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.