The Orange County Legislature approved a supplemental appropriation to settle withheld lease payments with the Village of Kiryas Joel and to resolve related tax withholding by the Town of Palm Tree.

County officials explained the county leases treatment capacity at the Kiryas Joel wastewater treatment plant (KJ plant), which handles roughly 14% of the sewer district's flow; the remainder is treated at the Harriman plant. County counsel said the KJ plant did not provide the expected treatment capacity in some years, and the county reduced lease payments proportionally beginning in 2020. In response, the county said the Town of Palm Tree withheld equivalent real property tax payments that it would ordinarily remit to the county. To collect those tax monies, the county commenced litigation against the town's assessor.

The settlement before legislators reimburses the Village of Kiryas Joel $890,120 for withheld rental monies and documents that the town repaid taxes due to the county. County legal staff told legislators Kiryas Joel repaid $981,000 to the county earlier in the year; the settlement resolves the outstanding accounting and ends related litigation. County counsel said the withheld wastewater volumes were routed to the Harriman facility via bypass and that the county did not suffer treatment‑related damage, but officials asserted the county sought to ensure available capacity going forward.

Legislators questioned how the interest was calculated on the payment; county finance staff said the interest reflected lost investment income the county would have earned on the money during the years the funds were withheld. The committee approved the appropriation by voice vote; the transcript records "motion carried."