RESOLUTION TO AMEND SEWER USER FEES (O&M) AND UPDATE CAPITAL FEE EDU ASSESSMENTS

WHEREAS clause 10 recites that §145-120B requires a public hearing 'upon five days' public notice,' and WHEREAS clause 11 states notice was given January 28, 2026 for a hearing on February 9, 2026 — a span of twelve calendar days. On its face the notice appears sufficient, but the resolution does not specify the method of publication (e.g., newspaper of general circulation, posting). Counsel should confirm that the notice was published or posted in the manner required by §145-120B and any applicable Village Law provisions governing notice, and that the record reflects the specific method used, to foreclose later challenge to the rate's validity.

WHEREAS clauses 7 and 9 indicate that certain parcels are receiving revised capital-only EDU assessments based on 'corrected water-consumption data and system infrastructure information,' and Resolved clause 4 references a 'summary chart' of affected locations. Where EDU reassignments could significantly increase or decrease charges for specific property owners, those owners may argue they were entitled to individualized notice beyond a general published notice. Counsel should review whether §145-120B's five-day-notice public hearing process is the exclusive procedural requirement or whether the Village Code, Village Law Article 14, or due-process principles require additional individual notice to affected parcels. Consider also whether VIL §14-1426 (reapportionment of sewer costs against specially benefited property) imposes any additional procedural requirements for reassignment of assessments.

VIL §13-1306 provides that a board of trustees may establish or revise charges for use of a self-supporting improvement 'by local law, rule, or regulation after a public hearing held on notice.' The sewer system may qualify as a self-supporting improvement under that section. If so, adoption by resolution rather than local law could raise a question about the proper form of the action. However, the Village Code's own §145-120B expressly authorizes rate-setting 'by resolution of the Board of Trustees,' which may control as a specific local provision. Counsel should consider whether §145-120B's resolution procedure is consistent with or supersedes VIL §13-1306, and whether the Village's local law authority under Municipal Home Rule Law §10 is implicated.

VIL §9-900(2) requires the village clerk, within ten days of adoption of any resolution subject to a permissive referendum, to post and publish a notice setting forth the date of adoption and an abstract of the resolution. Whether a sewer fee amendment triggers permissive referendum rights depends on the specific Village Law section authorizing the action; fee-setting by resolution under §145-120B may or may not be listed as subject to referendum. Counsel should confirm whether the action is among those enumerated as subject to permissive referendum, and if so, ensure the clerk's notice obligation is fulfilled timely.

The resolution establishes a separate 'capital sewer fee' assessed on a capital-only EDU basis, described as recovering 'debt service and other capital-related costs.' OSC's Reserve Funds LGMG emphasizes that reserve funds should have a clear statutory basis, a defined purpose, and should not serve merely as a 'parking lot' for excess cash. If capital fee revenues are accumulated beyond current-year debt service obligations, counsel and the board should confirm that any accumulation is held in a properly established reserve fund (e.g., a Reserve Fund for Payment of Bonded Indebtedness under GML, or a Capital Reserve Fund under GML §6-c), and that the accounting treatment is transparent and auditable.

WHEREAS clauses 5 and 7 indicate that BUs and EDUs were recalculated based on 'corrected water-consumption data' and 'system infrastructure information (including STEP tank sizing).' OSC's Practice of Internal Controls LGMG (Section 4: Billed Receivables – User Charges) recommends controls to ensure that the data underlying user-charge calculations is accurate, complete, and subject to independent review. The board may wish to confirm that the process for obtaining and correcting consumption data included appropriate segregation of duties and supervisory review, and that the methodology for translating consumption data into BUs and EDUs is documented and consistently applied.

Resolved clauses 2, 3, and 4 give legal effect to 'Exhibit A' and an 'attached summary chart,' but neither document appears in the resolution text provided. For the resolution to be self-contained and enforceable, these exhibits should be formally attached, identified by a unique title or date, and entered into the minutes as part of the adopted record. If they are not, future disputes about which schedule was actually adopted — or which parcels received revised EDU assignments — may be difficult to resolve. The Board should confirm that the clerk's copy of the minutes includes the complete exhibits as adopted.

Robert's Rules and good governance practice suggest that abstentions on substantive resolutions warrant at least a brief recorded basis, particularly if the abstention stems from a financial interest in the sewer system or affected properties. GML §806 requires adoption of a code of ethics addressing conflicts of interest, and any trustee with a financial interest in a parcel affected by the EDU reassignments should have disclosed that interest and recused. The minutes should reflect whether the abstaining trustee stated a reason, and counsel should confirm no undisclosed conflict exists.

WHEREAS clause 2 notes that 'a better estimate of the actual cost to operate and maintain the system has been established,' but the resolution does not set out the cost figures, the number of BUs, or the total projected revenue, nor does it explain how the $162/BU/quarter figure was derived. While this level of detail is not legally required in the resolution itself, OSC auditors reviewing rates for reasonableness and sufficiency to cover costs will look for supporting documentation. The board may wish to ensure that a rate study or cost analysis is on file and referenced in the record.