Section 112. Supplemental appropriations; unappropriated unreserved fund balances

1. The town board, during a fiscal year,  by  resolution,  may
  make  additional  appropriations or increase existing appropriations and
  shall provide for the financing thereof. Moneys therefor may be provided
  from the unexpended balance of an appropriation, from the  appropriation
  for  contingencies,  from  unappropriated  unreserved  fund  balance  or
  unanticipated revenues within a fund or by  borrowing  pursuant  to  the
  local  finance law. For the purposes of this subdivision, unappropriated
  unreserved fund balance or unanticipated revenues shall be utilized only
  to the extent that the total of all revenues of such fund recognized  or
  reasonably  expected  to  be  recognized  in  the  current  fiscal year,
  together with unappropriated unreserved fund balance, exceeds the  total
  of  all  revenues  and  appropriated  fund  balance  as estimated in the
  budget.
    2. If at any time during a fiscal year a town receives moneys from any
  source,  except  from  loans,  which  are  not  otherwise  committed  or
  appropriated,  the  town board may direct the supervisor to pay the same
  or any part thereof to the treasurer of the  county  to  be  applied  in
  reduction  of the amount to be levied for state and county purposes, and
  the supervisor shall pay such moneys to the county  treasurer  prior  to
  the levy.
    3.  Notwithstanding the provisions of subdivision one of this section,
  grants in aid from the state and federal governments,  gifts  which  are
  required  to  be  expended  for  particular  objects  or  purposes,  and
  insurance proceeds for the loss, theft, damage or destruction of real or
  personal property, when proposed to be used  or  applied  to  repair  or
  replace  such  property,  may  be appropriated by resolution of the town
  board at any time for such objects and purposes.