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§ 162A-87. iA CH. 162A. WATER AND SEWER SYSTEMS §162A-87.2 (D Effective Date. --The resolution e~tending the boundaries of the district shall take effect at the be~mng ora fiscal year commencing after its passage, as determined by the board of commissioners. (1985, c. 627, s. 1; 1989, c. 543.) § 162A-87.1A. Initial boundaries of district. (a) The initCal boundaries of a district may exclude areas contained solely ~vithin the extel'hal boundaries of the district. (b) The initial boundaries of a district may include noncontiguous portions, as long as the closest distance from a nonconti~uous piece to the part of the district containing the ~eatest area does not exceed one mile. (c) This section does not invalidate any district created prior to the effective da~.e of this section. (1993 (Reg. Sess., 1994), c. 696, s. 3; c. 714, s. 3.) § 162A-87.2. Abolition of water and sewer districts. (a) Upon finding that there is no longer a need for a water and sewer district and that there are no outstanding bonds or notes issued to finance projects in the district, the board of commissioners.may, by resolution, abolish that district. The board of commissioners shall hold a public hearing before adopting a resolution abolishing a district. N, otice of the hearing shall state the date, hour, and place of the hearing and its 'subject, and shall be published at least once not less than one week before the date of the hearing. The abolition of any water and sewer district shall take effect at the end of a fiscal year following passage of the resolution, as determined by the board of commission- ers. (b) If the: (1) Terms of-any contract between a county ~vater and sewer district and a city provide that -,pon certain conditions, all the property of the distract is conveyed to that city; and : (2) District has at the time of abnlition no existing bonds or notes issued as authorized by G.S. 162A J to finance projects m the district, , then such contract may also provide that no earlier than such conveyance the district may be abolished by action of ~he governing board of the city. If the district has any other indebtedness, a contract providing for conveyance of all of the assets of a district ~o a city must provide for assumption of such other indebtedness by the city. If the district is owed any assessments, then the right i to collect such assessments becomes that of the city. The governing board of the city shall hold a public hearing before adopting a resolution abolishing a district. Notice of the hearing shall state the date, hour, and place of the hearing and its s~tbject, and shall be published at least once not less than one week before the date of the hearing. The 'abolition of any water and sewer district shall take effect at the end of a fiscal year of the district following passage of the resolution, as determined by the governing board. Th/s subsection applies only to a county water and sewer district created under G.S. 162A-86(bl). (c) If the. (1) Terms of any contract between a county water and sewer district and a private.person provide that upon certain conditions, all the property of the dis~trict is conveyed to that private person; and (2) District has at the time of abolitxon no existing bonds or notes issued as authorized by G.S. 162A-90 to finance projects in the district, such contract m_a~v also provide that no earlier than such conveyance the: distxict may be ab~olished by action of the Utilities Commission. If the district has any other indebtedness, a contract providing for conveyance of all of the assets of a dastrict to a private person must provide for assumpt/on of such 752