Sec. 10. If any annexation proceedings concerning territory inside the county are pending when a first class city becomes a consolidated city, the annexation proceedings shall be continued as if this chapter did not apply. However, if the annexation later takes effect, the following provisions apply:
(1) If the annexation is by the first class city, it has the effect of expanding the special service districts created by section 6 of this chapter.
(2) If the annexation is by another municipality in the county, it has the effect of expanding the municipality as an excluded city or included town.