Section 121. Payment of judgments and compromised actions, proceedings or claims

Whenever a final judgment has been recovered against a town,  or
  an  action,  proceeding  or claim has been compromised or settled in the
  manner provided in section sixty-eight of this chapter, the  town  board
  may  provide  by  taxation  the  sum  necessary  to pay such judgment or
  compromised action, proceeding or claim, or may  provide  such  sum,  in
  whole or in part, pursuant to the local finance law.