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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-
pg_0002
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