19-2786e.   Same; annexation of part of district by city or inclusionof part of district in newly incorporated city; agreements as to liabilitiesand obligations; special assessments; failure to contract, effect.(a) When less than all of the territory within any such improvement districtis annexed by a city or is included in a newly incorporated city, the governingauthorities of such city and suchimprovement district shall be authorized to enter into contracts inregard to the division and allocation of duplicate and overlappingpowers, functions and duties between such agencies, and in regard to theuse, improvement, control, purchase, assumption and disposition of theproperties, assets, debts, liabilities and obligations of such district.Any such district is expressly authorized to enter into agreements withsuch city for the operation of the district's utility systems and otherproperties by such city and may provide for the transfer, conveyance andsale of such systems and properties of whatever kind and whereversituated (including properties outside of the city) to such city andupon such terms and conditions as may be mutually agreed upon by andbetween the governing bodies of such district and city. Such operatingcontracts may extend for such period of time not exceeding 30years as may be agreed upon and shall be subject to amendment, renewalor termination by mutual consent of such governing bodies. No suchcontract shall contain any provision impairing the obligation of anyexisting contract of such city or district.

      The city shall assume and pay, as a general obligation of the cityany and all special assessments or special taxes levied against any ofthe lots, parcels or tracts of land by the improvement district and suchlots, parcels or tracts of landshall be discharged from the lien of such special assessments or taxes,except that the city shall not assume and agree to pay, nor shall anysuch property be discharged from the lien of any special taxes orassessments which might be levied to pay the cost of the construction ofstreets, lateral sewers or water distribution systems and such specialtaxes or assessments shall continue as a lien upon such real propertyand shall be paid by the owners of such real property as if the same hadnot been annexed by the city or included within a newly incorporatedcity. In the absence of a contract betweenthe city and the improvement district such district shall be authorizedto continue to exercise all the powers and functions which it wasempowered to exercise and perform prior to such annexation or incorporationof such city, and the cityshall not duplicate services rendered by the district or the district'sboundaries without the district's consent but may performin the district allother municipal functions in which the district is not engaged.

      History:   L. 1959, ch. 139, § 10; L. 1981, ch. 121, § 2; April 28.