Section 5-520. General budgetary controls

l. A separate account shall be
  kept for each appropriation. Each such account  shall  show  the  amount
  appropriated,  the several amounts expended therefrom and the unexpended
  balance.
    2. No expenditure shall be made, nor shall any contract which  in  any
  manner  involves  the  expenditure  of  money  or  the  incurring of any
  pecuniary  liability  be  entered  into,  unless  an  amount  has   been
  appropriated for the particular purpose and is available therefor or has
  been  authorized  to  be  borrowed  pursuant  to  the local finance law.
  Nothing in this subdivision shall prevent the making of  a  contract  or
  lease  for  a  term  exceeding one year when authorized by law nor shall
  anything in this subdivision require a village which has entered into  a
  contract  or  lease  for  a  term  exceeding  one year to pay during the
  current fiscal year any amounts larger than those which become  due  and
  owing during that year under the terms of such lease or contract.
    3.  Whenever  during  a  fiscal  year  it shall appear probable to the
  budget  officer  that  the  moneys  available  for  such  year  will  be
  insufficient to meet the amounts appropriated, he shall forthwith notify
  the  board of trustees of such fact, stating the probable amount of such
  deficiency.  The budget officer may include his  recommendations  as  to
  the  action  which should be taken. The board of trustees may reduce any
  appropriation or appropriations by  resolution  so  as  to  prevent  the
  making  of  expenditures in excess of moneys available. An appropriation
  shall not be reduced below the minimum amount  required  by  law  to  be
  appropriated,  nor  shall  an  appropriation be reduced by more than the
  balance therein less outstanding and unpaid claims  chargeable  to  such
  appropriation.
    4.  The  board  of  trustees, during a fiscal year, by resolution, may
  make additional  appropriations  or  increase  existing  appropriations.
  Moneys  therefor may be provided by transfer 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  available  for  transfer 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,
  including unappropriated unreserved fund balance, exceeds the  total  of
  all  revenues  of  such  fund  as  estimated  in  the  budget, including
  appropriated fund balance.
    5. Notwithstanding the provisions of subdivision four of this section,
  grants in aid from the state and federal governments, other 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 board of
  trustees at any time for such objects and purposes.