§ 40-40-20 — Contracts made prior to appropriation prohibited - Contracts for water for fire protection excepted

fire protection excepted.
Except as otherwise provided in this chapter or in section 40-05-05, no contract shall be
made by the governing body of a municipality and no expense shall be incurred by any officers
or departments of the corporation unless there shall have been a previous appropriation
providing for such expense. The governing body may enter into contracts with persons,
associations, corporations, or limited liability companies for the furnishing of water for fire
protection to the municipality, and in case such contract extends over a term of years, it shall be
unnecessary that a previous appropriation shall have been made except to cover the amounts
payable under the contract for the first year thereof. Such a contract shall not be made for a
longer period than twenty years.