New Mexico Administrative Code › Title 20 - ENVIRONMENTAL PROTECTION › Chapter 5 - PETROLEUM STORAGE TANKS › Part 117 - FINANCIAL RESPONSIBILITY › Section 20.5.117.1715 - LOCAL GOVERNMENT FINANCIAL TEST

Current through Register Vol. 35, No. 13, July 16, 2024
A. A local government owner or operator may
				satisfy the requirements of 20.5.117.1703 NMAC by passing the financial test
				specified in this section. To be eligible to use the financial test, the local
				government owner or operator shall have the ability and authority to assess and
				levy taxes or to freely establish fees and charges. To pass the local
				government financial test, the owner or operator shall meet the criteria of
				Paragraphs (2) and (3) of Subsection B of this section based on year-end
				financial statements for the latest completed fiscal year.
B. The criteria for local government
				financial test.
(1) The local government owner
				or operator shall have the following information available, as shown in the
				year-end financial statements for the latest completed fiscal year.
(a) Total revenues. "Total revenues" is the
				sum of general fund operating and non-operating revenues including net local
				taxes, licenses and permits, fines and forfeitures, revenues from use of money
				and property, charges for services, investment earnings, sales (property,
				publications, etc.), intergovernmental revenues (restricted and unrestricted),
				and total 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. For purposes of this test, the
				calculation of total revenues shall exclude all transfers between funds under
				the direct control of the local government using the financial test (interfund
				transfers), liquidation of investments, and issuance of debt.
(b) Total expenditures. "Total expenditures"
				is the sum of general fund operating and non-operating expenditures including
				public safety, public utilities, transportation, public works, environmental
				protection, cultural and recreational, community development, revenue sharing,
				employee benefits and compensation, office management, planning and zoning,
				capital projects, 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. For purposes
				of this test, the calculation of total expenditures shall exclude all transfers
				between funds under the direct control of the local government using the
				financial test (interfund transfers).
(c) Local revenues. "Local revenues" is total
				revenues as defined in Subparagraph (a) of Paragraph (1) of Subsection B of
				this section minus the sum of all transfers from other governmental entities,
				including all monies received from federal, state, or local government
				sources.
(d) Debt service. "Debt
				service" is the sum of all interest and principal payments on all long-term
				credit obligations and all interest-bearing short-term credit obligations. It
				includes interest and principal payments on general obligation bonds, revenue
				bonds, notes, mortgages, judgments, and interest-bearing warrants. It excludes
				payments on non-interest-bearing short-term obligations, interfund obligations,
				amounts owed in a trust or agency capacity, and advances and contingent loans
				from other governments.
(e) Total
				funds. "Total funds" is the sum of cash and investment securities from all
				funds, including general, enterprise, debt service, capital projects, and
				special revenue funds, but excluding employee retirement funds, at the end of
				the local government's financial reporting year. It includes federal
				securities, federal agency securities, state and local government securities,
				and other securities such as bonds, notes and mortgages. For purposes of this
				test, the calculation of total funds shall exclude agency funds, private trust
				funds, accounts receivable, value of real property, and other non-security
				assets.
(f) Population is the
				number of people in the area served by the local government.