The Physical Services Committee on May 27 approved a supplemental appropriation of $890,120 to the Orange County Sewer District No. 1 to pay the Village of Kiryas Joel under a settlement dated Jan. 15, 2025. The committee also authorized submission of an application under New York State Comptroller regulations (Part 85) seeking consent for proposed improvements and an estimated maximum cost of $185,000,000 to upgrade and expand the Harriman Sewage Treatment Plant from 6 million gallons per day (mgd) to 9 mgd.

Why it matters: the reimbursement resolves rents the county withheld after a multi‑year dispute over reduced treatment capacity at the Kiryas Joel plant; the larger capital project could require rate increases for sewer users absent grant funding, and the Comptroller’s approval is required for certain financing and grant eligibility.

County staff summarized the rental dispute: the Sewer District had leased capacity from the Kiryas Joel facility and withheld $890,120 in rent over a four‑year period after receiving reduced capacity. In parallel, the Town of Palm Tree withheld tax payments the county had collected; county legal action and negotiations produced a settlement in which the county received $981,000.28 (tax monies withheld) on Feb. 26, 2025. The committee approved returning the $890,120 withheld rent to the Sewer District to resolve the matter.

On the proposed plant upgrade, staff said the project would replace Train 1 with a 7 mgd sequencing batch reactor, upgrade Train 3 to maintain 2 mgd, and expand overall capacity to 9 mgd to meet regulatory requirements and extend facility longevity. Preliminary estimates placed the program cost at about $185 million; staff noted that assessment materials previously presented to the legislature were compiled into the Part 85 application for the state comptroller.

Staff also discussed the possible household cost impact: the county presented a worst‑case estimate that typical bills could rise by roughly $500 per billing installment (about $1,000 total per year) without grant funds; county leaders said they will pursue available grant programs meant to mitigate rate increases.

The committee approved both the supplemental appropriation to reimburse the district and the resolution to submit the Part 85 application to the State Comptroller’s Office.