NY State Senate Bill 2025-S6247A

Senate Bill S6247A

2025-2026 Legislative Session

Ratifies and confirms the creation of water district no. 14 of the town of Monroe; and authorizes the issuance of bonds or notes by such town to finance certain inter-fund borrowings by such water district

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Current Bill Status - In Senate Committee Finance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 06, 2025	print number 6247a
Jun 06, 2025	amend and recommit to finance
Mar 07, 2025	referred to finance

Bill Amendments

Original

A (Active)

2025-S6247 - Details

See Assembly Version of this Bill:: A5877
Current Committee:: Senate Finance
Law Section:: Towns
Versions Introduced in 2023-2024 Legislative Session:: S8779, A9704

2025-S6247 - Summary

Ratifies and confirms the creation of water district number 14 of the town of Monroe, made up of the water system previously owned and operated by Orchard Hill Water Company and which has been owned and operated by the town of Monroe by mandate from the public service commission since 2013; authorizes the issuance of bonds or notes by such town to finance certain inter-fund borrowings by such water district.

2025-S6247 - Sponsor Memo

                                 
BILL NUMBER: S6247

SPONSOR: SKOUFIS
 
TITLE OF BILL:

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

 
PURPOSE:

This legislation authorizes the Town to issue bonds or notes to finance
the cost of improvements to the water system paid by the Town's General
Fund at the time the Town assumed control of the water system from a
private operator, notwithstanding the fact that the Town failed to adopt
a bond resolution prior to the date of such expenditures.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1: Provides legislative intent and context for the bill.

Section 2: Ratifies the creation and establishment of water district no.
14 of the Town of Monroe.

Section 3: Authorizes the Town of Monroe to issue bonds or notes to
finance certain inter-fund loans made by the Town's General Fund to said
Water District No. 14.

Section 4: States that any obligations issued pursuant to this act shall
be issued in accordance with the local finance law.

Section 5: States severability clause.

Section 6: Sets effective date.

 
JUSTIFICATION:

In 2012, the Public Service Commission mandated that the Town of Monroe
in Orange County take over the private water system that previously
served the residents of the current Water District No. 14.  The water
system was previously owned and operated by Orchard Hill Water Company.
The water system had fallen into substantial disrepair and required
significant capital improvements. Upon taking over the water system, the
Town immediately made certain necessary capital improvements to the
water system that were paid from the Town's General Funds. Absent the
improvements, the system was in complete disrepair, and residents were
experiencing intermittent disruption of water service. The Town
completed the required proceedings to establish Water District No. 14 on
August 28, 2019; however, the Town's application to the State Comp-
troller was not completed and approved. The District has been operating
as a de-facto district since 2012.

This legislation authorizes the Town to issue bonds or notes to finance
certain inter-fund loans made by the Town's General Fund to Water
District No. 14 for emergency capital improvements and land acquisition
costs required when the Town took over the water system.  As of early
2024, the amount of the inter-fund loan is $507,443.

 
LEGISLATIVE HISTORY:

Senate

2023: N/A

2024: S8779, Passed Senate

Assembly

2023: N/A

2024: A9704, Referred to Local Government

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None to the State.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2025-S6247 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6247
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               March 7, 2025
                                ___________
 
 Introduced  by  Sen. SKOUFIS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Finance
 
 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
 S. 6247                             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.

2025-S6247A (ACTIVE) - Details

See Assembly Version of this Bill:: A5877
Current Committee:: Senate Finance
Law Section:: Towns
Versions Introduced in 2023-2024 Legislative Session:: S8779, A9704

2025-S6247A (ACTIVE) - Summary

2025-S6247A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S6247A

SPONSOR: SKOUFIS
 
TITLE OF BILL:

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

 
PURPOSE:

This legislation authorizes the Town to issue bonds or notes to finance
the cost of improvements to the water system paid by the Town's General
Fund at the time the Town assumed control of the water system from a
private operator, notwithstanding the fact that the Town failed to adopt
a bond resolution prior to the date of such expenditures.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1: Provides legislative intent and context for the bill.

Section 2: Ratifies the creation and establishment of water district no.
14 of the Town of Monroe.

Section 3: Authorizes the Town of Monroe to issue bonds or notes to
finance certain inter-fund loans made by-the Town's General Fund to said
Water District No. 14.

Section 4: States that any obligations issued pursuant to this act shall
be issued in accordance with the local finance law.

Section 5: States severability clause.

Section 6: Sets effective date.

 
JUSTIFICATION:

In 2012, the Public Service Commission mandated that the Town of Monroe
in Orange County take over the private water system that previously
served the residents of the current Water District No. 14.  The water
system was previously owned and operated by Orchard Hill Water Company.
The water system had fallen into substantial disrepair and required
significant capital improvements. Upon taking over the water system, the
Town immediately made certain necessary capital improvements to the
water system that were paid from the Town's General Funds. Absent the
improvements, the system was in complete disrepair, and residents were
experiencing intermittent disruption of water service.  The Town
completed the required proceedings to establish Water District No. 14 on
August 28, 2019; however, the Town's application to the State Comp-
troller was not completed and approved. The District has been operating
as a de-facto district since 2012.

This legislation authorizes the Town to issue bonds or notes to finance
certain inter-fund loans made by the Town's General Fund to Water
District No. 14 for emergency capital improvements and land acquisition
costs required when the Town took over the water system.  As of early
2024, the amount of the inter-fund loan is $507,443.

 
LEGISLATIVE HISTORY:

Senate

2023: N/A

2024: S8779, Passed Senate

Assembly

2023: N/A

2024: A9704, Referred to Local Government

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None to the State.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2025-S6247A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6247--A
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               March 7, 2025
                                ___________
 
 Introduced  by  Sen. SKOUFIS -- read twice and ordered printed, and when
   printed to be committed to  the  Committee  on  Finance  --  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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07597-04-5

 S. 6247--A                          2
 
 the  town  in  furtherance of establishment 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
 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
 S. 6247--A                          3
 
 this act. To the extent that the provisions of this  act  shall  in  any
 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.

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