2.__Terms of proposed charter.__The proposed municipal service district charter under this section must include:

A.__The names of the participating municipalities;

B.__The name of the proposed municipal service district, which must be distinguishable from the name of any municipality in the State other than one or more of the participating municipalities, and the proposed location of the municipal service district office;

C.__The property, real and personal, belonging to each participating municipality and its fair value and whether any such property will be provided to the municipal service district for its use, and the terms of that use;

D.__The indebtedness, bonded and otherwise, of each participating municipality;

E. Provision for assumption of 50% of the general obligation debt of each participating municipality in the municipal service district by the State as provided by section 5686;

F.__Provision for application or expenditure of cost savings realized through formation of the municipal service district and funds received from the Municipal Service District Fund established in chapter 112-A, as follows:

(1)__Fifty percent to fund public education needs, as identified in the budget prepared for the municipal service district's school management unit; and

(2)__Fifty percent to reduce the property tax burden, as defined in section 5681, subsection 2, paragraph B in the municipal service district's participating municipalities.

The municipal service district shall allocate funds or cost savings under this paragraph proportionally among its participating municipalities, based on their populations as determined by the latest Federal Decennial Census or as determined and certified by the Department of Human Services, whichever is later.__For purposes of this paragraph, cost savings must be calculated in accordance with a methodology established by rule by the Department of Administrative and Financial Services pursuant to Title 5, chapter 375.__Rules adopted pursuant to this paragraph are