NY Vill L § 2-254 (2021)
2021 New York Laws VIL - Village Article 2 - Incorporation 2-254 - Effect of Incorporation on All Districts Entirely Within Village.

§  2-254  Effect  of  incorporation  on  all districts entirely within village. 1. Whenever the term "district" is  used  in  this  section  it shall  be  construed  as  referring  to a fire district, fire protection district or fire alarm district, or a town special district, or  a  town improvement  district;  and  the  term  "governing body" as used in this section shall be  construed  as  referring  to  all  boards,  bodies  or persons, in which any of the governing powers of a district are vested.   2.  If  on  the  date  of incorporation of a village the limits of the village are coterminous with the  limits  of,  or  wholly  include,  the territory  of  a district, such district shall cease to exist at the end of the fiscal year of such district next following the first day of June following  the  first  day  of  January  next  succeeding  the  date  of incorporation;  except as otherwise provided in this section, the powers and duties of the governing body of the district and of all the officers of the district in connection therewith shall then cease and  determine; and any board of commissioners, any office of commissioner and any other office of any such district shall also cease to exist at such time.   2-a. If the limits of a village incorporated prior to the first day of April,  nineteen  hundred sixty-five are coterminous with the limits of, or wholly include the territory of, a district, the board of trustees of the village, by local law or  pursuant  to  the  provisions  of  article seventeen-A of the general municipal law, may abolish any such district. In addition to any other notice required in connection with the adoption of  such local law generally, thirty days' written notice of the hearing to be held in connection with such local  law  shall  be  given  to  the governing  body  of any such district and to the town clerk. A certified copy of any such local law shall  be  served  upon  or  mailed  to  such governing  body  and  clerk  within  five  days  following  the adoption thereof. Except as otherwise provided in this section,  the  powers  and duties  of  the governing body of a district so abolished and of all the officers of  the  district  in  connection  therewith  shall  cease  and determine  upon  the  effective  date of such local law and any board of commissioners, any office of commissioner and any other  office  of  any such  district shall also cease to exist at such time. No such local law shall become effective except on the last day of a fiscal  year  of  the town or district, as the case may be.   3.  a.  The obligations and the contracts of a district which shall so cease to exist and the obligations and  contracts  of  a  town  for  the benefit  of  or  chargeable  to such a district shall not be impaired by this section.   b. Notwithstanding the dissolution of  a  district  pursuant  to  this section,  (1) an amount shall be levied and collected annually sufficient to pay in  regular  course  the  principal  of  and  interest  on  all bonds or obligations issued pursuant to the local finance law or otherwise by  or on  behalf  of  such district which are outstanding and unpaid as of the date of the dissolution of the district. Such annual levy and collection shall continue until all such outstanding bonds and obligations are paid in full.  (2) all levies, assessments, fees,  rates  or  other  charges  of  the district  unpaid  as  of  the  date of dissolution and all penalties and interest thereon shall be collected.  (3) all moneys collected under  subparagraph  two  of  this  paragraph which  would be available for district purposes if the district were not dissolved shall be applied to the payment  of  all  obligations  of  the district,  other  than  those  described  in  subparagraph  one  of this paragraph, which are due and payable at the time of the  dissolution  of  the  district.  All  such  moneys so collected and not required for such purpose shall be paid over to the village treasurer.  (4)  the  levies,  collections and payments described in subparagraphs one, two and three of this paragraph shall be made in the same manner as if the district had not been dissolved, except that for the purposes  of this paragraph:  (a)  if  a  fire  district  is dissolved, the board of trustees of the village shall constitute the board of fire commissioners of  the  former fire district and  (b)  if a district other than a fire district is dissolved, the powers of the governing body of the district shall be exercised  and  performed by the town board of the town in which the district is located.  (5)  in lieu of the requirements set forth in subparagraph one of this paragraph, the board of trustees by resolution,  subject  to  permissive referendum, may provide that the village shall assume responsibility for the  levy  and  collection,  as a general village charge, of all amounts required to pay the bonds or  obligations  therein  described.  In  such event  the  village  shall  annually pay an amount sufficient to pay the principal and interest on such bonds or obligations as same  become  due and  payable in regular course. In the case of bonds or obligations of a district other than a fire district, such payment shall be made  to  the supervisor  of the town in which the district is located. In the case of fire district bonds or obligations, payment shall be  made  directly  to the  holder  of  such  bonds or obligations. The board of trustees shall give written notice of such resolution to the  town  board  before  same shall  become  effective.  Nothing  herein  contained  shall prevent the village from prepaying to the town for the  purpose  of  redeeming  such bonds  or  obligations, other than those of a fire district, in whole or in part provided the bonds or obligations permit such  part  payment  or redemption.  Nothing  herein  contained  shall  prevent the village from prepaying or redeeming such fire district bonds or obligations in  whole or in part provided the bonds or obligations permit such part payment or redemption.   c. All contracts of or on behalf of and chargeable to a district which ceases  to  exist  hereunder,  including  all  amounts unpaid under such contracts but excluding all amounts unpaid thereunder which were due and payable at  the  time  of  dissolution  of  such  district,  other  than obligations  incurred  pursuant  to the local finance law, shall, to the extent they are the responsibility of or beneficial to such a  district, be  assumed  by  the  village  and all expenditures under such contracts shall be charged as provided in subdivision six  of  this  section.  The terms  and  conditions  and  all rights of or on behalf of the district, including any right of amendment or rescission of such  contract,  shall inure to the benefit of the village.   4.  The  governing  body  of  a  district shall be responsible for the payment of all obligations of the district other than those described in subparagraph one of paragraph b of subdivision  three  of  this  section which  are  due  and  payable  at  the  time  of  the dissolution of the district. The governing body of a district shall be responsible for  the payment of all obligations of the district described in subparagraph one of paragraph b of subdivision three of this section.   5.  Upon  a  district  ceasing  to  exist hereunder, all property of a district shall automatically become the property of the village and,  in connection therewith, the governing body and any other officer or person empowered  to  transfer title to or having the custody or control of any moneys of such district, any moneys in  a  reserve  fund,  any  real  or personal  property  of such district or used or applied for the purposes of such district, any policies of insurance  for  the  benefit  of  such  district,  any  documents,  instruments  and other muniments of title to district property and of any official  books,  records  and  other  data relating  to the operation and management of such district shall prepare or cause to be prepared an inventory of all such property, shall certify same, shall deliver same to the village clerk and shall:   a.  pay  over  to the village treasurer all such moneys except so much thereof as was collected for the purpose  of  paying  principal  of  and interest  on  bonds  or  other  obligations issued pursuant to the local finance law or otherwise by or on behalf of  the  district  and  further except  so  much of the balance of such moneys as may be required to pay those obligations of the district described in subdivision four of  this section. The village treasurer on receipt of such moneys, shall set same aside  and  apply  them  pursuant to law to the purposes of the district which ceases to exist hereunder so long  as  the  village  continues  to provide  the service or function thereof and thereafter to be applied in reduction of village taxes  levied  against  the  area  of  such  former district;  provided,  however,  that so long as the village provides the service or function of the former district any  moneys  held  by  or  on behalf  of  a  district  in  a reserve fund subject to the provisions of article two of the general municipal law or section fifty-five-a of  the town law shall be held and administered by the village as a reserve fund subject  to those provisions of article two of the general municipal law pertaining to villages for the same or similar  purpose  for  which  any such fund was established.   * d.  surrender  and  deliver all such insurance policies, books, such real or personal property.   * NB (Should be b.)   c. assign such policies of insurance and its  interest  thereunder  to the extent permitted therein to the village.   d.  surrender  and deliver all such insurance policies, books, records and other data to the village clerk. Copies of official  books,  records and other data relating to the operation and management of such district and certified by the officer responsible for same shall be sufficient to satisfy the requirements of this paragraph. No fees or expenses shall be charged  for the making of such copies and same shall be entitled to the same admissibility in evidence in a court proceeding  as  the  originals thereof.   e.  surrender  and  deliver  all  other such personal property to such village officer, employee, board or commission as the board of  trustees of  the village shall designate The failure of the governing body or any other officer  or  person  to  comply  with  the  requirements  of  this subdivision shall in no way impair the automatic transfer to the village of  the  right,  title  or  interest  of  the district of, in or to such property.   6. Upon a district ceasing to exist hereunder and until such  time  as the  village  may  discontinue  the  service  or  function  pursuant  to subdivision seven of this section,  the  service  or  function  of  such former  district shall become a village service or function and shall be continued as, in the discretion of the board of trustees of the village, may be needed in all territory which previously received  same  and  the board of trustees shall have all the powers and duties granted by law to village  officials  in connection with such service or function and such additional powers formerly held by the governing body or any officer  of the  district which may be necessary to continue the service or function of the district, provided, however:   a. if the limits of a district which ceases  to  exist  hereunder  are wholly  within but are not coterminous with those of the village and the service or function formerly provided by such district is  not  extended  outside the limits of the former district, all the costs and expenses of such service or function may be chargeable only to the territory of such former district.   b.  if  the  limits  of a district which ceases to exist hereunder are wholly within but are not coterminous with those of the village and  the service  or  function  formerly  provided  by  such district is extended outside the limits of such former district, so much  of  all  costs  and expenses  of  such  extension  of  service  or  function to such outside territory as is represented by the payment of the principal and interest on obligations incurred therefor by the village pursuant  to  the  local finance  law  may  be  chargeable  to  and  collected  from such outside territory; and all other costs and expenses of such service or  function may  be  chargeable  only  to  that  part of the entire territory of the village in which such service or function is provided. In any event  and regardless  of  the territory to which such other costs and expenses may be made chargeable, same shall be apportioned  and  collected  uniformly and without discrimination within such territory.   c.  upon any fire district ceasing to exist hereunder, all fire, hose, protective or hook and ladder companies and  all  authorized  squads  or other  units  of such district, including the memberships thereof, shall continue to exist and shall not be affected thereby except as follows:  (1)  the  members  of  all  such  companies,  squads  or  units  shall constitute a corporation and the fire department of the village.  (2) all such companies, squads or units shall thereafter be subject to and  governed  by  all  the  provisions  of  this chapter regulating and pertaining to any such company, squad or unit and the fire department of the village.   d. upon the incorporation  of  a  village  all  existing  fire,  hose, protective  or  hook and ladder companies and all other firemanic squads or  units  independently  organized  and  incorporated  which  are   not companies,  squads  or  units  of  any  fire  district  ceasing to exist hereunder and the boundaries of which  companies,  squads  or  units  as specified in their certificates of incorporation or charters or any laws establishing  such  companies,  squads  or units are coterminous with or wholly included within the limits of the  village  and  the  memberships thereof shall continue to exist and shall not be affected thereby except as follows:  (1)  the  members  of  all  such  companies,  squads  or  units  shall constitute a corporation and the fire department of the village.  (2) all such companies, squads or units shall thereafter be subject to and governed by all  the  provisions  of  this  chapter  regulating  and pertaining to any such company, squad or unit and the fire department of the village.   e.  all  officers  and employees of any district which ceases to exist hereunder shall to the greatest extent practicable in the discretion  of the  board  of trustees be continued in the same or similar positions as village employees and, in  connection  therewith,  shall  have  all  the rights  provided  by  the civil service law as if their former positions with the district had originally been established by the village.   7. The board of trustees of the village at any time by local  law  may discontinue the service or function of the former district in all or any part of the village; provided, however, that any such local law shall be subject  to  a  permissive  referendum  of  the  qualified voters in the territory receiving the service or function at the time of the  adoption of such local law and in which the service or function is proposed to be discontinued. For the purpose of such referendum such territory shall be considered as if it comprised the entire territory of the village.    8.  This section shall not apply to any special assessment area or any area of assessment for benefit the boundaries of which  are  coterminous with  or  wholly  included  within  the limits of the village, which was established only to pay the original cost of any special improvement  or facility  or any addition thereto, benefitting such area. As to any such area the assessments therein established shall continue to be levied and collected as if the village had not been incorporated. However, any such publicly owned improvement or facility shall become the property of  the village  in  the  same  manner  as  provided in subdivision five of this section for property of a district.   9. Any other special assessment area or any other area  of  assessment for  benefit  the  boundaries  of  which  are coterminous with or wholly included within the limits of  a  village,  shall  be  considered  as  a district  subject  to the provisions of this section and chapter if same was established not only  to  pay  the  original  cost  of  any  special improvement  or facility, or any addition thereto, benefitting such area but also to pay the  cost  of  the  operation,  maintenance,  repair  or replacement thereof.