New Mexico Administrative Code
Title 18 - TRANSPORTATION AND HIGHWAYS
Chapter 27 - HIGHWAY CONSTRUCTION GENERAL PROVISIONS
Part 3 - LOCAL GOVERNMENT ROAD FUND GUIDELINES FOR WAIVER OF LOCAL ENTITIES MATCHING FUNDS DUE TO FINANCIAL HARDSHIP
Section 18.27.3.8 - GUIDELINES
Current through Register Vol. 35, No. 18, September 24, 2024
The following guidelines are established for administration of funds authorized by the legislature.
A. Only entities which submitted requests for Cooperative, School Bus Routes, Municipal Arterial, or County Arterial projects from the Local Government Road Fund Program by the deadline specified by the District Engineer shall be eligible for waivers.
B. Entities eligible for participation in the LGRF Program may request a waiver of their matching share in whole or in part due to financial hardship. All project requests including all waiver requests with supporting documentation shall be submitted to the District Engineer or designee for their respective areas.
C. Waiver of matching funds shall not be considered if an entity already has a project under agreement using current fiscal year funding. Matching funds will not be waived for more than one project per entity, except for counties which would be eligible for one cooperative project and one county arterial project.
D. A waiver must be requested and determination made before a Cooperative Project Agreement has been signed with the Department. The Secretary may waive this provision when it is in the best interest of the State to do so.
E. If an entity wants to establish a financial hardship, it should submit a resolution or certification indicating that it cannot match all or a portion of its share. The resolution or certification shall be signed by the appropriate official(s).
F. After receiving a resolution or certification declaring financial hardship, the District Engineer shall consider all known facts such as severe winter weather, flooding, emergency work, past history, whether the entity has exhausted taxing authority, and other information that would tend to prove financial hardship.
G. The District Engineer shall request from the Local Government Division of the DFA, or State Board of Education, a financial analysis and recommendation on an entity's financial hardship for the fiscal year in which the waiver is requested.
H. If financial hardship is evident the District Engineer shall submit the entity's request and resolution or certification along with recommendation that the waiver of matching funds be granted. If financial hardship is not evident, the District Engineer shall so notify the entity in writing.
I. If financial hardship has been determined and the entity is not providing matching funds, the maximum amount the entity can receive from the LGRF in any fiscal year is $75,000, except for County Arterial Projects where the maximum shall be the county's share mandated by legislative formula, plus the standard 25% match. This maximum amount may be waived depending on the demand on the funds which are available.
J. The Secretary shall review the District Engineer's recommendation and recommend action to the Commission. The Commission shall take action on the Secretary's recommendation at a regularly scheduled Commission meeting.
K. The District Engineer shall be notified of the Commission's action by the Secretary and in turn shall notify the entity.
L. If the Commission approves the recommended action, a Cooperative Agreement shall be accordingly entered into.
M. The State Maintenance Bureau shall be responsible for accounting and totaling the funds being expended out of the funds provided for financial hardships.
N. For Municipal Arterial Projects, the State Maintenance Engineer shall be substituted and take the place of the District Engineer in these guidelines.
O. Any agreement involving waiver of an entity's fiscal year matching funds shall be processed prior to December 31, of that fiscal year, or as otherwise determined by the Secretary.
P. If a public entity is not using maximum tax levy authority, the entity shall provide a written explanation of why the maximum tax levy is not being imposed prior to the Department considering the waiver request.
