Section 6-Q. Intermunicipal agreement for a joint capital reserve fund in the county of Tompkins

1. As used in this section:    a. "Capital improvement" shall have the same meaning as such  term  is
  defined in section six-c of this article.
    b.  "Commission"  shall  mean  the Southern Cayuga Lake intermunicipal
  water commission, as established by an  intermunicipal  agreement  among
  the member municipalities, pursuant to section one hundred nineteen-o of
  this  chapter,  for  the  purposes of constructing and operating a water
  filtration plant, storage facilities and transmission facilities in  the
  county of Tompkins, among other purposes.
    c.  "Equipment" shall have the same meaning as such term is defined in
  section six-c of this article.
    d. "Member municipalities" shall mean the villages of  Cayuga  Heights
  and  Lansing,  the  towns  of  Dryden, Ithaca and Lansing, and any other
  village or town electing to  enter  into  the  intermunicipal  agreement
  establishing the Southern Cayuga Lake intermunicipal water commission.
    2.  Notwithstanding  any  other  provision of law to the contrary, the
  member municipalities may,  by  intermunicipal  agreement,  establish  a
  joint  capital reserve fund, for the Southern Cayuga Lake intermunicipal
  water district, to provide for the financing of all or part of the  cost
  of:
    a.  the  construction,  reconstruction  or  acquisition  of a specific
  capital improvement or the acquisition of a specific  item  or  specific
  items of equipment;
    b.  the  construction,  reconstruction  or  acquisition  of  a type of
  capital improvement or the acquisition of a type of equipment; or
    c. a combination of specific and types  of  capital  improvements  and
  equipment.
    3.  Any  agreement  establishing  such  capital  reserve fund shall be
  approved by all of the member municipalities.
    4. The member municipalities shall determine by agreement:
    a. the maximum amount to be deposited in such capital reserve fund;
    b. the manner in which such capital reserve fund shall be funded which
  may include contributions from each member municipality or retention and
  dedication to such fund of surplus revenues generated by  the  operation
  of the jointly owned water, storage and transmission facilities; and
    c.  the manner in which, and the capital improvements and/or equipment
  for which the provisions of the local finance law, the  moneys  in  such
  capital reserve fund may be expended.
    5.  Any funds deposited in such capital reserve fund shall be properly
  deposited in a separate fund  or  funds  in  depositories  and  properly
  secured  in  accordance  with  the  provisions  of the local finance law
  governing the deposits  and  investments  of  municipal  funds.  If  the
  agreement  establishing such fund so authorizes, the funds deposited may
  be held in one or more separate accounts in the name of  the  commission
  provided  that  the  person  or persons authorized to withdraw funds are
  chief fiscal officers of one or more of the  member  municipalities  and
  are  fully  bonded.  Otherwise  such  funds  shall be held in a separate
  account jointly in the name of all  member  municipalities  or,  if  the
  member   municipalities  agree,  in  the  name  of  one  of  the  member
  municipalities for the benefit of all of the member municipalities.
    6. Except  as  otherwise  expressly  provided  in  this  section,  the
  deposit,  investment,  accrual  of interest, expenditure, maintenance of
  records and other matters relating  to  the  capital  reserve  shall  be
  governed by the provisions of section six-c of this article.