SENATE MEMORIAL 37

47th legislature - STATE OF NEW MEXICO - first session, 2005

INTRODUCED BY

Phil A. Griego

A MEMORIAL

REQUESTING THE DEPARTMENT OF FINANCE AND ADMINISTRATION TO DEVELOP AN IMPLEMENTATION PLAN AND MECHANISM RELATING TO THE CIVIL ASSETS OF THE STATE AND ITS POLITICAL SUBDIVISIONS TO ENABLE GOVERNMENTAL ENTITIES TO ENTER INTO AGREEMENTS FOR THE RENOVATION OF CERTAIN INFRASTRUCTURE, AND UTILIZE PRIVATE AND PUBLIC FINANCING WITH PERFORMANCE AND VALUATION GUARANTEES COMPLIANT WITH GOVERNMENTAL ACCOUNTING STANDARDS BOARD STATEMENTS 34 AND 35.

     WHEREAS, adequate infrastructure, including roads, pipelines, water and wastewater treatment, electrical generation and distribution, and telecommunications, is basic to the health, safety and welfare of all New Mexicans; and

     WHEREAS, governmental efforts and resources have not been sufficient to create and maintain a consistent and adequate condition level of infrastructure statewide; and

     WHEREAS, failure to maintain the infrastructure may create adverse economic or financial impacts on the local economy and can discourage new private investment or reinvestment; and

     WHEREAS, compliance with governmental accounting standards board statements 34 and 35 with regard to the net value of infrastructure assets is of financial benefit to state and local governmental entities;

     NOW, THEREFORE, BE IT RESOLVED BY THE SENATE OF THE STATE OF NEW MEXICO that the department of finance and administration be requested to develop a plan and establish mechanisms for governmental entities to enter into agreements:

          A. for the restoration of depreciated or deteriorated civil infrastructure assets for which the renovation costs are less than the replacement value;

          B. that provide for the financing of the restoration; and

          C. that include performance guarantees; and

     BE IT FURTHER RESOLVED that governmental entities be requested to enter into joint powers agreements or other appropriate contractual arrangements:

          A. for the purpose of renovating depreciated or deteriorated civil infrastructure assets for which the renovation costs plus other associated costs are less than the replacement value;

          B. that provide for the financing of civil infrastructure restoration; and

          C. that provide, as part of the financing, performance guarantees provided by a third party or risk- pooling provider; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the department of finance and administration, the New Mexico municipal league and the New Mexico association of counties.

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