Section 118-C. Financing

Any municipal corporation shall have the power to
  enter  into  contracts  with  any  public  benefit  corporation  created
  pursuant  to  article  five  of  the  public  authorities  law  which is
  authorized by law  to  furnish  water  to  such  municipal  corporation,
  providing  for  the  financing  of  the  acquisition and construction of
  improvements to the water supply system or water distribution system  of
  such  municipal  corporation.  The  terms  of such contract may include,
  among other provisions, provisions requiring such municipal  corporation
  to  purchase  water  only  from such public authority during the term of
  such contract, and which term shall be limited  to  the  lesser  of  (i)
  thirty years or (ii) the probable useful life of the items for which any
  bonds  are  issued  by  such  public  benefit corporation to finance the
  acquisition and construction of improvements to such water supply system
  or water distribution system. The resolution of the municipal  governing
  body  authorizing  the  municipality  to  enter  into  the  contract for
  financing shall be subject to the same referendum requirements as if  it
  were a resolution of the municipality to authorize the sale of bonds for
  the  same  purpose  and  amount.  For purposes of this section, the term
  "municipal corporation" shall mean any city or village or any county  on
  behalf  of a county water district or any town on behalf of a town water
  district, water storage and distribution district or  water  improvement
  area.