Senate Bill S10185

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10185
 
                             I N  S E N A T E
 
                                May 4, 2026
                                ___________
 
 Introduced  by  Sen.  MAY  --  read  twice and ordered printed, and when
   printed to be committed to the Committee on Local Government
 
 AN ACT to authorize the town of Aurelius  to  continue  the  use  of  an
   existing water district capital reserve 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  Aurelius, modified the manner in which the costs of
 "Water District III" were apportioned from a special ad valorem  assess-
 ment upon properties benefited within the water district to a unit-based
 tax  levy upon an expanded "Water District III" in violation of the town
 law. The specific actions taken by the town are more fully described  as
 follows:
   On  March  13, 2003, the town of Aurelius (the Town), New York, estab-
 lished a capital reserve fund pursuant to section  6-c  of  the  general
 municipal  law  for the purpose of financing the reconstruction or major
 repair of water lines serving "Water District III" within the town. From
 2003 until on or about January 1, 2015, the costs associated with "Water
 District III" and  related  improvements  were  financed  and  collected
 through a special ad valorem assessment levied upon the properties bene-
 fited within the water district. On June 14, 2012, the Town expanded the
 water  district  through  a joint or shared special improvement district
 with the Village of Cayuga (the Village), and a bond resolution was duly
 adopted authorizing the issuance of  obligations  to  finance  the  Town
 share  of  a joint water project. As a result of this expansion, the tax
 base of the water  district  became  larger  than  that  of  the  former
 district.  On  or about January 1, 2015, the Town modified the manner in
 which the costs of the water district were apportioned by changing  from
 a special ad valorem assessment to a unit-based tax levy. At the time of
 this  modification, the Town acted under the mistaken belief that it was
 authorized to change the assessment pursuant to former provisions of the
 town law which had previously permitted such a change. After the  Town's
 action,  however, it was determined that the statutory authority permit-
 ting such a modification of the assessment basis had been repealed,  and
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD15658-01-6
 S. 10185                            2
 
 that  the Town therefore lacked legal authority for the change. In 2024,
 the Town requested a formal  opinion  from  the  New  York  state  comp-
 troller's  office  regarding  the  permissible use of the water district
 capital  reserve fund.   After extended review, the comptroller's office
 was unable to provide guidance and recommended that the Town seek an act
 of the legislature to address the issue.
   § 2. Unit-based tax levy validated. Notwithstanding  the  unauthorized
 action taken by the town of Aurelius, county of Cayuga, in modifying the
 manner  in  which  the costs of the water district were apportioned, the
 establishment of a unit-based tax levy described in section one of  this
 act is hereby legalized, validated, ratified, and confirmed.
   §  3.  Authorization  for the transfer of ad valorem tax revenues. The
 town of Aurelius, upon resolution and permissive referendum, may  trans-
 fer  any  funds  currently  held  from ad valorem tax collections by the
 former "Water District III" reserve fund to "Water  District  III",  and
 such funds shall be used solely by "Water District III" for the purposes
 which  the  funds were originally collected, including reconstruction or
 major repairs, provided that the purposes for creating the former "Water
 District III" reserve fund  have  been  performed  and  any  outstanding
 claims  arising  from  the  purposes  of the former "Water District III"
 reserve fund have been paid from the funds.
   § 4. Severability. If any clause,  sentence,  subdivision,  paragraph,
 section or part of this act be adjudged by any court of competent juris-
 diction  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.
   § 5. This act shall take effect immediately.