Water Code, or a part of a municipal utility district that has adopted a plan relating to services for certain defined areas or designated properties under the Water Code unless the municipality annexes all of the defined area that is within the municipality's extraterritorial jurisdiction and the municipality assumes the pro rata share of the bonded indebtedness of the annexed area.

Local Government Impact

It is assumed that a municipality would not annex an area affected by the proposed change in statute unless the positive fiscal implications would outweigh costs associated with annexing the entire required area and the costs associated with assuming the pro rata share of the bonded indebtedness. The fiscal impact to a district that is annexed would be neutral as a result of the municipality assuming the pro rata share of the bonded indebtedness.

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

LBB Staff:

JOB, WK, DLBa