Approval by governing bodies. Any two or more municipalities lying adjacent to each other may consolidate and become one municipal corporation. A proposal for consolidation shall be prepared by the governing body of a municipality when: 1. A resolution of the governing body so directs; or 2. A petition signed by at least twenty-five percent (25%) of the registered voters of the municipality, as shown by the preceding general election, is filed with the governing body. The proposal shall then be submitted to the governing body of an adjacent municipality for its approval. When the proposal is approved, the governing bodies of the municipalities to be consolidated, or their representatives, shall prepare the terms and conditions of the consolidation. The terms and conditions of consolidation shall provide for the transition of officers and employees of each municipality which is to be consolidated. If each governing body approves the terms of consolidation, it shall adopt a resolution declaring its approval and shall provide for an election on the question of consolidation.
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