(b) Upon the dissolution, the dissolved district or corporation shall transfer, and the urban flood safety and water quality district shall assume, the duties, assets and liabilities of the dissolved district or corporation and continue to furnish the services formerly provided by the district or corporation to the residents of, and owners of property in, the dissolved district or corporation. Such assets include, without limitation, all interests in real property and tangible and intangible personal property, including water rights, uncollected taxes, assessments or other charges levied by the dissolved district or corporation.

(c) The dissolved district or corporation shall be considered annexed by and merged into the urban flood safety and water quality district.

(2) A dissolution under this section may be initiated only by resolution of the district board. The district board may not consider a dissolution resolution unless and until the urban flood safety and water quality district has operating and capital funding sufficient to enable the urban flood safety and water quality district to assume and manage the duties, assets and liabilities of the dissolved district or corporation.

(3) A dissolution under this section becomes effective no later than one year after the date on which the district board adopts the dissolution resolution, unless the district or corporation to be dissolved agrees to an earlier dissolution date.

(4)(a) As soon as practicable after the date on which the district board adopts a dissolution resolution under this section, the district board and the governing bodies of the districts or corporations to be dissolved, or the designated representatives of the governing bodies, shall meet to negotiate a debt distribution plan. A debt distribution plan may provide for any distribution of indebtedness between the urban flood safety and water quality district and the district or corporation to be dissolved.

(b) If the district board and the governing bodies do not agree on a debt distribution plan, or if the territory of the district or corporation to be dissolved remains liable under the plan for any portion of the indebtedness outstanding at the time of the dissolution and transfer, the district board shall serve as the ex officio board of the dissolved district or corporation for the purpose of imposing and collecting charges or taxes in the territory until all indebtedness of the dissolved district or corporation, including interest, is paid in full.

(c) Before a debt distribution plan may be agreed to under this section, the urban flood safety and water quality district shall obtain consent from all known holders of valid indebtedness owed by the district or corporation to be dissolved or releases based on provision in the debt distribution plan for the payment of nonconsenting holders. The territory within the boundaries of the district or corporation to be dissolved may not by reason of the dissolution and transfer be relieved of outstanding liabilities and indebtedness for which the district or corporation to be dissolved has previously entered into an agreement.

(5) After paying and discharging all debts and obligations or obtaining consent from holders of valid indebtedness or releases from nonconsenting holders, in accordance with the debt distribution plan, the governing body of the district or corporation to be dissolved shall transfer to the urban flood safety and water quality district all assets of the district or corporation to be dissolved.

(6) If requested by the district or corporation to be dissolved, or at the discretion of the district board, the district board may create a zone committee with members appointed by the chair of the district or corporation to be dissolved to provide for continuity and recommendations with respect to fees, rates and charges, and levels of support and operation, within the territory of the dissolved district or corporation. [2019 c.621 §22]