§ 55-a. Reserve funds for improvement districts. 1. The town board of
a suburban town, on behalf of any improvement district wholly located
within the town, may establish one or more reserve funds for the
financing of all or part of the cost of a "specific object or purpose"
or a "class of objects or purposes", as such terms are defined in
section 2.00 of the local finance law, which may be constructed,
reconstructed, acquired or provided by or on behalf of such district.
The authorization of the establishment of such a fund shall be subject
to a permissive referendum in the affected district and shall set forth
the estimated maximum cost of any such specific object or purpose or
class thereof.

2. There may be paid into such fund such an amount as may be provided
therefor by budgetary appropriation or such district revenues as are not
required by law to be paid into any other fund or account. Any amount
to be assessed, levied and collected in a district to provide money for
such a fund shall be assessed, levied and collected in the same manner
and at the same time as the amount to provide for the costs of operation
and maintenance of such district.

3. An expenditure may be made from such a reserve fund only by an
authorization of the town board and only for a specific object or
purpose or class thereof, the cost of which may be financed therefrom.

4. The town board may authorize the transfer to the credit of a
reserve fund created pursuant to this section for the district affected,
any unexpended balance remaining in another reserve fund created for
such district. If the object or purpose or class thereof for which the
latter fund was established has been completed, acquired or provided, a
sum sufficient to satisfy all outstanding claims arising from such
completion, acquisition or provision shall be retained in such fund and
not transferred.