1.    At the time and place fixed by the county auditor for the public meeting as provided in section 18-10-03, the electors who are owners of any interest in real or personal property assessed for taxation in the district and who are residing within the boundaries of the district may decide by majority vote of those present whether the organization of the district may be completed. Permanent organization must be effected by the election of a board of directors consisting of not less than five residents of the district, at least one of whom must represent each township by having an interest in real or personal property assessed for taxation in the township the director is representing, if the district includes more than one township. If the district is composed of more than seven townships, the board may elect to have only seven members, but no more than two members may be from any township.

2.    The board of directors shall meet as soon after the organizational meeting as possible to elect a president, a vice president, and a secretary-treasurer. Except as otherwise provided in this subsection, all directors and officers must be elected for two years and hold office until their successors have been elected and qualified, except that at the first election the vice president must be elected as provided in this section for a one-year term, and one-half, or as close to one-half as possible depending upon the total number of directors, of the directors elected at the first election following July 1, 1969, must be selected by lot in the presence of a majority of such directors to serve one-year terms. Upon approval of a resolution by the board of directors, the office of secretary-treasurer may be filled by appointment rather than by election under this subsection. All officers shall serve without pay except the secretary-treasurer, who may be paid a salary determined by the board of directors.