Attorney General Opinions 
Relating to County Government

2011 Utilities

• A county has no authority to dissolve a utility district unilaterally, even if it is operating at a substantial loss or has failed to furnish the services that it proposed to provide when it was created. The utility district may petition the county mayor to be dissolved upon transfer of its assets and liabilities to a city or county, or dissolved and consolidated with a city or county as a separate department.  Or a financially distressed utility district may agree to consolidate with another utility district or with a municipal utility.  A referendum is not necessary for a county to assume the debts of the utility district.   Residents of the utility district could petition the county mayor to allow the county to provide sewer service in the service area of the district, or a city could petition the county mayor to change the service area of the utility district or allow the city to furnish services within the service area of the utility district, if the petitioner can show that public convenience and necessity requires that the city or county provide the service; the entity providing the services would not be required to assume the debt of the utility district. If the utility district has received federal aid, this may affect the county mayor’s right to change the service area of the district.  Unless the county is a bondholder or the district or has some other property interest in its assets, the county mayor would not be authorized to place a utility district in receivership.  Opinion No. 11-35 (April 15, 2011).

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