1. Hosted by: Bernalillo County
2017 PRESENTATION Pursuing State of NM Capital Outlay Funding by Non-profit Organizations with Bernalillo county June 2017
Hosted by:
Bernalillo County

2. CAPITAL OUTLAY WORKSHOP Content of Presentation
The pursuit of capital outlay funding by non profit organizations from the New Mexico State Legislature involves a local governmental agency serving as the fiscal agent. Several preparation and coordination steps for this to occur will be discussed in this presentation.
Content of Presentation
Terms, Definitions and Acronyms
Requesting Capital Outlay Funding Overview
Who We Are
Why We Do Things This Way
Things to Know and Consider, Before Getting Started
Legislative Process, PRE through POST
Delivery of the Project
Document Overview
Points of Contact

3. Terms Grant – Legislative Appropriation by the State of New Mexico
Grantee – The State Agency or Local Public Body accepting funds from a specific appropriation or Grant
Fiscal Agent – County representation of a non-profit organization, engaged in a program or project related to the organization’s mission, for the purpose of receiving grant funds on behalf of the organization who is not otherwise eligible
Notice of Obligation - an instrument used to as an obligation to reimburse the Grantee
Anti-Donation – Article IX of the NM Constitution prohibits the County from lending or pledging its credit or making any donation to or in aid of any person, association or public or private corporation

4. Definitions and Acronyms
Purchase – procurement of items of tangible personal property, services or construction
Lease – Disposition of real property
Acronyms:
BC - Bernalillo County
BCC - Board of County Commissioners
NPO - Non-Profit Organization
ICIP - Infrastructure Capital Improvement Plan
CIP - Capital Improvement Program
DFA - Department of Finance Administration (State of NM)
LGD - Local Government Division (Within DFA, State of NM)
SBOF - State Board of Finance
STB - Severance Tax Bonds

5. REQUESTING CAPITAL OUTLAY FUNDING
BC annually requests Capital Outlay funding from the State of New Mexico
Capital Outlay is used for projects like facilities, roads, drainage, and utilities
Capital Outlay may be used to acquire assets such as real property, equipment, vehicles
BCC annually approves BC priorities and Capital Outlay funding requests
NPOs may become involved in the process by working with their elected officials
NPOs may seek funding for projects that are consistent with BC priorities
Capital Project funding is identified in BC’s adopted CIP
Prior to legislative session legislators are identified as potential sponsors of specific Capital Outlay funding requests
State of New Mexico cannot grant funding directly to NPOs
Capital Outlay funding to NPOs are administered by a local government
Capital Outlay for use by NPOs is contained within Administrative Resolution

6. WHO WE ARE Julie Morgas Baca, County Manager
Clay Campbell, Chief of staff to the County Manager
Bernalillo County CIP & ICIP Liaison
Rosanna Suazo, Special Projects Coordinator
Bernalillo County Capital Outlay Liaison to Non-Profits
Jolene Slowen, Chief of Community Development Bureau DFA/LGD, State of New Mexico
Maria Urban, Project Manager, Community Development Bureau DFA/LGD, State of new Mexico

7. WHY WE DO THINGS THIS WAY!
BC maintains a Strategic Plan with a mission of being an effective steward of county resources and a partner in building a high quality of life for county residents, communities and businesses.
BCC approves ICIP by the last BCC Administrative Meeting in August each year.
County holds Internal review of NPO requests each summer
Accepted NPO requests will be added to the ICIP
State of NM requires County to submit its ICIP by September of each year.
Per State regulations, no additional projects can be added to the ICIP after the deadline
A project is supposed to be identified in an ICIP in order to be eligible for Capital Outlay funding

8. things to know and consider before you start
The State “GRANTS” Capital Outlay funds to the County. The County is always the “GRANTEE”, NOT a “Fiscal Agent” to the State.
Per the State, any purchase using Capital Outlay funds cannot be owned by the NPO; the capital improvement must be owned by the County.
Per the State, Capital Outlay funds cannot be “Passed Through” the County to a NPO.
Narrative:
The STATE uses a different funding source such as Severance Tax Bonds, General Obligation Bonds, etc.
THE STATE “grants” capital outlay funds to the County. The County becomes the “Grantee” and not a “Fiscal Agent” to the State. The County is only the Fiscal Agent to the Non-Profit…
PER THE STATE, any purchase using Capital Outlay dollars cannot be owned by the NPO; and must be owned by the County.
Per the State, capital outlay funds cannot be “Passed Through” the County to a NPO.

9. things to know and consider before you start
When the STATE “grants” to County, the County must:
Follow all laws in the Expenditure of the grant funds
Report monthly and at year-end on the grant activity
Fund the Grant Amount from County Budget
Request State to approve a notice of obligation
Request Reimbursement for the Grant amount expended
Purchase, own, lease, and dispose of the capital items following all applicable State and County laws
Provide staff to manage Capital Outlay grant and project

10. Things to know and consider before you start
State will not reimburse the expenditures, If:
the County or NPO Expends dollars on the project before receiving State approval in the form of a notice of obligation; and
County expenditures do not meet State financial regulations and/or appropriation language.
NPOs identified as recipients of a legislative appropriation prompts review by State Attorney General’s Office and DFA Legal staff, To:
Ensure Anti-Donation conditions set by the State are met by the County and NPO; and
Ensure the Legislative Appropriation processes of Capital Outlay funds are being met.

11. PRE-LEGISLATIVE SESSION
NPO contacts their County Commissioner, State Representative, and State Senator to gain interest and support to fund a specific Project well before the County passes its ICIP Administrative Resolution.
TIMEFRAME: Summer 2017 in preparation for the 2018 winter Legislative Session.
NPO completes the CAPITAL OUTLAY REQUEST APPLICATION to Bernalillo County and submits by the deadline. DEADLINE: July 5, 2017 by 5:00pm MST
County Management reviews the Application to determine if a Strategic County Goal is met and examines the feasibility of the proposed Project. The County Manager denies or approves the request. If approved, project is included in the County’s ICIP. TIMEFRAME: Summer 2017 before the 2018 Legislative Session.
Bernalillo County meets with its lobbyists to discuss its internal Capital Outlay priorities and to make them aware of the funding requests that Bernalillo County will pursue. TIMEFRAME: October/November 2017
The Board of County Commissioners will adopt an Administrative Resolution outlining the County’s Capital Outlay priorities. TIMEFRAME: November 2017
The NPO completes the State of NM/Legislative Council Service Capital Outlay Request Form. The NPO is responsive for COMPLETING, OBTAINING SIGNTURES AND SUBMITTING the Form per the State requirements. TIMEFRAME: December 2017/January 2018

12. LEGISLATIVE SESSION
The State of New Mexico 54th Legislative Session will conduct its 30 day session. TIMEFRAME: January 2018– February 2018
NPO takes it from here! County does not Lobby on behalf of the NPO!
Approach Legislative Representative(s) to Sponsor Capital Outlay Request
Fate of Capital Outlay Request is determined by State Legislature. Does it move forward into the Capital Appropriation Bill and onto the Governor’s Desk for Signature?
There is a Deadline for the Governor to sign Legislation including Line Item Vetoes! Capital Outlay Legislation is not FINAL until signed by the Governor. If Governor Signs Bill and Does Not Veto, You Just Got Capital Outlay!!!

13. POST-LEGISLATIVE SESSION
State determines the timing of STB sale to generate proceeds for Capital Outlay appropriations. County completes required State Questionnaire, in conjunction with the NPO, to get STB sold. TIMEFRAME: April – Summer 2018
State sets the ‘conditions’ to be met by the County prior to receiving the formal Capital Outlay Appropriation.
County and NPO Must Complete an Agreement to be approved by State identifying: HOW NPO will providing “Fair Market Value” for the use/lease of the Capital asset; HOW “Fair Market Value” was derived; and How NPO will report to County on consideration.
Once conditions are met, a Grant Agreement between the County and State is approved. TIMEFRAME: Generally within eight (8) months after Capital Outlay Bill is signed by the Governor
Bernalillo County will charge the nonprofit a 3% overhead/administrative fee that CANNOT be paid with the grant appropriation.

14. HOW IS THE PROJECT DELIVERED?
State requires a new Third Party Agreement or an amendment to the existing Services Agreement between the County and the NPO
County identifies how NPO meets or exceeds the value of the Capital Outlay amount
NPO must provide services at a value which will meet both the Capital Outlay Grant requirements and the “Services in Lieu of Rent Agreement” Requirements.
Meet with County Project Manager to identify project timeline and plan Capital Asset purchase in accordance with the language of the appropriation and approved by the State DFA/LGD.
Once purchase is complete, asset(s) become part of County inventory. The NPO must have proper insurance to accept delivery of the Capital asset. County requests reimbursement from State and begins monitoring NPO. County reports project activity to DFA.

15. Pulling it all together!
DOCUMENT OVERVIEW
Pulling it all together! AR
Strategic Plan
County Outlay Request Form
ICIP
Third Party Agreement
Grant Agreement between the County and State of New Mexico

16. Community Services Division rsuazo@bernco.gov 505-468-7237 OR
CONTACTS
Rosanna Suazo
Community Services Division OR
Clay Campbell
County Manager’s Office
Rosanna’s Narrative