(1) If the governing body of a city determines that an emergency exists, such as widespread
damage from fire, flood, or earthquake, and that the emergency necessitates the expenditure
of money in excess of the budget of the city general fund, the governing body may
by resolution amend the budget and authorize such expenditures and incur such deficits
in the fund balance of the city general fund as may be reasonably necessary to meet
(2) Except to the extent provided for in Title 53, Chapter 2a, Part 6, Disaster Recovery
Funding Act, the governing body of a city may not expend money in the city's local
fund for an emergency, if the city creates a local fund under Title 53, Chapter 2a,
Part 6, Disaster Recovery Funding Act.
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