§ 6-D — Repair reserve funds for municipal corporations, school districts, district corporations and improvement districts

§ 6-d. Repair reserve funds for municipal corporations, school\ndistricts, district corporations and improvement districts. 1. The\ngoverning board of any municipal corporation, school district, district\ncorporation, or town or county improvement district, may establish a\nspecial fund which shall be known as the repair reserve fund of such\nmunicipal corporation, school district, district corporation or\nimprovement district. There may be paid into such fund an amount as may\nbe provided therefor by budgetary appropriation or such revenues as are\nnot required by law to be paid into any other fund or account.\n 2. In cases of emergency, moneys in such fund may be expended pursuant\nto a resolution approved by not less than two-thirds of the members of\nthe governing body of such municipal corporation, school district,\ndistrict corporation or improvement district providing that not less\nthan one-half of the moneys so expended shall be repaid in the fiscal\nyear immediately following the fiscal year in which such moneys were\nexpended and the total amount shall be repaid not later than the last\nday of the second fiscal year succeeding the fiscal year in which the\nmoneys were expended.\n Prior to the adoption of any other resolution, act, ordinance or local\nlaw by the governing board of such municipal corporation, school\ndistrict, district corporation or improvement district, appropriating\nmoney from such fund, the governing board shall cause to be published in\nthe official newspaper or newspapers, if any, or otherwise in a\nnewspaper or newspapers designated for such purpose, a notice stating in\nsubstance that it is proposed to appropriate a specified amount from the\nrepair reserve fund for a particular purpose, and that a public hearing\non such proposed appropriation will be held at a time and place stated\ntherein. At least five days shall elapse between the publication of such\nnotice and the date specified for the hearing. The hearing shall be held\nat the time and place so specified.\n 3. Moneys in such fund may be appropriated only:\n a. For repairs of capital improvements or equipment, which repairs are\nof a type not recurring annually or at shorter intervals.\n b. In the case of a municipal corporation, to a capital reserve fund\nestablished pursuant to section six-c of this article or to a\ncontingency and tax stabilization reserve fund established pursuant to\nsection six-e of this article.\n c. In the case of a fire district, to a capital reserve fund\nestablished pursuant to section six-g.\n d. In the case of a school district, to a reserve fund established\npursuant to section thirty-six hundred fifty-one of the education law.\n 4. The moneys in such fund shall be deposited and secured in the\nmanner provided by section ten of this article. The moneys in such fund\nso deposited shall be accounted for separate and apart from all other\nfunds of the municipal corporation, school district, district\ncorporation or improvement district, in the same manner as provided in\nsubdivision ten of section six-c of this article. The governing board or\nthe chief fiscal officer of such municipal corporation, school district,\ndistrict corporation or improvement district, if the governing board\nshall delegate such duty to him, may invest the moneys in such fund in\nthe manner provided in section eleven of this article. Any interest\nearned or capital gains realized on the moneys so deposited or invested\nshall accrue to and become part of such fund.\n 5. The members of the governing board of such municipal corporation,\nschool district, district corporation or improvement district are hereby\ndeclared trustees of such fund and shall be subject to all the duties\nand responsibilities imposed by law on trustees, and such duties and\nresponsibilities may be enforced by such municipal corporation, school\ndistrict, district corporation or improvement district, as the case may\nbe, or by any board, commission, agency, officer or taxpayer thereof.\n 6. The members of the governing board of such municipal corporation,\nschool district or district corporation shall be guilty of a misdemeanor\nif they:\n a. Authorize a withdrawal from a repair reserve fund for any other\npurpose except as provided in this section.\n b. Expend any money withdrawn from a repair reserve fund for a purpose\nother than that as provided in this section.\n 7. Notwithstanding the foregoing provisions of this section, in any\ntown which is located wholly or partly within the Adirondack park and\nhas within its boundaries state lands subject to taxation assessed at\nmore than thirty per centum of the total taxable assessed valuation of\ntown as determined from the assessment rolls of the town as completed\nfrom time to time, or in any district corporation or improvement\ndistrict situated in whole or in part in any such town, a repair reserve\nfund shall not be established unless the state comptroller, on behalf of\nthe state, shall consent thereto, and in any such town or district\ncorporation or improvement district no appropriation shall be made from\na repair reserve fund unless the state comptroller, on behalf of the\nstate, shall consent thereto.\n 8. Moneys of a municipal corporation, school district or district\ncorporation which, upon June thirtieth, nineteen hundred fifty,\nconstitute a repair reserve fund of such municipal corporation, school\ndistrict or district corporation, shall continue to so constitute a\nspecial fund and be known as the repair reserve fund of such municipal\ncorporation, school district or district corporation. From and after\nsuch date, payments to, and appropriations from, such fund shall be\nsubject to the foregoing provisions of this section.\n