N.Y. General Municipal Law § 118-c: Financing

§ 118-c. Financing. Any municipal corporation shall have the power to

enter into contracts with any public benefit corporation created

pursuant to article five of the public authorities law which is

authorized by law to furnish water to such municipal corporation,

providing for the financing of the acquisition and construction of

improvements to the water supply system or water distribution system of

such municipal corporation. The terms of such contract may include,

among other provisions, provisions requiring such municipal corporation

to purchase water only from such public authority during the term of

such contract, and which term shall be limited to the lesser of (i)

thirty years or (ii) the probable useful life of the items for which any

bonds are issued by such public benefit corporation to finance the

acquisition and construction of improvements to such water supply system

or water distribution system. The resolution of the municipal governing

body authorizing the municipality to enter into the contract for

financing shall be subject to the same referendum requirements as if it

were a resolution of the municipality to authorize the sale of bonds for

the same purpose and amount. For purposes of this section, the term

"municipal corporation" shall mean any city or village or any county on

behalf of a county water district or any town on behalf of a town water

district, water storage and distribution district or water improvement

area.