(1) The hearing with respect to such application and any objections scheduled pursuant to subsection (1) of section 18-3504 shall be held by the city council or village board of trustees on the date and time provided in the notice of association. At the conclusion of such hearing, subject to subsections (2) and (3) of this section, the city council or village board of trustees may pass an ordinance which (a) specifies the property included in the community improvement district, (b) names five trustees as the board of trustees of such community improvement district to serve until their successors are elected and qualified pursuant to the Community Improvement District Act, (c) specifies the maximum levy rate for all purposes stated as an amount not to exceed ......... per $100 of taxable valuation in such community improvement district, to be deposited and held in the funds of the community improvement district and used for general corporate purposes, including payment of principal of and interest on any outstanding bonds, warrants, and other obligations of the community improvement district, and (d) declares the community improvement district a duly formed political subdivision and community improvement district pursuant to the Community Improvement District Act. Such ordinance shall not be passed unless and until all property included in such proposed community improvement district is within the corporate limits of the city or village.

(2) If any objection to the formation of such community improvement district is filed by a property owner within the community improvement district who did not sign the articles of association, the application shall not be approved by the city council or village board of trustees unless (a) the boundaries are amended to remove the property owned by such objecting property owner or (b) the city council or village board of trustees determines that inclusion of such property within the community improvement district (i) is necessary to the public health or welfare of the community improvement district and the city or village, or (ii) is appropriate because such property will be specially benefited by public infrastructure improvements expected to be made by the community improvement district.

(3) In case of objection to any of the nominated trustees, the city council or village board of trustees may identify and name other suitable trustees to serve on the board of trustees of such community improvement district who shall be (a) owners of real estate located in the community improvement district or (b) designated to serve as representatives on the board of trustees if the real estate is owned by a limited partnership, a general partnership, a limited liability company, a public, private, or municipal corporation, an estate, or a trust.