Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the Legislature. LFC does not assume responsibility for the accuracy of these reports if they
are used for other purposes.
F I S C A L I M P A C T R E P O R T
SPONSOR Ezzell
LAST UPDATED
ORIGINAL DATE 02
/21/25
SHORT TITLE Flood Recovery Bonds & Gross Receipts
BILL
NUMBER Senate Bill 383/ec
ANALYST Graeser
REVENUE*
(dollars in thousands)
Type FY25 FY26 FY27 FY28 FY29
Recurring or
Nonrecurring
Fund
Affected GRT
Administrative Fee
$0*
Up to
$114.0
Up to
$117.0
Up to
$120.0
Up to
$123.0
Recurring General Fund
Muni Recovery
GRT
$0*
Up to
$3,670.0
Up to
$3,780.0
Up to
$3,880.0
Up to
$3,990.0
Recurring Roswell
Bond Proceeds
Up to
$44,000.0
$0 $0 $0 $0 Nonrecurring Roswell
FEMA
Reimbursement
$0*
Up to
$33,500.0
Up to
$33,500.0
Up to
$33,500.0
Up to
33,500.0
Nonrecurring Roswell
GRT
$0*
Up to
$1,630.0
Up to
$1,630.0
Up to
$1,630.0
Up to
$1,630.0
Nonrecurring
General
Fund**
$0*
Up to
$460.0
Up to
$460.0
Up to
$460.0
Up to
$460.0
Nonrecurring
Chaves
County
$0*
Up to
$1,550.0
Up to
$1,550.0
Up to
$1,550.0
Up to
$1,550.0
Nonrecurring Roswell
Parentheses ( ) indicate revenue decreases.
* Probable despite emergency clause
** Does not include Admin Fee.
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT*
(dollars in thousands)
Agency/Program
FY25 FY26 FY27
3 Year
Total Cost
Recurring or
Nonrecurring
Fund
Affected
TRD Up to $500.0 Up to $500.0 Nonrecurring General Fund
Parentheses ( ) indicate expenditure decreases.
Sources of Information
RP500 Reports
LFC Files
Agency Analysis Received From
Department of Public Safety (DPS)
Agency Analysis was Solicited but Not Received From
Taxation and Revenue Department (TRD) Department of Finance and Administration/Local Government Division (DFA/LGD)
Department of Homeland Security and Emergency Management (DHSEM)
Senate Bill 383/ec – Page 2
SUMMARY
Synopsis of Senate Bill 383
Senate Bill 383 (SB383) expands the use of revenue bonds to include flood recovery and then
defines the municipalities permitted to use them in such a way that only the city of Roswell
qualifies. Under the bill, Roswell would be permitted to impose a local option municipal flood
recovery gross receipts tax of up to 0.25 percent and use the proceeds of that tax to amortize
gross receipts revenue bonds.
Section 4 of the bill provides a temporarily limited governmental gross receipts tax deduction
[emphasis added] for services and materials to a municipality if the services and tangible
personal property are used exclusively for the rebuilding, repairing, replacing, or hardening of
the municipality's property that was damaged by a flood.
This bill contains an emergency clause and would become effective the first of the month
following signature by the governor.
FISCAL IMPLICATIONS
Roswell could use the bond proceeds to provide the 25 percent local share for federal disaster aid
for rebuilding, repairing, replacing, and hardening of municipal property damaged by a flood.
The impact of the governmental gross receipts tax (GGRT) deduction is uncertain. This
deduction will not allow a deduction from the regular gross receipts tax for repairs contracted by
the city to private contractors. The usual procedure in that case is for the city to reimburse the
contractors for their gross receipts tax liability. The proceeds of the bonds are specifically
restricted to repairs of municipal property damaged by the flood. The deduction is to sunset as of
July 1, 2028. The deduction may have something to do with the 75 percent of reimbursable costs
available from the Federal Emergency Management Agency.
The municipal flood recovery gross receipt tax may be imposed in increments of 0.001 percent
up to .25 percent. The tax will continue until the bonds are paid off.
FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29
MTGR ($1,000,000) $1,32 8 $1,412 $1,421 $1,468 $1, 514 $1,557 $1,600 $1,643
Revenue at .25% ($1,000) $3,220 $3,420 $3,450 $3,560 $3,674 $3,778 $3,882 $3,986
3% Admin -- Gen Fund ($1,000) $100.0 $106.0 $107.0 $110.0 $114.0 $117.0 $120.0 $123.0
With the emergency clause, the tax could begin as early as April 1, 2025, but this would be out
of cycle for the Taxation and Revenue Department (TRD). The tax would more likely begin July
1, 2025, with the current tax-exempt interest rate of 4.42 percent for revenue bonds for a loan
from the public project revolving fund. For 20-year bonds and projecting the proceeds of the tax
based on FY22 through FY25 second quarter amounts, total proceeds of the tax would be $68
million and the net present value $45 million. This $45 million, less cost of the bond sales, would
be a good approximation of the maximum amount of the loan. This calculation would be for the
full amount of the 0.25 percent tax
Senate Bill 383/ec – Page 3
SIGNIFICANT ISSUES
On October 21, 2024, Roswell experienced serious flooding with substantial property damage
and two fatalities. The area was declared a federal disaster area on November 2, 2024.
Roswell recorded 5.78 inches of rainfall, four times the region's average October rainfall
and breaking the previous record of 5.65 inches set in 1901.
The Spring River channel overflowed, causing extreme flooding in downtown
Roswell. First responders performed more than 300 water rescues.
The flooding inundated roads, swept away cars, and damaged bridges and buildings. The
flooding left much of the city under a layer of silt.
The governor declared a state of emergency for the Chaves County area, unlocking $1
million in state funding to help relief efforts.
The president declared a federal disaster area and made it eligible for federal disaster
relief.
TECHNICAL ISSUES
The governmental gross receipts tax deduction proposed could render the FEMA money not
taxable.
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