A. The district may be dissolved by the district board by a resolution of the district board if either the district does not have financial or operating obligations or if the financial or operating obligations of the district have been lawfully assumed by some other entity.

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B. The district board shall comply with the conditions prescribed by subsection A and shall dissolve the district if both of the following occur:

1. The district board has consented to comply with the conditions prescribed by subsection A and either:

(a) Dissolution has been approved by a vote of the qualified electors of the district voting in an election called for that purpose.

(b) The district board determines that the district has been inactive for at least five consecutive years and has no future purpose.

2. The district board adopts a resolution dissolving the district and records the resolution in the office of the county recorder.

C. The district board may call an election on the dissolution of the district and shall call such an election if requested to do so in a petition signed by ten per cent of the qualified electors of the district.

D. The election shall be called and held in the same manner as a formation election, except that the ballot shall contain the words "dissolution, yes" and "dissolution, no".

E. The district shall not be dissolved if any revenue bonds of the district remain outstanding unless an amount of money sufficient, together with investment income, to make all payments due on the revenue bonds either at maturity or prior redemption has been deposited with a trustee or escrow agent and pledged to the payment and redemption of the bonds. The district may continue to operate after dissolution only as needed to collect money and make payments on any outstanding bonds.