§ 5-520 General budgetary controls. 1. A separate account shall be
kept for each appropriation. Each such account shall show the amount
appropriated, the several amounts expended thereform and the unexpended
balance.

2. No expenditure shall be made, nor shall any contract which in any
manner involves the expenditure of money or the incurring of any
pecuniary liability be entered into, unless an amount has been
appropriated for the particular purpose and is available therefor or has
been authorized to be borrowed pursuant to the local finance law.
Nothing in this subdivision shall prevent the making of a contract or
lease for a term exceeding one year when authorized by law nor shall
anything in this subdivision require a village which has entered into a
contract or lease for a term exceeding one year to pay during the
current fiscal year any amounts larger than those which become due and
owing during that year under the terms of such lease or contract.

3. Whenever during a fiscal year it shall appear probable to the
budget officer that the moneys available for such year will be
insufficient to meet the amounts appropriated, he shall forthwith notify
the board of trustees of such fact, stating the probable amount of such
deficiency. The budget officer may include his recommendations as to
the action which should be taken. The board of trustees may reduce any
appropriation or appropriations by resolution so as to prevent the
making of expenditures in excess of moneys available. An appropriation
shall not be reduced below the minimum amount required by law to be
appropriated, nor shall an appropriation be reduced by more than the
balance therein less outstanding and unpaid claims chargeable to such
appropriation.

4. The board of trustees, during a fiscal year, by resolution, may
make additional appropriations or increase existing appropriations.
Moneys therefor may be provided by transfer from the unexpended balance
of an appropriation, from the appropriation for contingencies, from
unappropriated unreserved fund balance, or unanticipated revenues within
a fund, or by borrowing pursuant to the local finance law. For the
purposes of this subdivision, unappropriated unreserved fund balance or
unanticipated revenues shall be available for transfer only to the
extent that the total of all revenues of such fund recognized or
reasonably expected to be recognized in the current fiscal year,
including unappropriated unreserved fund balance, exceeds the total of
all revenues of such fund as estimated in the budget, including
appropriated fund balance.

5. Notwithstanding the provisions of subdivision four of this section,
grants in aid from the state and federal governments, other gifts which
are required to be expended for particular objects or purposes, and
insurance proceeds for the loss, theft, damage or destruction of real or
personal property, when proposed to be used or applied to repair or
replace such property, may be appropriated by resolution of the board of
trustees at any time for such objects and purposes.