Section 55-A. Reserve funds for improvement districts

1. The town board of
  a suburban town, on behalf of any improvement  district  wholly  located
  within  the  town,  may  establish  one  or  more  reserve funds for the
  financing of all or part of the cost of a "specific object  or  purpose"
  or  a  "class  of  objects  or  purposes",  as such terms are defined in
  section 2.00 of  the  local  finance  law,  which  may  be  constructed,
  reconstructed,  acquired  or  provided by or on behalf of such district.
  The authorization of the establishment of such a fund shall  be  subject
  to  a permissive referendum in the affected district and shall set forth
  the estimated maximum cost of any such specific  object  or  purpose  or
  class thereof.
    2.  There may be paid into such fund such an amount as may be provided
  therefor by budgetary appropriation or such district revenues as are not
  required by law to be paid into any other fund or account.   Any  amount
  to  be assessed, levied and collected in a district to provide money for
  such a fund shall be assessed, levied and collected in the  same  manner
  and at the same time as the amount to provide for the costs of operation
  and maintenance of such district.
    3.  An  expenditure  may  be  made from such a reserve fund only by an
  authorization of the town board  and  only  for  a  specific  object  or
  purpose or class thereof, the cost of which may be financed therefrom.
    4.  The  town  board  may  authorize  the  transfer to the credit of a
  reserve fund created pursuant to this section for the district affected,
  any unexpended balance remaining in another  reserve  fund  created  for
  such  district.  If the object or purpose or class thereof for which the
  latter fund was established has been completed, acquired or provided,  a
  sum  sufficient  to  satisfy  all  outstanding  claims arising from such
  completion, acquisition or provision shall be retained in such fund  and
  not transferred.