§ 194. Establishment or extension of districts. 1. After a hearing
held upon notice as hereinbefore provided and upon the evidence given
thereat, the town board shall determine by resolution: (a) whether the
petition is signed, and acknowledged or proved, or authenticated, as
required by law and is otherwise sufficient;

(b) whether all the property and property owners within the proposed
district or extension are benefited thereby;

(c) whether all the property and property owners benefited are
included within the limits of the proposed district or extension;

(d) whether it is in the public interest to grant in whole or in part
the relief sought.

2. (a) If the town board shall determine that the petition is not
signed, and acknowledged or proved, or authenticated, as required by law
or that it is otherwise insufficient, or if it is determined that it be
not in the public interest to grant in whole or in part the relief
sought, the town board shall deny the petition.

(b) If the town board shall determine that the petition is signed, and
acknowledged or proved, or authenticated, as required by law and is
otherwise sufficient and that it is in the public interest to grant the
relief sought, either in whole or in part, but shall find that any part
or portion of the property or property owners within the proposed
district or extension are not benefited thereby or that certain property
or property owners benefited thereby have not been included therein, the
town board shall specify the necessary changes of the boundaries of the
proposed district or extension to be made in order that all of the
property and property owners and only such property and property owners
as are benefited shall be included within such proposed district or
extension, and the board shall call a further hearing at a definite
place and time not less than fifteen nor more than twenty-five days
after such determination. Notice of such further hearing shall be posted
and published in the manner provided in section one hundred ninety-three
hereof except that such notice shall also specify the manner in which it
is proposed to alter the boundaries of the proposed district or
extension. Such further hearing shall be conducted in the same manner as
an original hearing upon a petition. If and when the town board shall
determine in the affirmative all of the questions set forth in
subdivision one of this section, the board may adopt a resolution
approving the establishment or extension of the district as the
boundaries shall be finally determined and the construction of the
improvement or providing of the service therein, but no such resolution
so approving shall be adopted unless the petition shall comply with the
requirements of section one hundred ninety-one as to sufficiency of
signers as the boundaries of the proposed district or extension shall be
finally determined.

3. (a) Within ten days after the adoption of a resolution by a town
board approving the establishment or extension of a district and the
construction of an improvement or the providing of a service therein,
the town clerk of the town shall file a certified copy of such
resolution, in duplicate, in the office of the state department of audit
and control at Albany, New York, together with an application, in
duplicate, for permission to create or extend such district as the case
may be. Such application shall be executed and verified by the
supervisor, or such other officer of the town as the town board shall
determine, and shall include the following:

(1) A certified copy of the petition (omitting, however, the
signatures, and acknowledgments or proofs, or authentications) and in
the instance of a sewer, drainage or water district, of the map and plan
accompanying the same;

(2) An itemized statement of the then outstanding indebtedness of the
town for all purposes, as evidenced by bonds, bond anticipation notes,
capital notes and budget notes; the amount of joint indebtedness
contracted or incurred for a joint service or a joint water, sewage or
drainage project and the amount of such indebtedness allocated and
apportioned to the town, as defined in title one-a of the local finance
law; the amount of the indebtedness proposed to be contracted for the
improvement; the amount of budgetary appropriations for the payment of
any such indebtedness, whether or not such appropriations have been
realized as cash, and the amounts, purposes and probable dates of
issuance of any bonds, bond anticipation notes, capital notes and budget
notes which the town has authorized to be issued but which in fact have
not been issued on the date of such application;

(3) A statement of the aggregate assessed valuation of the real
property situated in the proposed district or extension thereof, as such
assessed valuations are shown on the last completed assessment roll of
the town prior to the date of such application;

(4) A statement of the average full valuation of the taxable real
property of the town. Such average full valuation shall be determined in
accordance with the provisions of the first paragraph of subdivision
seven-a of section 2.00 of the local finance law;

(5) A statement as to the manner in which it is proposed to finance
the cost of the improvement.

(b) Whenever such an application shall be filed in the office of the
department of audit and control, the state comptroller shall within five
days thereafter give notice thereof to the board of supervisors of the
county in which such proposed district or extension is located by filing
with the clerk of such board of supervisors one copy of such
application. At any time within fifteen days of the filing of the
application, the board of supervisors may file an objection, in writing,
in the office of the department of audit and control. In addition, the
state comptroller shall determine whether the public interest will be
served by the creation or extension of the district and also whether the
cost thereof will be an undue burden upon the property of the proposed
district or extension. The state comptroller may make such
determinations upon the original or any amended application, or in his
discretion may require the submission of additional information or data
in such form and detail as he shall deem sufficient, or may cause an
investigation to be made, to aid him in making the determinations above
mentioned.

4. Upon the expiration of fifteen days from the date of the filing of
such application with the clerk of the board of supervisors and upon
reaching a determination, the comptroller shall make an order, in
duplicate, granting or denying permission for the creation or extension
of the district and shall file one copy of such order in the office of
the state department of audit and control at Albany, New York, and the
other in the office of the town clerk of the town in which the proposed
district or extension is located. The town clerk shall present such
order to the town board of the town at the next meeting thereof.

5. If the state comptroller shall deny permission for the creation or
extension of the district, the town board shall forthwith adopt an order
denying the petition. If the state comptroller shall grant permission
therefor, the town board may adopt an order establishing the district or
extension as the boundaries shall be finally determined.

6. Except as otherwise provided by section two hundred two-b of this
article, the permission of the state comptroller shall not be required
for the establishment or extension of a district and the construction of
an improvement or the providing of a service therein, including an
increase in the maximum amount proposed to be expended for the
improvement in a district, unless it is proposed or required that the
town in which such district or extension is located shall finance the
cost thereof by the issuance of the bonds, notes, certificates or other
evidences of indebtedness of the town therefor or it is proposed that
debt service on obligations issued to finance the costs of facilities
acquired be assumed, pursuant to subdivision twelve of section one
hundred ninety-eight of this article, and, if the state comptroller
shall have computed average estimated costs for similar types of
districts, the cost of the district or extension to the typical property
or, if different, the costs of the district or extension to the typical
one or two family home, as stated in the notice of hearing, is above the
average estimated cost to typical properties or homes for the
establishment or extension of similar types of districts as may be
annually computed by the state comptroller. The state comptroller
annually shall provide to towns notice of the average cost thresholds as
may be computed in accordance with this section.