§ 6-q. Intermunicipal agreement for a joint capital reserve fund in
the county of Tompkins. 1. As used in this section:

a. "Capital improvement" shall have the same meaning as such term is
defined in section six-c of this article.

b. "Commission" shall mean the Southern Cayuga Lake intermunicipal
water commission, as established by an intermunicipal agreement among
the member municipalities, pursuant to section one hundred nineteen-o of
this chapter, for the purposes of constructing and operating a water
filtration plant, storage facilities and transmission facilities in the
county of Tompkins, among other purposes.

c. "Equipment" shall have the same meaning as such term is defined in
section six-c of this article.

d. "Member municipalities" shall mean the villages of Cayuga Heights
and Lansing, the towns of Dryden, Ithaca and Lansing, and any other
village or town electing to enter into the intermunicipal agreement
establishing the Southern Cayuga Lake intermunicipal water commission.

2. Notwithstanding any other provision of law to the contrary, the
member municipalities may, by intermunicipal agreement, establish a
joint capital reserve fund, for the Southern Cayuga Lake intermunicipal
water district, to provide for the financing of all or part of the cost
of:

a. the construction, reconstruction or acquisition of a specific
capital improvement or the acquisition of a specific item or specific
items of equipment;

b. the construction, reconstruction or acquisition of a type of
capital improvement or the acquisition of a type of equipment; or

c. a combination of specific and types of capital improvements and
equipment.

3. Any agreement establishing such capital reserve fund shall be
approved by all of the member municipalities.

4. The member municipalities shall determine by agreement:

a. the maximum amount to be deposited in such capital reserve fund;

b. the manner in which such capital reserve fund shall be funded which
may include contributions from each member municipality or retention and
dedication to such fund of surplus revenues generated by the operation
of the jointly owned water, storage and transmission facilities; and

c. the manner in which, and the capital improvements and/or equipment
for which the provisions of the local finance law, the moneys in such
capital reserve fund may be expended.

5. Any funds deposited in such capital reserve fund shall be properly
deposited in a separate fund or funds in depositories and properly
secured in accordance with the provisions of the local finance law
governing the deposits and investments of municipal funds. If the
agreement establishing such fund so authorizes, the funds deposited may
be held in one or more separate accounts in the name of the commission
provided that the person or persons authorized to withdraw funds are
chief fiscal officers of one or more of the member municipalities and
are fully bonded. Otherwise such funds shall be held in a separate
account jointly in the name of all member municipalities or, if the
member municipalities agree, in the name of one of the member
municipalities for the benefit of all of the member municipalities.

6. Except as otherwise expressly provided in this section, the
deposit, investment, accrual of interest, expenditure, maintenance of
records and other matters relating to the capital reserve shall be
governed by the provisions of section six-c of this article.