The town shall have the power to create local improvement districts and to assess the cost of the construction or installation of special or local improvements of every character against benefited property within such districts in the town:
(a) By order of council, subject to protest by the owners of property scheduled to bear a majority of the assessment burden under the method of apportioning assessments as proposed by council.
(b) On a petition by the owners of a majority of the land area of the proposed district.
In either event, a public hearing shall be held at which all interested parties may appear and be heard. Right to protest and notice of public hearing shall be given as provided by council by ordinance. Such improvements shall confer special benefits to the real property within said district and general benefits to the town at large. The council shall have the power by ordinance without an election to prescribe the method of making such improvements including the costs incidental thereto.
Where all outstanding bonds of a local improvement district have been paid and any monies remain to the credit of the district, they shall be transferred to a special surplus and deficiency fund. Whenever there is a deficiency in any local improvement district fund to meet the payment of outstanding bonds and interest due thereon, the deficiency shall be paid out of said surplus and deficiency fund. Whenever a local improvement district has paid and cancelled three-fourths of its bonds issued, and for any reason the remaining assessments are not paid in time to pay the remaining bonds of the district and the interest due thereon, and there are not sufficient monies in the special surplus and deficiency fund, then the town shall pay said bonds when due and the interest due thereon, and reimburse itself by collecting the unpaid assessments due said district.
In consideration of general benefits conferred on the town at large from the construction or installation of improvements in local improvement districts, the council may levy annual taxes on all taxable property within the town at a rate to be determined by council, to be disbursed as determined by the council for the purpose of paying for such benefits, for the payment of any assessment levied against the town itself in connection with bonds issued for local improvement districts, or for the purpose of advancing monies to maintain current payments of interest and principal of bonds issued for any local improvement district hereinafter created. The proceeds of such taxes shall be placed in a special fund and shall be disbursed only for the purposes specified herein, provided that in lieu of such tax levies, the council may annually transfer to such special fund any available monies of the town, but in no event shall the amount transferred in any one year exceed the amount which would result from a tax levied in such year as herein limited. No assessment by the town of its own property, pursuant to this section shall be considered or held to create an indebtedness of the town or to require an election; however, if the council elects to issue limited tax bonds secured by a pledge of the tax levy authorized in this section for the purpose of providing funds to pay any such assessment or the costs of any improvement conferring general benefits on the town at large, it shall do so only after the question of the issuance of such limited tax bonds has been approved at an election held in accordance with section 11.5 of this charter.