1. The soil and water supervisors shall consider and determine whether the operation of the subdistrict within the defined boundaries as proposed is desirable, practicable, feasible, and of necessity in the interest of public health, safety, and the general welfare. All interested parties shall have a right to attend the hearing and to be heard. The soil and water supervisors may for good cause adjourn the hearing to a day certain which shall be announced at the time of adjournment and made a matter of record.

2. Upon reaching a favorable conclusion on these matters, the soil and water supervisors shall call for and conduct, or cause to be conducted, a referendum by ballot of landowners within the area of the proposed subdistrict, on the question of establishing the proposed subdistrict. If sixty-five percent of all landowners voting in this referendum, do vote in favor of this establishment, the soil and water supervisors shall declare that the subdistrict is duly organized and the action shall be recorded in their official minutes together with an appropriate official name or designation for the subdistrict.