357WATER DISTRICTS357.1Definitions.As used in this chapter, unless the context otherwise requires, “book”, “list”, “record”, or “schedule” kept by a county auditor, assessor, treasurer, recorder, sheriff, or other county officer means the county system as defined in section 445.1.2000 Acts, ch 1148, §1357.1APetition — limitation.1The board of supervisors of any county shall, on the petition of twenty-five percent or more of the eligible electors residing in any proposed benefited water district, grant a hearing relative to the establishment of the proposed water district. The petition shall set out the following and any other pertinent facts:aThe need of a public water supply.bThe approximate district to be served.cThe approximate number of families in the district.dThe proposed source of supply.eThe type of service desired, whether domestic only or for fire protection and other uses.2The board of supervisors may, at its option, require a bond of the petitioners as provided in section 468.9.3A benefited water district located wholly within the corporate limits of a city is not subject to the provisions of this chapter.4Water services, other than water services provided as of April 1, 1987, shall not be provided within two miles of the limits of a city except as provided in this section.5A benefited water district established under this chapter may give notice of intent to provide water service to a new area within two miles of a city by submitting a water plan to the city. The plan is only required to indicate the area within two miles of the city which the benefited water district intends to serve. If the city fails to respond to the benefited water district’s plan within ninety days of receipt of the plan, the benefited water district may provide service in the area designated in the plan. The city may inform the benefited water district within ninety days of receipt of the plan that the city requires additional time or information to study the question of providing water service outside the limits of the city. If additional time or information is required, the city shall respond to the benefited water district’s plan within one hundred eighty days of receipt of the plan. In responding to the plan, the city may waive its right to provide water service within the areas designated for service by the benefited water district, or the city may reserve the right to provide water service in some or all of the areas which the benefited water district intends to serve. If the city reserves the right to provide water service within some or all of the areas which the benefited water district intends to serve, the city shall provide service within four years of receipt of the plan. This section does not preclude a city from providing water service in an area which is annexed by the city.[C24, 27, 31, 35, §5523; C39, §5526.01; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §357.1]87 Acts, ch 109, §1; 92 Acts, ch 1015, §1, 2; 92 Acts, ch 1204, §9C2001, §357.1A2010 Acts, ch 1061, §180357.1BCombined water and sanitary district.1Upon receipt of a petition having the required signatories as provided in section 357.1A or 358.2, the board of supervisors shall grant a hearing relative to the establishment of a proposed combined water and sanitary district. The petition shall include the information required in sections 357.1A and 358.2 for proposed water districts and sanitary districts. The board of supervisors of the county in which the proposed combined district or largest part of the proposed combined district is located, shall have jurisdiction of the proceedings on the petition and the decision of a majority of the members of that board of supervisors is necessary for adoption. The orders of the board of supervisors made pursuant to this chapter and chapter 358 relating to the proposed combined district shall be kept as official records, but the records need not be published under section 349.16. An existing district may petition the board of supervisors to establish a combined water and sanitary district after the approval of a majority of the district electorate.2The board of supervisors having jurisdiction to establish the proposed combined water and sanitary district may proceed with its establishment under this chapter or chapter 358 in the same manner as a benefited water district or a sanitary district is separately established under those chapters. The differences between this chapter and chapter 358 including but not limited to the membership of the board of trustees, per diem, and maximum annual per diem, or a power or duty relating to rents, fees, taxation, or bonded indebtedness, shall be resolved as a part of the petition submitted to the board of supervisors. Before becoming effective, a change in the membership, per diem, maximum annual per diem, or a power or duty relating to rents, fees, the levy of a tax, or the issuance of bonds, or other differences specified on the petition, shall be submitted for the approval of the district electorate. However, the number of members, per diem, maximum annual per diem, or differences in powers and duties included in a combined district shall not be inconsistent with this chapter or chapter 358.3For the purpose of establishing, operating, or dissolving a combined water and sanitary district under this chapter and chapter 358, the term “benefited water district” includes a combined water and sanitary district where applicable.4Water services and a water service plan prepared by the combined district are subject to approval by an affected city as provided in section 357.1A.92 Acts, ch 1204, §10C93, §357.1AC2001, §357.1B2022 Acts, ch 1032, §54357.2Territory included.The benefited water district may include part or all of any incorporated city or cities, together with or without contiguous or noncontiguous territory including cemeteries and all publicly owned land. The publicly owned property shall pay and bear its proportionate share of the cost and expense of the water system upon the same basis as privately owned property.[C39, §5526.02; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §357.2]92 Acts, ch 1204, §11357.3Scope of assessment.The special assessment provided for in this chapter may be used to cover the costs of installing all the necessary elements of a water system, for both production and distribution.[C24, 27, 31, 35, §5522; C39, §5526.03; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §357.3]2020 Acts, ch 1063, §187357.4Public hearing.When the board of supervisors receives a petition for the establishment of a benefited water district, the board shall hold a public hearing within thirty days of the receipt of the petition. Notice of the hearing shall be published as provided in section 331.305.[C24, 27, 31, 35, §5523; C39, §5526.04; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §357.4]92 Acts, ch 1204, §12; 2022 Acts, ch 1021, §88357.5Decision at hearing.On the day fixed for hearing under section 357.4, the board of supervisors shall by resolution establish the benefited water district or disallow the petition. For adequate reasons, the board of supervisors may defer action on the petition for not to exceed ten days after the day first set for a hearing.[C24, 27, 31, 35, §5523; C39, §5526.05; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §357.5]2021 Acts, ch 80, §227357.6Examination by engineer.When the board of supervisors has established the benefited water district, the board shall appoint a competent disinterested civil engineer and instruct the engineer to examine the proposed improvement and to make preliminary designs in sufficient detail to permit an accurate estimate of the cost of the proposed water system to be made. The civil engineer shall also report as to the suitability of the proposed source of water supply.[C39, §5526.06; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §357.6]2022 Acts, ch 1021, §89357.7Water source without district.1If it is anticipated that the source of water supply will be outside of and not under control of any proposed benefited water district, the board of supervisors shall instruct the engineer who is appointed under section 357.6 to make the preliminary design and dummy assessment to also obtain a written statement from the corporation or municipality which controls the proposed source of supply outlining the terms upon which water will be furnished to the district or to the individuals within the district.2This preliminary proposal from the governing body of the source of supply shall be binding and shall be in the nature of an option to purchase water by the district, or individuals within the district, if and when the proposed benefited water district completes its construction and is ready to use water. This proposal shall accompany and be a part of the engineer’s preliminary report to the board of supervisors.[C39, §5526.07; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §357.7]2020 Acts, ch 1062, §94; 2023 Acts, ch 66, §86357.8Plat.The engineer appointed under section 357.6 shall prepare a preliminary plat showing the proper design in general outline, the size and location of the water mains, the general location of hydrants, if hydrants are included in the petition, valves, and other appurtenances, and shall show the lots and parcels of land within the proposed district as they appear on the county auditor’s plat books, together with the names of the owners and the amount which it is estimated that each lot or parcel will be assessed.[C39, §5526.08; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §357.8]2021 Acts, ch 80, §228357.9Compensation of engineer.The compensation of the engineer appointed under section 357.6 to conduct the preliminary investigation shall be determined by the board of supervisors and may be by percentage or per diem.[C39, §5526.09; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §357.9]2023 Acts, ch 66, §87357.10Filing of report and plat.The engineer’s report, together with the dummy plat showing the tentative design and assessment, shall be filed with the county auditor within thirty days of such engineer’s appointment, unless for adequate reasons it is impossible for the engineer to do so, in which case the board of supervisors may extend the time therefor.[C39, §5526.10; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §357.10]357.11Hearing on report.On receipt of the engineer’s report filed under section 357.10, the board of supervisors shall give notice in the manner provided in section 357.4 of a hearing on the engineer’s tentative design and dummy plat. On the day set, or within ten days thereafter, the board of supervisors shall approve or disapprove the engineer’s plan and proposed assessment. If it shall appear advisable, the board of supervisors may make changes in the design and assessment, as they appear on the dummy plat.[C39, §5526.11; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §357.11]2023 Acts, ch 66, §88357.12Election.When the preliminary design and assessment have been approved by the board of supervisors, a date not more than thirty days after the approval shall be set for an election within the district to determine whether or not the proposed improvement shall be constructed and to choose candidates for the offices of trustee within the district. The proposal to approve or disapprove the improvement and the selection of candidates for trustees shall be presented at the same election. Notice of the election, including the time and place of holding the election, shall be given in the same manner as for the public hearing provided for in section 357.4. The vote shall be by ballot which shall state clearly the proposition to be voted upon, and any registered voter residing within the district at the time of the election may vote. The county commissioner of elections shall conduct elections held pursuant to this chapter, and the elections shall be conducted in accordance with chapter 49 where those procedures are not in conflict with this chapter. Precinct election officials shall be appointed to serve without pay, by the commissioner of elections, from among the registered voters of the district. The proposition shall be deemed to have carried if a majority of those voting on the proposition votes in favor of it.[C24, 27, 31, 35, §5524; C39, §5526.12; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §357.12]92 Acts, ch 1204, §13; 94 Acts, ch 1169, §64357.13Trustees — qualification and terms.1At the initial election provided for in section 357.12, the names of the trustees shall be written by the voter on blank ballots without formal nomination and the board of supervisors shall appoint three from among the five receiving the highest number of votes as trustees for the district, one to serve for one year, one for two years, and one for three years. The trustees and their successors shall give bond in the amount the board of supervisors may require, the premium of which shall be paid by the district which the trustees represent. Vacancies during a term may be filled by election, or by appointment by the board of supervisors, at the option of the remaining trustees. The trustees must be residents of the district. The term of succeeding trustees shall be for three years.2After the initial board of trustees is selected, a candidate for trustee shall be nominated by a personal affidavit of the candidate or by petition of at least ten eligible electors of the district and the candidate’s affidavit, which shall be filed with the county commissioner of elections at least twenty-five days before the date of the election. The form of the candidate’s affidavit shall be substantially the same as provided in section 45.3.[C24, 27, 31, 35, §5524; C39, §5526.13; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §357.13]91 Acts, ch 111, §1; 92 Acts, ch 1204, §14357.14Bids for construction.1If the majority of votes cast at the election are in favor of the improvement, the board of supervisors shall instruct the engineer to complete the plans and specifications, ready for receiving bids for construction of the project. The engineer shall complete the plans and specifications within thirty days of receiving notice to do so, unless for adequate reason the board extends the time.2When the completed plans and specifications are on file with the county auditor, and the estimated total cost of the project exceeds the competitive bid threshold in section 26.3, or as established in section 314.1B, the board of supervisors shall comply with the competitive bid procedures in chapter 26 for the construction of the project.[C24, 27, 31, 35, §5524; C39, §5526.14; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §357.14]84 Acts, ch 1055, §6; 2006 Acts, ch 1017, §33, 42, 43; 2020 Acts, ch 1062, §94; 2021 Acts, ch 80, §229357.15Inadequate assessment.When bids have been received, if it is apparent that the final assessment will need to be increased more than ten percent over the preliminary assessment, the board of supervisors shall, at its option, reject bids and readvertise for bids as provided herein, or reject bids and revise the dummy assessment. If the dummy assessment is revised, another election shall be held within the district in the same manner and with the same notices as the first, except that the candidates for trustees shall not be voted for.[C39, §5526.15; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §357.15]357.16Second election.If the majority of the votes cast at the second election held pursuant to section 357.15 are in favor of the proposed improvement, the board of supervisors shall again advertise for bids in the manner provided under section 357.14. If the bids at the second letting will not necessitate raising the second preliminary assessment more than ten percent, the board may let the contract to the lowest responsible bidder.[C24, 27, 31, 35, §5524; C39, §5526.16; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §357.16]2023 Acts, ch 66, §89357.17Bond of contractor.1The successful bidder, when awarded a contract, shall be required to give an approved surety bond for one hundred percent of the contract price, guaranteeing completion of the work in accordance with the plans and specifications, and for maintenance, including backfilling, for one year after the final acceptance of the work.2If the contractor fails to complete the work as provided in the contract, abandons the work, or fails to proceed in a reasonable manner toward its final completion, the board may proceed against the contractor and surety as provided in sections 468.104 and 468.105.[C39, §5526.17; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §357.17]2020 Acts, ch 1062, §49357.18Acceptance of work.When in the opinion of the engineer in charge the construction in any benefited water district has been completed in accordance with the plans, specifications, and contract, the engineer shall certify this fact to the board of supervisors and recommend the acceptance of the work by the board. The board of supervisors shall proceed in accordance with sections 468.101 and 468.102.[C39, §5526.18; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §357.18]2023 Acts, ch 64, §60357.19Completing assessment.After the final acceptance of the work by the board of supervisors, the engineer shall complete the final assessment, which shall be made on all the property within the district, whether abutting or not, for an amount approximately ten percent greater than the total cost of the project. The assessment shall not exceed benefits conferred and shall take into consideration the location and value of the property assessed. Where a pipe in excess of six inches in diameter is used, the assessment against the abutting property shall be limited to the cost of a six-inch pipe, and the difference between the cost of the pipe used and a six-inch pipe shall be paid by a uniform assessment against all benefited property within the water district. The final assessment on any lot or parcel of land shall not exceed the final preliminary assessment by more than ten percent, and shall in no case exceed twenty-five percent of the actual value of the property. The board of supervisors may alter an assessment to increase or decrease it within the limits outlined above, and must approve by resolution the final assessment as made.[C24, 27, 31, 35, §5522; C39, §5526.19; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §357.19]357.20Due date bonds.Assessments of five hundred dollars or less will come due at the first taxpaying date after the approval of the final assessment, and assessments of more than five hundred dollars may be paid in ten annual installments with interest on the unpaid balance at a rate not exceeding that permitted by chapter 74A. The board of supervisors shall issue bonds against the completed assessment in an amount equal to the total cost of the project, so that the amount of the assessment will be approximately ten percent greater than the amount of the bonds.[C24, 27, 31, 35, §5522; C39, §5526.20; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §357.20]99 Acts, ch 83, §5; 2012 Acts, ch 1138, §98357.21Substance of bonds.1Each of the bonds issued under section 357.20 shall meet all of the following requirements:aThe bond shall be numbered.bThe bond shall have printed upon its face that it is a benefited water district bond, stating the county and the number of the district for which it is issued, and the date of maturity.cThe bond shall state that it is issued pursuant to a resolution of the board of supervisors, and that it is to be paid for only from a special assessment and taxes levied as provided under section 357.22 for that purpose within the district for which the bond is issued.2The provisions of sections 468.76 and 468.78 shall govern the issuance of these bonds except that the contractor will not be paid anything on the work until its completion and final acceptance.[C39, §5526.21; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §357.21]2022 Acts, ch 1021, §90357.22Lien of assessments tax.When the assessment has been completed, the bonds have been sold and delivered to the county auditor, and the schedule of assessment has been delivered to the county treasurer, the installments due thereon shall be collected in the same manner as ordinary taxes and shall constitute a lien on the property against which they are made. If the treasurer does not receive sufficient funds to enable the treasurer to pay the interest and retire the bonds as they become due, the auditor shall levy an annual tax of eighty-one cents per thousand dollars of assessed value of all taxable property within the district to pay such deficiency, and the county treasurer shall apply the proceeds of such levy to the payment of the bonds and the interest on the same so long as the bonds are in arrears on either interest or principal.[C24, 27, 31, 35, §5525; C39, §5526.22; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §357.22]2010 Acts, ch 1118, §8357.23Surplus.The board of supervisors shall be required to levy the annual tax of eighty-one cents per thousand dollars of assessed value of taxable property so long as the bonds are in arrears.[C39, §5526.23; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §357.23]357.24Fee of engineer.The fee for engineering services shall be fixed by the board of supervisors and the engineer may be paid either a percentage or a per diem from proceeds of the bond sale or by cash from the contractor, if the contractor takes bonds in settlement for the contractor’s work under the contract.[C39, §5526.24; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §357.24]2021 Acts, ch 80, §230357.25Management by trustees.After the final acceptance of the work by the board of supervisors, the management of the utility shall automatically go to the three trustees previously appointed by the board of supervisors. The trustees of a benefited water district located in a county with a population of two hundred fifty thousand or less shall have power to levy an annual tax not to exceed thirteen and one-half cents per thousand dollars of assessed value of all taxable property in the district, for the maintenance of the system. However, the trustees of a benefited water district located in a county with a population of more than two hundred fifty thousand may levy an annual tax on the taxable value of all taxable property in the district in an amount as may be necessary for the maintenance of the system, with the approval of the board of supervisors. This levy shall be optional with the trustees. The trustees may purchase material and employ labor to properly maintain and operate the utility. The trustees shall be allowed necessary expenses in the discharge of their duties, but shall not receive any salary.[C24, 27, 31, 35, §5526; C39, §5526.25; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, S81, §357.25; 81 Acts, ch 123, §1]357.26Duties of trustees.It is anticipated that this chapter will usually be utilized to finance a distribution system where the source of supply is without the district, and not under its control, and that individuals within the district will pay water rent to a municipality or corporation without the district. It is intended that the trustees may so operate the utility as will best serve the users, and they are expressly authorized to buy and sell water, to fix the rates to consumers and make all contracts reasonable or necessary to accomplish the purpose of this chapter and to carry on all the operations incident to maintaining and operating said utility and to the procuring and furnishing of water to the consumers in the district. If the development of a source of supply is within the means of the district, the trustees may install wells, tanks, meters, and any other equipment properly pertaining to operate the utility.[C39, §5526.26; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §357.26]2020 Acts, ch 1063, §188; 2021 Acts, ch 80, §231357.27Public property in district.Whenever property of the state of Iowa, or any political subdivision thereof, shall be included either wholly or in part within the water district and the state of Iowa or the political subdivision owns facilities which may be used as a part of such water system, the executive council, board of supervisors, or city council, as the case may be, may permit the use of the facilities for such consideration and on such terms as may be agreed upon with the board of trustees.[C39, §5526.27; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §357.27]2020 Acts, ch 1063, §189357.28Private mains — additional assessments.1Any person or persons within any water district, who may, after the initial installation of the improvement in any such district, desire to construct additional mains, and who have been assessed on the original assessment, may with the consent of the trustees, connect such lateral mains as they desire with the original system to serve property within the district which has been assessed, provided that the entire cost thereof shall be borne by the parties so interested.2The trustees shall have power to make additional assessments on unimproved lots or parcels of land within the district when said unimproved lots or parcels are improved and ready to receive the full benefits of the district. This additional assessment shall be determined and fixed by the trustees and shall not exceed the average assessment for improved property in said districts less the original assessment on said unimproved lots or parcels. Said assessments shall be paid to the county treasurer before service pipes are laid into said improvement. The assessment shall be put in the benefited water district fund of the district of which said lots or parcels are a part and shall be used by the county treasurer for the retirement of bonds and interest. When the bonds are all retired, the trustees shall be authorized to use said fund for maintenance purposes, changing size of mains, eliminating dead ends, or extending mains for the benefit of the district.[C39, §5526.28; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §357.28]2020 Acts, ch 1062, §94357.29Subdistricts.1If the cost of the desired extensions will be as much as five thousand dollars, the interested parties may petition the board of supervisors to organize a subdistrict, and in such case the board shall proceed in the same manner as for a new district, and may take in territory not originally assessed.2The board of supervisors shall have power at any time to alter the boundaries of any district prior to the time of posting or publishing notice of the election within the district.[C24, 27, 31, 35, §5522; C39, §5526.29; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §357.29]2020 Acts, ch 1062, §94357.30Additional territory.If a district is under the control of trustees, the trustees are empowered to deal with parties without the district who desire to be taken into the district or to obtain water from the district. The trustees shall determine the amount to be assessed against the territory to be taken in or connected with the district. The trustees shall have power in such cases to make agreements for the district, and may, with the consent of the board of supervisors, alter the district boundaries to take in the additional territory. If an owner of a lot or parcel has paid any assessment to a district, the lot or parcel of land shall not be put out of the district without the consent of the owner.[C24, 27, 31, 35, §5522; C39, §5526.30; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §357.30]2023 Acts, ch 66, §90357.31Right-of-way.The board of supervisors shall have power to condemn, in the same manner as provided for the condemnation of land, right-of-way through private property, sufficient for the construction and maintenance of water mains. The cost of such right-of-way shall constitute a part of the expense of the improvement and shall be covered by the special assessment.[C39, §5526.31; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §357.31]357.32Record book.The board of supervisors shall provide a record book which shall be in the custody of the auditor, in which shall be kept a full and complete record of the proceedings relative to water districts, so arranged and indexed, as to enable any proceedings relative to any district to be readily examined.[C24, 27, 31, 35, §5524; C39, §5526.32; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §357.32]357.33Appeal procedure.Any person aggrieved may appeal from any final action of the board of supervisors in relation to any matter involving the person’s rights to the district court of the county in which the district is located. The procedure in such appeals shall be governed by the provisions of sections 468.84 through 468.98 provided that whenever in those sections the words “drainage district” occur, the words “benefited water district” shall be substituted.[C39, §5526.33; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §357.33]2019 Acts, ch 59, §109; 2022 Acts, ch 1021, §91357.34Conveyance of district to city.1If a city is situated wholly or partly within a benefited water district or the source of supply for a benefited water district is a municipal water system, the board of supervisors having jurisdiction of the benefited water district, at the request of the trustees of the benefited water district, may, by proper resolution, convey to the city any and all rights that the board of supervisors may have in and to the benefited water district. The conveyance, however, shall not become effective until all existing obligations against the district have been completely and fully discharged and the conveyance accepted and confirmed by a resolution of the council of that city or of the board of waterworks trustees of that city, if there is one, specially passed for that purpose.2Upon acceptance, the district, including the plant and distribution system, as well as all funds and credits, shall become the property of the city and be operated and used by the city to the same extent as if acquired under such provisions of law under which the city is then operating its waterworks. Upon acceptance by the city, the offices of the trustees as provided in this chapter shall be abolished and the duties of the trustees as such shall immediately cease.[C54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §357.34]2020 Acts, ch 1062, §94; 2023 Acts, ch 66, §91357.35Merging existing districts.When the source of supply for a benefited district is obtained wholly or partly through another benefited district or if districts are supplied with their water from a common source, the board of supervisors having jurisdiction of those benefited districts, shall, upon ten days’ written notice to the trustees, hold a hearing relative to the establishment of a single benefited water district with a boundary encompassing all the area within the subject districts. If the board finds the residents and property owners in the proposed district would be benefited, it may establish the single district by resolution. In the case of districts with outstanding warrants in excess of the anticipated revenues and cash balance within the district fund, an assessment shall be drawn up by the auditor for an amount approximately fifty-five percent of the total indebtedness of the district and the board of supervisors must approve by resolution the final assessment as made and cause bonds to be issued at approximately ten percent greater than the total indebtedness of the district in accordance with sections 357.20 and 357.21 except that the bonds shall be paid, approximately equally, from user charges and the assessment. In the case of districts with bonded indebtedness, a subarea of the new single district with a boundary identical to each indebted district shall be designated and taxed in accordance with sections 357.22 and 357.23. When all bonds have been retired, the subarea shall cease to exist. In the case of districts with a surplus cash balance, all funds and credits shall become the property of the single district and used by it to the same extent as if acquired under the provisions of section 357.26. Upon establishment of the single district by the board of supervisors, a resolution shall be passed either appointing three trustees or designating the board of supervisors as the trustees for the single district. The operation of the single district constitutes a county enterprise under section 331.461, subsection 2.[82 Acts, ch 1219, §1]