(1) A city that undertakes to propose creation of an authority must propose the authority by ordinance of the city legislative body. The ordinance must:

(a) Propose the authority area and the size and method of selection of the governing body of the authority, which governing body may be appointed or elected, provided that officers or employees of any single city government body may not compose a majority of the members of the authority's governing body;

(b) Propose whether all or a specified portion of the public monorail transportation function will be exercised by the authority;

(c) Propose an initial array of taxes to be voted upon by the electors within the proposed authority area; and

(d) Provide for an interim governing body of the authority which will govern the authority upon voter approval of formation of the authority, until a permanent governing body is selected, but in no event longer than fourteen months.

(2) An authority may also be proposed to be created by a petition setting forth the matters described in subsection (1) of this section, and signed by one percent of the qualified electors of the proposed authority area.

(3) Upon approval by the qualified electors of the formation of the city transportation authority and any proposed taxes, either by ordinance or by petition as provided in this chapter, the governing body of an authority, or interim governing body, as applicable, will adopt bylaws determining, among other things, the authority's officers and the method of their selection, and other matters the governing body deems appropriate.