Senate Bill S7372

                                BILL NUMBER:S7372

TITLE OF BILL:  An act to amend chapter 121 of the laws of 2012, relat-
ing to authorizing the use of sewer surplus for infrastructure projects
other than sewer projects in the village of Patchogue, in relation to
the effectiveness thereof

PURPOSE OR GENERAL IDEA OF BILL:

This legislation would allow the village of Patchogue to continue to use
surplus funds received from sewer rents for other infrastructure
projects until December 31, 2015.

SUMMARY OF SPECIFIC PROVISIONS:

Section One extends current law until December 31, 2015.

Section Two is the effective date

JUSTIFICATION:

While water utilities are able to use their surplus funds for any munic-
ipal purpose, sewer utilities are limited to using excess revenues for
only sewer-related purposes. Generally, revenues derived from sewer
rents, including penalties and interest, are credited to a special fund
and the use of these funds are not permitted for use beyond costs
              

incurred that relate to the sewer system.

However, in the village of Patchogue, the sewage plant and district
plays a large role in this community's revitalization and economic
growth. This growth has resulted in an influx of monies to the sewer
fund but also in increased stress and pressure on the community's
infrastructure. Allowing the village to use a limited amount of these
funds to address infrastructure issues until December 31, 2015, would be
a realistic and appropriate way to solve the problems created by this
economic growth.

This legislation would allow the village of Patchogue to continue to use
money, until December 31, 2015, from the sewer rent fund to pay expenses
or obligations incurred for infrastructure improvements, after paying
off all sewer-related expenses. The village would also be able to allo-
cate up to 40% of this surplus to a special fund to be used specifically
for infrastructure improvements. This ensures that the sewer needs are
taken care of first, while allowing the village to use some of the
excess funds derived from this source to solve the problems that come as
a result of large and expanding sewage facilities.

PRIOR LEGISLATIVE HISTORY:

New Bill.

FISCAL IMPLICATIONS:

None to the state.

EFFECTIVE DATE:

This act shall take effect immediately.