# Title 40 — Municipal Government

## Chapter 40-53.1 — Dissolution of Cities

### § 40-53.1-01. Dissolution - Petition - Notice of election.

1. If qualified electors of a city equal in number to one-fourth of the number of qualified
electors voting at the last regular city election petition the board of county
commissioners of the county wherein the city is situated to dissolve the city, the board
of county commissioners shall order a special election to be held within the city on the
question of dissolving the city.
2. Notice of the election shall be published once each week for four consecutive weeks
and shall state that the question of dissolving the city will be submitted to the qualified
electors of the city on the designated day.
### § 40-53.1-02. Dissolution - Ballots.

The form of the ballot shall be:
For the dissolution of _______________________________
(insert name of city) ☐.
Against the dissolution of ___________________________
(insert name of city) ☐.
### § 40-53.1-03. Dissolution - Conduct of election.

The election shall be conducted in the same manner as a regular city election except that all
election officials shall be appointed by the board of county commissioners. The election returns
shall be made to the board of county commissioners and canvassed in the same manner as are
general election returns.
### § 40-53.1-04. Dissolution - Vote required - Effect on debts and contracts.

If a majority of the votes cast on the question are in favor of dissolution, the county
commissioners shall, by motion and proclamation, set a date upon which dissolution will
become effective and the city shall be dissolved, provided provision has been made for payment
of its current indebtedness, contracts, and obligations, and for levying the requisite tax to do so.
The current indebtedness, contracts, and obligations do not include funded or bonded
indebtedness nor any contract whose termination date is more than one year beyond the date
the election was held.
### § 40-53.1-05. Disposition of records after dissolution - Pending business.

All public records of the dissolved city shall be deposited with the county auditor.
### § 40-53.1-06. Notice of dissolution - Publication.

Whenever a city is dissolved, the county auditor shall publish a notice once a week for four
consecutive weeks that the city is dissolved. A certified copy of the notice shall be sent to the
secretary of state.
### § 40-53.1-07. Dissolution - Care of property - Manager - Disposition of funds.

If a city is dissolved, the board of county commissioners shall assume control of all property
belonging to the dissolved city, except for streets and alleys if an organized township chooses to
maintain or vacate streets or alleys in the dissolved city under section 58-03-21. The county
shall employ a qualified person to manage and operate the property and to collect all charges
due from the operation of such property or dispose of the property in accordance with chapter
11-27. The person employed shall execute a bond to the county in an amount determined by the
board of county commissioners, conditioned that that person will faithfully perform that person's
duties and will promptly pay all money that person receives to the county treasurer monthly on
the first day of each month. The bond shall be executed by the person employed and a surety
company authorized to do business in the state. The premium on the bond shall be paid by the
board of county commissioners from city funds, if any, and if none, from county funds.

### § 40-53.1-08. Income from property of a dissolved municipality.

Money received from the operation of property of a dissolved city shall be used in the
following priority:
1. To pay employees engaged in the operation, maintenance, and protection of the
property.
2. To pay the interest on the bonded indebtedness of the municipality.
3. To purchase or redeem bonded indebtedness of the municipality.
4. After all bonded indebtedness has been paid, to the general fund of the county.
### § 40-53.1-09. Dissolution - Insufficient income to pay obligations - Levy of tax - Duty

vested in board of county commissioners.
If insufficient money is received from the operation of the property of the dissolved city to
pay the obligations in the order designated, the board of county commissioners shall levy a tax
on all taxable property within the boundary of the city at the time of its dissolution. This tax shall
be sufficient to pay the obligations incurred in the operation of the property of the city and to
comply with the terms and conditions of the evidences of the bonded indebtedness. The board
of county commissioners shall, without charge, perform the duties of the governing body of the
dissolved city to satisfy the terms of the bonds, obligations, or contracts of the dissolved city.
### § 40-53.1-10. Dissolution by district court - Application.

Any city not subject to dissolution under existing laws may be dissolved by the district court
upon presentation of an application by the state's attorney of the county. The application shall
contain:
1. The name of the city.
2. The date of incorporation.
3. Boundaries.
4. Original plat and additions thereto.
5. Names of the officers.
6. Assets.
7. Debts.
8. A general statement of the reasons for dissolution.
### § 40-53.1-11. Filing application - Order.

If the court is satisfied the petition contains the required information, it shall order the
petition be filed, and the clerk of the district court shall give notice thereof by publication once
each week for four consecutive weeks.
### § 40-53.1-12. Objections.

Any time during the period of publication and within a period of thirty days after the last
publication, any person may file objections to the application.
### § 40-53.1-13. Hearing on application - Order of dissolution.

After the period of publication, but not less than thirty days thereafter, the court, upon five
days' notice to any person who has filed objections to the application, or without further notice if
no objections have been filed, shall hear and determine the application. If the court finds the city
should be dissolved, it shall dissolve the same upon such terms or conditions as justice may
require, vacate the boundaries, order the sale of assets and the payment of debts, and order
any surplus paid into the general fund of the county treasury.
### § 40-53.1-14. Judgment roll - Right of appeal.

The petition, notice and proof of service thereof, objections, orders of the court, and the
judgment shall constitute the judgment roll, and an appeal may be taken from the judgment in
the same manner as in a civil action.
