48-1416

48-1416. Formation of overlay district;
hearing; procedures; election

A. On request of the board of trustees of two or more contiguous special road
districts, or two or more contiguous special road districts which comprise a joint
special road district, the board of supervisors shall set a hearing on the creation of a
new special road district overlaying the requesting districts. The proposed overlay
district shall have boundaries coextensive with the exterior boundaries of the contiguous
districts regardless of their shape or dimension, including any portion within any
incorporated city or town.

B. Notice of the hearing shall be given by posting in four public places within the
proposed district and by publication two times in a newspaper of general circulation in
the proposed district.

C. Interested parties may file written objections with the clerk of the board of
supervisors no later than five days before the date set for the hearing.

D. At the hearing, written and oral objections shall be heard and the board of
supervisors shall rule on the objections. The hearing may be continued from time to
time. If the board determines that the land within the districts will be benefited by
the formation of the new district, it shall order an election to be held in the proposed
district. The determination of the board is final and conclusive.

E. The election shall be called and conducted, notice shall be given and the
results shall be canvassed as provided in title 16, except that sections 16-226 and
16-227 do not apply. The election may be held on any date set by the board of supervisors
which is not less than thirty days after the date the board of supervisors adopts the
order, except that if the election is combined with an election on the sale of bonds as
provided by subsection I of this section, the election must be held on the first Tuesday
following the first Monday in November as prescribed by section 16-204, subsection B,
paragraph 1, subdivision (d).

F. If a majority of the qualified electors of the proposed district voting at the
election favors formation of an overlay district, the board of supervisors shall order
the formation of the overlay district.

G. If the formation of the overlay district is ordered the existing districts shall
be dissolved and cease to exist, except that all real property and mobile homes within
the dissolved districts remain subject to taxation for all the bonds, debts or
obligations outstanding at the time of dissolution. All taxes levied and monies
collected before dissolution shall be credited to the overlay district except for those
levied or collected to pay bonds, debts and obligations of the dissolved districts
outstanding at the date of dissolution. The dissolved districts shall transfer to the
overlay district all other assets, including all other monies and the roads and
rights-of-way, of the dissolved districts, and the overlay district shall assume the
combined budget, operations and maintenance of the dissolved districts.

H. The initial board of trustees of the overlay district shall be comprised of the
trustees of the dissolved districts who shall continue to serve only until their
respective existing terms are completed. At the first annual trustee election after
formation of the overlay district, only one trustee shall be elected at large from the
overlay district for a three year term to replace all former trustees whose terms are
expiring. At each of the second and third annual trustee elections after formation, two
trustees shall be elected at large for three year terms to replace all former trustees
whose terms are expiring. Thereafter the district board shall consist of five trustees,
elected at large, serving staggered three year terms.

I. If requested by the boards of trustees of the districts requesting the overlay
district, the board of supervisors shall call, conduct and canvass, on behalf of the
overlay district, an election on the sale of bonds by the overlay district to be held in
conjunction with the election on formation and as provided in subsection E of this
section.

J. The formation of the overlay district and dissolution of the previous districts
become effective on a date set by the board of supervisors which is no earlier than
thirty days after the canvass of the formation election.

K. A special road district formed pursuant to this section is subject to this
article as a special road district.