SDCL § 9-6-6: Petition for dissolution--Decree.

The court must render a judgment decreeing the dissolution of a municipality if:

(1) The referee reports that:

(a) At the time the petition for dissolution is filed, the population of the municipality is less than two hundred fifty; and

(b) The petition has been executed by property owners owning more than one-half of the real property within the municipality, both in area and in assessed valuation; and

(2) The court determines it is in the best interests of the municipality and the property owners that the municipality be dissolved.