2023 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.
b. surrender and deliver all such insurance policies, books, such real
or personal property.
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.