S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5877
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 24, 2025
                                ___________
 
 Introduced by M. of A. BRABENEC -- read once and referred to the Commit-
   tee on Local Governments
 
 AN  ACT  to ratify and confirm the creation of water district no.  14 of
   the town of Monroe and to authorize the issuance of bonds or notes  by
   the  town  of Monroe to finance certain inter-fund borrowings by water
   district no. 14 from such town's general fund
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. It is hereby found and determined that the Town of Monroe,
 Orange County, New York, hereinafter known as the  town,  spent  General
 Fund  money in the amount of $577,539 to make improvements to the former
 water system owned and operated by Orchard Hill Water Company  prior  to
 the  establishment  of  Water  District  No.  14  in accordance with the
 provisions of Article 12-A of the town  law.  The  expenditure  of  such
 funds  by the town board as described above was in violation of the town
 law requiring the submission of an application to the state  comptroller
 and  the  permission  of  the state comptroller for the establishment of
 Water District No. 14 prior to the expenditure of such funds.   Further,
 the failure by the town board to adopt a valid bond resolution prohibits
 the  town  from  financing with bonds or notes the cost of said improve-
 ments. The specific actions taken by the town in furtherance  of  estab-
 lishment  of Water District No. 14 and the construction and financing of
 improvements therein are more fully described as follows:
   Upon the death of the owners of the Orchard Hill  Water  Company,  the
 water  system  fell  into  disrepair  leading to the enactment of a Boil
 Water Notice on May 10, 2011 for the residents of the water system.  The
 land of the Orchard Hill Water Company fell into receivership. Residents
 of the water system petitioned the town to assume operation of the water
 system  and  to  form  a water district. The town board adopted an Order
 Calling a Public Hearing and held said Public Hearing  on  December  17,
 2012.  The  town's  petition  to be named as a temporary operator of the
 system was approved by the Public Service Commission on June  17,  2013.
 The  town  submitted  an  application  to  the state comptroller for the
 approval  of  the  establishment  of  Water  District  No.  14  and  the
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07597-02-5
 A. 5877                             2
 
 construction  of  improvements  required  by the Department of Health to
 operate the system. Various discussions between representatives  of  the
 state  comptroller  and  the  town  followed  regarding  the application
 submitted  by  the  town.  The  town  decided  to amend the scope of the
 improvements to be undertaken to reduce  the  impact  to  the  residents
 served  by  the former Orchard Hill Water Company. The land owned by the
 Orchard Hill Water Company remained in receivership following the  death
 of  the  owners  and  the town withdrew its application submitted to the
 state comptroller. The town ultimately took ownership  of  the  land  in
 2019.
   In 2019, the town's engineer prepared a map, plan and report for Water
 District  No.  14. On July 1, 2019, the town board held a public hearing
 with respect to Water District No. 14 and  adopted  an  Order  Following
 Public  Hearing. The town filed said order with the county clerk; howev-
 er, the town board did not obtain the  permission  of  the  state  comp-
 troller for the establishment of the district.
   The  town  has  operated  Water  District  No.  14 as a de-facto water
 district in violation of town law since 2013,  including  requiring  the
 residents  of  Water District No. 14 to repay a portion each year of the
 money spent for the improvements. As of December  31,  2024,  the  total
 amount  of  the  initial payment by the town that remains outstanding is
 $577,539.
   The failure of the town board to adopt a bond resolution prior to  the
 expenditure of such money for the water system improvements was contrary
 to the provisions of Section 165.00 of the Local Finance Law.
   §  2.  Notwithstanding the defects described in section 1 of this act,
 the establishment of Water District No. 14 is  hereby  legalized,  vali-
 dated,  ratified and confirmed. Said water district established pursuant
 to this act shall be funded, operated, expanded and otherwise controlled
 in accordance with the provisions of articles 12 and 12-A  of  the  town
 law and the provisions of this act. To the extent that the provisions of
 this  act  shall any in  way be in conflict with articles 12 and 12-A of
 the town law, the provisions of this act shall be controlling. The impo-
 sition of any special assessments by the town upon the properties previ-
 ously served by the Orchard Hill Water Company are hereby validated.
   § 3. The town is authorized to issue bonds or notes in  the  principal
 amount of $577,539 on behalf of Water District No. 14 for the purpose of
 reimbursing  the  general  fund  of  the town from which money have been
 temporarily diverted in 2013 to pay certain of the costs incurred in the
 improvement of the water system acquired by the town in accordance  with
 mandate of the public service commission, notwithstanding the provisions
 of  section  165.00  of  the local finance law which, provide, in effect
 that a bond resolution shall have first adopted before any  such  tempo-
 rary  diversion of funds shall have been so made. The period of probable
 usefulness for such improvements is forty (40) years from  the  date  of
 the  initial  construction,  which  occurred in 2013. In anticipation of
 such bonds, bond anticipation notes are hereby authorized.
   § 4. Except as provided herein, any  obligations  issued  pursuant  to
 this act shall be issued in accordance with the local finance law.
   § 5. If any clause, sentence, subdivision, paragraph, section, or part
 of  this  act  be  adjudged by any court of competent jurisdiction to be
 invalid, judgment shall not affect, impair, or invalidate the  remainder
 thereof, but shall be confined in its operation to the clause, sentence,
 subdivision,  paragraph,  section,  or part thereof directly involved in
 the controversy in which such judgment shall have been rendered.
   § 6. This act shall take effect immediately.