Section 18-1804. Diminishing boundaries

The boundaries of a village may be
  diminished by excluding from its corporate limits territory not adjacent
  to nor benefited by either street  or  sidewalk  improvements,  electric
  lights,  sewers, water works system or fire protection, when any of such
  benefits, improvements or system have been completed  in  a  village.  A
  petition  for  diminishing  the  boundaries  of  a  village by excluding
  territory therefrom may be presented to the board of  trustees  of  such
  village.  Such  petition  shall  describe  the  territory  sought  to be
  excluded, and shall state the number  of  inhabitants  thereof  and  the
  names  of  the  owners and occupants of each parcel of land therein, and
  shall be signed and duly acknowledged  by  a  majority  of  the  persons
  residing  therein, if any, qualified to vote for village officers, or by
  the owners of a majority in value of the  real  property  sought  to  be
  excluded,  assessed  upon  the  last  preceding village assessment-roll.
  Each person signing such petition shall  state  opposite  his  name  the
  assessed  valuation  of  all  property  owned  by him in such territory,
  together with the amount of such village taxes paid thereon  during  the
  preceding  year.  Such  statement  of  assessed valuation and taxes paid
  shall be duly  verified  by  each  person  signing  such  petition.  The
  petition  must  also  be  accompanied  by  the  consent  in writing of a
  majority of the town board of the town in which the territory sought  to
  be  excluded  is  situated.  Upon  the presentation of such petition and
  consent, the  board  of  trustees  shall  cause  a  proposition  for  so
  diminishing  such  boundaries  to  be  submitted  at the next succeeding
  annual village election, or a special election called for the purpose of
  voting upon  such  proposition.  If  the  proposition  be  adopted,  the
  petition,  consent  and  certificate of the result of the vote cast upon
  the proposition shall be recorded in the village book of records. Within
  twenty days after  the  adoption  of  such  proposition,  a  certificate
  containing a description of the territory sought to be excluded, stating
  the  assessed  valuation  thereof and the number of inhabitants therein,
  shall be filed in the town clerk's office  of  each  town,  and  in  the
  county  clerk's  office of each county in which the village is wholly or
  partly situated, and also in the  office  of  the  secretary  of  state.
  Territory  so  excluded  from  the  village  shall  not be relieved from
  bearing  its  proportionate  share  of  any  liability  or  indebtedness
  occurred  by  such  village while such territory was a part thereof, and
  until such liability is  discharged,  or  such  indebtedness  paid,  the
  proportionate  share  to  which such territory would be liable if it had
  not been excluded shall be levied upon, assessed and collected from such
  territory by the proper officers of such village, in the same manner  as
  if such territory had not been excluded therefrom. The board of trustees
  shall  also cause an outline map of the corporate limits of such village
  to be made, which map shall plainly  describe  the  territory  excluded.
  Such  map together with a description of the territory excluded shall be
  filed in the office of the secretary of state. The diminishing  of  such
  boundaries  shall  take  effect upon the receipt of the village clerk of
  the certificate of the secretary of state under the seal of his  office,
  certifying  that  he has received and placed on file in his office, such
  outline map and description of the corporate limits of such village with
  the portion excluded. For the purpose of determining whether or not such
  boundaries have  been  diminished  a  substantial  compliance  with  the
  provisions  of  this section shall be deemed sufficient and no action or
  proceeding shall be taken by any person questioning the validity thereof
  unless so taken within one year of the diminution as above provided.