(a) Whenever fifty (50) qualified voters of any property within the limits of the city shall sign and present a petition to the Mayor requesting such territory be declared no longer a part of the city, the Mayor thereof shall order an election to be held within thirty (30) days thereafter. If a majority of the voters of the city voting at such election cast their votes in favor of discontinuing said territory, such territory shall no longer be a part of the city and the Mayor shall enter an order to that effect on the minutes or records of the City Council. From and after the date of such order, said territory shall cease to be a part of the city, provided it shall not reduce the city to less area than one (1) square mile or one (1) mile in diameter around the center of the original corporate limits.
(b) Whenever any property is withdrawn as provided above and the city shall at the time of such withdrawal owe any debts, by bond or otherwise, such property shall not be released from the payment of its pro rata of such indebtedness. The city shall continue to levy an ad valorem tax each year on the property at the same rate as is levied upon other property of the city until the taxes collected from said territory shall equal its pro rata share of the indebtedness at the time of the withdrawal. The taxes so collected shall be applied exclusively to the payment of said pro rata share of indebtedness. Nothing herein shall be construed to prevent the inhabitants of said territory from paying in full, at any time, their pro rata share of the indebtedness of said city.