Relates to the town of Eagle, county of Wyoming wind project

Summary of provisions

Section 1 states the legislative findings and intent.

Section 2 states that to the extent the town of Eagle exceeded their maximum appropriation for payment into the contingency and tax stabilization reserve fund, such amounts are legalized, validated, and ratified.

Section 3 authorizes the town of Eagle to appropriate an amount up to fifteen percent of the eligible portion of the annual budget for the fiscal year for which the appropriation is made into the contingency and tax stabilization reserve fund.

Section 4 authorizes the town of Eagle to utilize an amount up to fifty percent of any fiscal year's annual budget from the contingency and tax stabilization reserve fund to lessen or prevent any projected real property tax increase needed to finance the eligible portion of the annual budget for the next succeeding fiscal year. This amount may be expended from such fund until the fund is wholly depleted or ten years after the effective date of this act, whichever occurs first.

Section 5 states that this act shall take effect immediately provided that once PILOT payments are no longer received pursuant to the town of Eagle wind project PILOT, the authority of the town under section 3 of this act shall terminate; and provided further that section 4 of this act shall take effect upon the final PILOT payment received by the town of Eagle under its wind project PILOT.

Justification

During the 2013-2014 fiscal year, the town of Eagle created a contingency and tax stabilization reserve fund pursuant to section 6-e of the general municipal law with the purpose of offsetting property taxes in the future once the town of Eagle wind project PILOT ends.

Currently, the town of Eagle receives $1 million of the total revenues associated with the wind project PILOT per year. Most of this money is used to completely cover all of the town's taxes. The town wants to put the remaining revenues into its contingency and tax stabilization reserve fund to offset property taxes once the wind project PILOT ends. Under current law, the town may only appropriate an amount up to ten percent of the eligible portion of the annual budget for the fiscal year for which the appropriation is made into the fund; this bill raises the appropriation amount to up to fifteen percent per year. Once PILOT payments are no longer received pursuant to the town of Eagle wind project PILOT, the town's authority to appropriate this amount will terminate.

The town of Eagle plans to use the money from its contingency and tax stabilization reserve fund to offset property taxes once the wind project PILOT ends. Under current law, the town is limited to how much money it may utilize from this fund each year to lessen or prevent any projected increase in property taxes. This bill authorizes the town of Eagle to utilize an amount up to fifty percent of any fiscal year's annual budget from the contingency and tax stabilization reserve fund to lessen or prevent any projected real property tax increase needed to finance the eligible portion of the annual budget for the next succeeding fiscal year. The town may expend this amount from such fund until it is wholly depleted or ten years after the effective date of this act, whichever occurs first.

This legislation is necessary to ameliorate the serious financial burden on the town of Eagle's property taxpayers that will result when the wind project PILOT ends. Since the revenues from the wind project PILOT currently cover all of the town's taxes, the end of the project will result in a sudden increase in property taxes that would be unmanageable for the town of Eagle's taxpayers. While the provisions under section 6-e of the general municipal law exist to ensure financial stability for municipalities, it is necessary to exempt the town of Eagle from certain provisions under this law for a limited period of time to allow the town to phase in the new property tax burden after its wind project PILOT ends.

Legislative history

New bill.

Fiscal implications

None to the state.

Effective date

Immediately.