§ 17-1726 Obligations and property. The outstanding obligations,
contracts, and bonds of any such town or of any district therein,
incurred, made or issued for the purpose of improving the highways
thereof, or constructing overhead or undergrade crossings, or
constructing sidewalks or for sewers or sewer district purposes, or for
water or water district purposes, or for fire district purposes,
including all obligations now outstanding or hereafter imposed upon any
such town or district therein, shall devolve upon and be assumed by any
such village, and the board of trustees of any such village, is hereby
authorized and empowered, and it shall be its duty, to provide for the
payment and discharge of such obligations, contracts and bonds by
taxation or assessment of taxes in the same manner as the board of
supervisors or county legislative body, town board, or supervisor or
officers of such town, or of any district therein are or may be
authorized to provide therefor or by taxation of all the taxable
property in such village in any case in which by virtue of any provision
of this act or of any other statute such obligations, contracts or bonds
are or may be made a general village charge. All moneys, credits and
property of the said town, including all public moneys payable to the
said town, or to its supervisor, for general town purposes under any
present or future law, shall be paid to any such village for the general
purposes of such village, and all the moneys, credits and property of
any sewer district, water district, fire district, or other tax district
now existing or hereafter established therein, including all moneys
payable under any present or future law to any such town or to its
supervisor for specified town or district purposes, shall be paid and
delivered to such village by the several custodians thereof and applied
by the board of trustees of such village to the said purposes. In any
such village the treasurer thereof shall serve as the fiscal officer of
any such town, and the receiver, collector or custodian of any taxes or
other moneys payable to the supervisor of any such town under any
present or future law, shall pay the same to the village treasurer who
shall apply the same under the direction of the town board, or of the
supervisor, or otherwise, to the lawful purposes for which the same
shall have been raised. In every such village all taxes and assessments
levied or assessed before incorporation upon the taxable property in the
said town or upon the taxable property in any water district, fire
district, lighting district, or sewer district therein for town or
district purposes shall, when collected, be paid over to such village
and used by such village for the purposes for which the same were levied
and assessed.