As provided by Subchapter J, Chapter 49, Water Code, the board may add territory to the district, subject to § 54.016, Water Code, or remove territory from the district, except that:
(1) the addition or removal of the territory must be approved by:
(A) the governing body of the municipality in which the territory is located, as applicable; 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 or assessments levied or assessed on the territory are outstanding.