NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

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(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates House Bill 79.

Also duplicates Senate Capital Outlay Request 358.

SOURCES OF INFORMATION

LFC Files

Office of the State Engineer

No response received:

Department of Finance and Administration (DFA)

SUMMARY

Synopsis of Bill

Senate Bill 115 appropriates $200.0 from the general fund to DFA's Local Government Division for the purpose of conducting an engineering assessment of the city of Gallup's water system as a component of the Navajo-Gallup water supply project.

Significant Issues

The city of Gallup and the Navajo Nation are exhausting their groundwater resources and need to develop a dependable, renewable and long-term solution to their water needs. The U.S. Bureau of Reclamation is developing plans for the Navajo-Gallup water supply project which would bring San Juan River water to the area. The city of Gallup needs to develop a hydraulic water system model to determine if system improvements are needed in order to interface with this project.

FISCAL IMPLICATIONS

The appropriation of $200.0 contained in this bill is a non-recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of fiscal year 2002 shall revert to the general fund.

State funds expended on the project would be credited by the Bureau of Reclamation as matching funds toward the Navajo-Gallup water supply project.

LP/njw