19-2786d.   Same; annexation of district by city; inclusion of districtin newly incorporated city; liability of city; special assessments.(a) When all of the territory within an improvement district is annexed byan incorporated city, such city shall take over all properties andassets and shall assume all debts, liabilities and obligations, andshall perform all functions and services in such district and after suchannexation such district shall be abolished. The governing body of suchcity shall, by ordinance, designate the date upon which the city shalltake over and such district shall be abolished, but in no event shallsuch date be later than 90 days after the effective date ofsuch annexation. The city so annexing an improvementdistrict shall assume and pay, as a general obligation of such city, allspecial assessments which may have been levied against specific lots,parcels or tracts of property within such improvement district by suchimprovement district except special assessments for streets, lateralsewers and water distribution systems. Real property within the districtshall be discharged from the lien of any special assessments or taxes orspecial taxes levied to pay for the cost of improvements, except specialassessments or special taxes which were levied for the purpose of payingfor street improvements, lateral sewers or a water distributionsystem. Any individual taxpayer who owns property within suchimprovement district shall have the power to bring suit to force anysuch city to abide by and carry out the terms and provisions of thissection.

      (b)   Upon incorporation of a city which includes all of the territorywithin an improvement district, such city shall take over all propertiesand assets and shall assume all debts, liabilities and obligations of thedistrict, and shall perform all functions and services in such district.After such incorporation the district shall be abolished. The governingbody of the newly incorporated city shall, by ordinance, designate the dateupon which the city shall take over and when such district shall be dissolved,but in no event shall such date be later than 90 days after the electionof the governing body of such city. Such cityshall assume and pay, as a general obligation of such city, allspecial assessments which may have been levied against specific lots,parcels or tracts of property within such improvement district by suchimprovement district except special assessments for streets, lateralsewers and water distribution systems. Real property within the districtshall be discharged from the lien of any special assessments or taxes orspecial taxes levied to pay for the cost of improvements, except specialassessments or special taxes which were levied for the purpose of payingfor street improvements, lateral sewers or a water distributionsystem. Any individual taxpayer who owns property within suchimprovement district shall have the power to bring suit to force anysuch city to abide by and carry out the terms and provisions of thissection.

      History:   L. 1959, ch. 139, § 9; L. 1981, ch. 121, § 1; April 28.