Arkansas Code
Chapter 93 - Property Owners' Improvement Districts
§ 14-93-127. Dissolution of 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.
(2)
(A) The board then shall refund all remaining funds of the district, pro rata, to the property owners who hold title to the property in the district at the time the refund is made.
(B)
(i) The pro rata refund to the property owners shall be made on the basis of the most recent assessment or reassessment of benefits on the parcels of property prior to dissolution and shall be in the same proportion that the assessed benefits of each individual parcel of property bears to the total of the assessed benefits of all the property in the district.
(ii) No property owner whose property is delinquent in any sum for district assessments, penalties, or interest, at the time the refund is made, shall be counted in calculating the pro rata distribution, or receive any portion of the refund.

(C) Within ninety (90) days after the distribution of the surplus funds has been completed, the board shall file a copy of the resolution of dissolution and a financial statement of the district, verified by all its members, in the office of the county clerk in the county in which the district is located.