N.Y. Town Law § 55-b: Reserve fund for judgments and claims

§ 55-b. Reserve fund for judgments and claims. 1. The town board of a

suburban town may establish a reserve fund for the financing of all or

part of the cost of payment of:

(a) Judgments or compromised or settled claims against the town; and

(b) Awards or sums payable by the town pursuant to a determination by

a court, or an officer, body or agency acting in an administrative or

quasi-judicial capacity.

2. The amount of any such fund shall not exceed the greater of

thirty-three thousand dollars or five per centum of the total budget for

such fiscal year at any one time, exclusive of any interest or capital

gains realized from the investment of the money in such fund. Whenever

an expenditure shall be made from such fund, additional money may be

appropriated or transferred thereto in an amount which, together with

all money remaining in such fund including any interest or capital gains

realized from the investment of the money in such fund, shall not exceed

the greater of thirty-three thousand dollars or five per centum of the

total budget for such fiscal year.

3. 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.

4. An expenditure may be made from the fund only by authorization of

the town board and only for a specific object or purpose, the cost of

which may be financed therefrom. Any expenditure made from such fund to

pay all or part of the cost of a judgment, claim, award or determination

arising out of the management, improvement, operation or maintenance of

any special improvement district located in the town shall be charged

back against such district and raised in the same manner as other

district charges. Any amount so charged to a district shall be included

in determining the amount of such fund, exclusive of any interest or

capital gains realized from the investment of the money in such fund.