§ 55. General reserve fund. 1. The town board of a suburban town may
establish a general reserve fund for the financing of all or part of the
cost of town objects or purposes having periods of probable usefulness
of at least five years pursuant to paragraph a of section 11.00 of the
local finance law, other than objects or purposes for which a reserve
fund may be established pursuant to section fifty-five-a or fifty-five-b
of this chapter.

2. There may be paid into such fund:

(a) Such an amount as may be provided therefor by budgetary
appropriation or transfer or raised by tax therefor.

(b) Such revenues as are not required by law to be paid into any other
fund or account, including the proceeds from the sale of any capital
improvement or equipment owned by such town.

3. An expenditure may be made from the fund only by an authorization
of the town board and only for a specific object or purpose having a
period of probable usefulness of at least five years pursuant to
paragraph a of section 11.00 of the local finance law. The authorization
of such an expenditure shall be subject to a permissive referendum in
the manner provided by article seven of this chapter. No expenditure
from the fund shall be authorized for that part of the cost of any
object or purpose which is to be borne by (a) assessments for benefit,
(b) ad valorem taxes upon the real property within an area of benefit
within the town, or, (c) ad valorem taxes upon the real property within
an area of the town less than the entire area.

4. Nothing contained in this article shall be deemed to prevent the
temporary advance of the moneys in the fund pursuant to the provisions
of section 165.10 of the local finance law.