§ 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.