Any contiguous territory in this state, not exceeding four square miles [1036.00 hectares] in area, not already included within the corporate limits of any incorporated municipality, may become incorporated as a city whether such territory is located in one or more counties, under the following conditions: 1. If the territory has residing therein a population of not more than five hundred inhabitants, it may become incorporated as a city under the council or modern council form of government. If the territory has residing therein a population of not less than five hundred inhabitants, it may become incorporated as a city under the council or modern council form of government, or as a city under the commission system of government. 2. If the proposed municipal corporation has, in the view of the board of county commissioners of the county in which the proposed municipal corporation is located, all the qualities necessary to ensure continued viability as a functioning unit of municipal government.
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