AR Code § 14-92-237 (2020)
2020 Arkansas Code|Title 14 - Local Government|Subtitle 5 - Improvement Districts Generally|Chapter 92 - Suburban Improvement Districts|Subchapter 2 - Suburban Improvement Districts Generally|§ 14-92-237. Dissolution or conversion of district — Definition

 (a)  (1) After all bonds, notes, or other evidences of indebtedness plus all interest thereon shall have been paid in full, a suburban improvement district may, by unanimous vote of the board of commissioners, be dissolved and all future levies and assessments cancelled, the board relieved from further duties, and the surplus funds of the district distributed in accordance with the procedures set forth in subsections (b) and (c) of this section, if title to and control of the facilities constructed by the district have been taken over or assumed by any political subdivision, municipal utility commission or agency, or any regulated public utility, or a suburban improvement district may, by unanimous vote of the board of commissioners, be converted into a fire protection district and all future levies and assessments cancelled, the board relieved from further duties, and any remaining funds and any other property of the district transferred to the new entity in accordance with the procedures set forth in subsection (d) of this section.  (2) The districts are authorized, at the discretion of the commissioners, to enter into repair and maintenance agreements or contracts and to expend funds of the districts for these purposes.    (b) Any improvement district created pursuant to this subchapter may be dissolved in the same manner it was created. However, if any district having outstanding bonds or other indebtedness is dissolved, the assessed benefits being levied at the time of dissolution shall continue to be levied and collected until the outstanding bonds or other indebtedness is paid.  (c)  (1)  (A) If the commissioners vote to dissolve the district or the district is dissolved by vote of the realty owners at a public hearing, the board shall first pay from surplus funds all debts of the district, including any reasonable legal and other expenses incurred in connection with the dissolution, and dispose of the remaining assets under subdivision (c)(1)(B) of this section or subdivision (c)(2) of this section.  (B)  (i) The commissioners shall convert all assets into cash and may 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.  (ii)  (a) 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 parcels of property before 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.  (b) A property or owner whose property is delinquent in any sum for district assessments, penalties, or interest, at the time the refund is made shall not be counted in calculating the pro rata distribution, or receive any portion of the refund.      (C) Within ninety (90) days after the distribution of the 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 commissioners, in the office of the county clerk in the county in which the district is located.    (2)  (A) The commissioners may transfer all remaining cash and other monetary assets and any real property and personal property to a school district located within ten (10) miles of any boundary of the district.  (B)  (i) The transfer shall be made under a valid contract between the suburban improvement district and the school district.  (ii)  (a) The contract shall be supported by adequate consideration.  (b) As used in this section, “adequate consideration” includes public advantage that promotes a general, suitable, and efficient system of free public schools.      (C) Within ninety (90) days after the transfer of all remaining funds and property has been completed, the board shall file a copy of the resolution of dissolution and a financial statement of the suburban improvement district, verified by all commissioners, in the office of the county clerk in the county in which the suburban improvement district is located.      (d)  (1) Any improvement district created pursuant to this subchapter solely for the purposes of providing fire protection services may be converted into a new fire protection district under § 14-284-201 et seq., and shall, after the conversion, be governed under the authority of that law. However, if a district has any outstanding bonds or other indebtedness, it shall not be converted until the outstanding bonds or other indebtedness is paid.  (2) In the event the commissioners vote to convert the district, the board shall choose a date certain of not less than sixty (60) days nor more than twelve (12) months at which time the conversion shall become effective and shall notify the county court of the county in which the district is located that the board has voted to convert the district and shall specifically define the area proposed to be included in the new fire protection district. After verifying that the commissioners have voted unanimously to convert the district to a proposed fire protection district and that there is no outstanding indebtedness for the district, the county court shall enter an order establishing the district as described in the notice by the board and establishing the time and place of a public meeting to be held within the district to elect the new commissioners of the fire protection district as is otherwise provided by law.  (3) After paying all debts of the district, including any reasonable legal and other expenses incurred in connection with the conversion, the board shall transfer any and all remaining cash and other monetary assets and any real and personal property to the new district on the effective date of the conversion. All delinquent assessments of the district and any debts owed to the district shall become debts to the new district and shall be subject to collection by the new district in accordance with its powers and authority.  (4) Within ninety (90) days after the transfer of any and all remaining funds and property has been completed, the board shall file a copy of the resolution of conversion and a final financial statement of the district, verified by all commissioners, in the office of the county clerk in the county in which the district is located. The fire protection district shall be deemed to have been formed upon the date of its conversion from a suburban improvement district.