NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

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(Parenthesis ( ) Indicate Expenditure Decreases)

(Parenthesis ( ) Indicate Revenue Decreases)

Duplicates/Conflicts with/Companion to/Relates to

SOURCES OF INFORMATION

LFC files

Administrative Office of the Courts (AOC) analysis

New Mexico Finance Authority analysis

SUMMARY

     Synopsis of HAFC Amendment

The House Appropriations and Finance Committee amendment provides for the availability in the magistrate and metropolitan court capitol fund of $1,500.0 for appropriation each year. Balances in the fund after bond obligations are met, after $600.0 is reserved from lease and rental revenues and after $1,500.0 is reserved for appropriation will be used for early retirement of the bonds.

The amendment appropriates $1,000.0 from the magistrate and metropolitan court capital fund to the administrative office of the courts in FY2001 for security, equipping and studying the costs and benefits of leasing and purchasing magistrate court facilities.

Synopsis of Bill

House Bill 217 creates the financing to construct a parking facility to serve the future Bernalillo County Metropolitan courthouse in downtown Albuquerque. The parking facility shall be managed by the Bernalillo County Metropolitan Court (Metro Court), which will charge rates for parking services comparable to other facilities in the downtown Albuquerque area. Revenue generated by the parking facility will be used to retire bonds issued to construct the facility after payment of all the costs needed to run the facility.

Significant Issues

House Bill 217 would increase the court facilities fees paid by citizens in counties with metropolitan courts from $14.00 to $24.00 and decrease the corrections fee paid by citizens in counties with metropolitan courts from $10.00 to zero. If this adjustment to the court fee structure passes, the New Mexico Finance Authority (NMFA) would be authorized to issue and sell revenue bonds in an amount not to exceed $11,400.0 for the purpose of buying land, designing, constructing, furnishing and equipping the parking facility. The project costs for the facility are $18.3 million to be covered by $11.4 million in bonds and $8.1 million cash balance.

The bill appropriates $8,100.0 from the Magistrate and Metropolitan Court Capital Fund for expenditure in fiscal years 2000 through 2004 for acquisition of real property and the design, construction, furnishing and equipping of the new court structure and the parking facility or to repay a loan from NMFA for any of these purposes.

FISCAL IMPLICATIONS

House Bill 217 appropriates $8.1 million from the Magistrate and Metropolitan Court Capital Fund. The amendment appropriates an additional $1 million from the fund for the administrative office of the courts.

The bill increases court facility fee revenue and eliminates corrections fee revenue in counties with metropolitan courts (Bernalillo). This will result in $500.0 in revenue for the court facility fund annually.

House Bill 217 authorizes NMFA to issue and sell $11,400.0 in revenue bonds. At the end of each fiscal year after the bonds are issued, and all principal, interest and other expenses or obligations related to the bonds in that fiscal year are fully paid, and after an amount not to exceed $600.0 per year from the annual lease revenue anticipated to be generated by the old Metro Court building is retained, an amount not to exceed $1,500.0 is to be transferred to the Magistrate and Metropolitan Court Capital Fund. Revenues remaining in the special bond fund after these obligations are met shall be used for the early redemption of the bonds.

ADMINISTRATIVE IMPLICATIONS

House Bill 217 requires that Metro Court administer and manage the parking facility. This includes providing a certified long-term user list and parking fee or rent schedule for the parking facility to NMFA at the end of each fiscal year.

OTHER SUBSTANTIVE ISSUES

The parking facility will provide approximately 1,000 spaces (550 of which will be available to the public on an hourly basis). Metro court estimates that 3,300 people visit the court on any given working day.

BOC/njw