§ 118-c. Financing. Any municipal corporation shall have the power to enter into contracts with any public benefit corporation created pursuant to Article 5 of the public authorities law which is authorized by law to furnish water to such municipal corporation, providing for the financing of the acquisition and construction of improvements to the water supply system or water distribution system of such municipal corporation. The terms of such contract may include, among other provisions, provisions requiring such municipal corporation to purchase water only from such public authority during the term of such contract, and which term shall be limited to the lesser of (i) thirty years or (ii) the probable useful life of the items for which any bonds are issued by such public benefit corporation to finance the acquisition and construction of improvements to such water supply system or water distribution system. The resolution of the municipal governing body authorizing the municipality to enter into the contract for financing shall be subject to the same referendum requirements as if it were a resolution of the municipality to authorize the sale of bonds for the same purpose and amount. For purposes of this section, the term "municipal corporation" shall mean any city or village or any county on behalf of a county water district or any town on behalf of a town water district, water storage and distribution district or water improvement area.