(1) A special local improvement assessment district may be created under this section if the boundaries of the proposed special local improvement assessment district are within the boundaries of the homeowners’ association representing that area. Upon delivery of a petition to the clerk of the municipality in which the proposed district is located, signed by the owners of at least sixty percent (60%) of the taxable real property in the homeowners’ association representing the area in the proposed district, the municipality shall begin efforts to establish the district; however, if the boundaries of the proposed special local improvement assessment district are located, in whole or in part, within the boundaries of the Capitol Complex Improvement District, or a portion of the proposed district adjoins the boundaries of the Capitol Complex Improvement District, the petition may be delivered to the Capitol Complex Improvement District Project Advisory Committee, and the committee shall deliver the petition to the clerk of the municipality.

(2) The homeowners’ association representing the property owners in the proposed special local improvement assessment district shall submit a strategic plan to the municipality specifying the local improvements proposed for the district during the municipality’s upcoming fiscal year and the total amount proposed to be expended for the improvements. Based on the strategic plan, the governing authorities of the municipality shall determine the additional millage to be levied upon all taxable real property in the district, not to exceed six (6) mills, needed in order to provide funds for the local improvements as proposed in the strategic plan.

(3) Within ninety (90) days of receipt of the strategic plan, the municipality shall prepare a notice calling for an election to be held in the proposed district on the question of whether to establish the special local improvement assessment district. The date and time of the election and the voting location shall be fixed in the notice. The municipality shall publish the notice of the election once each week for at least three (3) consecutive weeks in a newspaper published or having a general circulation in the town, with the first publication of the notice to be made not less than twenty-one (21) days before the date fixed in the notice of the election and the last publication to be made not more than seven (7) days before the election. At the election, all qualified electors of the proposed special local improvement assessment district may vote, which qualified electors shall be determined by use of the voter rolls of all municipal voting precincts containing any property in the proposed special local improvement assessment district.

(4) When the results of the election shall have been canvassed and certified by the municipality, the governing authorities of the municipality shall adopt a resolution creating the special local improvement assessment district if at least sixty percent (60%) of the qualified electors in the proposed special local improvement assessment district who vote in the election vote in favor of creating the district. The resolution shall contain a description of the boundaries of the district and shall specify the millage rate to be levied upon taxable real property in the district for the municipality’s fiscal year. At least thirty (30) days before the effective date of the tax, the governing authorities shall furnish to the Department of Revenue a certified copy of the resolution evidencing the tax.

(5) The procedures required in this section for the establishment of a district shall be used for the modification of the boundaries of a district.