48-7048. Perpetual succession; dissolution of district

A. The district has perpetual succession, except that the district may be dissolved as provided in this section and, if the district does not have any bonds or other obligations outstanding, shall be dissolved ten years after the date of formation unless the authority by resolution extends the district by an additional period of ten years.

B. The board shall adopt a resolution dissolving the district if the following conditions exist:

1. The district no longer owns any real or personal property.

2. The authority verifies that the district has no bonds or obligations outstanding.

3. The authority approves the dissolution order on receipt of a dissolution petition executed by the owners of a majority of the real property in the district.

C. A district shall be dissolved automatically and without any action from the board or the qualified electors in the year that is five years after completion of all work to be performed under the district's general plan, as long as the authority has verified that no bonds or obligations remain outstanding. If any bonds or obligations remain outstanding after the year, the district shall be dissolved in the year after the bonds or obligations are paid in full.

D. On satisfaction of the conditions prescribed by subsection B or C of this section, the authority shall approve the dissolution and issue a dissolution order. The board shall cause the dissolution order to be recorded in the office of the county recorder and shall cause a copy of the dissolution order to be delivered to the county assessor and the board of supervisors of the county in which the district is located, to any municipality in which the district is located and to the department of revenue.

E. All property in the district, except federal, state, county and municipal property, remains subject to the lien for the payment of ad valorem taxes levied, and any property subject to an assessment lien remains subject to the lien notwithstanding dissolution of the district. The district may not be dissolved if any general obligation bonds, revenue bonds or assessment bonds of the district remain outstanding unless an amount of money sufficient, together with investment income thereon, to make all payments due on the bonds either at maturity or prior redemption has been deposited with a trustee or escrow agent and pledged to the payment and redemption of the bonds.  The district may continue to operate after dissolution only as needed to collect monies and make payments on any outstanding bonds.