N.Y. VIL Law § 2-254 — New York Code / Act VIL / Article 2 / Section 2-254
Effect of incorporation on all districts entirely within village
Status: in_force

§ 2-254 Effect of incorporation on all districts entirely within\nvillage. 1. Whenever the term "district" is used in this section it\nshall be construed as referring to a fire district, fire protection\ndistrict or fire alarm district, or a town special district, or a town\nimprovement district; and the term "governing body" as used in this\nsection shall be construed as referring to all boards, bodies or\npersons, in which any of the governing powers of a district are vested.\n  2. If on the date of incorporation of a village the limits of the\nvillage are coterminous with the limits of, or wholly include, the\nterritory of a district, such district shall cease to exist at the end\nof the fiscal year of such district next following the first day of June\nfollowing the first day of January next succeeding the date of\nincorporation; except as otherwise provided in this section, the powers\nand duties of the governing body of the district and of all the officers\nof the district in connection therewith shall then cease and determine;\nand any board of commissioners, any office of commissioner and any other\noffice of any such district shall also cease to exist at such time.\n  2-a. If the limits of a village incorporated prior to the first day of\nApril, nineteen hundred sixty-five are coterminous with the limits of,\nor wholly include the territory of, a district, the board of trustees of\nthe village, by local law or pursuant to the provisions of article\nseventeen-A of the general municipal law, may abolish any such district.\nIn addition to any other notice required in connection with the adoption\nof such local law generally, thirty days' written notice of the hearing\nto be held in connection with such local law shall be given to the\ngoverning body of any such district and to the town clerk. A certified\ncopy of any such local law shall be served upon or mailed to such\ngoverning body and clerk within five days following the adoption\nthereof. Except as otherwise provided in this section, the powers and\nduties of the governing body of a district so abolished and of all the\nofficers of the district in connection therewith shall cease and\ndetermine upon the effective date of such local law and any board of\ncommissioners, any office of commissioner and any other office of any\nsuch district shall also cease to exist at such time. No such local law\nshall become effective except on the last day of a fiscal year of the\ntown or district, as the case may be.\n  3. a. The obligations and the contracts of a district which shall so\ncease to exist and the obligations and contracts of a town for the\nbenefit of or chargeable to such a district shall not be impaired by\nthis section.\n  b. Notwithstanding the dissolution of a district pursuant to this\nsection,\n  (1) an amount shall be levied and collected annually sufficient to pay\nin regular course the principal of and interest on all bonds or\nobligations issued pursuant to the local finance law or otherwise by or\non behalf of such district which are outstanding and unpaid as of the\ndate of the dissolution of the district. Such annual levy and collection\nshall continue until all such outstanding bonds and obligations are paid\nin full.\n  (2) all levies, assessments, fees, rates or other charges of the\ndistrict unpaid as of the date of dissolution and all penalties and\ninterest thereon shall be collected.\n  (3) all moneys collected under subparagraph two of this paragraph\nwhich would be available for district purposes if the district were not\ndissolved shall be applied to the payment of all obligations of the\ndistrict, other than those described in subparagraph one of this\nparagraph, which are due and payable at the time of the dissolution of\nthe district. All such moneys so collected and not required for such\npurpose shall be paid over to the village treasurer.\n  (4) the levies, collections and payments described in subparagraphs\none, two and three of this paragraph shall be made in the same manner as\nif the district had not been dissolved, except that for the purposes of\nthis paragraph:\n  (a) if a fire district is dissolved, the board of trustees of the\nvillage shall constitute the board of fire commissioners of the former\nfire district and\n  (b) if a district other than a fire district is dissolved, the powers\nof the governing body of the district shall be exercised and performed\nby the town board of the town in which the district is located.\n  (5) in lieu of the requirements set forth in subparagraph one of this\nparagraph, the board of trustees by resolution, subject to permissive\nreferendum, may provide that the village shall assume responsibility for\nthe levy and collection, as a general village charge, of all amounts\nrequired to pay the bonds or obligations therein described. In such\nevent the village shall annually pay an amount sufficient to pay the\nprincipal and interest on such bonds or obligations as same become due\nand payable in regular course. In the case of bonds or obligations of a\ndistrict other than a fire district, such payment shall be made to the\nsupervisor of the town in which the district is located. In the case of\nfire district bonds or obligations, payment shall be made directly to\nthe holder of such bonds or obligations. The board of trustees shall\ngive written notice of such resolution to the town board before same\nshall become effective. Nothing herein contained shall prevent the\nvillage from prepaying to the town for the purpose of redeeming such\nbonds or obligations, other than those of a fire district, in whole or\nin part provided the bonds or obligations permit such part payment or\nredemption. Nothing herein contained shall prevent the village from\nprepaying or redeeming such fire district bonds or obligations in whole\nor in part provided the bonds or obligations permit such part payment or\nredemption.\n  c. All contracts of or on behalf of and chargeable to a district which\nceases to exist hereunder, including all amounts unpaid under such\ncontracts but excluding all amounts unpaid thereunder which were due and\npayable at the time of dissolution of such district, other than\nobligations incurred pursuant to the local finance law, shall, to the\nextent they are the responsibility of or beneficial to such a district,\nbe assumed by the village and all expenditures under such contracts\nshall be charged as provided in subdivision six of this section. The\nterms and conditions and all rights of or on behalf of the district,\nincluding any right of amendment or rescission of such contract, shall\ninure to the benefit of the village.\n  4. The governing body of a district shall be responsible for the\npayment of all obligations of the district other than those described in\nsubparagraph one of paragraph b of subdivision three of this section\nwhich are due and payable at the time of the dissolution of the\ndistrict. The governing body of a district shall be responsible for the\npayment of all obligations of the district described in subparagraph one\nof paragraph b of subdivision three of this section.\n  5. Upon a district ceasing to exist hereunder, all property of a\ndistrict shall automatically become the property of the village and, in\nconnection therewith, the governing body and any other officer or person\nempowered to transfer title to or having the custody or control of any\nmoneys of such district, any moneys in a reserve fund, any real or\npersonal property of such district or used or applied for the purposes\nof such district, any policies of insurance for the benefit of such\ndistrict, any documents, instruments and other muniments of title to\ndistrict property and of any official books, records and other data\nrelating to the operation and management of such district shall prepare\nor cause to be prepared an inventory of all such property, shall certify\nsame, shall deliver same to the village clerk and shall:\n  a. pay over to the village treasurer all such moneys except so much\nthereof as was collected for the purpose of paying principal of and\ninterest on bonds or other obligations issued pursuant to the local\nfinance law or otherwise by or on behalf of the district and further\nexcept so much of the balance of such moneys as may be required to pay\nthose obligations of the district described in subdivision four of this\nsection. The village treasurer on receipt of such moneys, shall set same\naside and apply them pursuant to law to the purposes of the district\nwhich ceases to exist hereunder so long as the village continues to\nprovide the service or function thereof and thereafter to be applied in\nreduction of village taxes levied against the area of such former\ndistrict; provided, however, that so long as the village provides the\nservice or function of the former district any moneys held by or on\nbehalf of a district in a reserve fund subject to the provisions of\narticle two of the general municipal law or section fifty-five-a of the\ntown law shall be held and administered by the village as a reserve fund\nsubject to those provisions of article two of the general municipal law\npertaining to villages for the same or similar purpose for which any\nsuch fund was established.\n  b. surrender and deliver all such insurance policies, books, such real\nor personal property.\n  c. assign such policies of insurance and its interest thereunder to\nthe extent permitted therein to the village.\n  d. surrender and deliver all such insurance policies, books, records\nand other data to the village clerk. Copies of official books, records\nand other data relating to the operation and management of such district\nand certified by the officer responsible for same shall be sufficient to\nsatisfy the requirements of this paragraph. No fees or expenses shall be\ncharged for the making of such copies and same shall be entitled to the\nsame admissibility in evidence in a court proceeding as the originals\nthereof.\n  e. surrender and deliver all other such personal property to such\nvillage officer, employee, board or commission as the board of trustees\nof the village shall designate The failure of the governing body or any\nother officer or person to comply with the requirements of this\nsubdivision shall in no way impair the automatic transfer to the village\nof the right, title or interest of the district of, in or to such\nproperty.\n  6. Upon a district ceasing to exist hereunder and until such time as\nthe village may discontinue the service or function pursuant to\nsubdivision seven of this section, the service or function of such\nformer district shall become a village service or function and shall be\ncontinued as, in the discretion of the board of trustees of the village,\nmay be needed in all territory which previously received same and the\nboard of trustees shall have all the powers and duties granted by law to\nvillage officials in connection with such service or function and such\nadditional powers formerly held by the governing body or any officer of\nthe district which may be necessary to continue the service or function\nof the district, provided, however:\n  a. if the limits of a district which ceases to exist hereunder are\nwholly within but are not coterminous with those of the village and the\nservice or function formerly provided by such district is not extended\noutside the limits of the former district, all the costs and expenses of\nsuch service or function may be chargeable only to the territory of such\nformer district.\n  b. if the limits of a district which ceases to exist hereunder are\nwholly within but are not coterminous with those of the village and the\nservice or function formerly provided by such district is extended\noutside the limits of such former district, so much of all costs and\nexpenses of such extension of service or function to such outside\nterritory as is represented by the payment of the principal and interest\non obligations incurred therefor by the village pursuant to the local\nfinance law may be chargeable to and collected from such outside\nterritory; and all other costs and expenses of such service or function\nmay be chargeable only to that part of the entire territory of the\nvillage in which such service or function is provided. In any event and\nregardless of the territory to which such other costs and expenses may\nbe made chargeable, same shall be apportioned and collected uniformly\nand without discrimination within such territory.\n  c. upon any fire district ceasing to exist hereunder, all fire, hose,\nprotective or hook and ladder companies and all authorized squads or\nother units of such district, including the memberships thereof, shall\ncontinue to exist and shall not be affected thereby except as follows:\n  (1) the members of all such companies, squads or units shall\nconstitute a corporation and the fire department of the village.\n  (2) all such companies, squads or units shall thereafter be subject to\nand governed by all the provisions of this chapter regulating and\npertaining to any such company, squad or unit and the fire department of\nthe village.\n  d. upon the incorporation of a village all existing fire, hose,\nprotective or hook and ladder companies and all other firemanic squads\nor units independently organized and incorporated which are not\ncompanies, squads or units of any fire district ceasing to exist\nhereunder and the boundaries of which companies, squads or units as\nspecified in their certificates of incorporation or charters or any laws\nestablishing such companies, squads or units are coterminous with or\nwholly included within the limits of the village and the memberships\nthereof shall continue to exist and shall not be affected thereby except\nas follows:\n  (1) the members of all such companies, squads or units shall\nconstitute a corporation and the fire department of the village.\n  (2) all such companies, squads or units shall thereafter be subject to\nand governed by all the provisions of this chapter regulating and\npertaining to any such company, squad or unit and the fire department of\nthe village.\n  e. all officers and employees of any district which ceases to exist\nhereunder shall to the greatest extent practicable in the discretion of\nthe board of trustees be continued in the same or similar positions as\nvillage employees and, in connection therewith, shall have all the\nrights provided by the civil service law as if their former positions\nwith the district had originally been established by the village.\n  7. The board of trustees of the village at any time by local law may\ndiscontinue the service or function of the former district in all or any\npart of the village; provided, however, that any such local law shall be\nsubject to a permissive referendum of the qualified voters in the\nterritory receiving the service or function at the time of the adoption\nof such local law and in which the service or function is proposed to be\ndiscontinued. For the purpose of such referendum such territory shall be\nconsidered as if it comprised the entire territory of the village.\n  8. This section shall not apply to any special assessment area or any\narea of assessment for benefit the boundaries of which are coterminous\nwith or wholly included within the limits of the village, which was\nestablished only to pay the original cost of any special improvement or\nfacility or any addition thereto, benefitting such area. As to any such\narea the assessments therein established shall continue to be levied and\ncollected as if the village had not been incorporated. However, any such\npublicly owned improvement or facility shall become the property of the\nvillage in the same manner as provided in subdivision five of this\nsection for property of a district.\n  9. Any other special assessment area or any other area of assessment\nfor benefit the boundaries of which are coterminous with or wholly\nincluded within the limits of a village, shall be considered as a\ndistrict subject to the provisions of this section and chapter if same\nwas established not only to pay the original cost of any special\nimprovement or facility, or any addition thereto, benefitting such area\nbut also to pay the cost of the operation, maintenance, repair or\nreplacement thereof.\n