Section 5-512. Financing interim fiscal period

l. Whenever the fiscal year
  of a village is changed  by  action  of  the  board  of  trustees  taken
  pursuant to section 5-510 of this article, the current fiscal year shall
  be automatically extended to include the interim period between the last
  day of the current fiscal year and the first day of the new fiscal year,
  unless the board of trustees shall elect to treat such interim period as
  a  separate  fiscal  year,  as  provided  in  subdivision  three of this
  section.
    2. The board of trustees may raise all or part of the amount necessary
  to pay the obligations and other expenses of the village for the interim
  period by the issuance of obligations pursuant to the local finance law;
  provided, however, that revenues and other income resulting from special
  assessments for capital projects or from operation of revenue  producing
  undertakings,  enterprises  and  utilities, including but not limited to
  water supply, sewerage, electric, steam or gas,  for  which  obligations
  may  become due during the interim period shall be applicable to payment
  of obligations and expenses therefor as provided  by  law  and  to  that
  extent bonds or notes shall not be issued therefor.
    3.  The  board of trustees may treat such interim period as a separate
  fiscal year, in which case all of the provisions of this article and  of
  the  real  property  tax law relative to the preparation of a budget and
  the assessment, levy and collection of taxes shall apply to such interim
  period; provided, however, that the amount to be raised by tax  on  real
  estate  in  any  such  interim  period  shall not exceed the limitations
  prescribed by article eight of the constitution, divided by  twelve  and
  multiplied by the number of months contained in such interim period.