(1) If a public library district is established under KRS 173.450 to 173.800, the legislative body of any city in such county that has established a library under KRS 173.310(1) or (2) may dissolve the city library for the purpose of consolidating library services in the public library district. Such dissolution shall have the effect of removing any tax levied under KRS 173.310 for the specific purpose of establishing and maintaining the city library.
(2) If a city library is dissolved pursuant to subsection (1) of this section, the city legislative body shall immediately file an order of dissolution with the official who is responsible for collecting any tax levied under KRS 173.310. The official shall thereupon remove any tax levied under KRS 173.310, for the specific purpose of establishing and maintaining the city library, from the tax bills of the property owners of the city.
(3) After the satisfaction of any existing contractual obligations assumed in connection with the dissolved library, the assets of the library shall be transferred to the public library district, unless the terms of a gift held in trust prohibit such transfer.