A. Within sixty days of a hearing held pursuant to Section 4 [5-17-4 N.M. Stat. Ann.] of the Infrastructure Development Zone Act, the governing body shall disapprove the service plan, approve the service plan as submitted or conditionally approve the service plan subject to the submission of additional information relating to or modifying the proposed service plan.

B. The governing body shall disapprove the service plan unless evidence, satisfactory to the governing body, is presented that:

(1)     the required number of taxpaying electors of the proposed infrastructure development zone have signed the petition;

(2)     there is sufficient existing or projected need for organized service in the area to be serviced by the proposed infrastructure development zone;

(3)     the existing service in the area to be served by the proposed infrastructure development zone is inadequate for present or projected needs;

(4)     the proposed infrastructure development zone will be capable of providing economical and sufficient service to the area within its proposed boundaries;

(5)     the area to be included in the proposed infrastructure development zone has, or will have, the financial ability to discharge the proposed indebtedness on a reasonable basis; and

(6)     the proposed infrastructure development within the infrastructure development zone is in compliance with any applicable comprehensive master plan adopted pursuant to Section 3-19-9 N.M. Stat. Ann..

C. The governing body may disapprove the service plan if evidence, satisfactory to the governing body, and at the discretion of the governing body, is not presented that:

(1)     adequate service is not, or will not be, available to the area through the municipality, county or other existing political subdivisions, including existing infrastructure development zones, within a reasonable time and on a comparable basis;

(2)     the facility and service standards of the proposed infrastructure development zone are compatible with the facility and service standards of each county or municipality within which the proposed infrastructure development zone is to be located;

(3)     the proposal is in compliance with any existing municipal, county, regional or state long-range water quality management plan for the area; or

(4)     the creation of the proposed infrastructure development zone will be in the best interests of the area proposed to be served.

D. The governing body may conditionally approve the service plan of a proposed infrastructure development zone upon satisfactory evidence that it does not comply with one or more of the criteria enumerated in Subsection C of this section. Final approval shall be contingent upon modification of the service plan to include such changes or additional information as shall be specifically stated in the findings of the governing body.

E. The findings of the governing body shall be based solely upon the service plan and evidence presented at the hearing by the petitioners and any interested party.