S T A T E   O F   N E W   Y O R K
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                                  5877--A
 
                        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  --  committee  discharged,  bill amended,
   ordered reprinted as amended and recommitted to said committee
 
 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. Legislative findings.  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.  In
 2013, the town spent general fund money in the amount of $144,523 to pay
 for the construction of a new water well, improvements to the pump house
 and other system improvements.   In the years that  followed,  the  town
 spent  general  fund  money  in  the amount of $433,016 to replace water
 mains and make other system improvements, including tank rehabilitation.
 The expenditure of such funds by the town board prior to the  district's
 establishment  as  described above was in violation of the provisions of
 section 165.10 of the local finance law.   Further, the town  failed  to
 repay  to the moneys advanced from the general fund to make improvements
 to the former water system  by the close of the fiscal year in which the
 advance was made with reasonable interest in accordance with section 9-a
 of the general municipal law.
   Lastly, bond resolutions were not adopted by the  town  board  at  the
 times  such  funds were paid and as a result the town is prohibited from
 financing such costs with bonds or notes.  The specific actions taken by
 the town in furtherance of establishment of Water District  No.  14  and
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07597-03-5
              

 A. 5877--A                          2
 
 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
 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  resulting  in
 construction of a new water well, improvements to  the  pump  house  and
 other  system  improvements.  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
 because the town did not own the  property.  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 in violation of section
 209-f of the town law.
   The town has operated Water  District  No.  14  as  a  de-facto  water
 district  in  violation of the provisions of articles 12 and 12-A of the
 town law since 2013.  In addition to using general fund money to pay the
 costs of the initial improvements described herein, the town  has  spent
 general fund money to replace water mains on account of breaks and other
 system  improvements,  including  tank  rehabilitation, to provide for a
 properly functioning water system.  The town has  been  assessing  resi-
 dents of Water District No. 14 for operation and maintenance expenses of
 the  water  system in accordance with the schedule enacted by the public
 service commission.  The town has not  assessed  residents  for  capital
 improvements  to the system and as result none of the general fund money
 paid by the town has been repaid. 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 165.10 of the local finance law.
   §   2.  Water  district  established.    Notwithstanding  the  defects
 described in section 1 of this act, the establishment of Water  District
 No.  14  is  hereby  legalized,  validated, ratified and confirmed. Said
 water district established pursuant to this act shall be  funded,  oper-
 ated,   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  in  any
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 way  be  in  conflict  with  articles  12  and 12-A of the town law, the
 provisions of this act shall  be  controlling.  The  imposition  of  any
 special assessments by the town upon the properties previously served by
 the Orchard Hill Water Company are hereby validated.
   § 3. Bonds authorized.  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
 moneys  have  been temporarily diverted since 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 165.10 of  the  local  finance
 law  which,  provide,  in effect that a bond resolution shall have first
 adopted before any such temporary diversion of funds shall have been  so
 made  and notwithstanding section 9-a of the general municipal law which
 requires money advanced to be repaid to the fund from  which  they  were
 advanced  not  later  than  the  close  of  the fiscal year in which the
 advance was made  with  reasonable  interest.  The  period  of  probable
 usefulness  for  such  improvements is forty (40) years from the date of
 the initial improvements, which occurred in  2013.  In  anticipation  of
 such bonds, bond anticipation notes are hereby authorized.
   §  4.  Obligations.  Except as provided herein, any obligations issued
 pursuant to this act shall  be  issued  in  accordance  with  the  local
 finance law.
   §  5.  Severability.  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 inval-
 idate  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.