[1] NOTE:  As provided in LFC policy, this report is intended only 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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F I S C A L   I M P A C T   R E P O R T

 

 

 

SPONSOR:

Aragon

 

DATE TYPED:

02/06/02

 

HB

 

 

SHORT TITLE:

Lower Match for STB Funds

 

SB

316

 

 

ANALYST:

Kehoe

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY02

FY03

FY02

FY03

 

 

 

 

$0.1 See Narrative

 

 

 

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

                                                                                                                                                           

 

SOURCES OF INFORMATION

 

LFC Files

 

SUMMARY

 

     Synopsis of Bill

 

Senate Bill 316 lowers the match requirement for severance tax bonds (STBs) issued in fiscal years 2001 through 2010 for the purpose of financing water and sewer distribution and collection systems in the developed and underserved areas of Bernalillo County.

 

     Significant Issues

 

Laws of 1999, Chapter 5 authorized the issuance and sale of STBs beginning in FY01 and continuing through FY10 for the purpose of financing water and sewer distribution and collection systems in the developed and under-served areas of Bernalillo County, including the City of Albuquerque in an amount not to exceed $20,000.0.  The bond amount was limited to $2,000.0 in any one year and $20 million in total over ten years.  Laws of 2000, Chapter 18 (SS) allowed an increase in STBs from $2,000.0 to $4,000.0 to be issued for the above purpose in FY01 only, but maintained the $2,000.0 authorization in subsequent years.  Bond certification and issuance for the project was contingent upon the governing body of the City of Albuquerque and the Board of County Commissioners of Bernalillo County certifying that other funding in an amount equal to four and one-half times the amount of bonds issued, including the amount of bonds proposed to be issued for that fiscal year, has been secured from city, county or federal resources. 

 

Senate Bill 316 amends the contingency to require a match of one and one-half times the amount of bonds issued rather than four and one half-times the amount of bonds issued to construct the water and sewer distribution and collection systems.   

 

FISCAL IMPLICATIONS

 

Reducing the match requirements for the purpose of financing water and sewer distribution and collection systems in the developed and under-served areas of Bernalillo County will not impact state funds.   However, decreasing the local and federal government match requirement, may cause the local entity to need more state funds for the project in the future.

 

LMK/njw

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