S T A T E   O F   N E W   Y O R K
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                                 6802--A

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                             March 12, 2009
                               ___________

Introduced by M. of A. BRENNAN, ABBATE, PHEFFER -- Multi-Sponsored by --
  M.  of A.  BENEDETTO, BRODSKY, BROOK-KRASNY, COLTON, COOK, CYMBROWITZ,
  GLICK, HYER-SPENCER, JACOBS, LANCMAN, MAISEL, MILLMAN, ORTIZ  --  read
  once  and  referred  to the Committee on Corporations, Authorities and
  Commissions -- committee discharged, bill amended,  ordered  reprinted
  as amended and recommitted to said committee

AN  ACT  to  amend  the public authorities law, in relation to sewer and
  water rates  for  those  granted  senior  citizen  real  property  tax
  exemptions in the city of New York

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision 1 of section 1045-j of the  public  authorities
law,  as added by chapter 513 of the laws of 1984, is amended to read as
follows:
  1. The water board shall establish, fix and revise, from time to time,
fees, rates, rents  or  other  charges  for  the  use  of,  or  services
furnished,  rendered  or made available by, the sewerage system or water
system, or both, as the case may be, owned by the water  board  pursuant
to  this title in such amount  at least sufficient at all times so as to
provide funds in an  amount  sufficient  together  with  other  revenues
available  to the board, if any, (i) to pay to the authority, in accord-
ance with any agreement with the authority, an amount sufficient for the
purpose of paying the principal of and the interest on  the  outstanding
notes or bonds of the authority as the same shall become due and payable
and maintaining or funding a capital or debt service reserve fund there-
for  and,  to  the extent requested by the city in, or annually pursuant
to, the agreement to pay to the city, in accordance with the  agreement,
an  amount  sufficient  for  the  purpose of paying the principal of and
interest on general obligation bonds thereof issued for or allocable  to
the  water system or sewerage system or both, as the case may be, as the
same shall become due and payable, and  to  maintain  or  fund  reserves

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09790-02-9
              

A. 6802--A                          2

therefor,  (ii) to pay to the city, in accordance with the agreement, an
amount sufficient for the purpose of paying the costs of  administering,
maintaining,  repairing and operating and the cost of constructing capi-
tal  improvements to the water system or sewerage system or both, as the
case may be, (iii) to pay to the city in accordance with  the  agreement
entered into pursuant to section one thousand forty-five-i of this title
an amount sufficient for the purpose of paying liabilities issued for or
allocable  to  the  water system or sewerage system or both, as the case
may be, as the same shall become due  and  payable,  (iv)  to  meet  any
requirements  of  any  agreement  including requirements relating to the
establishment of reserves for renewal and  replacement  and  for  uncol-
lected  charges  and  covenants  respecting  rates, (v) to pay all other
reasonable and necessary expenses of the authority and the  water  board
in  relation thereto, and (vi) to the extent requested by the city in or
pursuant to the agreement, to pay or provide for such other purposes  or
projects  as such city considers appropriate and in the public interest.
WHEN SETTING SUCH RATES WITHIN  ANY  CITY  OR  COUNTY  THAT  SHALL  HAVE
ADOPTED  A LOCAL LAW PURSUANT TO SECTION FOUR HUNDRED SIXTY-SEVEN AND/OR
SECTION FOUR HUNDRED FIFTY-NINE-C OF THE REAL PROPERTY  TAX  LAW,  THOSE
REAL  PROPERTY  OWNERS  WHOSE  APPLICATIONS FOR A PARTIAL EXEMPTION FROM
TAXATION AS SET FORTH IN SECTION FOUR HUNDRED SIXTY-SEVEN AND/OR SECTION
FOUR HUNDRED FIFTY-NINE-C OF THE REAL PROPERTY TAX LAW HAVE BEEN GRANTED
SHALL HAVE THEIR RATES FOR WATER AND SEWER CHARGES FROZEN AT THE RATE IN
EFFECT ON JULY FIRST, TWO  THOUSAND  NINE  OR  THE  DATE  ON  WHICH  THE
EXEMPTION  AFORESAID  IS  GRANTED,  WHICHEVER  IS LATER, UNTIL SUCH RATE
EQUALS THAT PRODUCED BY MULTIPLYING THE CURRENT FULL RATE TIMES A FACTOR
REPRESENTING ONE MINUS THE PERCENTAGE OF ASSESSED VALUATION EXEMPT  FROM
TAXATION  PURSUANT  TO  SUCH SECTION FOUR HUNDRED SIXTY-SEVEN OR SECTION
FOUR HUNDRED FIFTY-NINE-C.   THEREAFTER, THE  RATES  OF  SUCH  PARTIALLY
EXEMPTED  REAL  PROPERTY  OWNERS  SHALL  INCREASE IN SUCH A MANNER AS TO
MAINTAIN SUCH PERCENTAGE DIFFERENTIAL. ANY REVENUE FOREGONE AS A  RESULT
OF  THIS REALLOCATION SHALL BE SPREAD AMONG ALL CLASSES OF CUSTOMER. Any
surplus of funds remaining in the water board after such  payments  have
been made shall be returned to the city for deposit in the general fund.
  S  2.  This  act shall take effect on the thirtieth day after it shall
have become a law.