Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance

committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports

if they are used for other purposes.

Current FIRs (in HTML & Adobe PDF formats) are a vailable on the NM Legislative Website (legis.state.nm.us).

Adobe PDF versions include all attachments, whereas HTML versions may not. Previously issued FIRs and

attachments may be obtained from the LFC in Suite 101 of the State Capitol Building North.

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

SPONSOR Rodella

ORIGINAL DATE

LAST UPDATED

2-2-06

HB 586

SHORT TITLE EL RITO WASTEWATER DEVELOPMENT PLAN SB

ANALYST Hadwiger

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$65.0 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 Bill

House Bill 586 appropriates $65 thousand from the general fund to the Local Government Divi-

sion (LGD) of the Department of Finance and Administration (DFA) in FY07 for a planning

grant for the community of El Rito to develop a plan for wastewater, including water from the

northern New Mexico state school, an elementary school, a health clinic and the United States

forest service complex.

FISCAL IMPLICATIONS

The appropriation of $65 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.

SIGNIFICANT ISSUES

DFA indicated that lack of cooperation among rural water and wastewater providers have hin-

dered delivery of cost effective and quality services in rural New Mexico, and has resulted in

scarce and expensive system where they do exist. Recognizing this problem, the El Rito com-

House Bill 586 – Page 2

munity of Rio Arriba County in 2003 became one of three pilot projects in the state to collabo-

rate on an area-wide water planning process, with the assistance of water system expert and a

skilled facilitator. Out of the process came a formal merger into one water system. HB586 at-

tempts to emulate the water planning experience in the wastewater arena. Participants in this

process include the Northern NM Community College's El Rito branch, the community's elemen-

tary school, a health clinic and the US Forest Service complex.

DH/mt