What's happening
This bill legalizes Aurelius's past water tax changes and allows use of an existing reserve fund.
Why it matters
Impacts the Town of Aurelius and potentially residents and property owners in Water District III. (in Cayuga County), by retroactively legalizing changes made to how water taxes are assessed and collected since 2015—resolving years of legal uncertainty and potential liability.
Allows the use and transfer of reserve funds originally raised through a different tax method. , ensuring that money already collected for water line repairs and reconstruction can continue to be used for those purposes without legal obstacles, provided all original obligations and claims are satisfied.
Represents a significant legislative fix for a local government action that conflicted with state law. , setting precedent for how similar municipal missteps might be addressed and highlighting the importance of legislative intervention when state agencies (like the Comptroller) are unable to resolve such issues.
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Who cares
Town of Aurelius Officials and Residents
They directly benefit from the legalization and validation of past tax and fund management practices, ensuring continued access to capital reserve funds for water system improvements and legal certainty for prior actions.
Property Owners in Water District III
These stakeholders care because the bill affects how their tax dollars are managed and assures that funds collected for water infrastructure are used as intended within their district.
Village of Cayuga and Its Residents (Joint Water Project Partners)
Since the water district was expanded via a partnership, these stakeholders are interested in the legal and financial stability of the shared water system.
New York State Comptroller’s Office and Local Government Oversight Agencies
This legislation provides clarity and a resolution to a situation where oversight bodies were unable to issue guidance, impacting their role in auditing, advising, and regulating municipal fund management.
Headline styles
Validate Aurelius Water Tax Shift
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to local governments
- Delivered to assembly
- Passed senateVote 60–1
- Home rule request
- Ordered to third reading cal.1674
- Committee discharged and committed to rules
- Referred to local government
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 Change
In Assembly Committee · Local Governments · Sponsor Jeff Gallahan
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
10185
IN SENATE
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 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.
Sponsor's memo
Title of bill
An act to authorize the town of Aurelius to continue the use of an existing water district capital reserve fund
Purpose or general idea of bill
Relates to legalizing and validating certain actions taken by the town of Aurelius in apportioning water district costs
Summary of provisions
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.
§ 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.
§ 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.
Justification
This legislation acts as a corrective measure to a technical legal issue involving the Town of Aurelius' Water District III. The Town changed how it charged residents for water services not realizing that the legal authority for that change had previously been repealed.
Rather than creating disruption, this bill simply validates the Town's actions so the current system can continue without legal complications. It also ensures that existing reserve funds can still be used for their intended purpose of maintaining and repairing water infrastructure.
Overall, this is a straightforward measure that promotes stability, protects residents, and ensures the continued reliability of essential water services.
Prior legislative history
New Bill.
Fiscal implications
None
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.