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

SPONSOR Griego

ORIGINAL DATE

LAST UPDATED

2-6-06

HB

SHORT TITLE

SAN MIGUEL COMMUNITY DITCH

ASSOCIATION DEBT

SB 597

ANALYST Hadwiger

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$45.0 Non-Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Department of Finance and Administration (DFA)

Office of the State Engineer (OSE)

SUMMARY

Synopsis of Bill

Senate Bill 597 appropriates $45 thousand from the general fund to the Local Government Divi-

sion (LGD) of the Department of Finance and Administration (DFA) in FY07 for to reduce the

balance owed by the San Miguel community ditch association to the interstate stream commis-

sion.

FISCAL IMPLICATIONS

The appropriation of $45 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 noted that the Association borrowed one million dollars to construct a new damn to hold

and divert the water for utilization by the association members. The federal government has paid

75 percent of the total cost, the state 22 percent and the association owes $45 thousand. There

are 22 families that use the ditch to irrigate 231 acres.

Senate Bill 597 – Page 2

OSE indicated that estimated cost for complete replacement of the San Miguel Ditch Diversion

Dam is $1,097,000.00 according to the Corps of Engineers (COE) plans and specifications.

The San Miguel Ditch currently has an 1113 Program Agreement signed with the Interstate

Stream Commission (ISC). The COE funds 75% of all costs, or $822,750, and the State funds

17½ % of all costs or $191,975. The Acequia 7 ½% cost share is $82,275. The COE has com-

pleted designs and an environmental assessment. The bid process is complete and has been

awarded. ISC has already placed into escrow, payable to the Corps of Engineers, a total of

$272,250, which represents both the state 17½ % plus the San Miguel Community Ditch’s 7 ½

% cost share. Under the agreement between the Ditch and the ISC, San Miguel Community

Ditch is required to reimburse the ISC for the $82,275 already contributed on their behalf from

state funds when the project is complete.

ADMINISTRATIVE IMPLICATIONS

DFA recommended that these funds, if appropriated, should be administered by the Interstate

Stream Commission.

OTHER SUBSTANTIVE ISSUES

OSE explained that the San Miguel Community Ditch diversion is located on the Pecos River

just west of the Village of Ribera, San Miguel County, New Mexico. Because of the high vari-

ability in flows on the Pecos River, durable and stable diversions are difficult and expensive to

construct. The proposed action is to remove the old, inadequate diversion and build a new diver-

sion dam. The new diversion dam will be a concrete capped gabion structure. A weir length of

approximately 96 feet will span the Pecos River at the same location and approximately the same

orientation as the old structure.

ALTERNATIVES

DFA suggested that the language be amended to make the appropriation to the Interstate Stream

Commission/OSE.

DH/yr