Section 6-D. Repair reserve funds for municipal corporations, school districts, district corporations and improvement districts

1.  The  governing  board of any municipal corporation, school district, district
  corporation, or town or county improvement  district,  may  establish  a
  special  fund  which  shall  be known as the repair reserve fund of such
  municipal  corporation,  school  district,   district   corporation   or
  improvement  district. There may be paid into such fund an amount as may
  be provided therefor by budgetary appropriation or such revenues as  are
  not required by law to be paid into any other fund or account.
    2. In cases of emergency, moneys in such fund may be expended pursuant
  to  a  resolution approved by not less than two-thirds of the members of
  the governing body  of  such  municipal  corporation,  school  district,
  district  corporation  or  improvement  district providing that not less
  than one-half of the moneys so expended shall be repaid  in  the  fiscal
  year  immediately  following  the  fiscal year in which such moneys were
  expended and the total amount shall be repaid not later  than  the  last
  day  of  the  second fiscal year succeeding the fiscal year in which the
  moneys were expended.
    Prior to the adoption of any other resolution, act, ordinance or local
  law by  the  governing  board  of  such  municipal  corporation,  school
  district,  district  corporation  or improvement district, appropriating
  money from such fund, the governing board shall cause to be published in
  the official  newspaper  or  newspapers,  if  any,  or  otherwise  in  a
  newspaper or newspapers designated for such purpose, a notice stating in
  substance that it is proposed to appropriate a specified amount from the
  repair  reserve fund for a particular purpose, and that a public hearing
  on such proposed appropriation will be held at a time and  place  stated
  therein. At least five days shall elapse between the publication of such
  notice and the date specified for the hearing. The hearing shall be held
  at the time and place so specified.
    3. Moneys in such fund may be appropriated only:
    a. For repairs of capital improvements or equipment, which repairs are
  of a type not recurring annually or at shorter intervals.
    b.  In  the case of a municipal corporation, to a capital reserve fund
  established  pursuant  to  section  six-c  of  this  article  or  to   a
  contingency  and  tax stabilization reserve fund established pursuant to
  section six-e of this article.
    c. In the  case  of  a  fire  district,  to  a  capital  reserve  fund
  established pursuant to section six-g.
    d.  In  the  case  of a school district, to a reserve fund established
  pursuant to section thirty-six hundred fifty-one of the education law.
    4. The moneys in such fund shall  be  deposited  and  secured  in  the
  manner  provided by section ten of this article. The moneys in such fund
  so deposited shall be accounted for separate and apart  from  all  other
  funds   of   the   municipal   corporation,  school  district,  district
  corporation or improvement district, in the same manner as  provided  in
  subdivision ten of section six-c of this article. The governing board or
  the chief fiscal officer of such municipal corporation, school district,
  district  corporation  or  improvement  district, if the governing board
  shall delegate such duty to him, may invest the moneys in such  fund  in
  the  manner  provided  in  section  eleven of this article. Any interest
  earned or capital gains realized on the moneys so deposited or  invested
  shall accrue to and become part of such fund.
    5.  The  members of the governing board of such municipal corporation,
  school district, district corporation or improvement district are hereby
  declared trustees of such fund and shall be subject to  all  the  duties
  and  responsibilities  imposed  by  law on trustees, and such duties and
  responsibilities may be enforced by such municipal  corporation,  school

  district,  district corporation or improvement district, as the case may
  be, or by any board, commission, agency, officer or taxpayer thereof.
    6.  The  members of the governing board of such municipal corporation,
  school district or district corporation shall be guilty of a misdemeanor
  if they:
    a. Authorize a withdrawal from a repair reserve  fund  for  any  other
  purpose except as provided in this section.
    b. Expend any money withdrawn from a repair reserve fund for a purpose
  other than that as provided in this section.
    7.  Notwithstanding  the  foregoing provisions of this section, in any
  town which is located wholly or partly within the  Adirondack  park  and
  has  within  its  boundaries state lands subject to taxation assessed at
  more than thirty per centum of the total taxable assessed  valuation  of
  town  as  determined  from the assessment rolls of the town as completed
  from time to  time,  or  in  any  district  corporation  or  improvement
  district situated in whole or in part in any such town, a repair reserve
  fund shall not be established unless the state comptroller, on behalf of
  the  state,  shall  consent  thereto,  and  in any such town or district
  corporation or improvement district no appropriation shall be made  from
  a  repair  reserve  fund  unless the state comptroller, on behalf of the
  state, shall consent thereto.
    8. Moneys of a municipal  corporation,  school  district  or  district
  corporation   which,   upon  June  thirtieth,  nineteen  hundred  fifty,
  constitute a repair reserve fund of such municipal  corporation,  school
  district  or  district  corporation,  shall  continue to so constitute a
  special fund and be known as the repair reserve fund of  such  municipal
  corporation,  school  district  or  district corporation. From and after
  such date, payments to, and appropriations  from,  such  fund  shall  be
  subject to the foregoing provisions of this section.