§ 403-56. Dissolution of District

(a) Procedure. If the Board of Supervisors by resolution approved by two-thirds of all the votes entitled to be cast determines that it is in the best interests of the public, the member municipalities, and the District that the District be dissolved, and if the District then has no outstanding debt or obligations under long-term contracts, or will have no such debt or obligation upon completion of the plan of dissolution, it shall prepare a plan of dissolution and thereafter adopt a resolution directing the question of such dissolution and the plan of dissolution be submitted to the voters of the District at a special meeting of the District duly warned for such purpose. If two-thirds of the voters of the District present and voting at such special meeting of the District duly warned for such purpose shall vote to dissolve the District and approve the plan of dissolution, the District shall cease to conduct its affairs except insofar as may be necessary for the winding up thereof. The Board of Supervisors shall immediately cause a notice of the proposed dissolution to be mailed to each known creditor of the District and to the Secretary of State, and shall proceed to collect the assets of the District and apply and distribute them in accordance with the plan of dissolution.

(b) Plan of dissolution. The plan of dissolution shall:

(1) Identify and value all unencumbered assets of the District;

(2) Identify and value all encumbered assets of the District;

(3) Identify all creditors of the District and the nature or amount of all liabilities and obligations of the District;

(4) Identify all obligations under long-term contracts;

(5) Specify the means by which assets of the District shall be liquidated and all liabilities and obligations of the District shall be paid and discharged, or adequate provision shall be made for the satisfaction thereof;

(6) Specify the amount of monies due from each member municipality, if necessary, to extinguish the liabilities of the District;

(7) Specify the nature and amount of any liabilities or obligations to be assumed and paid by the member municipalities;

(8) Specify the means by which any assets remaining after discharge of all liabilities shall be liquidated if necessary;

(9) Specify that any assets remaining after payment of all liabilities shall be apportioned and distributed among the member municipalities according to the same basic formula used in apportioning the annual assessments of the District.

(c) Termination. When the plan of dissolution has been implemented, the Board of Supervisors shall adopt a resolution certifying that fact to the member municipalities whereupon this chapter shall be repealed and the District created shall be terminated.