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Bernalillo County Has New Policy for Accepting State Capital Outlay Funding for Nonprofits

05/11/2016

The Board of County Commissioners on May 11, 2016 approved a resolution that creates a policy guidance document that clarifies how the county will handle capital outlay funds beginning with the 2017 legislative session -- specifically, proposed capital outlay funding requests made on behalf of nonprofit agencies. 

Currently, nonprofit agencies receiving capital outlay funds must utilize a government agency, such as the county, to act as their fiscal agent. In turn, the county must administer, negotiate third party contracts, monitor, manage, and track the appropriation and the actual capital improvement that results from the appropriation.

The county is required to first use their limited resources to purchase the capital on behalf of the nonprofit agencies and then be reimbursed at a much later date from the state.

“Bernalillo County is working diligently to continue serving the community,” stated Commission Vice Chair Wayne Johnson. “Regardless of the tough economic times, government should always look for increased efficiencies, partnerships and smarter choices in how taxpayer resources are administered.”

The four major effects of this new policy are:

  • Non-governmental entities will require prior approval of the Board of Commissioners before seeking state grant funding and the project presented by the non-governmental entities will need to be reviewed for its fiscal impact to the county’s current and recurring finances
  • Suspend acceptance of State of New Mexico Capital Outlay funds, on behalf of a non-governmental entity, for the purchase of vehicles and information technology
  • Suspend acceptance of any capital outlay expenditure of less than $50,000, and
  • Collect a three-percent administrative fee based on the amount of capital outlay. The administrative fee cannot come from the capital outlay appropriation.

The administrative fee and/or the capital outlay expenditure cap of $50,000 may be waived or modified by majority vote of the Bernalillo County Commission. Additionally, the county manager is authorized to waive or modify the capital outlay expenditure cap of $50,000 during state legislative sessions.

All currently authorized capital outlay grants will continue to be administered depending upon the county's financial ability to pay "up front" for the capital purchases.

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