2010 New York Code
TWN - Town
Article 8 - (100 - 125) FINANCES
117 - Certain contracts and expenditures prohibited.

§  117.  Certain  contracts  and  expenditures  prohibited.  Except as
  authorized by law, no officer, board,  department  or  commission  shall
  during  any  fiscal  year expend or contract to be expended any money or
  incur any liability or enter  into  any  contract  which  by  its  terms
  involves  the  expenditure  of  money  for any purpose, unless provision
  therefor shall have been made in the annual budget, and in  no  case  in
  excess  of  the  amount  appropriated  for such year, except pursuant to
  section one hundred twelve of this chapter and  further  excepting  such
  leases  and  contracts  as  may have been entered into by the town for a
  term exceeding one year  in  accordance  with  the  provisions  of  this
  chapter  or  any  other  law  applicable  to  such town. Nothing in this
  section shall be construed to prevent the allowance of any claim by  the
  town  board  for  any  lawful  town  purpose  in  excess  of  the amount
  appropriated for such year for such purposes, where the said town  board
  has by resolution transferred sufficient funds to said budgetary fund in
  accordance  with section one hundred twelve of this chapter, and nothing
  in this act shall be construed to prevent the  town  supervisor  or  the
  town   comptroller   from  paying  amounts  in  excess  of  the  amounts
  appropriated for such year in the annual budget where such transfer  has
  been made, nor shall anything in this act be construed to require a town
  which has entered into a lease or contract for a term exceeding one year
  to  pay  during  the  current  year  any amounts larger than those which
  become due and owing during that year under the terms of such  lease  or
  contract.  Any  contract,  verbal  or written, made in violation of this
  section, shall be null and void as to the town and no money belonging to
  the town shall be  paid  thereon.  Nothing  herein  contained  shall  be
  construed  to  prohibit the town board from making contracts for periods
  exceeding one year for the purposes of  improvement  districts  whenever
  authorized by law.