2023 New Mexico Statutes › Chapter 6 - Public Finances › Article 6 - Local Government Finances › Section 6-6-2 - Local government division; powers and duties.

The local government division of the department of finance and administration has the power and duty in relation to local public bodies to:
A. require each local public body to furnish and file with the division, on or before June 1 of each year, a proposed budget for the next fiscal year;
B. examine each proposed budget and, on or before July 1 of each year, approve and certify to each local public body an operating budget for use pending approval of a final budget;
C. hold public hearings on proposed budgets;
D. make corrections, revisions and amendments to the proposed budgets as may be necessary to meet the requirements of law;
E. certify a final budget for each local public body to the appropriate governing body prior to the first Monday in September of each year. The budgets, when approved, are binding upon all tax officials of the state;
F. require periodic financial reports, at least quarterly, of local public bodies. The reports shall contain the pertinent details regarding applications for federal money or federal grants-in-aid or regarding federal money or federal grants-in-aid received, including details of programs, matching funds, personnel requirements, salary provisions and program numbers, as indicated in the catalog of federal domestic assistance, of the federal funds applied for and of those received;
G. notify the secretary of finance and administration if a municipality or county has failed to submit two consecutive financial reports required by Subsection F of this section;
H. upon the approval of the secretary of finance and administration, authorize the transfer of funds from one budget item to another when the transfer is requested and a need exists meriting the transfer and the transfer is not prohibited by law. In case of a need necessitating the expenditure for an item not provided for in the budget, upon approval of the secretary of finance and administration, the budget may be revised to authorize the expenditures;
I. with written approval of the secretary of finance and administration, increase the total budget of any local public body in the event the local public body undertakes an activity, service, project or construction program that was not contemplated at the time the final budget was adopted and approved and which activity, service, project or construction program will produce sufficient revenue to cover the increase in the budget or the local public body has surplus funds on hand not necessary to meet the expenditures provided for in the budget with which to cover the increase in the budget; provided, however, that the attorney general shall review legal questions identified by the secretary arising in connection with such budget increase requests;
J. supervise the disbursement of funds to the end that expenditures will not be made in excess of budgeted items or for items not budgeted and that there will not be illegal expenditures;
K. prescribe the form for all budgets, books, records and accounts for local public bodies; and
L. with the approval of the secretary of finance and administration, make rules relating to budgets, records, reports, handling and disbursement of public funds or in any manner relating to the financial affairs of the local public bodies.
History:
1953 Comp., § 11-2-57, enacted by Laws 1957, ch. 250, § 2; 1976 (S.S.), ch. 28, § 1; 1977, ch. 247, § 112; 1987, ch. 261, § 1; 2003, ch. 273, § 11; 2011, ch. 106, § 2.
ANNOTATIONS
Temporary provisions.
— Laws 2023, ch. 2, § 1, effective February 20, 2023, provided that:
A. The local government division of the department of finance and administration, in consultation with the homeland security and emergency management department, shall provide zero-interest reimbursable loans to political subdivisions of the state that have been approved for federal public assistance funding for projects to replace or repair public infrastructure damaged by fire, flooding or debris flows caused by or stemming from the Hermits Peak-Calf Canyon fire. The local government division shall require a contract for reimbursement from a political subdivision of the state receiving a loan pursuant to this section. The contract shall specify:
(1) that the political subdivision shall pay the loan using first dollars received from the approved federal public assistance funding that serves as the basis for the loan;
(2) the political subdivision shall repay the loan within thirty days of having received the approved federal public assistance funding;
(3) such notice or reporting requirements that the local government division deems necessary to be sufficiently informed regarding compliance with Paragraphs (1) and (2) this subsection; and
(4) that upon failure to meet a requirement of this subsection, the loan shall be repaid at current market interest rates.
B. All loan repayments made pursuant to this section shall be deposited into the general fund.
C. The secretary of finance and administration shall take any and all legal actions necessary to enforce the terms of contracts entered into pursuant to this section.
D. On or before April 1, 2023, and every three months thereafter, the local government division shall provide a report to the legislative finance committee and the governor regarding the loans made pursuant to this section, including: the projects for which loan contracts have been made, the dollar amounts of those contracts, the repayments made pursuant to contracts, any breaches of contract and subsequent enforcement actions pursuant to this section. Reports pursuant to this subsection shall cease upon the final repayment on a contract pursuant to this section.
Temporary provisions.
— Laws 2019, ch. 231, § 1, effective June14, 2019, provided:
A. The local government division of the department of finance and administration shall:
(1) conduct an analysis and feasibility study of the siting, planning, design and construction of a library and multi-use complex to provide for the health and well-being of the residents of Chaparral; and
(2) recommend an implementation schedule for the siting, planning, design and construction of such facility.
B. The feasibility study shall assess:
(1) the needs of the community that can be met by the construction of a library and multi-use complex, including:
(a) library resources, including reading material, audiobooks and access to computer and internet services and multimedia technology;
(b) temporary facilities for public agencies to provide services and support to local residents;
(c) office and meeting spaces for nonprofit organizations to offer health and well-being services, including physical health and dental services, domestic violence and sexual assault counseling, legal aid clinics, taxpayer assistance, financial literacy classes, fitness and nutritional support, entrepreneurial and small business advising and resume and job skills training; and
(d) public space for town halls and other community meetings;
(2) whether the library and multi-use complex should be constructed separately or as a single facility; and
(3) options for siting of the facility or facilities, including a cost-benefit analysis of each option. The cost-benefit analysis shall consider:
(a) convenience for the residents of Chaparral;
(b) safe and secure access and visibility;
(c) opportunities to leverage public or private property and resources for cost saving; and
(d) availability of appropriate property and any legal or physical siting constraints.
C. In conducting the feasibility study, the division shall consider input from residents of Chaparral and elected officials representing the community at the local, state and federal levels.
D. The implementation schedule shall recommend time line and budget phases for all aspects of the project, including siting, planning, design and construction.
E. The study is contingent on funding received through legislative appropriation.
The 2011 amendment,
effective July 1, 2012, required the local government division to notify the secretary of finance and administration if a municipality or a county failed to submit two consecutive financial reports.
The 2003 amendment,
effective July 1, 2003, in Subsection F, inserted "at least quarterly" following "financial reports", deleted "but not limited to" following "grants-in-aid received, including"; inserted "exists" following "and a need" in Subsection G; and deleted "and regulations" following "rules" in Subsection K.
City may spend revenues where approval should have been granted.
— Where a city properly meets the standards set out in Subsection H of this section and approval by the attorney general and the department of finance and administration should be granted, the city will not be precluded from using the revenues in question.
Apodaca v. Wilson
, 1974-NMSC-071, 86 N.M. 516, 525 P.2d 876 (decided under prior law).
City bound by budget resolution requesting approval.
— Where a home-rule city passes a budget resolution which, by its very terms, requests approval of the attorney general and the department of finance and administration under Subsection H of this section, the city is bound by its own resolution in requesting such approval, and cannot later contend that it may act without regard to state approval.
Apodaca v. Wilson
, 1974-NMSC-071, 86 N.M. 516, 525 P.2d 876 (decided prior to 1987 amendment).
Local government division may suspend public hearing on proposed budget
at any time for good cause. 1961 Op. Att'y Gen. No. 61-77.
Prorating of funds when insufficient funds available for payment of salaries.
— Where funds are not available for the payment of salaries, the Bateman Act (Sections 6-6-11 and 6-6-13 to 6-6-18 NMSA 1978) requires that available funds be distributed pro rata to the elected county officials so long as they last. The local government division cannot use the guise of forcing a large line item figure in a budget to justify cutting of salaries. 1961 Op. Att'y Gen. No. 61-77.
Budget line transfer authorized where clerical error results in budget line deficit.
— Where a clerical error results in a budget line deficit, an authorized budget line transfer may be accomplished by the director (secretary) of the department of finance and administration with or without request of the local authorities. 1969 Op. Att'y Gen. No. 69-09.
Division has authority to correct, revise and amend local budgets.
— The local government division of the department of finance and administration has the authority under this section to correct, revise and amend the budget of a subdivision of a state and to certify a final budget prior to the first Monday in September of each year. 1969 Op. Att'y Gen. No. 69-09.
Local agency may not maintain separate account where county treasurer is agency's disbursing agent.
— Where the county treasurer is the disbursing agent for normal transactions handled by a local county civil defense agency, the latter may not maintain a separate checking account for public funds of such agency. 1965 Op. Att'y Gen. No. 65-51.
Board of county commissioners, acting as a board of finance, may not delegate to a financial advisor duties that are statutorily delegated to either the county treasurer or the board.
— Where the Sandoval county board of county commissioners hired a contractor to formulate an investment policy for the county and to advise the Sandoval county treasurer and the board of financial matters, the contractor may aid the county commissioners, acting as the board of finance, in the formulation of an investment policy, but the contractor may not be delegated the statutory authority to supervise, demand or oversee the roles and responsibilities of the county treasurer. New Mexico courts have confirmed that a board of county commissioners may delegate its "advice and consent" authority to the county treasurer through the adoption of a county investment policy; yet, it may not delegate its statutory "advice and consent" authority to a contractor.
Sandoval County Treasurer
(5/17/16), Att'y Gen. Adv. Ltr. 2016-04.
Division may not substitute its judgment for that of local officials.
— Subsection D of this section, giving the local government division the power to make corrections, revisions and amendments to proposed budgets, does not give that division a bludgeon to be held over the governing board of a local body to force them to exercise their discretion in accordance with the views of the officials in control of the department of finance and administration. The amount of money deemed necessary to repair a court house should be left to the exercise of sound discretion by the board of county commissioners. A line item within a budget for repair of the court house is not such an expenditure as is necessary to meet the requirements of law within the meaning of Subsection D of this section, insofar as fixing the amount necessary is concerned. The local government division cannot arbitrarily force the board of county commissioners to establish a line item in a budget at a sum which, in the judgment of the board of county commissioners, is excessive to meet the needs of that item. As a consequence thereto, the local government division does not have the power to order suspension of all disbursements by a county merely because the county has not provided a sum of money for a line item which the local government division feels is necessary. 1961 Op. Att'y Gen. No. 61-77.