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![handle is hein.nyscompop/nyscomo2003 and id is 1 raw text is: Opinion 2003-1
Opinion 2003 - 1
This opinion represents the views of the Office of the State Comptroller at the
time it was rendered. The opinion may no longer represent those views if, among
other things, there have been subsequent court cases or statutory amendments
that bear on the issues discussed in the opinion.
IMPROVEMENT DISTRICTS -- Expenses (of extension to town water district)
WATER DISTRICTS -- Extension (cost charged only against properties in extension)
TOWN LAW §202(5): Pursuant to Town Law §202(5), the cost of an extension to a town
water district is charged against only properties within the extension. The extension may
also be charged a proportion of the costs of certain items of the original district, as may
be determined by the town board.
You ask whether the cost of an improvement for an extension to an existing town water
district is borne solely by the properties within the extension.
Towns are authorized to establish and extend water districts upon petition of owners of
taxable real property within the proposed district or extension pursuant to the procedures
in article 12 of the Town Law (§190 et =.), or upon town board motion subject to
permissive referendum requirements pursuant to the procedures in article 12-A of the
Town Law (§209-a, et =g.). Under both articles 12 and 12-A, a public hearing is
required (Town Law §§193, 209-d).
Town Law §202 contains provisions as to how expenses of the establishment or
extension of a town water district are raised (see also Town Law §1 98[3][d]). Subdivision
3 of section 202 generally provides that the expenses of establishing a water district are
assessed, levied and collected in the same manner and at the same time as other town
charges (i.e., on an ad valorem basis; see, e.g., 1991 Opns St Comp No. 91-10, p 24),
unless the petition, in the case of an article 12 district, or the notice of hearing, in the
case of an article 12-A district, states that the costs of constructing the water system will
be assessed in proportion as nearly as may be to the benefit that each lot or parcel will
derive therefrom (i.e., on a benefit basis). Section 202(5) provides generally that the
expense of an extension to a district is to be collected from the several lots and parcels
of land within the extension on the same basis (ad valorem or benefit) as the original
district. Subdivision 5 also makes provision for charging to the properties within the
extension a portion of the costs of certain improvements of the original district as follows:
The expense of any extension to an existing water district shall
include all the costs and expenses occasioned by reason of such
[extension] and in addition thereto such proportion of the cost of any
reservoir or reservoirs, standpipes, water purification works, pumping
stations and main water lines, including lands, of the original district
as the town board shall determine.
We have previously expressed the opinion that the purpose of the quoted provision is to
authorize the town board to charge the extension with a fair share of the cost of those
facilities that are used by the whole district, including extensions (16 Opns St Comp,
1960, p 61). There is no corresponding provision in section 202(5), however, for
charging any portion of the expense of the extension to the original district (see, e.g., 19
Opns St Comp, 1963, p 169).1
Accordingly, pursuant to Town Law §202(5), the cost of an extension to a town water
district is charged against only properties within the extension.2 The extension may also
be charged a proportion of the costs of certain items of the original district, as may be
determined by the town board.
June 2, 2003
Opinion 2003 - 1](ViewImageLocal?handle=hein.nyscompop/nyscomo2003&div=1&collection=&method=preview&ext=.png&size=3)