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Oregon Library Laws - Revised Statutes - County Service Districts
Oregon Revised Statutes
Chapter 451 - County Service Facilities
 
SERVICE DISTRICTS
 
451.410 Definitions for ORS 451.410 to 451.610. As used in ORS 451.410 to 451.610, unless the context indicates otherwise:
(1) “Change of organization” has the meaning given that term in ORS 198.705.
(2) “County” has the meaning given that term in ORS 198.705.
 
(3) “County court” includes the board of county commissioners.
 
(4) “District” means a county service district established under ORS 451.410 to 451.610 to provide service facilities in a county or counties.
 
(5) “Formation” has the meaning given that term in ORS 198.705.
 
(6) “Owner” means the record owner of real property or the holder of a duly recorded contract for purchase of real property within the district.
 
(7) “Service facilities” means public service installations, works or services provided within a county or counties for any or all of the purposes specified in ORS 451.010.
451.420 District may construct and operate service facilities.When authorized as provided in ORS 451.410 to 451.610 a district may construct, maintain and operate any or all of the service facilities specified in ORS 451.010. 
 
451.435 Law governing district formation or change.
(1) All district formation and change of organization proceedings shall be initiated, conducted and completed as provided by ORS 198.705 to 198.955. Except for an order allowing an existing district established to provide sewage works to also provide drainage works, no county or portion thereof shall be included within a district which is to provide services in more than one county without the consent of the governing body of the affected county.
. . . .
 
(3) A petition or order initiating the formation or change or organization of a district shall, in addition to the requirement specified by ORS 198.705 to 198.955, state which of the service facilities specified by ORS 451.010 the district shall be authorized to construct, maintain and operate.
 
(4) A final order in a formation or change of organization proceeding of a district shall, in addition to the requirements specified by ORS 198.705 to 198.955, state which of the service facilities specified by ORS 451.010 the district shall be authorized to construct, maintain and operate.
451.440 Plans for service facilities.
(1) Prior to initiation of the formation of a district, the county court may cause engineering and program plans to be prepared. The plans may include:
(a) Preliminary plans for the service facilities to be constructed or provided.
 
(b) Estimated costs of construction, maintenance and operation.
 
(c) Recommendations as to boundaries of the district.
 
(d) Recommendations as to use of any portion of the proposed service facilities for areas in the county outside the district at some future date and the portion of the cost of such works which should be borne by such areas when use is made of any portion of the facilities.
 
(e) Recommendations as to the extent to which the proposed service facilities may be integrated into other service facilities constructed or being constructed by other districts under ORS 451.410 to 451.610 or by other public agencies and the fair and equitable amount of the cost of construction of such other facilities the district should bear.
(2) If a district is formed or granted authority to provide additional types of service facilities, the county court may require the district to reimburse the county for the cost of engineering and program plans prepared in accordance with this section.
. . . .
 
451.472 District to construct only authorized service facilities; additional authorizations; requirements for provision of drainage works.
(1) A district may construct, maintain and operate only those service facilities specified by ORS 451.010 that were authorized upon formation of the district. However, additional authority regarding service facilities may be given to a district by a proceeding initiated, conducted and completed in the same manner as is provided for in the original formation of a district or as otherwise provided by law.
 
(2) A district may be formed, as provided in ORS 451.410 to 451.610, that contains territory that is also included in another district formed under ORS 451.410 to 451.610 if the district is formed to construct, maintain and operate service facilities that the existing district is not authorized to construct, maintain and operate.
 
(3) The consent of not less than 70 percent of the cities located within the boundaries of the district is required to authorize a district established to provide sewage works to also provide drainage works.
451.485 Governing body of district; order preliminary to construction work. The county court shall be the governing body of a county service district established under ORS 451.410 to 451.610. A district shall be known by the name or number specified in the order declaring its formation and by that name shall exercise and carry out the powers and duties conferred and declared in this chapter. Before proceeding to construct or provide any service facilities authorized by this chapter, the governing body of the district shall make an order:
(1) Determining the service facilities to be constructed, maintained and operated and the part of the work to be undertaken immediately.
 
(2) Determining the manner of financing the construction, maintenance and operation of the service facilities.
 
(3) Determining the method by which the district shall bear the share of the cost of construction of the service facilities that is to be apportioned to the district.
 
(4) Where it appears that any service facilities to be constructed will provide service to areas outside the district at some future date, determining the equitable and fair share of the cost of construction of such facilities that should be borne by such areas, which share shall be borne by the revolving fund established under ORS 451.540, by funds obtained by the county under ORS 280.055 or by any other method of financing described by ORS 451.490 until such areas are served by the facilities.
 
(5) Where the service facilities of the district are to be integrated into other service facilities constructed or being constructed by another district or by other public bodies as defined in ORS 174.109, determining the fair and equitable amount the district should assume as its share of the construction of such other service facilities, which amount shall be paid to the other district or public body upon terms and conditions to which the governing body of the district has agreed.
 
. . . .
 
(7) If any of the cost of the work is to be assessed against benefited property, describing portions of the district, if any, within which service facilities will not be financed by assessment.
451.487 Referendum on order; election; results.
(1) The order required by ORS 451.485 and any order which amends that order shall be subject to referendum vote within the district, notwithstanding the prior authorization of such service facilities by election during formation proceedings. The referendum may be ordered by resolution of the governing body of the district, or by petition filed as provided in this section.
 
(2) The requirements for preparing, circulating and filing a referendum petition under this section shall be as provided in ORS 255.135 to 255.205, except that notwithstanding ORS 255.165, the petition must be submitted not later than the 60th day after the date of the order.
 
(3) If a majority of those voting approve the order required by ORS 451.485, the governing body of the district shall so declare by order entered in its journal. If a majority of those voting disapprove the order, the results shall be entered in the journal.
451.490 Methods of financing service facilities. The district may, in accordance with the order adopted under ORS 451.485, finance the construction, operation or maintenance of service facilities for a district by:
(1) Use of funds from a fund established under ORS 280.055 or 451.540 to be repaid by the district without interest.
 
(2) Assessments against the property in the district with or without issuance of bonds authorized under ORS 223.205, 223.210 to 223.295 and 223.770.
 
(3) Service or user charges in the district.
 
(4) Connection charges.
 
(5) District ad valorem taxes.
 
(6) Sale of bonds.
 
(7) Funds obtained under ORS 280.040, 280.050, 280.060, 280.070, 280.080 and 280.090. A district local option tax adopted under ORS 280.060 shall not authorize a tax in any fiscal year later than the fiscal year in which the district is subject to dissolution under ORS 451.620 (1) and (2).
 
(8) Any combination of the provisions of subsections (1) to (7) of this section.
451.492 Financing portion of connection charges; lien.
(1) Subject to subsection (2) of this section, the rights and duties accorded a city and the owners of property in a city for financing assessments under ORS 223.205 and 223.210 to 223.295 shall apply in the same manner to districts for purposes of financing that portion of a connection charge imposed by a district which is greater than the amount necessary to reimburse the district for its costs of inspection and installing connections with the sanitary sewer mains of the district.
 
(2) Notwithstanding ORS 223.230, the financing of connection charges under this section may, at the option of the governing body of the district, be a second lien on real property, which lien shall be inferior only to the mortgage or other security interest held by the lender of the owner’s purchase money. Bonds issued under this section shall be issued separately from bonds otherwise issued under ORS 223.205 and 223.210 to 223.295.
451.495 Ordinance governing certain assessments.
(1) If the cost, or any portion of the cost, of service facilities for a district is to be assessed under ORS 451.490 against the property directly benefited, the governing body of the district shall, before attempting to implement the service facilities, adopt a general ordinance providing for the method of assessment. The ordinance shall:
(a) Contain provision for notice to affected property owners of intention to implement described service facilities and to assess benefited property for a part or all of the cost.
 
(b) Provide for a hearing at which affected property owners may appear to object to the implementation of the proposed service facilities.
 
(c) Provide that if the district receives written objections prior to the conclusion of the hearing signed by more than 50 percent of the affected property owners representing more than 50 percent of the affected property the proposed service facilities will not be implemented.
 
(d) Provide for notice of and a hearing on proposed assessments which notice and hearing may be combined with the notice and hearing described in paragraphs (a) and (b) of this subsection.
 
(e) Provide for the general method of assessing the property directly benefited and of the recording of liens against the property directly benefited, and of making supplementary assessments and rebates.
 
(f) Provide for establishing the boundaries of each assessment district as work is proposed.
(2) Assessments in the district shall, so far as practicable, be apportioned within the district in accordance with the special and peculiar benefit each lot or parcel of land receives from the service facilities.
 
(3) Where parcels of land, or portions thereof, are undeveloped, the governing body of the district may, in its discretion, defer assessing or imposing all or any portion of such assessments on such parcels until such parcels are served by the facilities.
451.500 Charges and fees for financing service facilities. The district may by order or by ordinance, for the purpose of paying the costs of operation and maintenance of service facilities, and for the repayment of bonds, impose user charges on property served by the service facilities. The district may, from time to time when necessary, use moneys from the revolving fund for such maintenance and operation on a reimbursable basis. User charges, connection fees or service charges shall be based upon the costs of operation, maintenance and supervision of service facilities and the costs of bond repayment.
 
451.510 Collection of service charges.
(1) The district may contract with any city or water or other district serving water in the district to collect service or user charges with the water bills, and the serving agency may cut off water for nonpayment of such service or user charges. The district may pay the water-serving agency a reasonable charge for such collection services.
 
(2) Assessments of less than $25 and service or user charges may also be collected and enforced as provided in ORS 454.225.
451.520 Assessments to be entered on lien docket; foreclosure for failure to pay; reassessments.
(1) When assessments are made under ORS 451.410 to 451.610 they shall be entered in a permanent lien docket which shall be kept in the office of the county clerk of the county. The docket shall show the amount of each lien, property against which it has been assessed, the owner thereof and such additional information as is required to keep a permanent and complete record of the assessment and the payments thereon.
 
(2) If the owner of the property against which an assessment has been made fails to pay the assessment, or any portion thereof, or the interest thereon, when due, the district may proceed to foreclose the lien in any manner provided by law for the collection of liens by local governments as defined in ORS 174.116 or may provide by ordinance a general procedure for the collection of such liens in any manner not inconsistent with law.
 
(3) The provisions of ORS 223.405 to 223.485 relating to reassessment shall be available to the district, where applicable, in connection with assessments made under ORS 451.410 to 451.610.
 
(4) In addition to the procedure provided by subsections (1), (2) and (3) of this section, the provisions of ORS 372.170 and 372.180 shall be available to the district, where applicable, in connection with assessments made under ORS 451.410 to 451.610.
451.540 Tax levy for financing service facilities; hearing.
(1) The county court may, for the purpose of establishing a revolving fund to provide money to finance the construction under ORS 451.410 to 451.585 of those service facilities in the county that may be necessary and in implementation of the master plans provided for in ORS 451.120, levy an ad valorem tax of not to exceed 50 cents per year, for a period not to exceed five years, for each $1,000 of real market value of taxable property within all areas of the county, to be served by the facilities included in the master plan. The revenues derived from the taxes shall be deposited with the county treasurer and credited to the revolving fund. Moneys in the revolving fund shall be disbursed by the county treasurer on order of the county court and used solely for the purposes authorized in ORS 451.410 to 451.610.
 
(2) The boundaries of the territory within which the tax authorized by subsection (1) of this section may be levied shall be determined by the county court after a public hearing. The county court shall direct the county clerk to publish notice of such hearing once a week for two successive weeks prior to the hearing in a newspaper of general circulation published within the proposed boundaries of the territory or, if there is no such newspaper, in a newspaper of general circulation in the county. Any elector or any owner of property within the territory may appear at the hearing to protest inclusion of the property of the voter within the territory, but the county court shall not exclude land which, in its judgment, will be served by the facilities included in the master plan.
451.542 Filing boundary change with county assessor and Department of Revenue. For purposes of ad valorem taxation, a boundary change must be filed in final approved form with the county assessor and the Department of Revenue as provided in ORS 308.225.
 
451.545 Bond issue for financing service facilities.
(1) The district may, when authorized by a majority of the votes cast at an election by electors of the district, issue general obligation bonds for the purpose of paying the cost of acquisition or construction of service facilities. Each issue of general obligation bonds shall be the general obligation of the district and the principal and interest on the bonds shall be paid by the district by assessments, charges, or ad valorem taxes imposed or levied within the district as may be determined by the governing body of the district under ORS 451.490. Bonds authorized by this section shall be issued in accordance with ORS 287.052 to 287.074, except as otherwise provided in this section.
 
(2) In addition to the authority to issue general obligation bonds, the district, when authorized at any properly called election, shall have the power to sell and dispose of revenue bonds, and to pledge as security for the bonds all or any part of the unobligated net revenue of the district to purchase, acquire, lay out, construct, reconstruct, extend, enlarge or improve service facilities. The revenue bonds shall be issued in the same manner and form as are general obligation bonds of the district, but they are payable, both as to principal and interest from revenues only, as specified by this section. The revenue bonds are not subject to the percentage limitation applicable to general obligation bonds and are not a lien upon any of the taxable property within the boundaries of such district, but are payable solely from such part of the revenues of the district as remain after payment of obligations having a priority and of all expenses of operation and maintenance of the district. All revenue bonds shall contain a clause reciting that both the principal and interest are payable solely from operating revenues of the district remaining after paying such obligations and expenses.
 
(3) The district’s total outstanding bonds of all kinds, including improvement bonds of the kind authorized by ORS 223.205 and 223.210 to 223.295, shall at no time exceed in the aggregate 13 percent of the real market value of all property by law assessable for state and county purposes within the district as reflected in the last roll certified under ORS 311.105.
451.547 Tax levies authorized. A district that has not previously imposed ad valorem property taxes may vote to establish a permanent rate limit for operating taxes in accordance with section 11 (3)(c), Article XI of the Constitution of the State of Oregon, and thereafter the district may levy ad valorem property taxes on property within the district for the purposes authorized by ORS 451.410 to 451.610. If a district has established a permanent rate limit in accordance with this section, the provisions of ORS 294.305 to 294.565 shall apply to the district.
 
451.550 Powers of district under ORS 451.410 to 451.610. For the purpose of carrying out the powers granted to the district under other provisions of ORS 451.410 to 451.610, the district may:
(1) Supervise, manage, control, operate and maintain service facilities.
 
(2) Compel all residents and property owners in a district to connect their property, houses and structures requiring sewage disposal or surface drainage with adjacent sewers or other sewage or drainage facilities in the district.
 
(3) Acquire by purchase, gift, devise, condemnation proceedings or by any other means, such real and personal property and rights of way, either within or without the county, as in the judgment of the governing body of the district are necessary or proper in the exercise of the powers of the district, and to pay for and hold the same.
 
(4) Make and accept contracts, deeds, releases and documents which, in the judgment of the governing body of the district, are necessary or proper in the exercise of the powers of the district.
 
(5) Employ and pay necessary agents, employees and assistants.
 
(6) Construct service facilities in and on any public street, highway or road and for this purpose enter upon the street, highway or road, make all necessary and proper excavations, and thereafter restore the street, highway or road to its proper condition. However, the consent of the appropriate city, county or state authorities, as the case may be, shall first be obtained and the conditions of such consent complied with.
 
(7) Exercise the authority vested in counties under ORS 549.710 to 549.990.
 
(8) Exercise the authority granted to domestic water supply districts under ORS 264.306 to 264.330.
 
(9) Adopt storm and surface water management plans, programs and regulations relating to the quality and quantity of such waters and conduct water quality studies.
 
(10) Do any act necessary or proper to the complete exercise and effect of any of its powers under ORS 451.410 to 451.610.
. . . .
 
451.560 Agreements for cooperative financing of service facilities or for use, lease or joint operation of service facilities.
(1) The district may enter into agreements with any city, any county, the federal government, the state or any of its agencies, any district organized for a public purpose or any person for a period not to exceed 30 years for the cooperative financing of the construction, maintenance and operation of service facilities.
 
(2) The district may enter into agreements with any county, city, district organized for a public purpose or person for the use, lease or joint operation of any service facilities, or any portion thereof.
. . . .
  
451.573 Definitions for ORS 451.573 to 451.577. As used in ORS 451.573 to 451.577:
(1) “District” means, in addition to the meaning given that term in ORS 451.410, a county service district organized under the authority of a county charter.
 
(2) “Special district” means any one of the following districts:
. . . .
(3) “Special district” also means one of the following, if the special district is within the geographical jurisdiction of a local government boundary commission formed by or pursuant to ORS 199.410 to 199.519:
. . . .
451.575 Excluding or including special districts from or in county service districts. If a district is authorized to construct, maintain and operate service facilities to provide services that are provided by a special district:
(1) The area within a special district described by ORS 451.573 (2)(a) shall not be included in or annexed to a district if prior to or at the hearing on the formation of or annexation to such district the governing body of the special district files with the governing body of the district a resolution withdrawing the area within the special district.
 
(2) When the formation of or annexation to a district is initiated, and the area to be incorporated or annexed includes the entire area within a special district, the governing board of the special district and the governing body of the district shall meet with each other to agree on a debt distribution plan to be a part of the proposed incorporation or annexation. The debt distribution plan may require that the property within the special district remain solely liable for all bonded indebtedness outstanding at the time of incorporation or annexation or it may provide for any other distribution of indebtedness between the district and the special district. If the governing boards do not agree on a debt distribution plan or if the area within the special district remains liable under the plan for any portion of the indebtedness outstanding at the time of the incorporation or annexation, and dissolution and transfer, the governing body of the district shall be the ex officio board of the dissolved special district for the purpose of levying taxes in such area until the bonded and other indebtedness of the dissolved special district is paid.
 
(3) The consent of all the known holders of valid indebtedness against the special district shall be obtained or provision made in the debt distribution plan for the payment of the nonassenting holders. The area within the boundaries of the special district shall not by reason of the incorporation or annexation and dissolution and transfer be relieved from liabilities and indebtedness previously contracted by the dissolving special district.
 
(4) The district officers of the special district, upon the effective date of the incorporation or annexation, shall forthwith deliver to the governing body of the district, the assets and records of the special district. Uncollected taxes, assessments or charges thereof levied by the special district shall become the property of the district and upon collection shall be credited to the account of such district.
451.577 Dissolution of special district; service district to succeed.
(1) Subject to ORS 451.575, upon the effective date of the formation of a district, of an annexation of territory to a district or of an order that adds drainage works to the authority of a service district, a special district lying within the district shall be extinguished and dissolved and the district shall succeed to all the assets and become charged with all the liabilities, obligations and functions of the special district.
 
(2) Subsection (1) applies:
(a) If the entire area of a special district is incorporated in or annexed to a district; and
 
(b) If the district has the authority to provide the same service as the special district.
451.580 Disposition of moneys received under ORS 451.410 to 451.610.
(1) Except as otherwise provided in ORS 451.410 to 451.610, all moneys received by a district shall be paid to the county treasurer and deposited by the county treasurer in an appropriate district fund. The county treasurer, when ordered by a district governing body, shall establish separate accounts in the district fund or separate funds in the county treasury for the segregation of sinking or reserve funds or accounts, of operating funds or accounts or of any other funds or accounts found necessary or expedient by the district. However, no moneys received by a district shall be used for any purpose other than for carrying out the purposes of ORS 451.410 to 451.610 and all funds, facilities, personnel or supplies of the county used for those purposes shall be charged to the appropriate district fund or account.
 
(2) Notwithstanding the requirement for a district to pay district moneys to the county treasurer for deposit in an appropriate district fund in the county treasury under subsection (1) of this section, the governing body of a county, with the consent of the county treasurer if the county treasurer is an elected county officer, may order a service district established under ORS 451.410 to 451.610 to hold and manage its own moneys in one or more district funds or accounts deposited in a financial institution as defined in ORS 706.008. The order must provide for transfer of any moneys of the district then held or later received by the county treasurer for the district. Thereafter, the district shall be solely responsible for management of moneys of the district and shall designate a district officer or employee to assume the duties and responsibilities otherwise imposed upon the county treasurer.
 
(3) Moneys deposited by the district in a district fund or account may be withdrawn or paid out only upon a proper order and warrant or upon a check signed by the district officer or employee designated to assume the duties and responsibilities otherwise imposed upon the county treasurer. The order must:
(a) Specify the name of the person to whom the moneys are to be paid;
 
(b) Specify the fund or account from which the moneys are to be paid;
 
(c) State generally the purpose for which the moneys are to be paid; and
 
(d) Be entered in the record of proceedings of the district.
451.585 Duty of city when all or part of district annexed or incorporated.
(1) Whenever the entire area of a district is incorporated in or annexed to a city in accordance with law, the district shall be extinguished and the city shall upon the effective date of such annexation succeed to all the assets and become charged with all the liabilities, obligations and functions of the district. The district officers shall forthwith deliver to the city officers the district assets and records. Uncollected taxes theretofore levied by such district shall become the property of the city and be delivered to it by the county treasurer upon collection.
 
(2) Whenever a part less than the whole of a district becomes incorporated in or annexed to a city in accordance with law, the city may at any time after such incorporation or annexation cause that part to be withdrawn from such district in the manner set forth in ORS 222.524, and the provisions of ORS 222.510 to 222.580 shall be applicable to such withdrawal except that in case the district and the city cannot agree upon a division of assets or obligations and liabilities, then and in such case, either the district or the city may petition the circuit court for the county in which the city has its legal situs to determine such division.
451.590 Entry upon privately owned lands to survey or lay out service facilities. Officers and employees of a county or of a district may enter upon privately owned lands to survey or lay out service facilities by direction of the county court or governing body of the district. However, the county court or governing body of the district shall cause notification to be given to each occupant of the lands, either by registered or certified mail or by other lawful means. This notice shall be given at least five days before the county or district officers or employees enter upon the lands. No officer or employee of a county or district entering privately owned lands pursuant to this section shall damage or destroy trees, shrubs, buildings or other items of value on that land without first obtaining the consent of the owner.
 
451.600 Restrictions on altering, repairing or connecting with a service facility. No person shall alter, repair or make a connection with any service facility maintained by a district, unless that person:
(1) Obtains permission from the district that maintains the facility, and pays all deposits, charges or fees required by the district for granting such permission, before undertaking the work; and
 
(2) When appropriate, complies with ORS 447.010 to 447.160 in performing the work.
. . . .
 
451.620 Procedures for district formed subject to dissolution.
(1) If a county service district is formed subject to a provision specifying a fiscal year for dissolution of the district, the board of directors shall, no later than 45 days after the start of that fiscal year, make the findings required by ORS 198.925 and adopt a plan of liquidation and dissolution providing for payment of nonassenting creditors, unless the board adopts an order as specified in subsection (2) of this section. Dissolution shall be effective as of the end of the fiscal year. Dissolution shall be governed by ORS 198.945 to 198.955.
 
(2) The district board may order that the district continue only if, after a public hearing, it determines that there is a public need for continued existence of the district because:
(a) Liquidation and dissolution cannot be accomplished in a manner that would protect the rights of nonassenting creditors; or
 
(b) The services provided continue to be needed by the public, the district is providing the services in an efficient and effective manner and continuation will not significantly discourage future boundary change proposals.
(3) A public hearing on continuation shall be preceded by notice published at least 14 days before the hearing in a newspaper of general circulation within the district. Notice of the hearing shall also be mailed to all incorporated cities within the district and to the boundary commission, if any.
 
(4) An order continuing the district shall specify a fiscal year, not later than the 10th fiscal year after the date of the order, in which the district shall dissolve unless another determination of public need for continued existence occurs.
 
(5) An order continuing the district shall be forwarded to the boundary commission, if any, within 10 days. If the district is not within the jurisdiction of a boundary commission the order may be contested as provided in ORS 198.785 (2).
PENALTIES
 
451.990 Penalties. Violation of ORS 451.600 or any regulation adopted pursuant to ORS 451.570 is a misdemeanor.