The board may add or remove territory under Subchapter J, Chapter 49, and § 54.016, Water Code, except that:
(1) the addition or removal of the territory must be approved by:
(A) the governing body of the city; and
(B) the owners of the territory being added or removed;
(2) a reference to a tax in Subchapter J, Chapter 49, or § 54.016, Water Code, means an ad valorem tax; and
(3) territory may not be removed from the district if bonds or other obligations of the district payable wholly or partly from ad valorem taxes on the territory are outstanding.