The Hudson River Black River Regulating District board of directors approved a plan Tuesday to use more than $3 million in reserve funds to pay delinquent taxes to Fulton County.
To avoid contempt proceedings and satisfy a June 23 court decision requiring the regulating district to pay the owed taxes within 30 days, the board voted 5-1 to liquidate Black River Area sentinel funds. These will be used to pay delinquent taxes to the Hudson River Area, a move whose legality was questioned by some.
About $1.4 million is owed Fulton County and a collective $2 million is owed to the Broadalbin-Perth, Mayfield and Northville school districts. The regulating district will pay the more than $3 million to only the county, which will then disburse the appropriate amounts to each school district.
Black River Area sentinel funds to be liquidated include unrestricted reserves of approximately $1.9 million and restricted reserves of approximately $878,307, totaling nearly $2.8 million. These funds, as well as Black River Area prior year surplus funds of $275,262, will be set aside for the sole purpose of satisfying the June 23 judgment.
Categories: Schenectady County