RICHFIELD SPRINGS — Senator James Seward announced a plan last week that would allow New York State to soak up some of the cost of addressing the chronic flooding problems around Canadarago Lake.

The plan calls for the formation of a special taxing unit around the lake, much like a sewer or lighting district, which will be known as the Canadarago Lake Improvement District.

"This is a solution developed in consultation with town officials and the Canadarago Lake Improvement Association," Senator Seward said. "At the request of the towns, Assemblyman Bill Magee and I will file legislation to create a district that will have the authority to receive state funds and to be insured, the latter a particular concern that has contributed to the stalled progress thus far."

Seward's spokesperson, Duncan Davie, said the towns of Richfield, Exeter and Otsego are now considering requesting this special state legislation. If all three of the towns pass resolutions accepting the formation of the district, he said, Seward has already vowed he will present the bill to the legislature. Davie said Seward, who has been working on this issue for over four years, is optimistic and hopes the bill will become a law sometime within the next legislative session in Albany.

Town officials will also be recommending the specifics of the legislation, Davie said. In addition to passing the resolutions, each municipality must also present a model of what it feels the new district should look like.

Richfield Town Supervisor Nicholas Palevsky said he met with officials from Otsego and Exeter last week. He said they were inclined to go forward, providing their boards support such a move.

Nearly three years ago, Seward secured a state funding package of $181,000 to address the same flooding problems at the lake. A portion of that money was used to conduct studies on the lake, Davie said, but much of it is still left over.

The money was hoped to be used for dredging of the lake as well as repairs to a dam at the top of Oakes Creek, which drains the lake. However, the projects were never completed after issues of liability arose because the project only benefited lakeside residents within the three towns.

Davie said the creation of the new district would clear up any liability issues and would allow projects such as this to be completed.

"By creating this district, we create a legal governmental mechanism that can receive and expend grant monies," Davie said.

Therefore, leftover money that Seward allocated three years ago could now be used. Davie said the new district will also be eligible for more grants in the future.

However, when funding is not available, the district will have the opportunity to raise funds by taxing the residents within the district, Davie said. However, a tax cap will be put in place to limit the amount of tax paid by these residents.

"This is a positive step forward in resolving longstanding problems at the lake. Not only property has been threatened, but the flooding of septic systems has raised public health concerns," Seward added. "I think we can look forward to a positive solution that will provide a conduit that will offer long-term benefits for the lake and the property owners."