(A) Neither the Board of Trustees nor any department or officer of the village shall add to the village expenditures in any fiscal year anything over and above the amount provided for in the annual appropriation ordinance of that year. No expenditure for an improvement to be paid for out of the General Fund of the village shall exceed in any fiscal year the amount provided for that improvement in the annual appropriation ordinance.
(B) Nothing herein contained shall prevent the Board of Trustees, by a two-thirds vote, from making additional appropriations for the purpose of making improvements or restorations, the necessity for which is caused by any casualty or accident happening after the annual appropriation ordinance is passed, nor from making additional appropriations necessary to meet any emergency, happening after and unforeseen at the time of passing the annual appropriation ordinance. EMERGENCY, as used in this division (B), means a condition requiring immediate action to suppress or prevent the spread of disease, or to prevent or remove imminent danger to persons or property. For the purpose of providing for these additional appropriations, the Board of Trustees, by a two-thirds vote, may authorize the President to borrow the amount of money necessary therefor for a space of time not extending beyond the close of the next fiscal year. The sum borrowed and the interest thereon, shall be added to the amount authorized to be raised in the next general tax levy and embraced therein.
(C) Should a judgment be obtained against the village, the President, under the sanction of the Board of Trustees, may borrow a sufficient amount to pay the judgment for a space of time not extending beyond the close of the next fiscal year. This sum and the interest thereon shall in like manner be added to the amount authorized to be raised in the general tax levy of the next year and embraced therein.
(65 ILCS 5/8-1-6)