Hi Lisa,
Yes, there are gators in Florida and in The Villages, but they're not walking the streets, well not usually....

Gators hang around and are in the retention ponds and lakes. The concern for your dog's safety is justified if you take them to walk near these ponds. Walking your pooches in town, in neighborhoods and in areas without bodies of standing water (and they can be small bodies of water) should keep you from too much worry. There's a leash law here and it is better to adhere to it, especially since the dogs could run away from your sight, to a pond, into the road or cart path and be hurt.
You'll love The Villages and your dogs will, too. So many doggies, walking, riding in golf carts (they love it more than the kids do). ENJOY!