N.Y. Town Law § 121

§ 121. Payment of judgments and compromised actions, proceedings or\nclaims. Whenever a final judgment has been recovered against a town, or\nan action, proceeding or claim has been compromised or settled in the\nmanner provided in section sixty-eight of this chapter, the town board\nmay provide by taxation the sum necessary to pay such judgment or\ncompromised action, proceeding or claim, or may provide such sum, in\nwhole or in part, pursuant to the local finance law.\n