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House Journal: Page 1347: Thursday, April 6, 1995

Page 15

 1   special assessments which the district was authorized
 2   to levy, assess, relevy, or reassess, but which were
 3   not levied, assessed, relevied, or reassessed, at the
 4   time of the merger, for improvements made by the
 5   district or in the process of construction or
 6   contracted for may be levied, assessed, relevied, or
 7   reassessed by the annexing city to the same extent as
 8   the district may have levied or assessed but for the
 9   merger.  However, this section does not authorize the
10   annexing city to revoke any resolution, order, or
11   finding made by the district in regard to special
12   benefits or increase any assessments made by the
13   district, but the city shall be bound by all findings
14   or orders and assessments to the same extent as the
15   district would be bound.  Also, a district shall not
16   levy any special assessments after the effective date
17   of the annexation.
18     Sec. 20.  NEW SECTION.  358C.20  EFFECTIVE DATE OF
19   MERGER.
20     The merger shall be effective thirty days after the
21   effective date of the ordinance annexing the territory
22   within the district.  However, if the validity of the
23   ordinance annexing the territory is challenged by a
24   court proceeding, the effective date of the merger
25   shall be thirty days after the final determination of
26   the validity of the ordinance.  The trustees of a
27   district shall continue in possession and conduct the
28   affairs of the district until the effective date of
29   the merger, but shall not during the period levy any
30   special assessments after the effective date of
31   annexation.
32     Sec. 21.  NEW SECTION.  358C.21  PARTIAL ANNEXATION
33   -- DIVISION AGREEMENT.
34     If only a part of the territory within a district
35   is annexed by a city, the district and the city may
36   agree between themselves as to the equitable division
37   of the assets, liabilities, maintenance, or other
38   obligations of the district for a change in the
39   boundaries of the district so as to exclude the
40   portion annexed by the city or may agree upon a merger
41   of the district with the city.  If a merger is agreed
42   upon, the city shall have all the rights, privileges,
43   duties, and obligations as provided in this chapter
44   when the city annexes the entire territory within the
45   district, and the trustees shall be relieved of all
46   further duties and liabilities and their bonds
47   exonerated.  An agreement between the district and the
48   city shall not be effective until submitted to and
49   approved by the district court of the county in which
50   the major portion of the district is located.  An

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