N.Y. General Municipal Law § 114: Costs

§ 114. Costs. The cost of providing a common supply of water may be

financed either by the issuance and sale of the joint obligations of the

contracting municipalities or by individual issuance and sale of

obligations to finance the proportionate share of each contracting

municipality, as such shares shall be fixed pursuant to the contract. In

the event that the acquisition and development of a common water supply

and the construction of a water works system shall be effected by the

individual action of one of the contracting municipalities, it shall be

lawful for any of the other contracting municipalities to make a lump

sum payment to such contracting municipality either from moneys on hand

and available for such purpose or from moneys received from the issuance

and sale of obligations. Nothing herein contained shall prevent the

purchase or condemnation of existing sources of supply, water works

systems or portions thereof necessary for the purposes of the joint

project, provided, however, that there shall be no power to condemn

property the legal title to which is vested in a public corporation,

district corporation or a special improvement district unless the owner

shall consent thereto. In the event that any source of water supply,

water works system or portion thereof owned by one of the contracting

municipalities is acquired for the purposes of the common supply and

joint water works system, such municipality may be allowed a credit

against its share of the cost equal to the agreed value of the assets so

acquired.