Arkansas Code Title 14. Local Government § 14-93-127. Vote to dissolve district

(a)(1) After all bonds, notes, or other evidences of indebtedness, including interest, have been paid in full, then a district by unanimous vote of the board may 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 subsection (b) of this section if title to and control of the facilities constructed by the district have been taken over or assumed by a political subdivision, a municipal utility commission or agency, a regulated public utility, or an incorporated property owners' association served or benefitted by the facilities.

(2) The districts are authorized, at the discretion of the board, to enter into repair and maintenance agreements or contracts and to expend funds of the districts for these purposes.

(b)(1) In the event the board votes to dissolve the district under subsection (a) of this section, the board shall convert all assets into cash and shall first pay from such surplus funds all debts of the district, including any reasonable legal and other expenses incurred in connection with the dissolution.