68th OREGON LEGISLATIVE ASSEMBLY--1995 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 506
Senate Bill 203
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of State Treasurer)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Revises statutes relating to issuance and administration of
bonds issued by local governments.
Adds amounts necessary to fund debt service reserve and other
bond financing costs to amount of bonds that may be issued under
Bancroft Bonding Act.
Allows districts, as well as cities and counties, to enter into
contracts for leasing, rental or financing of property.
Allows such contracts to provide for issuance of certificates
of participation in payment obligations of government unit.
Exempts municipal corporations from requirement of adopting
budget or supplemental budget for expenditure of bond proceeds
when specified conditions are satisfied.
Requires education service districts to levy ad valorem taxes
sufficient to pay maturing interest and principal of education
service district bonds as payments become due.
Repeals statutes relating to general obligation improvement
warrants and interim financing of public improvements.
A BILL FOR AN ACT
Relating to local government financial administration; creating
new provisions; amending ORS 203.075, 223.235, 223.322,
261.305, 271.390, 287.018, 287.022, 288.540, 288.596, 288.640,
294.326, 294.483, 295.005, 310.395, 328.235, 334.125, 371.655,
450.870, 451.490, 451.492, 454.280, 552.613, 758.235 and
777.535; and repealing ORS 264.392, 268.495, 287.047, 287.502,
287.504, 287.506, 287.508, 287.510, 287.515, 287.522, 287.524,
287.526, 450.155, 450.940, 451.530 and 523.370.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 223.235 is amended to read:
223.235. (1) When in any governmental unit a bond lien docket
is made up, as provided in ORS 223.230, as to the final
assessments for any local improvement, the governmental unit
shall by ordinance or resolution of the governing body authorize
the issue of its bonds pursuant to the applicable provisions of
ORS chapter 288 and in accordance with this section.
(2) The bonds authorized to be issued under this section shall
be issued in an amount { - equal to - } { + that does not
exceed + } the unpaid balance of all final assessments for the
related local improvements { + , plus + } { - including - }
the amounts necessary to fund any debt service reserve and to pay
any other financing costs associated with the bonds.
(3)(a) If the question of the issuance of the specific bonds
has been approved by the electors of the governmental unit and
the bonds are issued as general obligation bonds, the
governmental unit shall each year assess, levy and collect a tax
on all taxable property within its boundaries. The amount of the
tax shall be sufficient to pay all principal of and interest on
the bonds that are due and payable in that year and to replenish
any debt service reserves required for the bonds. In computing
the amount of taxes to impose, the governmental unit shall deduct
from the total amount otherwise required the amount of final
installment payments which are pledged to the payment of the
bonds and which are due and payable in that year, and shall add
to this net amount the amount of reasonably anticipated
delinquencies in the payments of the installments or the taxes.
(b) The taxes shall be levied in each year and returned to the
county officer whose duty it is to extend the tax roll within the
time and in the manner provided in ORS 310.060.
(c) The taxes shall become payable at the same time and be
collected by the same officer who collects county taxes and shall
be turned over to the governmental unit according to law.
(d) The county officer whose duty it is to extend the county
levy shall extend the levy of the governmental unit in the same
manner as city taxes are extended. Property shall be subject to
sale for nonpayment of the taxes levied by a governmental unit in
like manner and with like effect as in the case of county and
state taxes.
(4) If the question of the issuance of the specific bonds has
not been approved by the electors of the governmental unit and
the bonds are issued as limited tax obligation bonds, the
governmental unit may, subject only to the limitations of section
11b (1), Article XI of the Oregon Constitution, calculate,
assess, levy and collect a tax on all taxable property within its
boundaries in the manner provided in subsection (3) of this
section. The amount of such tax shall be sufficient to pay all
principal of and interest on such bonds which is due and payable
in that year and to replenish any debt service reserves required
for such bonds, provided that if such bonds are issued as limited
tax obligation bonds the amount of such tax shall not exceed the
amount permitted under section 11b (1), Article XI of the Oregon
Constitution.
(5)(a) All bonds issued pursuant to this section, including
general obligation bonds, shall be secured by and be payable from
the installments of final assessments with respect to which the
bonds were issued.
(b) In the ordinance or resolution authorizing the issuance of
the bonds, the governing body of the issuing governmental unit
may:
(A) Provide that installments of final assessments levied with
respect to two or more local improvements shall secure a single
issue of bonds.
(B) Reserve the right to pledge, as security for any bonds
thereafter issued pursuant to this section, any installments of
final assessments previously pledged as security for other bonds
issued pursuant to this section.
(c) All bonds shall be secured by a lien on the installments of
final assessments with respect to which they were issued. The
lien shall be valid, binding and fully perfected from the date of
issuance of the bonds. The installments of final assessments
shall be immediately subject to the lien without the physical
delivery thereof, the filing of any notice or any further act.
The lien shall be valid, binding and fully perfected against all
persons having claims of any kind against the governmental unit
or the property assessed whether in tort, contract or otherwise,
and irrespective of whether such persons have notice of the lien.
(6) As additional security for any bonds issued under this
section, including general obligation bonds, the governing body
of the issuing governmental unit may pledge or mortgage, or grant
security interests in, its revenues, assets and properties, and
otherwise secure and enter into covenant with respect to the
bonds, as provided in ORS 288.155.
(7)(a) A governmental unit shall have the power, at any time
and from time to time after the undertaking of a local
improvement has been authorized, to borrow money and issue and
sell notes for the purpose of providing interim financing for the
actual costs of the local improvement.
(b) Notes authorized under this subsection may be issued in a
single series for the purpose of providing interim financing for
two or more local improvements.
(c) Notes authorized under this subsection shall mature not
later than one year after the date upon which the issuing
governmental unit expects to issue bonds for the purpose of
providing permanent financing with respect to installment
payments of the final assessments for the local improvements.
(d) Any notes authorized under this subsection may be refunded
from time to time by the issuance of additional notes or out of
the proceeds of bonds issued pursuant to this section. The notes
may be made payable from the proceeds of any bonds to be issued
under this section to provide permanent financing or from any
other sources from which the bonds are payable.
(e) The governing body of the issuing governmental unit may
pledge to the payment of the notes any revenues which may be
pledged to the payment of bonds authorized to be issued under
this section with respect to the local improvements for which the
notes provide interim financing.
SECTION 2. ORS 271.390 is amended to read:
271.390. { - The governing body of any county, and the
governing body of any city or town, - } { + (1) Any county,
city or district described in ORS 198.010 + } may enter into
contracts for { + the + } leasing { + , + }
{ - or - } rental { + or financing of any real or personal
property that the governing body determines is needed + },
including contracts for rental { + , + } { - or - } long
{ - time - } { + term + } leases under an optional contract
for purchase, { + financing agreements with vendors, financial
institutions or others, + } or for purchase of any { - real - }
property { - in Oregon necessary for proper and convenient
housing of officers or for conducting the business of said
bodies. Leases or contracts made by a city or town shall be made
subject to the terms of its charter - } . { + Such contracts
shall be authorized by resolution of the governing body of the
county, city or district. If authorized by the governing body,
such contracts may:
(a) Provide that the obligations of the government unit under
the contract shall be secured by a mortgage on or other security
interest in the property to be leased, rented, purchased or
financed under the contract.
(b) Provide that the obligations of the government unit under
the contract shall be payable out of all or any designated
portion of the lawfully available revenues of the government
unit, which revenues may be pledged to the payment of those
obligations.
(c) In the case of a city or district, contain a covenant on
the part of the city or district to budget and appropriate in
each fiscal year, in accordance with law, sums sufficient to pay
when due the amounts owing under the contract.
(d) Provide for the issuance of certificates of participation
in the payment obligations of the government unit under the
contract and contain such other covenants, agreements and
provisions as are determined to be necessary or appropriate in
order to better secure the obligations of the government unit.
(2) The lien of any such pledge, mortgage or security interest
shall be valid and binding from the time the contract is entered
into. The revenues or property shall be immediately subject to
the lien without physical delivery, filing or other act, and the
lien shall be superior to all other claims and liens of any kind
whatsoever. Subject to the terms, provisions and limitations of
the contract, the lien may be foreclosed by a proceeding brought
in the circuit court of the county in which the government unit
or the greater part thereof is located, and any tangible real or
personal property subject to the lien may be sold upon the order
of the court. The proceeds of the sale shall first be applied to
the payment of the costs of foreclosure and then to the amounts
owing under the contract, with any balance being paid to the
government unit. The debt limitations imposed by statute or
charter shall not affect the right of a government unit to enter
into contracts under this section, and the obligations of the
government unit under such contracts shall not be taken into
consideration when determining the percentage or extent to which
the government unit is indebted under any statutory or charter
debt limitation. However, such contracts made by a government
unit shall otherwise be subject to the terms of its charter. The
authority granted by this section is in addition to, and not in
lieu of, any other statutory or charter authority. + }
SECTION 3. ORS 287.018 is amended to read:
287.018. For general obligation issues:
(1) For bonds which are sold at public competitive bid sale,
the issuer shall prepare and make available upon request to
bidders and investors a preliminary official statement that
includes the following:
(a) Past and current financing and estimated future financing
of the issuer;
(b) A brief description of the financial administration and
organization of the issuer;
(c) A brief description of the economic and social
characteristics of the issuer which will permit bidders and
investors to appraise the issuer's ability to assume and service
adequately the debt obligation; and
(d) Any other information the issuer may provide or which the
Oregon Municipal Debt Advisory Commission may require by rule of
any issuer other than the state.
(2) The preliminary official statement described in subsection
(1) of this section shall be available not later than
{ - 14 calendar days preceding the bond sale - } { + the date
on which the notice of sale is published + }.
(3) The preliminary official statement shall contain the best
available information which shall be accurate to the best
knowledge of the issuer. However, any errors or omissions in the
preliminary official statement shall not affect the validity of
the bond issue.
(4) The statement required by this section of state agencies
shall be submitted to the State Treasurer for approval. If not
approved, the State Treasurer shall note the revision required.
The issuer shall make the noted revisions.
SECTION 4. ORS 287.022 is amended to read:
287.022. (1) For bonds which are sold at public competitive bid
sale, the issuer shall prepare a notice of bond sale which shall
specify:
(a) The time, date and place where bids will be received, and
considered and acted upon, the total amount of bonds, and the
denominations of the bonds;
(b) The issue date, maturity dates and amounts, interest
payment dates, and place of payment of the bonds;
(c) The date of optional redemption, if any, the call price
premium, if any, and the order of bond redemption and place of
redemption;
(d) The maximum effective rate of interest and the minimum
percentage of par value of the bonds which may be bid;
(e) The required good faith deposit { + , which may be in the
form of a + } { - by - } certified or cashier's check on a
bank doing business in this state { + , or a bond, or some other
commitment the issuer determines adequate to protect the issuer
against a bidder's failure to comply with the terms of its
bid, + } in the amount not less than two percent of the par value
of the bonds, or $500,000, whichever is the lesser;
(f) Such constraints on the coupon rates as the issuer may
impose;
(g) The interest basis and definition thereof on which bond
bids are to be awarded; and
(h) The name of bond counsel, if any, who will furnish the
legal opinion.
(2) The notice of sale may contain:
(a) The name of the person who will furnish financial data;
(b) Coupon rate multiples;
(c) Registration provision, if any;
(d) Bid forms availability;
(e) Estimated delivery date and place;
(f) Procedure for awarding tie bids;
(g) Such other conditions as the issuer may impose;
(h) The statute and ordinance, if any, pursuant to which the
bonds are to be issued; and
(i) The purpose of the bonds.
(3) Bids submitted must be for all bonds offered for sale. All
bids are to be unconditional and to be submitted in writing in a
sealed envelope clearly marked as a proposal for bonds.
SECTION 5. ORS 288.540 is amended to read:
288.540. Bonds of a public body shall be executed by the
signature or signatures of one or more officers as specified by
the public body. Signatures of the designated officers may be
either manual or facsimile, but at least one { - such - }
signature shall be manual in form. However, all signatures of the
public body may be by facsimile if the bonds are to be
authenticated by at least one manual signature.
SECTION 6. ORS 288.596 is amended to read:
288.596. Any public body authorized to issue variable rate
bonds may:
(1) Enter into letter of credit or other credit enhancement
agreements in order to provide liquidity or security for bonds.
Such credit enhancement agreements shall be payable solely from
the same sources of funds which the public body may legally
commit to pay debt service on the bonds { + and the public body
may pledge as security for its obligations arising under or with
respect to any credit enhancement agreement any revenues pledged
to the payment of the related bonds or from which the bonds are
payable + }.
(2) Issue bonds which are subject to redemption at the option
of the owner. However, such right of redemption must be limited
to money available under a credit enhancement agreement, proceeds
of the bonds and reserves of the public body established for such
purpose.
SECTION 7. ORS 288.640 is amended to read:
288.640. { - (1) - } The ordinance or other official action
authorizing the issuance of advance refunding bonds pursuant to
ORS 288.605 to 288.695 { - shall - } { + may + } contain
{ - a provision that the advance refunding bonds shall be
subject to redemption not later than 10 years from the date of
the refunding bonds or six months after the first date on which
the bonds to be refunded may be redeemed, whichever is later - }
{ + any redemption terms deemed advisable in the discretion of
the governing body or its designee + }.
{ - (2) If more than one issue or series of bonds are being
refunded by a single issue or series of advance refunding bonds,
the advance refunding bonds shall be subject to redemption not
later than 10 years from date of issue of the refunding bonds or
six months after the first date on which the series or issue of
bonds being refunded having the latest first redemption date may
be redeemed. - }
{ - (3) The governing body may fix any redemption premium or
premiums as it may in its discretion determine advisable. - }
{ - (4) Notwithstanding subsections (1) and (2) of this
section, upon approval of the State Treasurer pursuant to ORS
288.620, the advance refunding bonds may be made subject to
redemption on a later date. - }
SECTION 8. ORS 294.326 is amended to read:
294.326. (1) Except as provided in subsections (2) to (9) of
this section, it is unlawful for any municipal corporation to
expend money or to levy a tax in any year upon property subject
to taxation unless the municipal corporation has complied with
the provisions of ORS 294.305 to 294.520, 294.555 and 294.565.
(2) Subsection (1) of this section shall not apply to the
expenditure in the year of receipt of grants, gifts, bequests or
devises transferred to a municipal corporation in trust for
specific purposes or to other special purpose trust funds at the
disposal of municipal corporations. However, subsection (1) of
this section shall apply to the expenditure of grants, gifts,
bequests or devises transferred to a municipal corporation for
undesignated general purposes or to the expenditure of grants,
gifts, bequests or devises transferred to a municipal corporation
in trust for specific purposes which were received in a prior
year. Expenditure of grants, gifts, bequests and devises exempt
from subsection (1) of this section by this subsection shall be
lawful only after enactment by the governing body of the
municipal corporation of appropriation ordinances or resolutions
authorizing the expenditure.
(3) Subsection (1) of this section shall not apply whenever the
governing body of a port, dock commission or people's utility
district or of a public utility or a hospital operation of a
municipal corporation has declared the existence of an unforeseen
occurrence or condition which could not have been foreseen at the
time of the preparation of the budget for the current year or
could not have foreseen a pressing necessity for the expenditure
or has received a request for services or facilities, the cost of
which shall be supplied by a private individual, corporation or
company or by another governmental unit necessitating a greater
expenditure of public money for any specific purpose or purposes
than the amount budgeted therefor in order to provide the
services for which it was responsible. Such governing body may
make excess expenditures for such specific purpose or purposes
beyond the amount budgeted and appropriated therefor to the
extent that maintenance, repair or self-insurance reserves
authorized by ORS 294.366 or nontax funds are available or may be
made available. Such expenditures shall be lawful only after the
enactment of appropriate appropriation ordinances or resolutions
authorizing the expenditures. The ordinance or resolution shall
state the need for the expenditure, the purpose for the
expenditure and the amount appropriated.
(4) Subsection (1) of this section shall not apply to the
expenditure during the current year of the proceeds from the sale
of bonds, whenever the approval of the bond issue by the people
occurs after the budget for the current year has been adopted by
the governing body and the bond sale occurs in the same year as
the approval of the bond. However, subsection (1) of this section
shall apply to the expenditure of money from sale of bonds which
were approved by the people prior to the preparation of the
current year's budget or which were sold in a prior year and
carried forward into the current year.
(5) Notwithstanding subsection (4) of this section, subsection
(1) of this section shall not apply to expenditures of funds
received from the sale of conduit revenue bonds issued for
private business { - pursuant to ORS 285.310 to 285.397,
777.560 to 777.590 and 778.145 to 778.175 - } { + or nonprofit
corporations by cities, counties, port districts, the Port of
Portland or the State of Oregon + }.
{ + (6) Notwithstanding subsection (4) of this section,
subsection (1) of this section shall not apply to the expenditure
during the current year of proceeds from the sale of bonds. A
municipal corporation shall not be required to adopt a budget for
expenditures in a fiscal year in which such bonds are authorized
and issued, on any bonds that:
(a) Have been issued under the Uniform Revenue Bond Act, ORS
288.805 to 288.945;
(b) Have been approved by the voters in the same fiscal year in
which the bonds are issued; or
(c) Are refunding bonds. + }
{ - (6) - } { + (7) + } Subsection (1) of this section
shall not apply to expenditures of funds received from
assessments against benefited property for local improvements as
defined in ORS 223.001 if at least 80 percent of the total cost
of such improvements is to be paid by owners of benefited
property.
{ - (7) - } { + (8) + } Subsection (1) of this section
shall not apply to the expenditure of funds accumulated to pay
deferred employee compensation.
{ - (8) - } { + (9) + } Subsection (1) of this section
shall not apply to refunds or the interest on them granted by
counties under ORS 311.806.
{ - (9) - } { + (10) + } Subsection (1) of this section
shall not apply to refunds, received by a municipal corporation
when purchased items are returned after an expenditure has been
made. Expenditure of refunded amounts to which this subsection
applies shall be lawful only after the governing body of the
municipal corporation has enacted, after public hearing,
appropriate appropriation ordinances or resolutions authorizing
such expenditure.
SECTION 9. ORS 294.483 is amended to read:
294.483. (1) A municipal corporation that has outstanding
limited general obligation bonds that were issued pursuant to ORS
287.049 shall on an annual basis budget and appropriate, subject
to any applicable covenants or agreements which limit payment of
certain obligations to particular sources of funds, amounts
sufficient to pay, in each succeeding annual period, debt service
on such bonds. However, this section does not require the
municipal corporation to adopt a supplemental budget to pay the
principal and interest coming due on such limited general
obligation tax bonds in the fiscal year in which such bonds are
authorized and issued. A municipal corporation meeting the
requirements of this section shall not be required to adopt a
supplemental budget to pay the principal and interest coming due,
in the fiscal year in which such bonds are authorized and issued,
on any bonds that:
(a) Have been issued under the Uniform Revenue Bond Act, ORS
288.805 to 288.945;
(b) Have been approved by the voters in the same fiscal year in
which the bonds are issued; { - or - }
(c) Are refunding bonds { + ; or + } { - . - }
{ + (d) Are conduit revenue bonds issued by cities, counties,
port districts, the Port of Portland or the State of Oregon. + }
(2) A municipal corporation meeting the requirements of this
section may pay principal and interest on such bonds from any
lawfully available source of funds without adopting a
supplemental budget therefor.
SECTION 10. ORS 328.235 is amended to read:
328.235. The bonds shall:
(1) Bear interest, not exceeding the rate established pursuant
to ORS 288.515 to 288.600, payable semiannually.
(2) Be signed by the chairman of the district school board and
attested by the district clerk or deputy clerk. Bonds { - of
issues of $1 million or more - } may be executed with the { +
manual or + } facsimile signature of the chairman of the district
school board and attested by the { - original - } { + manual
or facsimile + } signature of the district clerk or deputy
clerk { + , but at least one such signature shall be in manual
form. However, all signatures may be in facsimile form if the
bonds are to be authenticated by at least one manual
signature + }.
(3) Have annexed interest coupons bearing the original or
facsimile signatures of the chairman of the district school board
and district clerk or deputy clerk.
SECTION 11. ORS 334.125 is amended to read:
334.125. (1) The education service district is a body
corporate.
(2) The education service district board is authorized to
transact all business coming within the jurisdiction of the
education service district and may sue and be sued.
(3) The education service district board shall perform all
duties required by law, including but not limited to:
(a) Distribution of such school funds as it is empowered to
apportion;
(b) Conduct of audits;
(c) Duties as district boundary board;
(d) Budget and tax levying duties, including the levying of
taxes under ORS 280.060;
(e) Curriculum improvement;
(f) Special education programs; and
(g) Contracting a bonded indebtedness { + and levying direct
ad valorem taxes on all taxable property within the education
service district + } in the manner that common and union high
school districts are authorized to issue bonds { + and levy
taxes + } under ORS 328.205 to 328.295 and other laws applicable
to the issuance of bonds { + and levying of taxes + } by school
districts.
(4) In addition to its duties under subsection (3) of this
section and duties arising under ORS 334.175, in cooperation with
the school districts and working, as appropriate, with county
governments, health care agencies, social service organizations
and employment training agencies, and according to criteria
developed by the state board, the board may:
(a) Plan for the provision and delivery of education;
(b) Provide curriculum improvement and staff development;
(c) Conduct assessment, evaluation and research;
(d) Plan and provide for new learning environments;
(e) Plan and provide for educational communication and
distribution services, including telecommunications systems; and
(f) Collaborate in jointly planning for the delivery of health
care, employment training and social services in the region.
(5) The education service district board may employ and fix the
compensation of such personnel as it considers necessary for
carrying out duties of the board.
(6) In carrying out its duties, the education service district
board:
(a) May locate, buy, accept by gift or lease such land,
buildings and facilities as may be required for district
purposes. Leases authorized by this section may be for a term of
up to 30 years and include lease-purchase agreements whereunder
the district may acquire ownership of the leased property.
(b) May acquire personal property by a lease-purchase agreement
or contract of purchase for a term exceeding one year. A
lease-purchase agreement is one in which the rent payable by the
district is expressly agreed to have been established to reflect
the savings resulting from the exemption from taxation, and the
district is entitled to ownership of the property at a nominal or
other price which is stated or determinable by the terms of the
agreement and was not intended to reflect the true value of the
property.
(c) May lease property or sell and convey property of the
district as the board considers unnecessary to its purposes.
(d) May purchase relocatable structures in installment
transactions in which deferred installments of the purchase price
are payable over not more than 10 years from the date of delivery
of the property to the district and are secured by a security
interest in the property. The transactions may take the form of,
but are not limited to, lease-purchase agreements.
(e) May accept money or property donated for the use or benefit
of the district and use the money or property for the purpose for
which it was donated.
(7) The education service district board may adopt rules it
considers necessary to carry out the duties of the board.
(8) The education service district may contract with public and
private entities for service delivery.
(9)(a) The education service district shall work cooperatively
with component school districts and review periodically with
component school districts the operations of component school
districts and shall submit to the component school districts
plans for operations that achieve economies and efficiencies
through consolidation of various operations of all or some of the
districts. The education service district and its component
school districts shall submit an annual report on the
effectiveness of the consolidation of operations to the State
Board of Education.
(b) As used in this subsection, 'operations' means services
involving transportation, payroll, student records, auditing,
legal services, insurance, printing, investment and other similar
services.
SECTION 12. { + Section 13 of this Act is added to and made a
part of ORS chapter 334. + }
SECTION 13. { + Notwithstanding ORS 334.240, 334.270 and
334.285, each education service district shall ascertain and levy
annually, in addition to all other taxes, a direct ad valorem tax
on all taxable property in the education service district
sufficient to pay the maturing interest and principal of all
education service district bonds promptly when and as the
payments become due. The board in each year shall include the
taxes in the education service district budget for that year. + }
SECTION 14. ORS 203.075 is amended to read:
203.075. { - (1) Except as provided in subsection (3) of this
section, - } When a county governing body orders the
construction of a local improvement and levies an assessment for
all or part of the cost of the improvement against property
benefited by the improvement, { - the following statutes apply
to the assessment: - }
{ - (a) ORS 223.205 to 223.295, 223.387 to 223.399, 223.405
to 223.485 and 223.770. - }
{ - (b) ORS 287.502 to 287.515. - }
{ - (2) When officials of cities are referred to in the
statutes listed in subsection (1) of this section, the
corresponding officials of counties shall perform the required
functions. The duties required of the governing body of a city
under those statutes shall be performed by the governing body of
the county. - }
{ - (3) When - } { + if + } there is a conflict between
{ - the statutes listed in subsection (1) of this section - }
{ + ORS 223.205 to 223.295, 223.387 to 223.399, 223.405 to
223.485 and 223.770 + } and a county charter, county ordinance or
another statute, the charter, ordinance or other statute shall
prevail.
SECTION 15. ORS 261.305 is amended to read:
261.305. People's utility districts shall have power:
(1) To have perpetual succession.
(2) To adopt a seal and alter it at pleasure.
(3) To sue and be sued, to plead and be impleaded.
(4) To acquire and hold, including by lease-purchase agreement,
real and other property necessary or incident to the business of
the districts, within or without, or partly within or partly
without, the district, and to sell or dispose of that property;
to acquire, develop and otherwise provide for a supply of water
for domestic and municipal purposes, waterpower and electric
energy, or electric energy generated from any utility, and to
distribute, sell and otherwise dispose of water, waterpower and
electric energy, within or without the territory of such
districts.
(5) To exercise the power of eminent domain for the purpose of
acquiring any property, within or without the district, necessary
for the carrying out of the provisions of this chapter.
(6) To borrow money and incur indebtedness; to issue, sell and
assume evidences of indebtedness; to refund and retire any
indebtedness that may exist against or be assumed by the district
or that may exist against the revenues of the district and to
pledge any part of its revenues. Except as provided in ORS
261.355 and 261.380, no revenue or general obligation bonds shall
be issued or sold without the approval of the electors. The board
of directors may borrow from banks or other financial
institutions, on notes payable within 12 months, such sums as the
board of directors deems necessary or advisable; however, the
amounts so borrowed, together with the principal amounts of other
like borrowings then outstanding and unpaid, shall not exceed the
amount which the board of directors estimates as the district's
net income (determined in accordance with the system of accounts
maintained by the board pursuant to ORS 261.470) for the 12 full
calendar months following the date of the proposed borrowing,
adjusted by adding to the net income an amount equal to the
estimated charges to depreciation for the 12-month period. No
indebtedness shall be incurred or assumed except on account of
the development, purchase and operation of a utility.
(7) To enter into rental or lease-purchase agreements to rent,
lease or acquire real or personal property, or both, required for
district purposes. Except when approved by a majority of the
electors of the district voting on the question, a people's
utility district shall not enter into rental or leasing
agreements when the annual aggregate amount of payment for any
and all property directly related to a single transaction exceeds
10 percent of the revenues of the district in the preceding
fiscal year.
{ - (8) To carry out the powers granted people's utility
districts, the board may utilize the provisions of ORS 287.522 to
287.526. - }
{ - (9) - } { + (8) + } To levy and collect, or cause to be
levied and collected, subject to constitutional limitations,
taxes for the purpose of carrying on the operations and paying
the obligations of the district as provided in this chapter.
{ - (10) - } { + (9) + } To make contracts, to employ labor
and professional staff, to set wages in conformance with ORS
261.345, to set salaries and provide compensation for services
rendered by employees and by directors, to provide for life
insurance, hospitalization, disability, health and welfare and
retirement plans for employees, and to do all things necessary
and convenient for full exercise of the powers herein granted.
The provision for life insurance, hospitalization, disability,
health and welfare and retirement plans for employees shall be in
addition to any other authority of people's utility districts to
participate in those plans and shall not repeal or modify any
statutes except those that may be in conflict with the provision
for life insurance, hospitalization, disability, health and
welfare and retirement plans.
{ - (11) - } { + (10) + } To enter into contracts with the
United States Government, with the State of Oregon, or with any
other state, municipality or utility district, and with any
department of any of these, for carrying out any provisions of
this chapter.
{ - (12) - } { + (11) + } To enter into agreements with the
State of Oregon or with any local governmental unit, utility,
special district or private or public corporation for the purpose
of promoting economic growth and the expansion or addition of
business and industry within the territory of the people's
utility district. Before spending district funds under such an
agreement, the board of directors shall enter on the written
records of the district a brief statement that clearly indicates
the purpose and amount of any proposed expenditure under the
agreement.
{ - (13) - } { + (12) + } To fix, maintain and collect
rates and charges for any water, waterpower, electric energy or
other commodity or service furnished, developed or sold by the
district.
{ - (14) - } { + (13) + } To construct works across or
along any street or public highway, or over any lands which are
property of this state, or any subdivision thereof, and to have
the same rights and privileges appertaining thereto as have been
or may be granted to municipalities within the state, and to
construct its works across and along any stream of water or
watercourse. Any works across or along any state highway shall be
constructed only with the permission of the Department of
Transportation. Any works across or along any county highway
shall be constructed only with the permission of the appropriate
county court. Any works across or along any city street shall be
constructed only with the permission of the city governing body
and upon compliance with applicable city regulations and payment
of any fees called for under applicable franchise agreements,
intergovernmental agreements under ORS chapter 190 or contracts
providing for payment of such fees. The district shall restore
any such street or highway to its former state as near as may be,
and shall not use the same in a manner unnecessarily to impair
its usefulness.
{ - (15) - } { + (14) + } To elect a board of five
directors to manage its affairs.
{ - (16) - } { + (15) + } To enter into franchise
agreements with cities and pay fees under negotiated franchise
agreements, intergovernmental agreements under ORS chapter 190
and contracts providing for the payment of such fees.
{ - (17) - } { + (16) + } To take any other actions
necessary or convenient for the proper exercise of the powers
granted to a district by this chapter and by section 12, Article
XI, of the Oregon Constitution.
SECTION 16. ORS 295.005 is amended to read:
295.005. As used in this section, ORS 295.015 and 295.025 to
295.165, unless the context requires otherwise:
(1) 'Certificate of participation' or 'certificate' means a
nonnegotiable document issued by a pool manager to a public
official.
(2) 'Custodian bank' or 'custodian' means the following
institutions designated by the depository bank for its own
account:
(a) The Federal Reserve Bank designated to serve this state, or
any branch of that bank;
(b) The Federal Home Loan Bank designated to serve this state,
or any branch of that bank;
(c) Any bank or trust company, mutual savings bank or savings
and loan association doing business in this state. With the
approval of the State Treasurer, a depository bank may be a
custodian bank with respect to its own securities;
(d) Any bank or trust company not located in this state but
authorized to act as trustee in this state; and
(e) The fiscal agency of the State of Oregon, duly appointed
and acting as such agency pursuant to ORS 288.010 to 288.110.
(3) 'Custodian's receipt' or 'receipt' means a document issued
by a custodian bank to a pool manager describing the securities
deposited with it by a depository bank to secure public fund
deposits.
(4) 'Depository bank' or 'depository' means any bank or trust
company, mutual savings bank or savings and loan association
which maintains a head office or a branch in this state in the
capacity of a bank or trust company, mutual savings bank or
savings and loan association.
(5) 'Pool manager' means:
(a) The State Treasurer;
(b) Any trust company, bank or mutual savings bank legally
engaged in the business of a trust company, as that term is
defined in ORS 706.005 at an office in this state; but a
depository bank shall not be a pool manager with respect to
securities that it deposits with its custodians as collateral for
the security of public fund deposits;
(c) The Federal Reserve Bank designated to serve this state, or
any branch of that bank; or
(d) The Federal Home Loan Bank designated to serve this state,
or any branch of that bank.
(6) 'Public funds' or 'funds' means the funds under the control
or in the custody of a public official by virtue of office, other
than those which, pursuant to law other than this section, ORS
295.015 and 295.025 to 295.165, are invested in authorized
investments or are deposited for the purpose of meeting the
payment of principal or interest on bonds or like obligations.
(7) 'Security' or 'securities' means:
(a) Obligations of the United States, including those of its
agencies and instrumentalities;
(b) Obligations of the International Bank for Reconstruction
and Development;
(c) Bonds of any state of the United States (A) that are rated
in one of the four highest grades by a recognized investment
service organization that has been engaged regularly and
continuously for a period of not less than 10 years in rating
state and municipal bonds or, (B) having once been so rated are
ruled, pursuant to ORS 295.095, to be eligible securities for the
purposes of this section, ORS 295.015 and 295.025 to 295.165,
notwithstanding the loss of such rating;
(d) Bonds of any county, city, school district, port district
or other public body in the United States payable from ad valorem
taxes levied generally on substantially all property within the
issuing body and that meet the rating requirement or are ruled to
be eligible securities as provided in paragraph (c) of this
subsection;
(e) Bonds of any county, city, school district, port district
or other public body issued pursuant to the Constitution or
statutes of the State of Oregon or the charter or ordinances of
any county or city within the State of Oregon, if the issuing
body has not been in default with respect to the payment of
principal or interest on any of its bonds within the preceding 10
years or during the period of its existence if that is less than
10 years;
(f) { - Notes issued by a municipality under ORS 287.526
and - } Bond anticipation notes issued, sold or assumed by an
authority under ORS 441.560;
(g) One-family to four-family housing mortgage loan notes
related to property situated in the State of Oregon, which are
owned by a depository bank, no payment on which is more than 90
days past due, and which are eligible collateral for loans from
the Federal Reserve Bank of San Francisco under section 10(b) of
the Federal Reserve Act and regulations thereunder;
(h) Bonds, notes, letters of credit or other securities or
evidence of indebtedness constituting the direct and general
obligation of a federal home loan bank or Federal Reserve bank;
(i) Debt obligations of domestic corporations that are rated in
one of the three highest grades by a recognized investment
service organization that has been engaged regularly and
continuously for a period of not less than 10 years in rating
corporate debt obligations;
(j) Collateralized mortgage obligations and real estate
mortgage investment conduits that are rated in one of the two
highest grades by a recognized investment service organization
that has been engaged regularly and continuously for a period of
not less than 10 years in rating corporate debt obligations; and
(k) One-family to four-family housing mortgages that have been
secured by means of a guarantee as to full repayment of principal
and interest by an agency of the United States Government,
including the Government National Mortgage Association, the
Federal National Mortgage Association and the Federal Home Loan
Mortgage Corporation.
(8) 'Public official' means each officer or employee of this
state or any agency, political subdivision or public corporation
thereof who by law is made the custodian of or has control of any
public funds.
(9) 'Value' means the value of securities at the most recent
valuation date, as provided in ORS 295.095, or, if issued
thereafter, market value at the date of issue.
SECTION 17. ORS 310.395 is amended to read:
310.395. (1) Notwithstanding any other law and when not
inconsistent with or otherwise provided for in the Oregon
Constitution, whenever a proposed tax levy, whether a fixed
dollar serial levy or levy for a single year, is submitted to a
vote of the people by this state or any county, municipality,
district or body to which the power to levy a tax has been
delegated, the statement in the ballot title for the measure
submitted shall state the total amount of money to be raised by
the proposed levy, in dollars and cents. If the statement in the
ballot title for the measure submitted includes an estimated tax
impact, it shall be based on the most current estimate of
assessed value from the county assessor. The measure shall bear
the statement: 'The estimated tax cost for this measure is an
ESTIMATE ONLY based on the best information available from the
county assessor at the time of estimate. '
(2) Subsection (1) of this section does not apply to a levy
described in ORS 280.060 (1)(b). For a levy described in ORS
280.060 (1)(b), an estimate of the total amount of money to be
raised for each year of the proposed levy shall be stated in
dollars and cents. If the levy described in ORS 280.060 (1)(b)
raises more money than estimated, the excess collections above
that estimate shall be considered a budget resource for the levy
fund in the next fiscal year of the subdivision. This section has
no application to elections and levies with respect to bonds, for
which provision is made in ORS 287.004 to 287.026 and 287.052 to
{ - 287.526 - } { + 287.488 + } or other laws.
(3) The statement or statements required by this section shall
be added to and made a part of the 175-word statement required by
ORS 310.315 and 310.390. The number of words contained in the
statement required by this section shall not be included in the
175-word limitation.
SECTION 18. ORS 371.655 is amended to read:
371.655. (1) Except as provided in subsection (2) of this
section, 30 days after the assessment is certified, the entire
amount against each parcel of land shall be due and payable at
the office designated by the governing body of the county and, if
not so paid, shall be delinquent from that date and shall bear
interest at a rate established by the governing body of the
county.
(2) The owner of property assessed under ORS 371.605 to 371.660
shall have the right to apply for installment payment of the
assessment as provided in ORS 223.210.
(3) The provisions of ORS 223.205 and 223.210 to 223.295
(Bancroft Bonding Act) { - , - } { + and + } 223.770 relating
to the assessment of property benefited by public improvements
and to the issuance of bonds and other obligations for the cost
of the improvements
{ - and the provisions of ORS 287.502 to 287.515 relating to
the issuance of improvement warrants by cities, - } shall apply
in so far as practicable and applicable in relation to the
assessment by counties of the cost or any portion of the cost of
improvements against the property benefited in accordance with
ORS 371.605 to 371.660 and to the issuance of bonds and other
obligations by the county. However, notwithstanding the
provisions of ORS 223.295, in issuing bonds and other obligations
under the provisions of this section, a county may incur
indebtedness to an amount not exceeding .0375 of the latest real
market valuation of the county.
(4) Where, in ORS 223.205 to 223.295 { - , - } { + and + }
223.770 { - and 287.502 to 287.515 - } , officials of
governmental units { - or cities - } are referred to, the
corresponding officials of counties where applicable and unless
otherwise designated by charter shall perform the required
functions. { - The duties required of the common council, board
of trustees, or other governing body of a city shall be performed
as to this section by the governing body of the county. The
duties required of the auditor, clerk or other officer charged
with keeping the records of a city shall be performed as to this
section by the county clerk. The duties required of the mayor or
other executive head of a city shall be performed as to this
section by the chairman of the governing body of the county. The
duties of the city treasurer shall be performed as to this
section by the county treasurer. - }
SECTION 19. ORS 454.280 is amended to read:
454.280. Notwithstanding the provisions of ORS chapters 450,
451 and 454, or any city or county charter, treatment works may
be constructed by a municipality and financed by the sale of
general obligation bonds, revenue bonds or assessments against
the benefited property without a vote in the affected area or
municipality or without being subject to a remonstration
procedure, when the findings and order are filed in accordance
with ORS 454.310. The provisions of ORS 223.205 to 223.295
{ - , - } { + and + } 223.770 { - and 287.502 to 287.515 - }
shall apply in so far as practicable to any assessment
established as a result of proceedings under ORS 454.275 to
454.380.
SECTION 20. ORS 552.613 is amended to read:
552.613. { - (1) - } If any portion of the cost of a
district works is assessed against the property directly
benefited, { - the district shall, subject to the provisions of
this chapter, proceed as provided by the following
provisions: - }
{ - (a) ORS 223.205, 223.210 to 223.295, 223.387 to 223.401
and 223.405 to 223.485 relating to the assessment of property
benefited by public improvements and to the issuance of bonds and
other obligations; - }
{ - (b) ORS 223.770 relating to the assessment of public
property benefited by public improvements for the cost of such
improvements; and - }
{ - (c) ORS 287.502 to 287.515, relating to the issuance of
improvement warrants by cities. - }
{ - (2) Where the provisions listed in subsection (1) of this
section refer to officials of cities, the corresponding officials
of the district shall perform the required functions, unless
another official of the district is designated by order of the
district board. - }
{ - (3) - } the district board may issue improvement bonds
in the total amount of the valid applications it has received to
pay assessments in installments as provided by ORS 223.205 and
223.210 to 223.295.
SECTION 21. ORS 758.235 is amended to read:
758.235. Unless otherwise provided by ORS 758.210 to 758.270,
the provisions relating to the procedure for local improvements
in cities, as set forth in ORS 223.205, 223.210 to 223.295,
223.387 to 223.399, 223.401, 223.405 to 223.485, 223.505 to
223.595, 223.610, 223.615 to 223.650 { - , - } { + and + }
223.770 { - and 287.502 to 287.515 - } , apply to proceedings
for a conversion by a city or county under ORS 758.210 to
758.270. In a proceeding conducted by a county, where the
statutes referred to in this section refer to officials of
cities, the corresponding officials of the county shall perform
the required functions, unless otherwise provided by order of the
county court or board of county commissioners. Cities and
counties may, as provided by ORS 223.205 and 223.210 to 223.295,
issue improvement bonds in the total amount of the valid
applications received to pay assessments in installments.
SECTION 22. ORS 777.535 is amended to read:
777.535. { - (1) - } The provisions of ORS 223.205 to
223.295 (Bancroft Bonding Act) { - , - } { + and + } ORS
223.770 relating to the assessment of property benefited by
public improvements and to the issuance of bonds and other
obligations for the cost of such improvements { - and the
provisions of ORS 287.502 to 287.515 relating to the issuance of
improvement warrants by cities - } , shall apply insofar as
practicable and applicable in relation to the assessment by ports
of the cost or any portion of the cost of improvements against
the property benefited in accordance with ORS 777.530 and to the
issuance of bonds and other obligations by the port. However,
notwithstanding ORS 223.295, the limitation specified in ORS
777.410 (1)(a) on the amount of general obligation bonds
outstanding at any one time applies to bonds and other
obligations issued under this section.
{ - (2) Where, in ORS 223.205 to 223.295, 223.770 and 287.502
to 287.515, officials of cities are referred to, the
corresponding officials of ports shall perform the required
functions. - }
SECTION 23. ORS 223.322 is amended to read:
223.322. When a final assessment is being paid in installments
under the Bancroft Bonding Act or ORS 268.485,
{ - 450.155, - } { + or + } 450.897 { - or 451.530 - } , if
the final assessment is apportioned among smaller parcels of real
property under ORS 223.317 to 223.327, the installments remaining
unpaid shall be prorated among those smaller parcels so that each
parcel shall be charged with that percentage of the remaining
installment payments equal to the percentage of the unpaid final
assessment charged to the parcel upon apportionment.
SECTION 24. ORS 450.870 is amended to read:
450.870. (1) All assessments made pursuant to ORS 450.855 (3)
shall be determined and made by an order of the board adopted in
accordance with such procedures as shall be established by a
general ordinance adopted by the board. Such general ordinance
shall establish a procedure for assessing property directly
benefited by the installation, making supplementary assessments
and rebates, notice of the proposed assessment, provide for
correction of errors, establish the form of the assessment order
and such other procedures as are necessary to the adoption of the
assessment order. It shall not be necessary to issue a separate
order for each parcel of land, and any number of parcels in the
same area and the same county may be included in one order. A
copy of the order making an assessment, certified and
acknowledged by the manager of the authority, shall be filed with
the county clerk of the county in which the land is located. Upon
being filed, the assessment shall constitute a lien against the
land assessed.
(2) Notice of all assessments levied by an authority shall be
given to the landowner by mail and shall be payable on the 30th
day after such notice is mailed unless agreements for payment of
such installments are made pursuant to ORS { - 450.940 - }
{ + 223.205 and 223.210 to 223.295 + }. All assessments shall be
paid to the county treasurer who is custodian of the funds of the
authority and a receipt shall be issued therefor. From time to
time the board shall order the satisfaction of the liens against
lands on which assessments have been paid, and a copy of such
order shall be filed with the county clerk of the county in which
the lands are located.
SECTION 25. ORS 451.490 is amended to read:
451.490. 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 { - or warrants - } authorized under
ORS
{ - 451.530 - } { + 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 and 280.060 to
280.140. A district serial levy adopted under ORS 280.060 shall
not authorize a levy 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.
SECTION 26. ORS 451.492 is amended to read:
451.492. (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 { - and 451.530 - } , 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 { - and 451.530 - }
.
SECTION 27. { + ORS 264.392, 268.495, 287.047, 287.502,
287.504, 287.506, 287.508, 287.510, 287.515, 287.522, 287.524,
287.526, 450.155, 450.940, 451.530 and 523.370 are repealed. + }
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