If a district located wholly within a county or city is dissolved or merged into or consolidated with another district, all property and all funds remaining in the treasury of any district must be:
1. Surrendered and transferred to the governing body of the county or city in which the district exists and become a part of the general fund of the county or city, as applicable, if the district is dissolved;
2. Transferred to the district which assumes its obligations and functions, if the district is merged; or
3. Transferred to the consolidated district, if the district is consolidated.