Master FIR (1988)

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

SPONSOR:	Lyons		DATE TYPED:	2/23/99		HB
SHORT TITLE:		Eagle Nest Lake Negotiation & Purchase				SB	639
					ANALYST:		Esquibel

APPROPRIATION

Appropriation Contained		Estimated Additional Impact		Recurring or Non-Rec	Fund Affected
FY99	FY2000	FY99	FY2000	Recurring or Non-Rec	Fund Affected
	$ 2,000.0			Non-Recurring	Game Prot Fd
	$ 9,000.0			Non-Recurring	Bonds, Public Proj Revolv- ing Fund
			$ 365.0	Recurring	GF
			$ 2,250.0	Non-Recurring	GF

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to SB638; Conflicts with SB52, SB80 and HB26

SOURCES OF INFORMATION

New Mexico Finance Authority (NMFA)

Department of Game and Fish (DGF)

Energy, Minerals and Natural Resources Department (EMNRD)

State Land Office (SLO)

SUMMARY

Synopsis of Bill

Senate Bill 639 proposes the State Game Commission negotiate the purchase of Eagle Nest Lake, the associated dam and surrounding land. If purchased, the General Services Department would own and maintain the lake, dam and land. Management of the facility would be a joint effort between the Department of Game and Fish; State Parks Division of the Energy, Minerals and Natural Resources Department; and the Interstate Stream Commission.

Significant Issues

The last appraisal of the Eagle Nest Lake property was conducted 1995 and appraised the property at $11 million. The current value is unknown, although the current private owners of the property have suggested a selling price of $22 million.

The facility is leased by the state, with the lease expiring in 1999 and appearing ineligible for renewal. The operation of the lake provides a significant economic boost to the surrounding locale.

FISCAL IMPLICATIONS

SB639 proposes that a portion of the revenue to purchase the Eagle Nest property may come in the form of a land swap, or that one or both of the following appropriations may be used in FY2000:

•grant of the proceeds not to exceed $9 million from the issuance of bonds payable from the public project revolving fund; and

•$2 million in game protection fund revenue.

The NMFA indicates granting up to $9 million in bond proceeds generated from bonding against the public project revolving fund would greatly impact the funds ability to finance its current revolving loan projects which total $163.5 million; as well as proposed revolving loan projects contained in SB46 which total $117.9 million. The accumulation of the two sets of revolving loan projects approaches the maximum capacity of the fund, thus not providing for much remaining capacity to grant bond proceeds for the acquisition of the Eagle Nest Lake property.

The DGF indicates that use of $2 million in game protection funds would necessitate an increase in hunting and fishing license fees within 1-2 years.

The DGF indicates that ownership of the facility by the Property Control Division of the General Services Department would prohibit the use of federal funds by the DGF for the purchase of the facility.

The EMNRD indicates if the property is acquired and operated as a state park, it would require recurring operating costs approximating $365.0 in general fund.

The EMNRD and the Interstate Stream Commission indicate the facility and dam structure would require additional non-recurring capital expenditures approximating $2.25 million.

ADMINISTRATIVE IMPLICATIONS

The EMNRD indicates operation of the property as a state park would require 7 new FTE.

CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP

SB639 relates to SB638 which proposes for the negotiation for acquisition of Eagle Nest dam and reservoir.

SB639 conflicts with SB52 and HB26 which require legislative approval for joint management of state properties and parks.

SB639 also conflicts with SB80 which proposes grant restrictions on the New Mexico Finance Authority.

RAE/gm