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77® SB 1564 Introduced version - Fiscal Note

LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 77th Regular Session

April 16, 2001

TO: Honorable Madla, Chair, Senate Committee on

Intergovernmental Relations

FROM: 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

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* No fiscal implication to the State is anticipated. *

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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