48-1416. Formation of overlay district; hearing; procedures; election

A. On request of the board of trustees of two or more contiguous special road districts, or two or more contiguous special road districts which comprise a joint special road district, the board of supervisors shall set a hearing on the creation of a new special road district overlaying the requesting districts. The proposed overlay district shall have boundaries coextensive with the exterior boundaries of the contiguous districts regardless of their shape or dimension, including any portion within any incorporated city or town.

B. Notice of the hearing shall be given by posting in four public places within the proposed district and by publication two times in a newspaper of general circulation in the proposed district.

C. Interested parties may file written objections with the clerk of the board of supervisors no later than five days before the date set for the hearing.

D. At the hearing, written and oral objections shall be heard and the board of supervisors shall rule on the objections. The hearing may be continued from time to time. If the board determines that the land within the districts will be benefited by the formation of the new district, it shall order an election to be held in the proposed district. The determination of the board is final and conclusive.

E. The election shall be called and conducted, notice shall be given and the results shall be canvassed as provided in title 16, except that sections 16-226 and 16-227 do not apply. The election may be held on any date set by the board of supervisors which is not less than thirty days after the date the board of supervisors adopts the order, except that if the election is combined with an election on the sale of bonds as provided by subsection I of this section, the election must be held on the first Tuesday following the first Monday in November as prescribed by section 16-204, subsection B, paragraph 1, subdivision (d).

F. If a majority of the qualified electors of the proposed district voting at the election favors formation of an overlay district, the board of supervisors shall order the formation of the overlay district.

G. If the formation of the overlay district is ordered the existing districts shall be dissolved and cease to exist, except that all real property and mobile homes within the dissolved districts remain subject to taxation for all the bonds, debts or obligations outstanding at the time of dissolution. All taxes levied and monies collected before dissolution shall be credited to the overlay district except for those levied or collected to pay bonds, debts and obligations of the dissolved districts outstanding at the date of dissolution. The dissolved districts shall transfer to the overlay district all other assets, including all other monies and the roads and rights-of-way, of the dissolved districts, and the overlay district shall assume the combined budget, operations and maintenance of the dissolved districts.

H. The initial board of trustees of the overlay district shall be comprised of the trustees of the dissolved districts who shall continue to serve only until their respective existing terms are completed. At the first annual trustee election after formation of the overlay district, only one trustee shall be elected at large from the overlay district for a three year term to replace all former trustees whose terms are expiring. At each of the second and third annual trustee elections after formation, two trustees shall be elected at large for three year terms to replace all former trustees whose terms are expiring. Thereafter the district board shall consist of five trustees, elected at large, serving staggered three year terms.

I. If requested by the boards of trustees of the districts requesting the overlay district, the board of supervisors shall call, conduct and canvass, on behalf of the overlay district, an election on the sale of bonds by the overlay district to be held in conjunction with the election on formation and as provided in subsection E of this section.

J. The formation of the overlay district and dissolution of the previous districts become effective on a date set by the board of supervisors which is no earlier than thirty days after the canvass of the formation election.

K. A special road district formed pursuant to this section is subject to this article as a special road district.