§ 14-94-126 - Dissolution of district. - Arkansas Statutes

14-94-126. Dissolution of district.

(a) (1) After all bonds or other evidences of indebtedness, plus all interest on them, shall have been paid in full, then a district may, by unanimous vote of the members of the board, be dissolved and all further levies and assessments cancelled, the members of the board relieved from further duties, and the surplus funds of the district distributed in accordance with the procedures set forth in subsection (b) of this section.

(2) The districts are authorized, at the discretion of the respective boards, to enter into repair and maintenance agreements and to expend funds of the districts for these purposes.

(b) (1) In the event that the board shall vote to dissolve a district under subsection (a) of this section, the board shall convert all assets into cash and shall first pay from the surplus funds all debts of the district, including any reasonable legal and other expenses incurred in connection with the dissolution.

(2) (A) The board shall then refund all remaining funds of the district pro rata to the property owners who hold title to the property in the district at the time the refund is made.

(B) (i) The pro rata refund to the property owners shall be made on the basis of the most recent assessment or reassessment of benefits on the parcel of property prior to dissolution and shall be in the same proportion that the assessed benefits of each individual parcel of property bears to the total of the assessed benefits of all the property in the district.

(ii) No property or owner whose property is delinquent in any sum for district assessments, penalties, or interest at the time the refund is made shall be counted in calculating the pro rata distribution or receive any portion of the refund.

(C) Within ninety (90) days after the distribution of surplus funds has been completed, the board shall file a copy of the resolution of dissolution and a financial statement of the district, verified by all members of the board, in the office of the clerk of the municipality in which the district was established.