Friends of the Cumbres & Toltec - FriendsOfCumbresToltec.org

The New Mexico legislator has approved bonds totally 750,000 for C&TS work. Read it over on TO.

SECTION 10. CUMBRES AND TOLTEC SCENIC RAILROAD
COMMISSION PROJECT--SEVERANCE TAX BONDS.--Pursuant to the
provisions of Section 1 of this act, upon certification by
the Cumbres and Toltec scenic railroad commission that the
need exists for the issuance of the bonds, seven hundred
fifty thousand dollars ($750,000) is appropriated to the
Cumbres and Toltec scenic railroad commission for track
rehabilitation and related infrastructure improvements,
including locomotive and boiler upgrades to comply with
federal railroad administration standards, and for
improvements to passenger cars for the Cumbres and Toltec
scenic railroad operating between New Mexico and Colorado.

Sharon,

This seems like good news. Does the state of NM then pay off the bonds when they come due or is the RR on the hook for it?

Thanks!

Greg

The announcement I posted is all I know.

The "bond' is standard practice in New Mexico. I don't know the ins and outs (nor do I want to know)) but it is a s.o.p.

I don't think the railroad has to pay for that bond funding.

Here's what the NM legislative budget office said in a 2014 explainer about the source of funding for severance bonds:

"Severance tax bonds generally are repaid with revenue from taxes on oil, gas, coal and other natural resources “severed” from the land. The amount available through severance tax bonds is largely dependent on the health of the oil and gas industry." source: https://www.nmlegis.gov/Entity/LFC/Docu ... outlay.pdf

The oil and gas industry is healthy again, at least as far as New Mexico is concerned, so there should be revenue from severance taxes to pay off the bonds.

Moving on...

Very, very good news then! Now, if we can only get some more snow and/or rain, it'l; be a great year.

Greg