What's happening
This bill allows the town of Aurelius to keep using its existing Water District III reserve fund.
Why it matters
Directly impacts residents and property owners in the Town of Aurelius, Cayuga County. , especially those within Water District III, by ensuring continued access to funds for water infrastructure without disruption or legal uncertainty.
Retroactively legalizes and validates the town's previous tax assessment method change (from ad valorem to unit-based levy). , protecting the town and its taxpayers from potential legal challenges or administrative confusion related to how water district costs were apportioned since 2015.
Allows the town to properly use existing reserve funds for critical water system repairs or reconstruction. , ensuring that money collected for these purposes can be spent as intended, which supports ongoing maintenance and improvements, rather than being frozen or subject to legal dispute.
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Who cares
Town of Aurelius Officials and Residents
They are directly affected, as the bill legalizes and validates the prior actions around water district tax assessments and allows for the continued use of the capital reserve fund to finance local water infrastructure projects.
Water District III Property Owners
These individuals are stakeholders because the manner in which their taxes are assessed and used for water district improvements could impact their property costs and services.
Village of Cayuga and Joint Project Partners
Since the water district was expanded via a joint project with the Village, both the Village and any other partners have a vested interest in how funds are managed and improvements are financed.
New York State Comptroller’s Office
The office was unable to provide guidance on the legality of the fund’s use, so the legislation directly addresses an issue they were involved in and may set a precedent for similar cases in other municipalities.
Headline styles
Validate Aurelius Water Tax Change
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to local governments
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Validate Aurelius Water Tax Shift
In Assembly Committee · Local Governments · Sponsor Rachel May
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
11207
IN ASSEMBLY
May 1, 2026
Introduced by M. of A. GALLAHAN -- read once and referred to the Committee on Local Governments
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 Assembly, 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 assessment 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, established 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 benefited 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 permitting 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
that the Town therefore lacked legal authority for the change. In 2024, the Town requested a formal opinion from the New York state comptroller'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 transfer 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 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.
§ 5. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
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