As used in this subchapter, unless the context otherwise requires:
(1) “Municipality” means a city of the first class, a city of the second class, or an incorporated town;
(2) “Improvement district” means either a municipal improvement district or a suburban improvement district;
(3) “Organization expenses” include engineering fees, legal fees, fees of financial advisers, abstractors' fees, the costs of newspaper advertising, and all other necessary fees and expenses in determining the feasibility of and organizing the proposed improvement district; and
(4) “Area adjacent to the municipality” means all or any portion of the area lying outside, and within ten (10) miles, of the corporate limits of the municipality that the governing body determines should be served by the water or sewer system of the municipality.