(a) It shall be lawful for an improvement district in a city or town to be formed for the purpose of enlarging or reconstructing waterworks and electric light plants previously constructed by other improvement districts or owned or controlled by the city or town council, and extending the pipes, wires, and other equipment for it.
(b) The district shall be organized and all the proceedings in it had in pursuance of the provisions of the laws governing improvement districts in cities and towns.
(c) The council, the commissioners of the improvement district board, and assessors shall have the powers and duties prescribed thereby.
(d) When the improvement districts are organized, possession and control of the waterworks and electric light plants shall be taken by the commissioners in the districts.
(e) When the work of the improvement is finished and all debts of the preceding districts have been paid, the control of the waterworks and electric light plants shall pass to the council, as provided by § 14-91-402.
(f) The commissioners may secure the payment of any borrowed money by a mortgage on the plant and a first lien pledge and mortgage of the assessment of benefits made on the reconstruction.