(a) The terms and conditions for consolidation shall include:
(1) adoption of a name for the district;
(2) the number and apportionment of directors to serve on the board;
(3) the effective date of the consolidation;
(4) an agreement on finances for the consolidated district, including disposition of funds, property, and other assets of each district;
(5) transfer of all permits issued in the area that is the subject of the consolidation to the consolidated district; and
(6) an agreement on governing the districts during the transition period, including selection of officers.
(b) The terms and conditions for consolidation may include:
(1) assumption by each district of the other district’s bonds, notes, voted but unissued bonds, or other obligations;
(2) an agreement to levy taxes to pay for bonds;
(3) any other terms of conditions agreed upon by the board of each district.