Villages usually grew out of the desire of people living in the most populated area of a town to have services beyond that required or desired by the rest of the town. Foe example, farmers burning trash might not have been a problem in the outlaying ares, but if everyone in the village had to burn their trash it could be a big problem, so a village might want garbage collection where the rest of the town didn't need it.
There may be less need for villages today in many first ring towns but that doesn't mean there is no benefit to maintaining a village. If that is what the majority of village residents want, even if it cost them more because they have to pay the village tax in addition to thbe town tax, then that is what they should have.
Perhaps the best solution would be for the state to change the village law to require a vote on dissolution once every 50 years. That way each generation of citizens would get to vote at least once on whether or not to continue the village.