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F I S C A L I M P A C T R E P O R T
SPONSOR Ingle
ORIGINAL DATE
LAST UPDATED
1-24-06
HB
SHORT TITLE
PORTALES WASTEWATER TREATMENT
SLUDGE CLEANUP
SB 63
ANALYST Hadwiger
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY06
FY07
$250.0
Non-Rec
General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
New Mexico Department of Environment (NMED)
SUMMARY
Synopsis of Bill
Senate Bill 63 appropriates $250 thousand from the general fund to the Local Government Divi-
sion of the Department of Finance and Administration in FY07 to remove and dispose of sludge
from the City of Portales wastewater treatment plant.
FISCAL IMPLICATIONS
The appropriation of $250 thousand contained in this bill is a non-recurring expense to the gen-
eral fund. Any unexpended or unencumbered balance remaining at the end of FY07 would revert
to the general fund. The appropriation is classified as non-recurring in anticipation that there is a
one-time need for this project. If the sponsor intends this to be an ongoing subsidy for the Por-
tales wastewater treatment plant, the appropriation would be properly classified as recurring.
SIGNIFICANT ISSUES
NMED noted that sludge removal and disposal is a regular part of operation of a wastewater
treatment facility and the need is predictable. As part of the normal operation and maintenance
of a wastewater facility, the City of Portales should budget for such expenses rather than rely on
state funding. State funds have traditionally been used for capital improvements, not operation
pg_0002
Senate Bill 63 Page 2
and maintenance. NMED suggested that the state should encourage local governments to estab-
lish revenue streams that support normal operation and maintenance costs without relying on
state assistance.
ADMINISTRATIVE IMPLICATIONS
NMED is the agency with the most extensive expertise in this area, as well as most frequent con-
tact with local water and wastewater agencies. That agency indicates it would be preferable to
appropriate funds to NMED for purposes such as this rather than to DFA.
DH/nt