(2) A resolution proposing consolidation of a water authority and a sanitary authority may include a debt distribution plan to be voted upon as a part of the proposal. The plan may provide for any distribution of indebtedness and may require that a consolidating authority remain solely liable for all or any portion of any indebtedness outstanding at the time of the consolidation.
(3) A resolution proposing consolidation into a joint water and sanitary authority may include a declaration that some or all of the existing water or sanitary authorities or districts proposing consolidation shall be dissolved upon formation of the joint authority.
(4) If the consolidation is approved, the board of the successor joint authority shall, in accordance with the debt distribution plan, levy taxes and assessments for the liquidation of any prior existing indebtedness. Such a levy shall be subject to the principal Act of the consolidated authority. [1993 c.577 §4; 1997 c.590 §8]