§ 54. Special improvements. 1. Definition and application. (a) The
term "improvement" or "special improvement", as used in this section,
shall mean any facility, service, function, activity or physical public
betterment which may be provided by the establishment of an improvement
district pursuant to article twelve or twelve-a of this chapter, but not
including water quality treatment districts.

(b) The powers provided by this section shall be deemed to be in
addition to those provided in article twelve or article twelve-a of this
chapter and shall not be deemed to limit or supersede any powers
provided in either of such articles; provided, however, that nothing in
this section shall be deemed to authorize the providing of a special
improvement in, or the charging of the costs thereof against any area of
the town located in any village.

2. Plans, reports and maps. The town board may adopt a resolution
appropriating a specific amount to pay the cost of preparing a general
plan, report and, where appropriate, a map for providing an improvement
in the area of the town outside of any villages, or in any portion of
such area. All such plans, reports and maps shall conform with the
requirements of section two hundred nine-c of this chapter. The town
board may determine that such plans, reports and maps shall be prepared
by or under the supervision of town officers and employees to be
designated by the town board, or by persons to be employed for the
purpose, or the town board may contract for the preparation thereof
within the limitations of the amount appropriated. Except as otherwise
provided herein, the expense incurred for the preparation of such plans,
reports and maps shall be a charge on the area of the town outside of
any villages, and shall be assessed, levied and collected in the same
manner as other town charges. If the town board shall thereafter make
such improvement, the expense incurred by the town for the preparation
of the plans, reports and maps therefor shall be deemed to be part of
the cost of such improvement and the town shall be reimbursed for such
portion of that amount, if any, which the town board, at the public
hearing held pursuant to subdivision three of this section, shall
allocate against such benefited area, if any.

3. Hearing. Subsequent to the date of filing of the plan, report and
map, if any, in the office of the town clerk, as required by section two
hundred nine-c of this chapter, the town board may adopt an order and
enter the same in the minutes of its proceedings reciting the proposed
improvement, a description of the boundaries of the proposed benefited
area, if any, the maximum amount proposed to be expended for the
proposed improvement, the proposed method of apportioning the costs of
such improvement, the proposed method of financing to be employed, the
fact that a plan, report and map, if any, describing the same are on
file in the town clerk's office for public inspection and specifying the
time when and the place where such board will meet and hold a public
hearing at which all persons interested in the subject thereof may be
heard concerning the same. The board shall cause a copy of such order to
be published at least once in a newspaper or newspapers designated
pursuant to subdivision eleven of section sixty-four of this chapter,
the first publication thereof to be not less than ten nor more than
twenty days before the day set therein for the hearing, and shall also
cause a copy thereof to be posted upon the bulletin board in the office
of the town clerk.

4. Change in boundaries or apportionment of costs. If the town board
shall determine, after the hearing, on notice as provided in subdivision
three hereof and upon the evidence given thereat, that any of the
property in a proposed benefited area, if any, is not benefited by the
improvement, or that any property benefited by the improvement is not
included in the proposed benefited area and that the boundaries of the
benefited area should be changed accordingly, or that the proposed
method of apportioning the costs of such improvement should be changed,
the board shall specify the changes and shall call a further public
hearing at a definite time and place not less than fifteen nor more than
twenty-five days after such previous hearing. Notice of such further
hearing shall be published and posted in the manner provided in
subdivision three hereof except that such notice shall also specify the
manner in which it is proposed to alter the boundaries of the benefited
area or the method of apportioning the costs of the improvement.

5. Increase in maximum amount. (a) At any time prior to the completion
of an improvement, the maximum amount proposed to be expended for such
improvement, as stated in the notice of public hearing pursuant to
subdivision three or four hereof, may be increased by an order of the
town board provided that the town board shall, after a public hearing
held in the manner prescribed in subdivision three hereof, determine
that it is in the public interest to authorize the increase in such
maximum amount. If it is proposed or required that the town shall
finance the increase in the maximum amount proposed to be expended for
the improvement by the issuance of bonds, notes, certificates or other
evidences of indebtedness and the total estimated expense of such
improvement including the increase in the maximum amount shall exceed
one-tenth of one per centum of the full valuation of the taxable real
property in the area of the town outside of villages, the town board may
not make an order pursuant to this subdivision unless the comptroller of
the state of New York shall have made, subsequent to the public hearing
required by this subdivision, an order approving the increase in such
maximum amount as stated in the notice of hearing required by this
subdivision. The order of the comptroller shall be prepared in duplicate
and one copy thereof filed in the office of the department of audit and
control and the other copy in the office of the town clerk of the town.
If the original authorization of the improvement was subject to a
permissive referendum pursuant to paragraph (a) of subdivision eleven of
this section or made subject to a mandatory or permissive referendum
pursuant to paragraph (b) of subdivision eleven of this section, any
order of the town board increasing the maximum amount to be expended
shall be subject to the same type of referendum.

(b) If the notice of public hearing held pursuant to subdivision three
or four hereof proposes only the performance or supplying of certain
services and states the maximum amount to be expended annually for such
services, the maximum amount to be expended annually may be increased by
an order of the town board, provided the town board shall, after a
public hearing, determine that it is in the public interest to authorize
the increase in such maximum amount. The town board shall give notice of
such hearing by at least a single publication of a notice in a newspaper
or newspapers designated pursuant to subdivision eleven of section
sixty-four of this chapter at least ten but not more than twenty days
prior to the date specified for such hearing, specifying the time when
and place where such hearing will be held and stating the increase
proposed in the maximum amount to be expended annually.

6. Authorization of improvement; judicial review. (a) After the
hearing on notice as provided in subdivision three or four hereof, and
upon the evidence given thereat, the town board shall determine by
resolution whether or not it is in the public interest to make such
improvement.

(b) If the town board shall determine that it is not in the public
interest to make the proposed improvement, the board shall adopt a
resolution stating the reasons for its determination not to make the
proposed improvement and enter the same in the minutes of its
proceedings.

(c) If the town board shall determine that it is in the public
interest, the board may adopt a resolution authorizing such improvement,
subject to the approval of the state comptroller where such approval is
required by subdivision thirteen of this section. Such resolution shall
contain a statement of the manner in which the costs of the improvement
are to be apportioned, and a description of the boundaries of the
benefited area, if any, as finally determined by the town board where
any part of the cost is to be raised by special assessments upon
benefited property.

(d) The town clerk shall cause a certified copy of any resolution or
order adopted pursuant to this subdivision, subdivision five or
paragraph (c) of subdivision eight of this section, or section
fifty-seven of this chapter to be duly recorded in the office of the
clerk of the county in which the town is located within ten days after
the adoption of such resolution, or within ten days of the receipt of
notification of the approval of the state comptroller where such
approval is required by subdivision five or subdivision thirteen of this
section. When so recorded, such resolution shall be presumptive evidence
of the regularity of the proceedings and actions taken by the town board
in relation thereto.

(e) Any interested person aggrieved by any resolution or order adopted
pursuant to this subdivision, subdivision five or paragraph (c) of
subdivision eight of this section, or section fifty-seven of this
chapter may review the same by a proceeding pursuant to article
seventy-eight of the civil practice act provided such proceeding is
commenced within thirty days from the date of the recording of the
certified copy of the resolution or order in the office of the county
clerk. Any such resolution or order shall be final and conclusive unless
a proceeding pursuant to article seventy-eight of the civil practice act
has been commenced within thirty days from the date of recording
thereof. No review shall be had unless at the time the proceeding is
commenced the interested person seeking the review shall give an
undertaking approved by the supreme court, or a justice thereof, as to
form, amount and sufficiency of sureties, that, in the event of failure
to modify such resolution or order he or they will pay to the town board
all costs and expenses as are incurred by it on account of the said
proceeding as shall be determined by the court. In the event that upon
such review there shall be any modification by the court of such
resolution the court shall direct the modification thereof by order
which shall be final and conclusive and such town board shall cause such
order to be recorded and filed in the same place and manner as was the
resolution or order appealed from.

7. Performance of the work. After the resolution authorizing an
improvement shall become effective, such improvement may be made and
contracts therefor may be let in the manner provided in section one
hundred ninety-seven of this chapter.

8. Apportionment of costs. (a) The cost of any such improvement shall
be borne partly by the area of the town outside of any village and
partly by the lands benefited thereby; or by the area of the town
outside of any village; or entirely by the lands benefited thereby, as
the town board, in its discretion, shall provide. Where, however, (1)
any part of the cost of the improvement is to be borne by property in a
described benefited area, such costs shall be assessed, levied and
collected from the several lots or parcels of land within such benefited
area either in the same manner and at the same time as other town
charges, or in just proportion to the amount of benefit which the
improvement shall confer upon such lots or parcels, or (2) any part of
the cost of the improvement is to be borne by the entire area of the
town outside of any villages, and such area has not been determined to
be the benefited area, such costs shall be assessed, levied and
collected from the several lots and parcels of land in such area in the
same manner and at the same time as other town charges.

(b) In the event that a proposed improvement is not made, any expense
incurred by the town in relation thereto, including costs of publication
of notices and of any referendum, shall be a charge upon the area of the
town outside of any villages, and shall be assessed, levied and
collected in the same manner as other town charges.

(c) At any time after the completion of an improvement pursuant to the
provisions of this section, the apportionment of the costs thereof as
between the benefited area and the area of the town outside of any
village, as stated in the notice of public hearing pursuant to
subdivision three or four hereof, may be changed by resolution of the
town board provided that the town board shall, after a public hearing,
determine that it is in the public interest to authorize the change in
such apportionment. The town board shall give notice of such hearing by
at least a single publication of a notice in a newspaper or newspapers
designated pursuant to subdivision eleven of section sixty-four of this
chapter at least ten but not more than twenty days prior to the date
specified for such hearing, specifying the time when and place where
such hearing will be held and stating the change proposed in the
apportionment of the costs of the improvement. The only change in the
apportionment of the costs of an improvement that may be authorized
pursuant to this paragraph shall be an increase in the share of such
costs to be borne by the area of the town outside of any village, with a
corresponding decrease in the share of such costs to be borne by the
benefited area.

(d) The cost of any such improvement may include such portion of the
cost of existing or authorized improvements as the town board shall
determine. Such determination shall be based on a finding that there is
an equitable and reasonable relationship between such improvement and
the existing or authorized improvements.

9. Financing improvement. The funds necessary to pay the cost of any
improvement made pursuant to this section shall be raised in a manner
provided in article fifteen of this chapter, as determined by the town
board, or pursuant to a local law adopted pursuant to section
fifty-one-a of this article.

10. Petition. Five resident owners of taxable real property located
within the area of the town outside of any villages, may petition the
town board to acquire, provide or construct any improvement described in
subdivision one of this section. Such petition shall be signed by the
petitioners, and acknowledged or proved in the same manner as a deed to
be recorded, or authenticated in the manner provided by the election law
for the authentication of nominating petitions. When any such petition
shall have been presented, the town board may direct the preparation of
a plan, report and, where appropriate, a map for such improvement and
proceed in the manner provided in this section, or it may adopt a
resolution, reciting in general terms the filing of such petition, the
proposed improvement and specifying the time when and the place where
such board will meet to consider the petition and to hear all persons
interested in the subject. Notice of such meeting shall be published in
the manner provided in subdivision three of this section and shall state
the time and place of the meeting and the purpose thereof. The
petitioners shall be required to deposit with such petition the sum of
one hundred dollars to cover all cost of publishing and posting notices
of meetings of the town board to consider the petition. If the board
determines to proceed, pursuant to this subdivision, with further
development of the proposed improvement, such deposit shall be returned
in full to the petitioners, but if the petition be denied, the surplus
only shall be so returned after paying the expenses mentioned in this
subdivision. If the town board shall determine after such hearing and
upon the evidence given thereat, that the proposed improvement is in the
public interest and economically feasible, the board shall direct the
preparation of a general plan, report, and where appropriate, a map for
such improvement and proceed in the manner provided in this section.

11. Referendum. (a) Any resolution adopted pursuant to paragraph (c)
of subdivision six of this section authorizing a sewer, sewage disposal,
water or drainage improvement, any part of the cost of which is to be
borne by the entire area of the town outside of any villages, and any
resolution adopted pursuant to paragraph (c) of subdivision eight of
this section which will result in an increase in the share of the costs
of an improvement to be borne by the area of the town outside of any
villages in any one fiscal year of more than ten per centum of the
maximum amount proposed to be expended, as stated in the last notice of
public hearing for such improvement pursuant to subdivision three, four
or five of this section, shall be subject to a permissive referendum in
the manner prescribed in article seven of this chapter, as modified by
paragraph (c) of this subdivision.

(b) Except as provided in paragraph (a) of this subdivision, the town
board, in its discretion, may determine that any resolution adopted
pursuant to subdivision two, paragraph (c) of subdivision six or
paragraph (c) of subdivision eight of this section, shall be subject to
a mandatory or permissive referendum in the manner prescribed in article
six or seven of this chapter, as the case may be, as modified by
paragraph (c) of this subdivision. Such determination, if any, shall be
included in the resolution so adopted. Any such referendum shall be held
in the entire area of the town outside of any villages, except that, in
the case of a resolution adopted pursuant to subdivision two or
paragraph (c) of subdivision six of this section where any part of the
cost of the improvement is to be borne by an area of the town less than
the entire area of the town outside of any villages, the resolution may
provide that the referendum shall be held in such lesser area.

(c) Any resolution submitted to a referendum pursuant to this section
shall not become effective unless it is approved by the affirmative vote
of a majority of the owners of taxable real property voting thereon
whose property is situate in the area of the town outside of any
villages, or in such lesser area described in a resolution as authorized
in paragraph (b) of this subdivision, as shown on the latest completed
assessment roll of the town. A petition requesting a referendum shall be
sufficient if signed, and acknowledged or proved in the same manner as a
deed to be recorded, or authenticated in the manner provided by the
election law for the authentication of nominating petitions, by the
owners of taxable real property situate in the area of the town outside
of any villages, or in such lesser area described in the resolution as
authorized in paragraph (b) of this subdivision, as shown upon the
latest completed assessment roll of such town, in number equal to at
least ten per cent of the total number of such owners. For the purposes
of this subdivision, a corporate owner of such taxable real property
shall be considered one owner for the purposes of a petition requesting
a referendum and shall be entitled to one vote to be cast by an officer
or agent of the corporation or other duly authorized person designated
by appropriate resolution of such corporation. The town clerk shall
cause to be prepared and have available for distribution proper forms
for a petition for a referendum under this section and shall distribute
a supply to any person requesting the same.

12. Town function. Any improvement constructed, acquired or provided
pursuant to this section shall be a town function and the town board
shall be responsible for the necessary management, maintenance,
operation and repair thereof. The cost of such management, maintenance,
operation and repair shall be a charge upon the area of the town outside
of any villages and shall be levied and collected in the same manner and
at the same time as other town charges; provided, however, that, where
the improvement is only the providing of a service at a stated annual
cost, such annual cost shall be charged in the manner prescribed in the
provisions of the resolution adopted pursuant to paragraph c of
subdivision six of this section or in modifications thereof, if any,
adopted pursuant to paragraph c of subdivision eight of this section.

12-a. Sewer rents and water rates. The town board may establish sewer
rents and water rates as provided in paragraph (l) of subdivision 1 and
paragraph (d) of subdivision three of section one hundred ninety-eight
of this chapter.

13. Comptroller's approval. a. Where it is proposed or required that
the town shall finance the cost of any improvement authorized by this
section by the issuance of bonds, notes, certificates or other evidences
of indebtedness of the town therefor and where the estimated expense of
such improvement shall exceed one-tenth of one per centum of the full
valuation of the taxable real property in the area of the town outside
of villages, the permission of the state comptroller shall be required
for such improvement.

b. Within ten days after the adoption of a resolution by the town
board pursuant to paragraph (c) of subdivision six of this section,
which requires the approval of the state comptroller pursuant to
paragraph (a) of this subdivision, the town clerk shall file a certified
copy of such resolution in the office of the state department of audit
and control at Albany, New York, together with an application for the
approval of the state comptroller to the providing of such improvement.
The application shall be executed and verified by the supervisor, or
such other officer of the town as the town board shall determine. Such
application shall be in such form and shall contain such information as
shall be prescribed by the state comptroller.

c. Whenever such an application shall be filed in the office of the
department of audit and control, the state comptroller shall determine
whether the public interest will be served by providing such improvement
in the manner proposed and also whether the cost thereof will be an
undue burden upon the property which is to bear the cost of such
improvement. 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.

d. Upon the expiration of fifteen days from the date of the filing of
such application, the state comptroller shall make an order, in
duplicate, granting or denying approval for such improvement 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 improvement is to be
provided. The town clerk shall thereupon notify the members of the town
board of the receipt of such order and the contents thereof.

14. Lease of improvements. (a) The town board may lease for a term
not to exceed forty years all or any part of the property or facility
constructed or operated as a town function under this section to a
county, a city, a village, a town, a public authority, a town on behalf
of an improvement district, a county on behalf of a county district, or
a joint water works system established pursuant to article five-B of the
general municipal law, provided, however, that such lease shall be
subject to a permissive referendum held in the manner prescribed in
article seven of this chapter, as modified by paragraph (c) of
subdivision eleven of this section except that a petition requesting a
referendum shall be sufficient if signed, and acknowledged or proved in
the same manner as a deed to be recorded, or authenticated in the manner
provided by the election law for the authentication of nominating
petitions, by the owners of taxable real property situate in the area of
the town outside of any villages, as shown upon the latest completed
assessment roll of such town, in a number equal to at least five per
cent of the total number of said owners, or one hundred of said owners,
whichever is the lesser.

(b) The proceeds of the lease of all or a part of such property or
facility shall be deposited in a reserve fund established for the
purpose of retiring outstanding obligations issued on behalf of the town
to finance the cost of the property or facility leased, and shall be
expended only for such purpose except that if the proceeds exceed the
sum of all installments of principal of and interest on such
indebtedness due or to become due, or if, when such obligations shall
have been retired, any proceeds of such reserve fund remain unexpended,
such excess monies may be used for any purpose which would be properly
charged against the area of the town outside of any villages.