(1) If the town council 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 town general fund, the council may amend the budget and authorize expenditures that are reasonably necessary to meet the emergency.
(2) Except to the extent provided for in Title 53, Chapter 2a, Part 6, Disaster Recovery Funding Act, a town council may not expend money in the town's local fund for an emergency, if the town creates a local fund under Title 53, Chapter 2a, Part 6, Disaster Recovery Funding Act.
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