N.Y. Village Law § 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.