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F I S C A L I M P A C T R E P O R T

SPONSOR Garcia, MP

ORIGINAL DATE

LAST UPDATED

1-26-06

1-30-06 HB 226/aHGUAC

SHORT TITLE SOUTH VALLEY INCORPORATION STUDY

SB

ANALYST Hadwiger

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$35.0 Non-Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Finance and Administration (DFA)

SUMMARY

Synopsis of HGUAC Amendment

The House Government and Urban Affairs Committee amendment directs DFA to make a grant

with the North Central Economic Development District rather than the Mid Region Council of

Governments, but does not change the purpose or amount of the appropriation.

Synopsis of Original Bill

House Bill 226 appropriates $35 thousand from the general fund to the Local Government Divi-

sion of the Department of Finance and Administration (DFA) in FY07 for a grant to the Mid-

Region Council of Governments to study the feasibility of incorporating the South Valley of

Bernalillo County.

FISCAL IMPLICATIONS

The appropriation of $35 thousand contained in this bill is a non-recurring expense to the general

fund. Any unexpended or unencumbered balance remaining at the end of FY07 would revert to

the general fund.

House Bill 226/aHGUAC – Page 2

SIGNIFICANT ISSUES

DFA noted that, with a population of approximately 39,060, the south valley of Bernalillo

County plays an important role both to the County and the City of Albuquerque. It has a history

of being rural, and a heritage of agriculture. The south valley is also close to the Albuquerque

International Airport. This makes the south valley unique. The issue of incorporation for the

south valley has a history of many years. Proponents indicate they are not properly represented

by the City of Albuquerque or Bernalillo County. The City of Albuquerque has annexed com-

mercial properties including shopping centers and other commercial interests. As part of the an-

nexation the city has provided water hook-up and other essential services. DFA indicated that,

if incorporation does take place in the future, property taxes might have to be raised significantly

to pay for a municipal structure of government along with all the essential services.

ADMINISTRATIVE IMPLICATIONS

DFA indicates the appropriation can be administered by the Local Government Division.

DH/yr