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|
SPONSOR: |
Cisneros |
DATE TYPED: |
5/23/02 |
HB |
|
||
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SHORT TITLE: |
Acquisition of Eagle Nest Lake and Environs |
SB |
2 |
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|
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ANALYST: |
Valenzuela |
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APPROPRIATION
|
Appropriation
Contained |
Estimated
Additional Impact |
Recurring or Non-Rec |
Fund Affected |
||
|
FY02 |
FY03 |
FY02 |
FY03 |
|
|
|
|
$6,000.0 |
|
|
Non-Recurring |
Capital Projects Fund |
|
|
$3,600.0 |
|
|
Non-Recurring |
General Fund |
|
|
$3,500.0 |
|
|
Non-Recurring |
Game Protection Fund |
|
|
$500.0 |
|
|
Non-Recurring |
Game and Fish Bond Interest Fund |
|
|
$1,400.0 |
|
|
Non-Recurring |
Severance Tax Bonds |
|
|
|
|
$682.1 |
Recurring |
General Fund |
|
|
|
|
$2,200.0 |
Recurring |
Capital Improvement Funds |
(Parenthesis
( ) Indicate Expenditure Decreases)
REVENUE
|
Estimated Revenue |
Subsequent Years
Impact |
Recurring or Non-Rec |
Fund Affected |
|
|
FY02 |
FY03 |
|
|
|
|
|
$100.0 |
$100.0 |
Recurring |
Park Fees |
(Parenthesis ( ) Indicate Revenue Decreases)
SUMMARY
Synopsis
of Bill
Senate Bill XXX appropriates $15 million from
numerous revenue sources to the Department of Game and Fish for the purpose of
acquiring Eagle Nest Lake and its environs on behalf of the State of New
Mexico. The revenues generate from the following sources: (1) $6.0 million in
the Capital Projects Fund, which was originally appropriated for the
rehabilitation of the Eagle Nest Lake Dam; (2) $3.6 million from the general
fund, provided that an 8 percent reserve level has been attained for FY03; (3)
$3.5 million from the Game Protection Fund, which is in addition to the $5.0
million already appropriated from this fund; (4) $500.0 from the game and fish
bond retirement fund; and (5) $1.4 million from severance tax bonds.
Brief History of Eagle
Nest Lake Acquisition. During the 2000 legislative session, $4 million
was appropriated from the game protection fund for the lease ($1.0 million) and
down-payment for the purchase ($3.0 million) of Eagle Nest Lake. The legislation also authorized the
department to pursue acquisition on behalf of the state. The following year,
the Legislature appropriated $17 million to complete the purchase; however, the
governor vetoed the entire capital appropriations bill, which included the
funding for Eagle Nest Lake.
In the original purchase
agreement, the state had an eight-year option to purchase the lake, whereby the
CS Cattle Company would lease the lake to the state during that period of time.
However, a revised purchase agreement was signed on July 10th, 2001,
by the State Game Commission, which deleted the eight-year lease/purchase
option and restricted the lease to March 31, 2002. At this point, the CS Cattle
Company closed the lake to public access and began plans to open the facility
as a for-profit business. The lake is expected to open for Memorial Day of this
year.
The current purchase agreement is based on $20.0 million purchase price.
Cash Balances of Game Protection Fund. SB XXX increases the
total from the Game Protection Fund by an additional $3.5 million to $8.5
million. DGF argues this additional amount will force it to seek a fee increase
in the 2004 legislative session and warns that some of its existing capital projects,
such as the warm water fishery in Santa Rosa, could be extended over a longer
period of implementation.
$6 Million Dam Rehabilitation.
The Office of the State Engineer has estimated it requires $6.0 million of
improvements. The CS Cattle Company
contracted with an engineering company to develop an estimated cost of dam
repairs, reporting an amount of $400.0.
Pursuant to the purchase agreement, the state would shoulder the entire
cost of dam rehabilitation. The
Legislature approved the $6.0 million from the general fund for this purpose,
however, this bill would repeal that appropriation and reauthorize the funding
for the purchase.
Eagle Nest Lake State Park.
Also in the executive budget, the Governor recommended $639.8 from the general
fund for the State Parks Division (SPD) to support 7.00 FTE to operate a new
state park at Eagle Nest Lake.
Additionally, SPD estimates that it will need $2.2 million for capital improvements
to develop the location into a state park. SPD may have up to $1.5 million
available to it from the Land and Water Conservation Fund (federal funds) to
use for capital improvements.
Based on visitation data from the Department of
Game and Fish, the SPD estimates earned revenue of $19.8. However, SPD has based these revenue
estimates on an average revenue per visitor at $0.79. The average revenue per visitor is conservative, and a more
likely revenue target is $100.0 in earned revenues.
FISCAL IMPLICATIONS
The bill appropriates
$15 million to purchase Eagle Nest Lake fund, however provides no appropriation
for operation of the facility. As discussed above, the operation budget for the
new state park is estimated at $639.8, annually. In addition, the State Engineer would require a level of operating
funds to maintain and operate the dam and has estimated 0.5 FTE additional
staff. The cost for this staff person
approximates to $32.3 in salaries and benefits, $10.0 for miscellaneous costs. Total operating costs are therefore
$682.1. Finally, an estimated $2.2
million is needed to develop the location.
The department of game
and fish has had ongoing operations at the lake. Consequently, it does not estimate additional funding
requirements.
ADMINISTRATIVE IMPLICATIONS
Enactment of SB XXX would have an administrative
impact commensurate with that described in the Fiscal Implications section.
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