BILL NUMBER:S1700A

TITLE OF BILL:  An act in relation to the town of Eagle, county of
Wyoming wind project

PURPOSE:

This bill exempts the town of Eagle, county of Wyoming, from certain
provisions of section 6-e of the general municipal law for a limited
period of time to allow the town to minimize the property tax burden
when its wind project PILOT ends.

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:

2013-14: S.7050-A/A.9505-A Passed Senate/Referred to Local Governments

FISCAL IMPLICATIONS:

None to the state.

EFFECTIVE DATE:

Immediately.