Section 120-I. Means of payment

The indebtedness created for such public
  works may be paid by each contracting municipality,  including  a  sewer
  district  of  a  town,  partly  by  assessment  on  the  property deemed
  specially benefited by such improvement and partly by a charge  on  such
  municipality  at  large.  In  the case of a sewer district of a town the
  petition for the creation thereof or a supplemental petition  may  state
  the  means of payment as above provided and the assessment therein shall
  be made in form and substance  so  far  as  applicable  as  provided  in
  section two hundred and thirty-seven of said law, except that such sewer
  commissioner  shall  assess a part of the district's proportionate share
  of the total cost of such system on the lands within such  district,  or
  extension of an existing district in proportion, as nearly as may be, to
  the  benefit  which each lot or parcel will derive therefrom. Such sewer
  commissioners shall  determine  the  amount  to  be  raised  by  general
  taxation  for  such expense. Nothing herein contained shall be construed
  as  preventing  the  contracting   municipalities   from   paying   such
  indebtedness,  in  whole  or  in  part,  by  the issuance of obligations
  pursuant to the terms of the local finance law.