Section 9. Use of tax moneys raised outside constitutional tax limit

1.
  Whenever any county, city (other than the city of New York), village, or
  school district which is coterminous with, or partly within,  or  wholly
  within,  a  city  having  less  than  one  hundred  twenty-five thousand
  inhabitants according to the latest federal census, shall make a  direct
  budgetary appropriation for any fiscal year for
    a.  The  payment in such year or in any future fiscal year or years of
  all or any part of the cost of an object or purpose for which bonds  may
  be issued, or
    b.  The  payment of the interest on and principal of indebtedness, and
  the taxes required for such appropriation  are  excluded  from  the  tax
  limitation  prescribed  by  section  ten  of  article eight of the state
  constitution, the amount so appropriated shall  be  used  only  for  the
  object  or  purpose  for  which  such  appropriation was made, except as
  otherwise provided in subdivision two of this section.
    2. Whenever the total amount of any such appropriation is not used for
  the object or purpose for which made, any unexpended balance therein may
  be used, in the manner provided and when authorized by law, for  any  of
  the following objects or purposes or a combination thereof:
    a.  An  appropriation  for an object or purpose for which bonds may be
  issued;
    b. An appropriation to a reserve fund established pursuant to law  for
  the  financing  of  all  or part of the cost of an object or purpose for
  which bonds may be issued; or
    c. An appropriation for the payment of the interest on  and  principal
  of  indebtedness,  other  than indebtedness evidenced by bonds and notes
  described in paragraphs A and D of section five of article eight of  the
  state constitution, or renewals thereof.