An urban service district may be established in the following manner:
(1)
(A) Upon petition to the governing body of a city or town signed by not less than twenty-five percent (25%) of the electors of a proposed urban service district, the governing body of a city or town may establish an urban service district by ordinance adopted after notice and public hearing.
(B) The governing body shall set a date for a public hearing and give notice of the hearing.
(C) Following the public hearing, the governing body may either:
(i) Adopt an ordinance creating the urban service district;
(ii) Refuse to act further on the matter; or
(iii) Submit the matter to the electors of the proposed district by referendum.
(2)
(A) Where an ordinance is adopted establishing an urban service district, the governing body of the city or town shall, in addition to all other requirements, at a minimum, publish notice of the adoption of the ordinance.
(B) The notice shall include a statement setting out the elector's right to protest.
(C) If, within thirty (30) days of the notice, fifty percent (50%) or more of the electors residing in the proposed urban service district file a written protest, by individual letter or petition, then the ordinance creating the urban service district shall be void.
(D) If hearings on protests indicate that a geographic area desires exclusion from the proposed urban service district, the ordinance may be amended to exclude the property in that area.
(3) No service charges shall be assessed until after the thirty-day period has elapsed.