(1) Whenever a majority of the board of trustees or the administrator of any community improvement district organized under the Community Improvement District Act desires that the community improvement district shall be wholly dissolved, the trustees or administrator shall first propose a resolution declaring the advisability of such dissolution and setting out verbatim the terms and conditions thereof, and also setting out the time and place when the board of trustees or administrator shall meet to consider the adoption of such resolution. Notice of the time and place when the resolution shall be set for consideration shall be delivered to the city or village clerk and the county clerk, election commissioner, and register of deeds of each county or counties in which the community improvement district is located at least forty-five days prior to such date. Notice of the time and place when the resolution shall be set for consideration shall be published the same day each week for two consecutive weeks in a newspaper of general circulation published in the city or village where the community improvement district was organized, which publication shall contain the entire wording of the proposed resolution. The trustees or administrator shall mail a copy of such proposed resolution to any city or village in which any part of the community improvement district is located within five days after the date of first publication of the resolution. The last publication shall be not less than five days nor more than two weeks prior to the time set for hearing on objections to the passage of the resolution, at which hearing the owners of property within the community improvement district, or any city or village in which any part of the community improvement district is located, may appear and make objections to the proposed resolution.

(2) If (a) a petition opposing the proposed resolution of dissolution is signed by property owners representing a majority of the area of real estate within the community improvement district or (b) a resolution is adopted by the city council or village board of trustees opposing such dissolution and either is presented to the board of trustees or the administrator on or prior to the hearing date, then the board of trustees or the administrator shall not adopt such resolution.

(3) If the owners representing a majority of the area of real estate within the community improvement district fail to sign and present to the board or to the administrator, on or prior to the hearing date, a written petition opposing the proposed resolution of dissolution, or if a resolution opposing such dissolution is not adopted by the village board of trustees or city council, then a majority of the board of trustees or the administrator may pass the resolution and thereby adopt the proposed dissolution. After the board of trustees or the administrator has adopted such resolution of dissolution, the clerk of the community improvement district shall prepare and file a certified copy of the resolution of dissolution in the office of the city or village clerk where the original articles of association were filed and in the office of the Secretary of State.

(4) A proposed resolution of dissolution shall not be adopted if the community improvement district is obligated on any outstanding bonds, warrants, or other debts or obligations unless the holders of such bonds, warrants, or other debts or obligations shall all sign written consents to the dissolution prior to the adoption of the resolution of dissolution.