New Mexico Administrative Code › Title 20 - ENVIRONMENTAL PROTECTION › Chapter 5 - PETROLEUM STORAGE TANKS › Part 117 - FINANCIAL RESPONSIBILITY › Section 20.5.117.1765 - FORM DOCUMENT FOR LOCAL GOVERNMENT FINANCIAL TEST

Current through Register Vol. 35, No. 13, July 16, 2024
To demonstrate that it meets the financial test under
				  Subsection B of 20.5.117.1714 NMAC, the chief financial officer of the local
				  government owner or operator, shall sign, within 120 days of the close of each
				  financial reporting year, as defined by the 12-month period for which financial
				  statements used to support the financial test are prepared, a letter worded
				  exactly as follows, except that the instructions in brackets are to be replaced
				  by the relevant information and the brackets deleted:
LETTER FROM CHIEF FINANCIAL
								OFFICER
I am the chief financial officer of [insert: name
								and address of the owner or operator]. This letter is in support of the use of
								the local government financial test to demonstrate financial responsibility for
								[insert: "taking corrective action" and/or "compensating third parties for
								bodily injury and property damage"] caused by [insert: "sudden accidental
								releases" or "non-sudden accidental releases" or "accidental releases"] in the
								amount of at least [insert: dollar amount] per occurrence and [insert: dollar
								amount] annual aggregate arising from operating (an) underground storage
								tank(s) and at least [insert: dollar amount] per occurrence and [insert: dollar
								amount] annual aggregate arising from operating (an) above ground storage
								tank(s).
Storage tanks at the following facilities are
								assured by this financial test [List for each facility: the name and address of
								the facility where tanks assured by this financial test are located. If this
								instrument is used to assure both underground and above ground storage tanks,
								identify each storage tank as underground or above ground and list the tank
								identification number provided in the notification submitted pursuant to
								20.5.102.202 New Mexico Administrative Code (NMAC). If separate mechanisms or
								combinations of mechanisms are being used to assure any of the tanks at this
								facility, list each tank assured by this financial test by the tank
								identification number provided in the notification submitted pursuant to
								20.5.102.202 NMAC.]
This owner or operator has not received an adverse
								opinion, or a disclaimer of opinion from an independent auditor on its
								financial statements for the latest completed fiscal year. Any outstanding
								issues of general obligation or revenue bonds, if rated, have a Moody's rating
								of Aaa, Aa, A, or Baa or a Standard and Poor's rating of AAA, AA, A, or BBB; if
								rated by both firms, the bonds have a Moody's rating of Aaa, Aa, A, or Baa and
								a Standard and Poor's rating of AAA, AA, A, or BBB.
WORKSHEET FOR MUNICIPAL FINANCIAL
								TEST
PART I: BASIC INFORMATION
1. Total Revenues
a. Revenues (dollars)
Value of revenues excludes liquidation of
								investments and issuance of debt. Value includes all general fund operating and
								non-operating revenues, as well as all revenues from all other governmental
								funds including enterprise, debt service, capital projects, and special
								revenues, but excluding revenues to funds held in a trust or agency
								capacity.
b. Subtract interfund transfers (dollars)
c. Total Revenues (dollars)
2. Total Expenditures
a. Expenditures (dollars)
Value consists of the sum of general fund operating
								and non-operating expenditures including interest payments on debt, payments
								for retirement of debt principal, and total expenditures from all other
								governmental funds including enterprise, debt service, capital projects, and
								special revenues.
b. Subtract interfund transfers (dollars)
c. Total Expenditures (dollars)
3. Local Revenues
a. Total Revenues (from 1c) (dollars)
b. Subtract total intergovernmental transfers
								(dollars)
c. Local Revenues (dollars)
4. Debt Service
a. Interest and fiscal charges (dollars)
b. Add debt retirement (dollars)
c. Total Debt Service (dollars)
5. Total Funds (dollars)
(Sum of amounts held as cash and investment
								securities from all funds, excluding amounts held for employee retirement
								funds, agency funds, and trust funds)
6. Population (persons)
PART II: APPLICATION OF TEST
7. Total Revenues to Population
a. Total Revenues (from 1c)
b. Population (from 6)
c. Divide 7a by 7b
d. Subtract 417
e. Divide by 5,212
f. Multiply by 4.095
8. Total Expenses to Population
a. Total Expenses (from 2c)
b. Population (from 6)
c. Divide 8a by 8b
d. Subtract 524
e. Divide by 5,401
f. Multiply by 4.095
9. Local Revenues to Total Revenues
a. Local Revenues (from 3c)
b. Total Revenues (from 1c)
c. Divide 9a by 9b
d. Subtract.695
e. Divide by.205
f. Multiply by 2.840
10. Debt Service to Population
a. Debt Service (from 4c)
b. Population (from 6)
c. Divide 10a by 10b
d. Subtract 51
e. Divide by 1,038
f. Multiply by -1.866
11. Debt Service to Total Revenues
a. Debt Service (from 4c)
b. Total Revenues (from 1c)
c. Divide 11a by 11b
d. Subtract.068
e. Divide by.259
f. Multiply by -3.533
12. Total Revenues to Total Expenses
a. Total Revenues (from 1c)
b. Total Expenses (from 2c)
c. Divide 12a by 12b
d. Subtract.910
e. Divide by.899
f. Multiply by 3.458
13. Funds Balance to Total Revenues
a. Total Funds (from 5)
b. Total Revenues (from 1c)
c. Divide 13a by 13b
d. Subtract.891
e. Divide by 9.156
f. Multiply by 3.270
14. Funds Balance to Total Expenses
a. Total Funds (from 5)
b. Total Expenses (from 2c)
c. Divide 14a by 14b
d. Subtract.866
e. Divide by 6.409
f. Multiply by 3.270
15. Total Funds to Population
a. Total Funds (from 5)
b. Population (from 6)
c. Divide 15a by 15b
d. Subtract 270
e. Divide by 4,548
f. Multiply by 1.866
16. Add 7f + 8f + 9f + 10f + 11f + 12f + 13f + 14f
								+ 15f + 4.937
I hereby certify that the financial index shown on
								line 16 of the worksheet is greater than zero and that the wording of this
								letter is identical to the wording specified in 20.5.117.1765 NMAC, as such
								regulations were constituted on the date shown immediately below.
[Signature]
[Name]
[Title]
[Date]