Section 6-R. Retirement contribution reserve funds 1

As used in this
  section:
    a. "Municipal corporation" means a municipal corporation as defined in
  section two of this chapter, school district (except a  school  district
  in  a  city  with  a  population  of one hundred twenty-five thousand or
  more),  board  of  cooperative  educational  services,  fire   district,
  district  corporation, police district, and special improvement district
  governed by a separate board of commissioners.
    b. "Participating employer" means a participating employer as  defined
  in  subdivision  twenty  of  section  two  of  the retirement and social
  security law or in subdivision twenty of section three  hundred  two  of
  such law.
    c.  "Retirement  contribution"  shall  mean  all or any portion of the
  amount payable by a municipal corporation to either the New  York  state
  and  local  employees' retirement system or the New York state and local
  police and fire retirement system pursuant to section seventeen or three
  hundred seventeen of the retirement and social security law.
    2. The governing board of any municipal corporation which  is  also  a
  participating   employer   by  resolution  may  establish  a  retirement
  contribution reserve  fund  for  the  purpose  of  financing  retirement
  contributions.
    3. There may be paid into a retirement contribution reserve fund:
    a. such amounts as may be provided therefor by budgetary appropriation
  or raised by tax therefor;
    b.  such revenues as are not required by law to be paid into any other
  fund or account;
    c. such other funds as may be legally appropriated; and
    d. notwithstanding any law to the contrary, such  amounts  as  may  be
  transferred  from  a reserve fund established pursuant to section six-c,
  six-d, six-e, six-f or six-g of this article comprised of moneys  raised
  from  the  same  tax  base  as the moneys in the retirement contribution
  reserve  fund,  or  a  reserve  fund  established  pursuant  to  section
  thirty-six  hundred  fifty-one  of the education law, provided, that any
  such transfer shall only be made by resolution of the governing board of
  such municipal corporation adopted after a public  hearing  held  on  at
  least  fifteen  days prior published notice in the official newspaper of
  the municipal corporation or, if the municipal corporation does not have
  an  official  newspaper,  in  at  least  one  newspaper  having  general
  circulation in the municipal corporation.
    4.  The  moneys  in  a  retirement  contribution reserve fund shall be
  deposited and secured in the manner provided  by  section  ten  of  this
  article. The governing board of such municipal corporation, or the chief
  fiscal  officer  thereof if the governing board shall delegate such duty
  to him or her, may invest the moneys in such fund in the manner provided
  by section eleven of this article. Any interest earned or  capital  gain
  realized  on  the  money  so  deposited  or invested shall accrue to and
  become part of such fund.
    5. The governing board of such municipal corporation by resolution may
  authorize expenditures from  a  retirement  contribution  reserve  fund.
  Except as otherwise provided by law, moneys in a retirement contribution
  reserve fund may only be expended to finance retirement contributions.
    6. The governing board of such municipal corporation by resolution may
  authorize  the  transfer  of  a  portion  of  the moneys in a retirement
  contribution reserve fund to a reserve fund of the municipal corporation
  established pursuant to section six-c, six-d, six-e, six-f or  six-g  of
  this  article  comprised  of moneys raised from the same tax base as the
  moneys in the retirement contribution reserve fund, or  a  reserve  fund
  established  pursuant  to  section  thirty-six  hundred fifty-one of the

  education law, provided, that any such transfer shall only  be  made  by
  resolution  of the governing board of such municipal corporation adopted
  after a public hearing held on at least  fifteen  days  prior  published
  notice in the official newspaper of the municipal corporation or, if the
  municipal  corporation  does not have an official newspaper, in at least
  one newspaper having general circulation in the municipal corporation.
    7. The chief  fiscal  officer  of  such  municipal  corporation  shall
  account  for  a  retirement contribution reserve fund separate and apart
  from all other funds of the municipal corporation. Such accounting shall
  show:  the source, date and amount of each sum paid into the  fund;  the
  interest earned by such fund; capital gains or losses resulting from the
  sale  of  investments of this fund; the order, purpose thereof, date and
  amount of  each  payment  from  this  fund;  the  assets  of  the  fund,
  indicating  cash balance and a schedule of investments. The chief fiscal
  officer, within sixty days of the end of each fiscal year, shall furnish
  a detailed report of the operation and condition of  this  fund  to  the
  governing board.
    8.  The  members  of the governing board of such municipal corporation
  are hereby declared trustees of a retirement contribution  reserve  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
  the municipal corporation,  as  the  case  may  be,  or  by  any  board,
  commission, agency, officer or taxpayer thereof.
    9.  No  member  of  the  governing board of such municipal corporation
  shall:
    (a) authorize a withdrawal from a retirement contribution reserve fund
  for any purpose except as provided in this section; or
    (b) expend any money withdrawn from such fund for a purpose other than
  as provided in this section.
    Any member of the governing board who violates the provisions of  this
  subdivision shall be guilty of a misdemeanor.
    10.  The  governing  board of such municipal corporation by resolution
  may determine that a retirement contribution reserve fund is  no  longer
  needed and terminate the fund. Such resolution shall transfer any moneys
  remaining  in  such  fund  to one or more reserve funds of the municipal
  corporation established pursuant to section six-c, six-d,  six-e,  six-f
  or  six-g  of  this article comprised of moneys raised from the same tax
  base as the moneys in the retirement contribution reserve fund,  or  one
  or more reserve funds established pursuant to section thirty-six hundred
  fifty-one of the education law.