31-436.

Drainage district; dissolution; procedure; distribution of funds; city of the metropolitan or first class; county; assume operation and maintenance; authorization; conditions.

(1) If there are no debts outstanding, the board of directors may, on its own motion or on the request in writing of ten electors, submit the question of dissolution of the district after due notice thereof is given by publication as provided in section 31-418. If three-fifths of the votes cast on the question at such election are in favor of such dissolution, the officers thereof shall cause a record of such election and the vote thereon to be made in the office of the county clerk of the proper county, and the drainage district shall thereupon stand dissolved.

(2) In case a drainage district is dissolved, as authorized in subsection (1) of this section, the funds on hand or to be collected shall be held by the treasurer until the distribution thereof is approved. The directors of the district shall petition the district court, of the county in which the petition to form the district was filed, for an order approving the distribution of such funds to the landowners as a dividend on the same basis as collected.

(3) Whenever the governing body of a metropolitan- or first-class city or a county shall find and determine by resolution that it is in the best interest of such city or county to assume the operation and maintenance of a drainage district, such drainage district shall transfer and convey its rights-of-way, real and personal property, and all of its assets to the city or county and the city or county shall assume the responsibilities and obligations of such district. Upon the adoption of such a resolution, the board of directors of the district shall pay all of the outstanding obligations of the district, close out all of its affairs, and file a notice of dissolution of the district with the county clerk. Notwithstanding the provisions of subsection (2) of this section, all of the funds remaining after the obligations of the district are fully paid shall be transferred to the general fund of the metropolitan- or first-class city or the flood control levy fund of the county or city which has assumed the obligations and responsibilities of the district, and no dividends shall be paid to landowners upon such transfer of the assets, rights-of-way, and responsibilities of the district to a metropolitan- or first-class city or county as provided in this section.

(4) In the event that a transfer and conveyance of the real and personal property, assets, obligations, and responsibilities of the district is made to a metropolitan- or first-class city or a county or, as the case may be, to a city and a county, taxes shall no longer be collected by the district for the maintenance of the improvements of the district. The cost of maintaining the improvements shall be borne as a general obligation, or an obligation of the flood control fund, of the metropolitan- or first-class city or county, as the governing body of the city or county may determine or, if the improvements shall have been transferred to both a city and county and the city and county shall have entered into a contract as provided in subsection (5) of this section, the cost of maintaining the improvements shall be borne as provided in such contract.

(5) Notwithstanding the provisions of subsections (2) and (3) of this section, if both the governing body of a metropolitan- or first-class city and the governing body of the county shall find and determine by resolution that it is in the best interest of the city and the county, respectively, to assume the operation and maintenance of the same drainage district, and shall cause the city and county to enter into a contract between themselves concerning the responsibilities and obligations of the district to be assumed, and the rights-of-way, real and personal property, and all other assets of the district to be received, by the city and county, respectively, the board of directors of the district shall pay all of the outstanding obligations of the district, close out all of its affairs, file a notice of dissolution of the district with the county clerk, and transfer to the city and county, respectively, in accordance with the terms of such contract, the rights-of-way, real and personal property, and all other assets of the district, including, but not limited to, all funds remaining after the obligations of the district are fully paid. The city and county in such contract shall specify whether the funds thus to be transferred shall be transferred by the district to the general fund or the flood control fund of the city and county, respectively. No dividends shall be paid to landowners upon such transfer of the assets, rights-of-way, and responsibilities of the district as provided in this subsection.