(1)    Proceedings to create a district may be initiated by resolution of the governing body of any municipality setting forth:

      (a)    The proposed name of the district;

      (b)    A general description of the territory proposed to be included in the district;

      (c)    A general description of the functions which are proposed to be performed by such district;

      (d)    A general description of the existing facilities and works which are proposed to be placed under jurisdiction of the district; and

      (e)    Such other facts and statements as are deemed by the governing body to be relevant to the standards of sub. (4) (a) to (c).

   (2)   A governing body which adopts a resolution under sub. (1) shall immediately transmit a copy thereof to the department.

   (3)   Upon receipt of the resolution, the department shall:

      (a)    Schedule a public hearing in the county of the petitioning municipality, providing at least 30 days’ written notice of the hearing and a copy of the resolution by mail to the clerk of all affected municipalities, town sanitary or utility districts, and to the affected regional planning commissions and state agencies; and publish an official notice of the hearing in a newspaper of general circulation in the proposed district as a class 1 notice under ch. 985;

      (b)    Conduct the hearing to permit any person to present any oral or written pertinent and relevant information relating to the purposes and standards of this subchapter; and

      (c)    Undertake research and collect other information and request advisory reports from regional planning commissions, other state agencies and citizen groups.

   (4)   Within 90 days following the hearing, the department shall either order or deny creation of the proposed district. An order creating the district shall be issued by the department if:

      (a)    The territory consisting of at least one municipality in its entirety and all or part of one or more other municipalities can be identified and can be determined to be conducive to fiscal and physical management of a unified system of sanitary sewage collection and treatment;

      (b)    The formation of the district will promote sewerage management policies and operation and will be consistent with adopted plans of municipal, regional and state agencies; and

      (c)    The formation of the district will promote the public health and welfare and will effect efficiency and economy in sewerage management, based upon current generally accepted engineering standards regarding prevention and abatement of environmental pollution and federal and state rules and policies in furtherance thereof.

   (5)   An order creating the district shall state the name and boundaries of the district, which may be different than those originally proposed if each municipality affected by the district received written notice of the hearing under sub. (3) (a) and if each municipality which jointly or separately owns or operates a sewerage collection and disposal system which has territory included in the revised district boundaries has filed with the department a certified copy of a resolution of its governing body consenting to the inclusion of that territory within the revised district. No territory of a city, village or town jointly or separately owning or operating a sewerage collection and disposal system may be included in the district unless it has filed with the department a certified copy of a resolution of its governing body consenting to inclusion of such territory within the proposed district. The order shall be effective on the date issued and the existence of the district shall commence on such date.

   (6)   No resolution for the formation of a district encompassing the same or substantially the same territory shall be made by any municipality for one year following the issuance of an order denying the formation under this subchapter.

   (7)   The orders of the department under this section shall be subject to review under ch. 227.