§ 55-A — Reserve funds for improvement districts

§ 55-a. Reserve funds for improvement districts. 1. The town board of\na suburban town, on behalf of any improvement district wholly located\nwithin the town, may establish one or more reserve funds for the\nfinancing of all or part of the cost of a "specific object or purpose"\nor a "class of objects or purposes", as such terms are defined in\nsection 2.00 of the local finance law, which may be constructed,\nreconstructed, acquired or provided by or on behalf of such district.\nThe authorization of the establishment of such a fund shall be subject\nto a permissive referendum in the affected district and shall set forth\nthe estimated maximum cost of any such specific object or purpose or\nclass thereof.\n 2. There may be paid into such fund such an amount as may be provided\ntherefor by budgetary appropriation or such district revenues as are not\nrequired by law to be paid into any other fund or account. Any amount\nto be assessed, levied and collected in a district to provide money for\nsuch a fund shall be assessed, levied and collected in the same manner\nand at the same time as the amount to provide for the costs of operation\nand maintenance of such district.\n 3. An expenditure may be made from such a reserve fund only by an\nauthorization of the town board and only for a specific object or\npurpose or class thereof, the cost of which may be financed therefrom.\n 4. The town board may authorize the transfer to the credit of a\nreserve fund created pursuant to this section for the district affected,\nany unexpended balance remaining in another reserve fund created for\nsuch district. If the object or purpose or class thereof for which the\nlatter fund was established has been completed, acquired or provided, a\nsum sufficient to satisfy all outstanding claims arising from such\ncompletion, acquisition or provision shall be retained in such fund and\nnot transferred.\n