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Seward: amended bond measures will help keep Herkimer & Ilion property taxes in check after court ruling

By WKTV News

Story Created: Jul 2, 2012 at 3:54 PM EDT

Story Updated: Jul 2, 2012 at 3:54 PM EDT

State Senator James L. Seward has announced that technical amendments to legislation allowing the villages of Herkimer and Ilion to bond for costs associated with a court ruling have been signed into law. The amendments correct references to the local finance law and provide the villages with additional time to issue the bonds.

“Municipalities often utilize bonds to avoid major property tax spikes when paying for unplanned expenses,” said Senator Seward. “Local officials in Herkimer and Ilion are following a prudent strategy to meet their obligations while minimizing the tax impact to homeowners.”

A state supreme court decision found that the Village of Herkimer owes Herkimer County approximately $1.6 million and the Village of Ilion owes $1.1 million. The ruling pertained to the workers’ compensation self-insurance plan managed by the county. The original legislation, which was signed into law in 2011, follows local requests and allows the villages to issue serial bonds to settle the litigation, pay off the corresponding debt over a ten-year period and avoid a significant property tax spike.

The amended legislation sponsored by Senator Seward and Assemblyman Marc Butler (S.6814/A.9698 and S.6811A/A.9729A) corrects technicalities to ensure the intent of the original legislation is followed and provides additional time for the municipalities to issue the bonds.

“I am pleased to partner with Herkimer and Ilion as they work to revitalize the Mohawk Valley. Offering quality services to residents while keeping property taxes in check is a recipe that will help spur new development. ,” Seward concluded.

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