(a) As soon as practicable after all initial directors have qualified for office, the board shall hold an organizational meeting and call a confirmation election to be held not later than the second uniform election date occurring after the date of the organizational meeting.
(b) The board shall hold the confirmation election to confirm the establishment of the district in the manner provided by Subchapter D, Chapter 49, Water Code, not later than the second uniform election date after:
(1) the governing body of the city, by resolution, consents to the holding of the election; and
(2) the district and the city agree on the development plans and rules for the district.

(c) Before the district is confirmed at an election, the district may carry on business as the board may determine except that the district may not borrow money or impose or assess a tax or an assessment.
(d) If the creation of the district is not confirmed at a confirmation election held before September 1, 2010:
(1) the district is dissolved on September 1, 2010, except that the district shall:
(A) pay any debts incurred;
(B) transfer to the city any assets that remain after the payment of debts; and
(C) maintain the organization of the district until all debts are paid and remaining assets are transferred; and
(2) this chapter expires September 1, 2010.