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Chapter 4502011 EDITION

Sanitary Districts and Authorities; Water Authorities

SANITARY DISTRICTS(Generally)

450.005 Definitions for ORS 450.005 to 450.245

(Formation)450.009 Formation purposes; petition450.045 Board members; qualifications; first terms

(Officers and Elections)450.055 Board officers; term; vacancy450.059 Election laws applicable450.062 Increase of board membership from three

to five members; election450.065 Election of president; appointment, duties

and compensation of secretary450.070 Meetings of board

(Powers)450.075 Powers of sanitary district450.082 District may contract for employee health

care services or insurance450.084 Payment for services or insurance by dis-

trict450.085 Adoption of regulations and ordinances

(District Finances)450.090 Deposit of district funds; contents of

withdrawal or payment order450.095 Bond election450.110 District bonds; denomination; place of

payment; interest450.115 Use of proceeds of bond sale450.120 Debt limitations450.125 Payment of bonds; issuance of improve-

ment bonds450.130 Sewer service charges; collection and en-

forcement450.135 Ordinance declaring method of payment450.140 Assessment ordinance450.145 Entry of assessments in lien docket; lien

docket as public record450.150 Hearing of objections to proposed im-

provements450.160 Collection and enforcement of delinquent

liens; reassessment450.165 Preparation and approval of plans for

drains and sewer installations450.170 Levy of taxes450.175 Collection of taxes450.177 Filing boundary change with county as-

sessor and Department of Revenue

(Annexation)450.215 Plans for division and disposal of proper-

ties450.225 Effective date of annexation; disposition

of properties in territory; liabilities andindebtedness of territory; filing of report

(Miscellaneous)450.245 Application of ORS 450.005 to 450.245 to

districts organized under former laws;savings clause

(Districts With Valuation Less Than $250,000)

450.250 Definitions for ORS 450.250 to 450.300450.255 Districts eligible for state help in financ-

ing sewerage systems450.260 Conditions precedent to financing appli-

cation450.265 Bonds issued by district pursuant to ORS

450.250 to 450.300 are subject to StateTreasurer control; refunding bondsissuable

450.270 Powers of State Treasurer in connectionwith ORS 450.250 to 450.300

450.275 State Treasurer approval of other bondissues by district whose bonds are ownedby state

450.280 Circumstances and conditions underwhich State Treasurer may purchasesewerage system bonds

450.285 State Sanitary District Sewer Bond Fund450.290 Provisions concerning liquidation of in-

debtedness incurred by district financingsewerage system under ORS 450.250 to450.300

450.295 Refinancing indebtedness of district;court-appointed receiver may operate sys-tem

450.300 Duty of treasurer to keep funds separateand to withhold tax receipts for bondpayments; liability of treasurer

(Sanitary District Sewerage System Revolving Fund)

450.303 Purchase of general obligation bonds ofsanitary districts; Sanitary DistrictSewerage System Revolving Fund

JOINT WATER AND SANITARYAUTHORITIES

450.600 Joint authorities; formation; election ofdirectors upon formation; first terms

450.605 Formation of joint authority by consol-idation; transfer of property, rights andpowers to consolidated authority

450.607 Formation of joint authority that includescity or district by consolidation; formationwithin urban growth boundary; transferof property to consolidated authority

450.610 Initiation of proceedings for consolidation;resolution by governing bodies

450.615 Contents of resolution; debt distributionplan; dissolution of existing entities

450.620 Assembly of governing bodies; order forelection on consolidation

450.625 Election result; certification

Title 36 (2011 Edition)

PUBLIC HEALTH AND SAFETY

450.630 Joint meeting of governing bodies afterapproval of consolidation; declaration ofconsolidation; election of board

450.635 Board of directors of joint authority;number; terms; qualifications

450.640 Powers of joint authority; issuance of re-venue bonds

450.645 Election laws applicable

WATER AUTHORITIES450.650 Board of directors; terms; qualifications450.655 Methods of election of authority directors450.658 Election of directors; terms450.660 Water authority formation450.665 Formation of authorities under special

districts law450.675 Formation of authorities from areas

within one or more counties450.680 Formation of authorities by cities and

water districts450.685 Application of certain provisions to au-

thorities450.690 Public body; authority to issue revenue

bonds450.693 Services to other local governments au-

thorized450.695 Acquisition of water rights; effect on pri-

ority of rights450.700 Acquisition of water rights; effect on prior

rights

SANITARY AUTHORITIES(Generally)

450.705 Policy; construction450.710 Definitions for ORS 450.600 to 450.989

(Formation)450.715 Areas which may be formed into sanitary

authorities450.722 Formation of water or sanitary authority

may include dissolution of certain existingdistricts

450.785 Initiation of formation of sanitary au-thority by governing body without peti-tion

450.787 Formation of authorities by cities andsanitary or drainage districts

(Dissolution)450.788 Law applicable to dissolution of authority

(Board and Elections)450.790 Sanitary authority board450.793 Election laws applicable450.795 Nomination and election of first board

members; terms450.800 Regular and special elections; terms of

members; vacancies

(Powers)450.806 General powers of board; selection of

board chairperson; appointment of au-thority manager

450.808 General duties of authority manager450.810 Board may adopt and enforce ordinances

for sanitary purposes

450.815 General powers of authority450.817 Services to other local governments au-

thorized450.820 Authority may maintain garbage col-

lection system and engage in insect con-trol activities

450.825 Plan for sewage disposal and drainage tobe developed by authority

450.830 Authority may construct and operatesewage disposal and drainage systems;operation beyond authority boundaries

450.835 Contract for or purchase of sewage dis-posal and drainage systems

450.837 Water and sanitary authority as munic-ipality for purpose of enforcing plumbingcode; limitations

(Finances)450.840 Costs for construction and operation of

systems and general expenses of sanitaryauthority; how borne

450.845 Areas needing sewerage installations tobe determined and plans for installationsto be made

450.850 Hearing on board’s proposed constructionplans and estimated special assessments;notice of hearing

450.855 Action board may take at hearing con-cerning boundaries, installations to beconstructed, costs and financing

450.860 Portion of installation construction costsin an authority chargeable to area bene-fited

450.865 Ordinance specifying action of board athearing; remonstrances

450.867 Election on ordinance adopted under ORS450.865

450.870 Assessments against benefited property450.875 Collection of delinquent assessments by

lien foreclosure procedure; reassessmentprocedure

450.880 Sewer service charges450.885 Tax levies on property in the authority;

budget for authority450.890 Collection of taxes; taxes are liens on

property450.895 Bonds, general obligation or revenue or

combination of both; bonds to mature se-rially and be paid in installments

450.897 Bancroft Bonding Act applicable450.900 Election on bond issues; limitation on in-

debtedness450.905 Notice of bond election450.915 Issuance of bonds450.920 Disposition of proceeds of sale of bonds450.925 Issuance of refunding bonds450.930 Redemption of bonds before maturity

dates450.945 Custody and disbursement of authority

funds by county treasurer

(Programs for Employees)450.947 Contracts for medical, dental and hospital

services; insurance for employees; effectof failure to contract


SANITARY DISTRICTS; WATER AUTHORITIES

450.949 Payment of contract costs by authorityand by employee; multiple contracts;qualification of insurer or hospital associ-ation

450.963 Employees’ retirement system450.967 Funding of retirement plan450.971 Employee contribution450.973 Eligibility for retirement plan450.977 Tax levy to finance programs under ORS

450.947 to 450.977

(Miscellaneous)450.980 Procedure for testing proceedings and

acts of sanitary authorities

450.985 Authority of South Suburban SanitaryDistrict of Klamath Falls to incur indebt-edness

MISCELLANEOUS450.987 Annexation by city of water or sanitary

authority territory450.988 Filing boundary change with county as-

sessor and Department of Revenue450.989 Apportionment of cost among serviced

property owners; determination by au-thority

PENALTIES450.990 Penalties


PUBLIC HEALTH AND SAFETY


SANITARY DISTRICTS; WATER AUTHORITIES 450.059

SANITARY DISTRICTS(Generally)

450.005 Definitions for ORS 450.005 to450.245. As used in ORS 450.005 to 450.245,unless the context requires otherwise:

(1) “District board” means the governingbody of a district.

(2) “County board” means the countycourt or board of county commissioners ofthe county.

(3) “County” means the county in whichthe district, or the greater portion of thetaxable assessed value of the district or pro-posed district, is located.

(4) “District” means a sanitary districtformed in one or more counties and outsidethe corporate limits of any city pursuant toORS 450.005 to 450.245 or pursuant to anylaw which those sections supersede.

(5) “Owner” means the holder of the re-cord title to real property or the vendee un-der a land sale contract, if there is such acontract.

(6) “Secretary” means the secretary ofthe district. [Amended by 1969 c.563 §1; 1983 c.83 §87;2001 c.373 §1]

(Formation)450.009 Formation purposes; petition.

Sanitary districts may be formed for thepurpose of providing sanitation facilities andservices. In addition to the other matters, apetition for formation of a sanitary districtshall state the number of members, three orfive, on the district board. [1955 c.442 §2 (enactedin lieu of 450.010); 1969 c.563 §2; 1971 c.727 §119; 1975c.647 §36]

450.010 [Repealed by 1955 c.442 §1 (450.009 enactedin lieu of 450.010)]

450.015 [Amended by 1969 c.563 §3; repealed by 1971c.727 §203]

450.017 [1955 c.442 §4; 1969 c.563 §4; repealed by 1971c.647 §149 and by 1971 c.727 §203]

450.020 [Amended by 1955 c.111 §1; 1969 c.563 §5;repealed by 1971 c.727 §203]



450.035 [Repealed by 1971 c.647 §149]


450.045 Board members; qualifica-tions; first terms. (1) The power and au-thority given a sanitary district, except asotherwise provided, shall be exercised by aboard of three or five members, according tothe number set forth in the petition for for-mation.

(2) A person is qualified to be a memberof the board if the person is an elector of orowner in the district.

(3) If the first board to be elected hasthree members:

(a) The terms of the candidates receivingthe highest and second highest votes expireJune 30 next following the second regulardistrict election.

(b) The term of the candidate receivingthe third highest vote expires June 30 nextfollowing the first regular district election.

(4) If the first board to be elected has fivemembers:

(a) The terms of the candidates receivingthe first, second and third highest votes ex-pire June 30 next following the second regu-lar district election.

(b) The term of the candidate receivingthe fourth or fifth highest vote expires June30 next following the first regular districtelection. [Amended by 1955 c.442 §6; 1971 c.647 §83;1971 c.727 §§120,195; 1973 c.796 §62; 1975 c.647 §34; 1983c.83 §88; 1983 c.350 §262; 2007 c.168 §1]


450.052 [1955 c.107 §1; 1969 c.563 §9; repealed by 1971c.727 §203]

450.054 [1955 c.594 §2; 1969 c.563 §10; repealed by1971 c.727 §203]

(Officers and Elections)450.055 Board officers; term; vacancy.

(1) The officers of the district shall be thedistrict board, consisting of three or fivemembers, and a secretary appointed by theboard.

(2) Except as to those members of theboard who are elected on formation andthose members who are elected at anelection when the number of board membersis increased to five, the term of office of eachelected member shall be four years.

(3) Vacancy in the membership of theboard shall occur by reason of the occur-rence of any event listed in ORS 236.010 or,unless excused, by failure to attend threesuccessive regular board meetings. The dis-trict board shall fill any vacancy on theboard as provided in ORS 198.320. [Amendedby 1955 c.442 §7; 1967 c.439 §1; 1969 c.563 §§11,29; 1969c.669 §9; 1975 c.647 §35; 1983 c.350 §263]

450.057 [1961 c.438 §2; 1967 c.609 §9; repealed by 1971c.647 §149]

450.059 Election laws applicable. (1)ORS chapter 255 governs the following:

(a) The nomination and election of mem-bers of the district board.

(b) The conduct of district elections.(2) The electors of a district may exercise

the powers of the initiative and referendum


450.062 PUBLIC HEALTH AND SAFETY

regarding a district measure, in accordancewith ORS 255.135 to 255.205. [1983 c.350 §268]

450.060 [Amended by 1955 c.442 §8; 1967 c.137 §2;1971 c.647 §84; 1973 c.796 §63; 1975 c.647 §37; repealed by1983 c.350 §331a]

450.062 Increase of board membershipfrom three to five members; election. (1)A district having a three member board mayvote to increase the number of members onthe board to five at a regular districtelection as provided in this section. Theboard shall order an election on the questionof increased membership when a petition isfiled with the secretary of the board re-questing that the electors of the district bepermitted to vote on the question. The re-quirements for preparing, circulating and fil-ing a petition under this section shall be asprovided for an initiative petition in ORS255.135 to 255.205. The board shall be in-creased to five members if a majority of thevotes cast on the question favors the in-crease.

(2) At the same election at which thequestion of increasing the board from threeto five members is voted upon, the electorsshall vote for a number of candidates:

(a) To fill any vacancy;(b) To elect a successor to any position

the term of which expires June 30 next fol-lowing the election; and

(c) To elect two candidates to fill the twonew board positions if the board membershipis increased.

(3) If the board membership is increasedunder this section, the Secretary of State byrule shall adjust and stagger the terms of theboard members elected at the election underthis section as necessary so that at least twoboard members are elected at each subse-quent regular district election. [1955 c.442 §5;1971 c.647 §85; 1983 c.350 §265]

450.065 Election of president; appoint-ment, duties and compensation of secre-tary. (1) At its first regular meeting eachyear, or as soon thereafter as practicable, theboard shall choose one of its members aspresident and appoint a secretary.

(2) The secretary shall receive such com-pensation as is fixed by the order of theboard.

(3) The secretary shall perform all dutiesrequired by the board and those prescribedin ORS 450.005 to 450.245.

(4) Within 30 days following the entry ofthe order establishing a district, the secre-tary of the district shall file a written reportwith the Environmental Quality Commission,stating the name of the district, the date ofits formation and the names and addressesof the board members, and shall furnish withthe report a map showing the district bound-

aries. [Amended by 1957 c.671 §1; 1969 c.345 §9; 1971c.727 §121]

450.070 Meetings of board. (1) Theboard shall hold such meetings either in theday or evening, as may be convenient, butmust hold one regular monthly meeting at astated time and public place, at which, so faras practicable, district business shall be con-ducted.

(2) In case of the absence or inability ofthe president or secretary to act, the boardmay, by order entered in its minutes, choosea president pro tempore, or secretary protempore, or both.

(3) Special meetings may be called by thepresident or two members of the board bygiving notice of time and place of the meet-ing six hours in advance.

(Powers)450.075 Powers of sanitary district. A

sanitary district may:(1) Have and use a common seal.(2) Sue and be sued in its name.(3) Acquire, construct, reconstruct, alter,

enlarge, renew, replace, operate and main-tain such sewage collection and disposal sys-tems as in the judgment of the board arenecessary and proper for the area of the dis-trict. In the performance of these functions,either in or out of the district, it may joinwith any other public body as defined in ORS174.109, a federal agency or another state inthe joint establishment, maintenance and op-eration of such works, and may contracttherefor within the limits of authority con-ferred by ORS 450.005 to 450.245.

(4) Permit the use, by lease or otherwise,of any property of the district by any otherpublic body as defined in ORS 174.109, a fed-eral agency or another state.

(5) Acquire by purchase, gift, devise,condemnation proceedings or otherwise, suchreal and personal property and rights of way,either within or without the limits of thedistrict, as in the judgment of the board arenecessary or proper to the exercise of itspowers, and to pay for and hold the same.

(6) Make and accept contracts, deeds, re-leases and documents that, in the judgmentof the board, are necessary or proper in theexercise of any of the powers of the district.

(7) Issue bonds as provided in ORS450.095 to 450.125.

(8) Determine the rate of levy of taxes inthe district, and fix sewer rentals, chargesand assessments as provided in ORS 450.130to 450.175.

(9) Employ and pay necessary agents,employees and assistants.



(10) Lay its sewers and drains in anypublic street or road in the county, and forthis purpose enter upon it and make all nec-essary and proper excavations, restoring it toits proper condition. However, the consentof the proper city, county or state author-ities, as the case may be, shall first be ob-tained and the conditions of such consentcomplied with.

(11) Maintain and operate disposal sitesand solid waste collection and disposal sys-tems in compliance with ORS 459.005 to459.437, 459.992 (1) and (2) and 466.995 (1).

(12) Call all necessary elections.(13) Compel all residents and property

owners in the district to connect theirhouses and structures requiring sewage ordrainage disposal with adjacent street sew-ers, drains or other sewage disposal systemof the district.

(14) Do any act necessary or proper tothe complete exercise and effect of any of itspowers or for the purposes for which it wasformed.

(15) Make and enforce all necessary andproper regulations for:

(a) The cleanliness of roads and streetsof the district.

(b) All other sanitary purposes not inconflict with the laws of this state.

(16) Make and enforce necessary andproper regulations governing the storage,collection, transportation and disposal ofsolid wastes where such regulations are sup-plemental to the requirements of the Envi-ronmental Quality Commission adoptedpursuant to ORS 459.045 and are necessaryto meet special local conditions. [Amended by1967 c.428 §13; 1969 c.563 §12; 1969 c.593 §38; 1971 c.36§6; 1971 c.647 §86; 1971 c.648 §25; 1983 c.350 §266; 2001c.104 §187; 2003 c.802 §116]

450.080 [Repealed by 2011 c.292 §4]

450.082 District may contract for em-ployee health care services or insurance.(1) The district board may enter into con-tracts for medical or any other remedial carerecognized under state law and hospital ser-vices or insurance covering employees of thedistrict for remedial care and hospital bene-fits. Failure to obtain insurance or servicecontracts shall not be construed as negli-gence or lack of diligence on the part of theboard or the members thereof.

(2) As used in this section “remedialcare” includes services rendered by a personlicensed to practice one or more of the heal-ing arts within the scope of the license of theperson. [1967 c.439 §4]

450.084 Payment for services or insur-ance by district. (1) The district may agreeto pay none, part or all of the premiums or

charges on insurance or service contracts,and it may collect from the salary of anyemployee covered by the contract the per-centage of the premiums or charges the em-ployee is required to provide pursuant to thecontract. Contributions for premiums orcharges by employees shall be only on a vol-untary basis.

(2) The board may negotiate more thanone contract with one or more companies orassociations if necessary to obtain optimumcoverage at minimum cost.

(3) No premium or other periodic chargeon any insurance or service contract shallbe paid unless the insurer or hospital associ-ation issuing such policy or contract is au-thorized to transact business as an insurancecompany or hospital association in this state.

(4) Expenses incurred by a district in es-tablishing programs or providing benefits au-thorized by ORS 450.082 and this section areexpenses for which a district may levy taxesas provided by ORS 450.170. [1967 c.439 §§3,5]

450.085 Adoption of regulations andordinances. Any general regulation or ordi-nance of a district board shall be adopted inaccordance with ORS 198.510 to 198.600. Or-ders not establishing a general regulationneed not be posted or published. [Amended by1971 c.268 §16]

(District Finances)450.090 Deposit of district funds; con-

tents of withdrawal or payment order.Funds of the district may be deposited, at thediscretion of the district board, in one ormore depositories, as defined in ORS 295.001,to be designated by the district board. Fundsdeposited in a depository shall be withdrawnor paid out only upon proper order and war-rant or check signed by the president andcountersigned by the secretary. The ordershall:

(1) Specify the name of the person towhom the moneys are paid;

(2) Specify the fund from which the mon-eys are paid;

(3) State generally the purpose for whichthe moneys are paid; and

(4) Be entered in the minutes of theboard. [Amended by 1977 c.318 §1; 2001 c.373 §2]

450.095 Bond election. (1) This sectionestablishes the procedure for determiningwhether bonds of the district, either generalobligation, revenue or a combination of both,shall be issued and sold to raise money forthe purposes set forth in ORS 450.075 (3).The question shall be decided by election.The board:

(a) May order the election on its ownresolution; or



(b) Shall order the election when a peti-tion is filed as provided in this section.

(2) The order of the board calling theelection shall determine the form of thebonding proposal as follows:

(a) The order may submit to the electorsas one proposal the question of issuing bondsto make all outlays, or so many of them asmay be selected; or

(b) The order may submit as separatequestions the issuance of bonds for any ofthe outlays singly or in such combinationsas the order may direct.

(3) The requirements for preparing, cir-culating and filing a petition under this sec-tion shall be as provided for an initiativepetition under ORS 255.135 to 255.205.

(4) In addition to the information re-quired under ORS 255.085 in a notice for anelection on the issuance of bonds, the noticefor an election under this section shall de-scribe the form of the bonding proposal asdetermined under subsection (2) of this sec-tion.

(5) When an election is called pursuantto a petition of electors, the proposal undersubsection (2) of this section must conformwith the proposal of the petition.

(6) If a majority of the votes cast at abond election is in favor of the issuance ofbonds, the board may issue and dispose of thebonds proposed in the order calling theelection. [Amended by 1957 c.671 §2; 1969 c.563 §13;1983 c.83 §89; 1983 c.350 §269]

450.100 [Repealed by 1971 c.647 §149]


450.110 District bonds; denomination;place of payment; interest. (1) General ob-ligation or revenue bonds shall be of suchdenominations as the district board deter-mines, except that no bonds shall be of a de-nomination greater than $5,000.

(2) All bonds shall be payable in lawfulmoney of the United States at a place namedby the district board, and shall bear interestat a rate determined by the district board,payable semiannually. [Amended by 1969 c.563 §14;1981 c.94 §37; 2001 c.373 §3]

450.115 Use of proceeds of bond sale.The proceeds of the sale of bonds shall bepaid to the district. The proceeds shall beused for the purpose indicated in the ordercalling for election upon the question of theissuance of the bonds, and for no other pur-pose. However, if those purposes are entirelyfulfilled, any remaining proceeds shall beused for payment of the principal and inter-est of the bonds. [Amended by 2001 c.373 §4]

450.120 Debt limitations. The total out-standing district bonds of all types, includingimprovement bonds of the kind authorized byORS 223.205 and 223.210 to 223.295, shall atno time exceed in the aggregate 13 percentof the real market value of all taxable prop-erty within the district, computed in accor-dance with ORS 308.207. [Amended by 1955 c.612§1; 1963 c.9 §27; 1991 c.459 §402]

450.125 Payment of bonds; issuance ofimprovement bonds. (1) All general obli-gation and revenue bonds shall be paidwithin a period of 30 years and in annualinstallments of such amounts as will makethe combined amount of principal and inter-est payable each year as nearly equal aspracticable during the years of payment.

(2) Improvement bonds may be issued inthe manner provided by ORS 223.205 and223.210 to 223.295 without submitting thequestion of their issuance to the electors ofthe district. [Amended by 1955 c.612 §2; 1969 c.563§15; 1983 c.350 §270]

450.130 Sewer service charges; col-lection and enforcement. (1) The sanitaryboard may enact ordinances levying sewerservice charges within the district, for thepurpose of financing the construction, opera-tion and maintenance of the sewage col-lection and disposal system.

(2) The board may contract with any cityor district serving water in such area to col-lect such service charges with the waterbills, and the serving agency may cut offwater for nonpayment of such servicecharges. The board may pay the water serv-ing agency for the reasonable cost of suchcollection services.

(3) Service charges may also be collectedand enforced as provided in ORS 454.225.[Amended by 1975 c.247 §1]

450.135 Ordinance declaring methodof payment. (1) For the purposes specifiedin ORS 450.075 (3), a district may declare byordinance before doing the same that thecost, or any portion thereof, shall be assessedagainst the property directly benefited. Or itmay provide in the ordinance that the costshall be paid partly by assessment againstthe property directly benefited and partly outof the general funds of or sewer servicecharges collected by the district.

(2) The determination of the board as ex-pressed in the ordinance as to the proportionof the cost shall be based upon an exerciseof the board’s sound discretion.

450.140 Assessment ordinance. If anyof the cost of sewers, drains or sewagetreatment plants is assessed against theproperty directly benefited thereby, the boardshall, before attempting to make the im-provement or assessment, adopt a general



ordinance providing for the method of as-sessment. The ordinance shall:

(1) Contain provision for notice to prop-erty owners of intention to make the assess-ment and improvement.

(2) Provide that notice shall be not lessthan 20 days before action is taken thereon.

(3) Provide an opportunity for propertyowners to appear before the board for thepurpose of remonstrating against assess-ments.

(4) Provide for the general method of as-sessing the property directly benefited andof the recording of liens against the propertydirectly benefited, and of making supplemen-tary assessments and rebates.

450.145 Entry of assessments in liendocket; lien docket as public record. (1)When assessments are made they shall beentered into a permanent lien docket whichshall be kept in the office of the district andwherein shall be shown the amount of eachlien, property against which it has been as-sessed, the owner thereof and such additionalinformation as is required to keep a perma-nent and complete record of the lien and thepayments thereon.

(2) The lien docket shall be a public re-cord kept by the secretary and shall be opento inspection during all business hours es-tablished by the district.

450.150 Hearing of objections to pro-posed improvements. (1) The board shallappoint a time for the hearing of remon-strances or objections against any proposedimprovement regardless of the method ofpayment. At the time appointed all objectorsor remonstrators shall have the right to beheard.

(2) If two-thirds or more of the ownersof the property directly benefited, which isliable for any of the cost of the sewers,drains or sewage disposal plants, file writtenremonstrances objecting to the proposed im-provement, the board shall sustain the re-monstrances, and no further proceedings inthe matter of proposed improvements shallbe had for a period of six months.

(3) If two-thirds of the owners of theproperty directly benefited by the proposedimprovements do not file written remon-strances against the improvement, the boardmay proceed with the making of the im-provement.

450.155 [Amended by 1953 c.649 §2; 1955 c.19 §1; re-pealed by 1995 c.333 §37]

450.160 Collection and enforcement ofdelinquent liens; reassessment. (1) In casethe whole or any portion of the cost of sew-ers, drains or sewage treatment plants is as-

sessed against the property directly benefitedand the owner of the property fails to paythe amount of the lien, or any portionthereof, or the interest thereon, when theybecome due, the board may proceed to fore-close the lien in any manner provided by lawfor the collection of liens by local govern-ments as defined in ORS 174.116 and mayprovide by ordinance a general procedure forthe collection of liens in any manner not in-consistent with law.

(2) The provisions of ORS 223.405 to223.485 relating to reassessment shall beavailable to sanitary districts where applica-ble. [Amended by 2003 c.802 §117]

450.165 Preparation and approval ofplans for drains and sewer installations.(1) Whenever the board deems it expedientor necessary to cause to be constructed sew-ers, drains or sewage treatment plants, thecost of which, in whole or in part, is to bepaid either by the proceeds of the sale ofbonds by the district or assessed against theproperty directly benefited or by both meth-ods in proportion, the board shall retain aregistered professional engineer to prepareplans and specifications for the sewers,drains or sewage treatment plants, whichplans and specifications shall be filed in theoffice of the secretary of the district.

(2) The district board may, however,adopt any plans and specifications they seefit, provided the plans have been prepared bya registered professional engineer and havebeen approved by the Oregon Health Au-thority and the Environmental Quality Com-mission. [Amended by 2009 c.595 §872]

450.170 Levy of taxes. (1) Assessmentand collection of property taxes within thedistrict shall be made by the county officerscharged with assessment and collection ofother property taxes in the county in whichthe property lies.

(2) The district board shall fix theamount of money to be raised by taxation fordistrict purposes and for the payment of theprincipal and interest of outstanding indebt-edness of the district which will become dueduring the year.

(3) The district board shall, in the man-ner and time prescribed by law, transmit tothe county assessor a statement of suchtaxes. If the board fails to levy a direct advalorem tax sufficient to pay the interest onand the maturing principal of all outstandinggeneral obligation bonds, the county boardof any county in which any portion of thedistrict is included shall levy such tax whichshall be extended and collected the same asall other sanitary district taxes. [Amended by1969 c.563 §16]



450.175 Collection of taxes. (1) Taxeslevied under ORS 450.170 shall be collectedat the same time and in the same manner ascounty taxes are collected, and when col-lected shall be paid to the district.

(2) The taxes shall be a lien upon theproperty against which they are levied in thesanitary district and shall be of the sameforce and effect as other liens for taxes.Their collection shall be enforced by thesame means as provided for the enforcementof liens for state and county taxes. [Amendedby 2001 c.373 §5]

450.177 Filing boundary change withcounty assessor and Department of Re-venue. For purposes of ad valorem taxation,a boundary change must be filed in final ap-proved form with the county assessor and theDepartment of Revenue as provided in ORS308.225. [2001 c.138 §30]

Note: 450.177 was added to and made a part of450.005 to 450.245 by legislative action but was notadded to any smaller series therein. See Preface to Or-egon Revised Statutes for further explanation.

450.178 [1971 c.532 §2; repealed by 1983 c.350 §331a]450.182 [1971 c.532 §3; repealed by 1983 c.350 §331a]450.186 [1971 c.532 §4; repealed by 1983 c.350 §331a]450.190 [1971 c.532 §5; repealed by 1983 c.350 §331a]450.194 [1971 c.532 §6; repealed by 1975 c.647 §53]450.198 [1971 c.532 §7; repealed by 1983 c.350 §331a]450.202 [1971 c.532 §8; repealed by 1983 c.350 §331a]450.205 [Amended by 1957 c.671 §3; 1969 c.563 §17;

repealed by 1971 c.727 §203]450.207 [1957 c.671 §5; 1969 c.563 §18; repealed by

1971 c.727 §203]450.210 [Amended by 1957 c.671 §6; 1969 c.563 §19;

repealed by 1971 c.727 §203]

(Annexation)450.215 Plans for division and disposal

of properties. (1) If territory proposed to beannexed is within the limits of another sani-tary district, the board of the district towhich annexation is proposed and the boardof such other district shall meet with eachother prior to the hearing on the annexationpetition to agree upon a division and disposalof the properties of the other district that liewithin the territory proposed to be annexed.An agreement between the boards is effectiveonly in the event the proposed annexation isapproved by the electors.

(2) The plan of division of properties pro-vided for in subsection (1) of this sectionshall be arrived at by giving consideration tothe assessed valuation of the other districtas a whole, the assessed valuation of theterritory to be annexed, the types of proper-ties and their location and intended use. If aplan of division of properties is agreed upon,the plan shall be reduced to writing and, ifthe proposed annexation is approved by theelectors, shall be binding upon the districts

party to the plan and upon all other inter-ested persons. [Amended by 1957 c.671 §7; 1969 c.563§20; 1971 c.727 §123]


450.225 Effective date of annexation;disposition of properties in territory; li-abilities and indebtedness of territory;filing of report. (1) If the territory annexedto the district was, prior to the vote on thepetition for annexation, within the limits ofanother sanitary district, the effective dateof the annexation shall be the effective dateof the withdrawal from the other district ofthe territory previously within its limits.

(2) Unless a plan for division of proper-ties has been agreed upon as provided inORS 450.215 (2), the district from which theterritory has been withdrawn shall proceedto turn over to the district to which the ter-ritory has been annexed, its properties in theterritory withdrawn. The provisions of ORS222.560 shall govern the method and proce-dure by which such division of propertiesshall be made.

(3) Notwithstanding subsection (2) of thissection, the district to which the territorywas annexed may, in the sound discretion ofits board, assume such obligations if the ob-ligations do not bring the total of thedistrict’s obligation above any applicablelimitations prescribed by law or otherwise.When the district assumes such obligations,it shall be liable to the other district, asprovided by ORS 222.520 (2)(a) or (b), at theoption of the annexing district. After thedistrict agrees to make the payments re-ferred to in this subsection, neither the an-nexing district nor the annexed territoryshall be charged by the other district withany future liabilities, obligations or functionsof the other district.

(4) Within 30 days after the effective dateof the county board’s order of annexation,the secretary of the annexing district shallfile a written report with the EnvironmentalQuality Commission, stating the name of thedistrict and the date of the county board’sorder of annexation, and shall furnish withthe report a map of the district boundariesas they are after the annexation. [Amended by1957 c.671 §10; 1969 c.563 §22; 1971 c.727 §124]

450.227 [1957 c.112 §§2,3,4; 1967 c.137 §1; 1969 c.563§23; repealed by 1971 c.727 §203]

450.228 [1957 c.671 §9; 1969 c.563 §24; repealed by1971 c.727 §203]


450.235 [Amended by 1969 c.563 §26; repealed by1971 c.727 §203]

450.237 [1961 c.679 §§2,3; repealed by 1971 c.727 §203]450.239 [1961 c.679 §§4,5; 1969 c.563 §27; repealed by

1971 c.727 §203]450.240 [Repealed by 1957 c.401 §6]



450.242 [1961 c.679 §§6,7,8; 1969 c.563 §28; repealedby 1971 c.727 §203]

(Miscellaneous)450.245 Application of ORS 450.005 to

450.245 to districts organized under for-mer laws; savings clause. (1) Sanitary dis-tricts organized under chapter 385, OregonLaws 1935, which were exercising the func-tions of sanitary districts on July 16, 1949,are vested with all rights, powers and obli-gations prescribed in ORS 450.005 to 450.245and, after July 16, 1949, shall conduct theirbusiness in accordance with and be subjectto those sections.

(2) No right or obligation incurred by theformation of a sanitary district pursuant tothe provisions of chapter 385, Oregon Laws1935, as amended by chapter 402, OregonLaws 1941, is affected by the repeal of thoseprovisions.

(Districts With Valuation Less Than $250,000)

450.250 Definitions for ORS 450.250 to450.300. (1) “District” means a sanitary dis-trict duly organized under the provisions ofORS 450.005 to 450.245, having an assessedvaluation of not more than $250,000.

(2) “Sewerage system” means completeor primary sewage treatment and disposalfacilities, sewer mains, pumping stations, andall equipment and appurtenances necessary,useful or convenient for the treatment ordisposal of sewage, or any portion of such asystem, whether within or without theboundaries of a district. [1955 c.577 §1; 1959 c.157§9]

450.255 Districts eligible for state helpin financing sewerage systems. Districtsthat have been certified by the Environ-mental Quality Commission as being in needof sewerage systems may apply to the StateTreasurer for the financing of such costs un-der authority of ORS 450.250 to 450.300. TheEnvironmental Quality Commission shallcertify to the State Treasurer, in writing, alist of the districts that are in dire need ofsewerage and sanitation facilities. [1955 c.577§2; 1959 c.574 §1]

450.260 Conditions precedent to fi-nancing application. A district shall notapply to the State Treasurer for financingunder ORS 450.250 to 450.300 unless:

(1) It submits to the State Treasurerplans and specifications prepared by compe-tent registered engineers setting forth thetype or character of sewer system orsewerage facilities proposed for the partic-ular district and the estimated cost of thesystem and of the appurtenances thereto.

(2) It submits to the State Treasurer theproposed plan of the district for liquidationof indebtedness to be incurred for financingthe cost of such system or facilities. [1955 c.577§3; 2009 c.259 §26]

450.265 Bonds issued by district pur-suant to ORS 450.250 to 450.300 are sub-ject to State Treasurer control; refundingbonds issuable. The bonds issued by dis-tricts pursuant to ORS 450.250 to 450.300shall bear such dates, be in such form, runfor such periods of time, bear such rates ofinterest, and be sold by the districts at suchprices as the State Treasurer may determine.Refunding bonds of like obligation may beissued to replace outstanding bonds, providedthe refunding bonds are sold publicly uponcompetitive bids. [1955 c.577 §4; 1981 c.94 §38]

450.270 Powers of State Treasurer inconnection with ORS 450.250 to 450.300.(1) The State Treasurer shall be the solejudge as to whether state funds shall be in-vested in the bonds of a district and as towhich undertakings shall first be financed.The decision of the State Treasurer on thesubject of investment and priority shall befinal.

(2) The State Treasurer may enlist thetechnical services of any state officer or de-partment in a study of the feasibility andcost of the sewerage project. The StateTreasurer further may employ registered en-gineers, at the cost of the district, to makesuch a study for the district and for the StateTreasurer.

(3) The State Treasurer, in the discretionof the State Treasurer, may purchase withmoneys from the revolving fund provided byORS 450.250 to 450.300, general obligationsewerage system bonds of any district, issuedunder authority of ORS 450.250 to 450.300. Ifthe State Treasurer deems it expedient in theacquisition and construction of a seweragesystem for a district to furnish sewerageservice for territory that is contiguous to oroutside the boundaries of the district, theState Treasurer may authorize the district tofurnish such service and to construct part ofits system outside its boundaries for suchpurpose.

(4) The State Treasurer may authorizedistricts to issue sewerage system bonds withthe right reserved to them to redeem bondsat par value and accrued interest prior to thefinal maturity dates of the bonds.

(5) The State Treasurer, in the discretionof the State Treasurer, may authorizedeferment of payment of interest upon thesewerage bonds of the district for a periodnot exceeding three years, and may providefor the issuance of such bonds with gradu-ated rates of interest.



(6) The State Treasurer may specify theprocedure to be followed by a district inavailing itself of the provisions of ORS450.250 to 450.300. [1955 c.577 §5; 2009 c.259 §27]

450.275 State Treasurer approval ofother bond issues by district whose bondsare owned by state. So long as any of thesewerage bonds of the district are owned bythe state, the district shall not issue otherbonds of any character without prior writtenapproval of the State Treasurer. [1955 c.577 §6]

450.280 Circumstances and conditionsunder which State Treasurer may pur-chase sewerage system bonds. (1) TheState Treasurer may purchase from a districtat private sale sewerage system bonds bear-ing interest at a rate agreed upon by theState Treasurer and the district. The bondsshall qualify for investment by the state onlyif the sewer connection charges and revenuesof the sewerage system of the issuing dis-trict, after the payment of operation andmaintenance expenses, are pledged wholly tothe payment of the principal of and interestupon the bonds, and the issuing district shallcovenant to levy ad valorem taxes upon allof the taxable property within its boundariesto meet deficiencies in the charges and re-venues pledged, and only if the combined in-debtedness for all public purposes, other thanstate or federal, within the boundaries of thedistrict, including the proposed seweragesystem indebtedness, but excluding obli-gations issued for other utilities that areself-supporting or self-liquidating or are ap-proximately so, does not exceed 25 percentof the total real market value of all taxableproperty within the district as reflected inthe last roll certified under ORS 311.105. Thelimitation shall apply only to districts thatfinance the costs of their sewerage systemsunder ORS 450.250 to 450.300. The limitationshall include the ratios of indebtedness tothe total valuation, determined in like man-ner, of other subdivisions that overlap thedistrict to an extent of more than 50 percentof the total value of the district. Indebted-ness within the 25 percent limitation may beincurred by a district if approved by theelectors of the district at an election calledand held for that purpose. Notwithstandingthat revenues may have been pledged to thepayment of the principal of and the interestupon a particular issue of general obligationbonds owned by the state, the same revenues,with the approval of the State Treasurer,may be pledged to the payment of the prin-cipal of and the interest on additional issuesof bonds purchased by the state from thedistrict. The additional issues shall be on aparity with previous issues as to the pledgeof charges and revenues. In order to com-plete the financing of a sewerage system, af-ter bonds payable as to principal and interest

from revenues and ad valorem taxation havebeen issued, the State Treasurer may pur-chase issues of general obligation seweragesystem bonds of districts, payable only fromad valorem property taxes, provided such is-sues, together with other obligations of thedistrict, do not exceed the debt limits speci-fied in this section.

(2) All bonds heretofore issued under au-thority of ORS 450.250 to 450.300 and sold tothe state, and the proceedings under whichthey were issued, are approved, validated,ratified, and confirmed, and the bonds arethe valid and legally binding general obli-gations of the issuing district. [1955 c.577 §7;1957 c.121 §1; 1959 c.574 §2; 1971 c.647 §91; 1981 c.94 §39;1981 c.804 §101; 1991 c.459 §403; 1995 c.79 §224]

450.285 State Sanitary District SewerBond Fund. (1) The State Sanitary DistrictSewer Bond Fund is established separate anddistinct from the General Fund. Moneys inthe State Sanitary District Sewer Bond Fundare continuously appropriated to the StateTreasurer for investment under authority ofORS 450.250 to 450.300, and for payment ofcosts of the State Treasurer in connectionwith the investment.

(2) The earnings of the fund establishedunder this section shall accrue to the Gen-eral Fund, and the amounts received in pay-ment of the principal of investments of thefund established under this section shall becredited to the General Fund, to be availablefor the payment of general governmental ex-penses.

(3) The State Treasurer may engage suchassistance and incur such expenses to carryout the purposes of ORS 450.250 to 450.300as may be necessary. [1955 c.577 §8; 1957 c.702 §1;1957 s.s. c.14 §1; 1963 c.341 §4; 2005 c.755 §39]

450.290 Provisions concerning liqui-dation of indebtedness incurred by dis-trict financing sewerage system underORS 450.250 to 450.300. (1) Each district fi-nancing the cost of a sewerage system underauthority of ORS 450.250 to 450.300 shallsubmit to the State Treasurer for approval,a schedule of its rates and sewer connectioncharges, and proposed method of collectionthereof. The rates and charges shall be suchas, in the judgment of the State Treasurer,are sufficient to pay the operation and main-tenance costs of the system and to liquidate,during the period approved by the StateTreasurer, the indebtedness incurred by thedistrict in the construction of the system.The State Treasurer may further require aspart of the agreement to purchase the bondsof the district, that the district levy and col-lect assessments in the manner provided byORS 450.005 to 450.245, and that it pledgethe receipts from such assessments, bothprincipal and interest, to the payment of its



bonds and the interest thereon. The districtshall be fully authorized to levy and collectsuch assessments against properties withinor without the boundaries of the district,that will be benefited by the sewerage systemof the district. Should the receipts of thedistrict prove inadequate to pay such costsand such indebtedness, the State Treasurermay direct the district to increase its ratesand charges to make the sewerage projectself-supporting and self-liquidating, and thedistrict thereupon shall establish the ratesand charges prescribed by the State Treas-urer.

(2) If the district does not have the abil-ity to collect sewerage charges in connectionwith or as part of the charge for anotherservice or utility that can be curtailed to se-cure collection, and if the State Treasurer sodirects, delinquent charges for use of or con-nection with a sewerage system shall be cer-tified to the assessor of the county orcounties in which the district is located andshall be entered upon the tax rolls of thecounty and be collected and accounted for inthe same manner in which city taxes arecollected and accounted for. The said chargesshall constitute liens upon the real propertyof the corporation or person against whomthey are assessed.

(3) The district shall obtain from theState Treasurer approval of its annual bud-gets and tax levies before they are certifiedto the clerk and assessor of the county inwhich the district is located, for extensionupon the county tax rolls. [1955 c.577 §9; 1991c.459 §403a]

450.295 Refinancing indebtedness ofdistrict; court-appointed receiver mayoperate system. If any district fails to meet,when due, any obligations sold to the stateunder authority of ORS 450.250 to 450.300,the State Treasurer and the district mayagree upon and put into effect, any plan theymay consider expedient for refinancing theindebtedness of the district, or the StateTreasurer, with the approval of the circuitcourt of the county in which the major por-tion of the assessed valuation of the districtis located, may appoint a receiver to operatethe sewerage system. The receiver shall actas such so long as the circuit court deemsreceivership necessary to protect the inter-ests of the state and of the district. [1955 c.577§10]

450.300 Duty of treasurer to keepfunds separate and to withhold tax re-ceipts for bond payments; liability oftreasurer. The treasurer of each districtthat finances the cost of a sewerage systemor facilities under authority of ORS 450.250to 450.300 shall keep collections or assess-ments for sewerage service and sewer con-

nection fees separate and distinct from otherfunds of the district and shall withhold fromtax receipts not less often than quarterly thefull amounts proportionate to the elapsedportion of the tax year that have been leviedfor the payment of interest on and the prin-cipal of the sewerage system bonds of thedistrict. For failure to account for seweragerevenues and taxes as provided in this sec-tion, such treasurers shall be liable upontheir official bonds. [1955 c.577 §11]

(Sanitary District Sewerage System Revolving Fund)

450.303 Purchase of general obligationbonds of sanitary districts; Sanitary Dis-trict Sewerage System Revolving Fund.(1) Any sanitary district in the state havingan actual value in excess of $750,000, thathas not been able to sell its general obli-gation bonds on the market upon competitivebids or has not been able to obtain a bid forits bonds pursuant to notice of sale of thebonds published in a newspaper of generalcirculation printed and published for a periodof two consecutive weeks in the county inwhich the major portion of the assessedvalue of the district is located, may sell itsbonds to the State of Oregon, if the bondsare approved for investment by the StateTreasurer. For the purposes of this section,actual value shall be determined in the man-ner prescribed by ORS 450.120. Bonds issuedunder authority of this section, together withother outstanding indebtedness of the dis-trict, shall not exceed in the aggregate 15percent of the actual value of the district.For the purposes of this section, the 15 per-cent limitation shall supersede the limitationimposed by ORS 450.120 or any other law inconflict with this section. Only bonds au-thorized and issued in compliance with ORS450.005 to 450.075, 450.085 to 450.115, 450.125to 450.245 and the provisions of this sectionmay be purchased by the State of Oregon asinvestments of the fund designated in sub-section (2) of this section.

(2) The Sanitary District Sewerage Sys-tem Revolving Fund is established separateand distinct from the General Fund. Moneysin the Sanitary District Sewerage SystemRevolving Fund are continuously appropri-ated to the State Treasurer for investmentunder the authority of this section. The in-terest paid on the investments purchasedpursuant to this section shall be credited tothe General Fund of the State of Oregon, andthe principal, as it is repaid to the state bysanitary districts, shall be credited to theGeneral Fund to be available for the paymentof general governmental expenses. The StateTreasurer is authorized to sell at not lessthan cost, the bonds, in whole or in part,that have been purchased under the author-



ity of this section. The proceeds of sale ofthe bonds shall be credited to the GeneralFund to be available for the payment of gen-eral governmental expenses. [1959 c.425 §§1,2;1963 c.341 §5; 1981 c.94 §40; 2005 c.755 §40]

450.305 [Repealed by 1969 c.25 §1]450.310 [Repealed by 1969 c.25 §1]450.315 [Repealed by 1969 c.25 §1]450.320 [Repealed by 1969 c.25 §1]450.325 [Repealed by 1969 c.25 §1]450.330 [Repealed by 1969 c.25 §1]450.335 [Repealed by 1969 c.25 §1]450.340 [Repealed by 1969 c.25 §1]450.345 [Repealed by 1969 c.25 §1]450.350 [Repealed by 1969 c.25 §1]450.355 [Repealed by 1969 c.25 §1]450.360 [Repealed by 1969 c.25 §1]450.365 [Repealed by 1969 c.25 §1]450.370 [Repealed by 1969 c.25 §1]450.375 [Repealed by 1969 c.25 §1]450.380 [Repealed by 1969 c.25 §1]450.385 [Repealed by 1969 c.25 §1]450.390 [Repealed by 1969 c.25 §1]450.395 [Repealed by 1969 c.25 §1]450.400 [Repealed by 1969 c.25 §1]450.405 [Repealed by 1969 c.25 §1]450.410 [Repealed by 1969 c.25 §1]450.415 [Repealed by 1969 c.25 §1]450.420 [Repealed by 1969 c.25 §1]450.425 [Repealed by 1969 c.25 §1]450.430 [Repealed by 1969 c.25 §1]450.435 [Repealed by 1969 c.25 §1]450.440 [Repealed by 1969 c.25 §1]450.445 [Repealed by 1969 c.25 §1]450.450 [Repealed by 1969 c.25 §1]450.455 [Repealed by 1969 c.25 §1]450.460 [Repealed by 1969 c.25 §1]450.465 [Repealed by 1969 c.25 §1]450.470 [Repealed by 1969 c.25 §1]450.475 [Repealed by 1969 c.25 §1]450.480 [Repealed by 1969 c.25 §1]450.485 [Repealed by 1969 c.25 §1]450.490 [Repealed by 1969 c.25 §1]450.495 [Repealed by 1969 c.25 §1]450.500 [Repealed by 1969 c.25 §1]450.505 [Repealed by 1969 c.25 §1]450.510 [Repealed by 1969 c.25 §1]450.515 [Repealed by 1969 c.25 §1]450.520 [Repealed by 1969 c.25 §1]450.525 [Repealed by 1969 c.25 §1]450.530 [Repealed by 1969 c.25 §1]450.535 [Repealed by 1969 c.25 §1]450.540 [Repealed by 1969 c.25 §1]450.545 [Repealed by 1969 c.25 §1]450.550 [Repealed by 1969 c.25 §1]450.555 [Repealed by 1969 c.25 §1]450.560 [Repealed by 1969 c.25 §1]450.565 [Repealed by 1969 c.25 §1]

450.570 [Repealed by 1969 c.25 §1]450.575 [Repealed by 1969 c.25 §1]450.580 [Repealed by 1969 c.25 §1]

JOINT WATER AND SANITARYAUTHORITIES

450.600 Joint authorities; formation;election of directors upon formation; firstterms. (1) A joint water and sanitary au-thority may be formed as provided in ORS198.705 to 198.955.

(2) Five or seven directors of the boardof the joint water and sanitary authorityshall be elected at the election for formationof the joint water and sanitary authority,according to the number set forth in the pe-tition for formation.

(3) When the effective date of the forma-tion of the joint authority occurs in an odd-numbered year:

(a) If the governing body of the joint au-thority is a board of directors of five mem-bers, three district board members shall beelected for four-year terms and the other twodistrict board members shall be elected fortwo-year terms; and

(b) If the governing body of the joint au-thority is a board of directors of seven mem-bers, four district board members shall beelected for four-year terms and the otherthree district board members shall be electedfor two-year terms.

(4) When the effective date of the forma-tion occurs in an even-numbered year:

(a) If the governing body of the joint au-thority is a board of directors of five mem-bers, three district board members shall beelected for three-year terms and the othertwo district board members shall be electedfor one-year terms; and

(b) If the governing body of the joint au-thority is a board of directors of seven mem-bers, four district board members shall beelected for three-year terms and the otherthree district board members shall be electedfor one-year terms.

(5) The terms of the members of the firstboard shall be determined by lot at the firstmeeting of the board after the election. [1993c.577 §1]

450.605 Formation of joint authorityby consolidation; transfer of property,rights and powers to consolidated au-thority. (1) In addition to formation underORS 198.705 to 198.955, a joint water andsanitary authority may also be formed byconsolidation of a water authority and asanitary authority as provided by ORS450.610 to 450.630 if the consolidation is ap-proved by the electors or if it is approved bya local government boundary commission as



provided by ORS 199.480 (1)(c). The author-ities included in the consolidation shall beconsidered joined into a single new joint au-thority.

(2) If the consolidation is approved, theauthority boards and officers of the consol-idating authorities shall turn over to theboard of the successor authority all funds,property, contracts and records of the con-solidating authorities. Upon the effectivedate of the consolidation, the successor jointauthority shall:

(a) Succeed to all the property, contracts,rights and powers of the consolidating au-thorities, and shall constitute and be a regu-larly organized authority as if originallyorganized in the manner provided by ORS198.705 to 198.955;

(b) Have the right to receive uncollectedtaxes, assessments or charges levied by theconsolidating authorities and upon collectionto credit the taxes, assessments or chargesto the account of the successor joint author-ity; and

(c) Subject to any debt distribution planadopted under ORS 450.615, become liable forall the obligations, legal or contractual, ofthe consolidating authorities. [1993 c.577 §2]

450.607 Formation of joint authoritythat includes city or district by consol-idation; formation within urban growthboundary; transfer of property to consol-idated authority. (1) In addition to forma-tion under ORS 198.705 to 198.955, a jointwater and sanitary authority may be formedby consolidation of a water authority and asanitary authority or by the consolidation ofa water authority or sanitary authority andany combination of cities or districts as pro-vided by ORS 450.610 to 450.630 if the con-solidation is approved by the electors or if itis approved by a local government boundarycommission as provided in ORS 199.480 (1)(c).The entities included in the consolidationshall be considered joined into a single newjoint authority. Except for the consolidationof an existing water authority and sanitaryauthority, if the consolidating entities arewithin the urban growth boundary of a cityor the city provides water supply, wastewatertreatment or surface water management andtreatment, then the consolidating entitiesmust:

(a) Obtain consent for the consolidationby resolution of the affected city or districtprior to calling an election; or

(b) Comply with the formation proceduresset forth in ORS 450.600 and satisfy the re-quirements of ORS 450.787.

(2) If the consolidation is approved, thegoverning bodies of the affected entities andofficers of the consolidating entities shall

turn over to the board of the successor au-thority all funds, property, contracts and re-cords of the consolidating entities. Upon theeffective date of the consolidation, the suc-cessor joint authority shall:

(a) Succeed to and hold the property,contracts, rights and powers of the consol-idating entities with respect to water-relatedservices and be a regularly organized au-thority as if originally organized in the man-ner provided by ORS 198.705 to 198.955;

(b) Have the right to receive the uncol-lected taxes, assessments or charges leviedby the consolidating entities and, upon col-lection, to credit the taxes, assessments orcharges to the account of the successor jointauthority; and

(c) Subject to any debt distribution planadopted under ORS 450.615, become liable forall the legal or contractual obligations of theconsolidating entities. [1997 c.590 §6]

Note: 450.607 was enacted into law by the Legisla-tive Assembly but was not added to or made a part ofORS chapter 450 or any series therein by legislativeaction. See Preface to Oregon Revised Statutes for fur-ther explanation.

450.610 Initiation of proceedings forconsolidation; resolution by governingbodies. (1) Consolidation into a joint waterand sanitary authority may be initiated byresolution adopted or approved by two ormore authorities or district or city governingbodies. However, of the entities initiating theproceedings for consolidation, at least onemust be an authority formed under thischapter while the others may consist of anycombination of districts or cities. A resolu-tion adopted or approved under this subsec-tion shall state the names of the affectedentities and the name of the successor jointauthority.

(2) When proceedings have been initiatedas provided in subsection (1) of this section,and the consolidating entities are subject tothe jurisdiction of a local governmentboundary commission, the initiating docu-ments shall be filed with the boundary com-mission as provided by ORS 199.476. [1993 c.577§3; 1997 c.590 §7]

450.615 Contents of resolution; debtdistribution plan; dissolution of existingentities. (1) A resolution proposing consol-idation of a water authority and a sanitaryauthority shall state the number of membersto be on the board of directors of the jointwater and sanitary authority.

(2) A resolution proposing consolidationof a water authority and a sanitary authoritymay include a debt distribution plan to bevoted upon as a part of the proposal. Theplan may provide for any distribution of in-debtedness and may require that a consol-idating authority remain solely liable for all



or any portion of any indebtedness outstand-ing at the time of the consolidation.

(3) A resolution proposing consolidationinto a joint water and sanitary authority mayinclude a declaration that some or all of theexisting water or sanitary authorities or dis-tricts proposing consolidation shall be dis-solved upon formation of the joint authority.

(4) If the consolidation is approved, theboard of the successor joint authority shall,in accordance with the debt distributionplan, levy taxes and assessments for the liq-uidation of any prior existing indebtedness.Such a levy shall be subject to the principalAct of the consolidated authority. [1993 c.577§4; 1997 c.590 §8]

450.620 Assembly of governing bodies;order for election on consolidation. (1)When the governing body of each affectedentity has adopted or approved a resolutionpursuant to ORS 450.615, the governing bodyof the affected entity having the largest pop-ulation according to the most recent federaldecennial census shall call a joint assemblyof the governing bodies of the affected enti-ties. The governing body calling the joint as-sembly shall specify the time and place of theassembly. The secretary of the governingbody shall give notice of the assembly toeach member of the governing body of eachaffected entity. The notice shall be given bycertified mail.

(2) At the joint assembly, a majority ofthe members of each governing body consti-tutes a quorum for the transaction of busi-ness.

(3) The assembly, by a majority of allmembers present, shall adopt an order call-ing an election in each affected authority.The order shall include the matters specifiedin ORS 198.745. [1993 c.577 §5; 1997 c.590 §9]

450.625 Election result; certification.The governing body of each affected entityshall meet separately not later than the fifthday after receiving from the county clerk theabstract of the votes cast in the election onconsolidation. At the meeting, the governingbody of the entity shall determine the resultof the election and certify the result. [1993c.577 §6; 1997 c.590 §10]

450.630 Joint meeting of governingbodies after approval of consolidation;declaration of consolidation; election ofboard. (1) If the proposal for consolidationis approved by a majority of the votes castin each affected authority or is approved bya local government boundary commission,the governing body of the authority with thelargest population according to the most re-cent federal decennial census shall call ajoint meeting of the governing bodies of theaffected authorities. The meeting shall be

held at a time and place designated by thegoverning body calling the meeting, not laterthan 10 days after the canvass of the vote inthe authority last canvassed. The secretaryof the authority calling the meeting shallgive notice of the time and place of themeeting to each member of the governingbody of each affected authority.

(2) At the joint meeting, a majority of themembers of the governing body of each af-fected authority constitutes a quorum for thetransaction of business. The members so as-sembled shall from among the members electfive or seven persons to serve as boardmembers of the successor joint authority un-til June 30 following the next regular districtelection as defined in ORS 255.005. The boardso elected shall immediately meet and or-ganize and shall by resolution declare thejoint water and sanitary authority formed.From the date of adoption of the resolutionthe consolidation is complete.

(3) At the first regular election held inthe joint water and sanitary authority afterconsolidation, five or seven board membersshall be elected. The terms of office of themembers elected shall be determined by lotat their first meeting after their election.When the resolution proposing consolidationprovides for a five-member board for the jointwater and sanitary authority, the terms ofthree of the members first elected to theboard shall expire on June 30 next followingthe date of the first regular district electionin the joint authority. The terms of the re-maining two members shall expire on June30 next following the date of the second reg-ular district election in the joint authority.When the resolution proposing consolidationprovides for a seven-member board for thejoint water and sanitary authority, the termsof four of the members first elected to theboard shall expire on June 30 next followingthe date of the first regular district electionin the joint authority. The terms of the re-maining three members shall expire on June30 next following the date of the second reg-ular district election in the joint authority.[1993 c.577 §7]

450.635 Board of directors of joint au-thority; number; terms; qualifications. (1)The governing body of a joint water andsanitary authority shall be a board of direc-tors of five or seven members, based uponthe number of board members specified inthe petition for formation or in the resolu-tion proposing consolidation of a water au-thority and a sanitary authority into thejoint water and sanitary authority.

(2) Each director elected shall hold officefrom July 1 next following election.

(3) The term of office of a director of ajoint water and sanitary authority is four



years. However, each director shall hold of-fice until the election and qualification of asuccessor.

(4) The board of directors of the jointwater and sanitary authority shall fill anyvacancy on the board as provided in ORS198.320.

(5) Any elector residing within the jointwater and sanitary authority is qualified tobe a member of the board of directors of thejoint authority.

(6) Notwithstanding subsection (5) of thissection, a person who is an employee of ajoint water and sanitary authority is notqualified to serve as a director of the jointwater and sanitary authority by which theperson is employed. [1993 c.577 §9]

450.640 Powers of joint authority; is-suance of revenue bonds. (1) Except asotherwise provided in this section, a jointwater and sanitary authority possesses allthe duties, functions and powers granted towater authorities and to sanitary authoritiesunder ORS 450.600 to 450.989.

(2) Revenue bonds issued by a joint waterand sanitary authority shall be issued asprescribed in ORS chapter 287A. [1993 c.577§10; 2007 c.783 §186]


(a) The nomination and election of themembers of the board of directors of a jointwater and sanitary authority.

(b) The conduct of elections in the jointauthority.

(2) The members of the board of directorsof a joint water and sanitary authority shallbe elected at large by position number by theelectors of the district. [1993 c.577 §8]

WATER AUTHORITIES450.650 Board of directors; terms;

qualifications. (1) The governing body of awater authority shall be a board of directorsof five or seven members.

(2) The term of office of a director of awater authority is four years.

(3) Any elector residing within the pro-posed water authority is qualified to be amember of the board of directors of the au-thority.

(4) Notwithstanding subsection (3) of thissection, a person who is an employee of awater authority is not qualified to serve asa director of the water authority by whichthe person is employed. [1987 c.863 §4; 1989 c.809§2; 1993 c.577 §21]

450.655 Methods of election of author-ity directors. (1) The directors of a water

authority may be elected by one of the fol-lowing methods:

(a) Elected by the electors of zones asnearly equal in population as feasible ac-cording to the latest federal decennial cen-sus.

(b) Elected at large by position numberby the electors of the district.

(2) Candidates for election from zonesshall be nominated by the electors of thezones.

(3) If the directors of the water authorityare elected from zones, the board of the wa-ter authority, after each federal decennialcensus, shall adjust the boundaries of thezones to make them as nearly equal in popu-lation as feasible. [1987 c.863 §5; 1993 c.577 §22]

450.658 Election of directors; terms.(1) Five or seven directors of the water au-thority shall be elected at the election forformation of the authority or, if no electionis held on the question of formation, at theelection held under ORS 198.825.

(2) When the petition or resolution pro-posing formation provides for a five-memberboard for the water authority, the terms ofthree of the members first elected to theboard shall expire on June 30 next followingthe date of the first regular district electionin the water authority. The terms of the re-maining two members shall expire on June30 next following the date of the second reg-ular district election in the water authority.When the petition or resolution proposingformation provides for a seven-member boardfor the water authority, the terms of four ofthe members first elected to the board shallexpire on June 30 next following the date ofthe first regular district election in the waterauthority. The terms of the remaining threemembers shall expire on June 30 next fol-lowing the date of the second regular districtelection in the water authority. [1987 c.863 §6;1993 c.577 §23]

450.660 Water authority formation. Awater authority may be formed by any of themethods provided for in ORS 450.665 to450.680 or 450.785. [1987 c.863 §2; 1993 c.577 §24]

450.665 Formation of authorities un-der special districts law. A water authoritymay be formed as provided in ORS 198.800 to198.825 except that:

(1) A petition for formation shall besigned by not less than 100 electors regis-tered in the territory subject to the petitionand shall state the number of members to beon the board of directors of the proposed au-thority.

(2) In its order creating the water au-thority, the county board shall prescribe themethod of election of the board of the pro-



posed authority from among the methods de-scribed in ORS 450.655. If the county boarddetermines that the directors of the waterauthority shall be elected from zones, thecounty board shall establish and describe thezones, using streets and other generally re-cognizable features. [1987 c.863 §3; 1993 c.577 §25]

450.670 [1987 c.863 §9; 1989 c.809 §6; renumbered450.987 in 1989]

450.675 Formation of authorities fromareas within one or more counties. Anyportion of one or more counties, includingboth incorporated and unincorporated areasas well as areas within domestic water sup-ply districts, county service districts for wa-ter supply works and other districts may beformed into a water authority under ORS450.600 to 450.989. Such areas need not becontiguous. [1971 c.504 §3; 1993 c.577 §26]

450.680 Formation of authorities bycities and water districts. (1) The govern-ing bodies of two or more cities, two or morewater districts or one or more cities and oneor more water districts, when they considerit necessary for the public health, safety andwelfare, may initiate the formation of a wa-ter authority by resolution. The resolutionshall set forth the name and boundaries ofthe proposed water authority and the numberof members to be on the board of directorsof the proposed authority. The governingbodies shall file the resolution with the gov-erning body of the principal county, as de-fined in ORS 198.705. If any part of theproposed water authority is within a city, theresolution shall be accompanied by a certi-fied copy of a resolution of the governingbody of the city approving the resolution thatinitiates formation of the water authority.

(2) Upon receipt of the resolution, thecounty governing body or boundary commis-sion shall determine that provision of potablewater to the area within the proposed waterauthority can best be achieved by creationof a water authority rather than by waterdistricts or cities. In making this determi-nation, the county governing body shall con-sider the following factors:

(a) The ability of the proposed authorityto provide water service to the area withinthe proposed authority;

(b) The effect on both long and short-term rates for patrons within the proposedauthority;

(c) The impact, if any, of the proposedwater authority on adjacent special districtsand cities; and

(d) Consistency of the proposed waterauthority with the adopted comprehensiveplan of the county within the boundaries ofthe proposed water authority.

(3) After the county governing body orboundary commission makes the determi-nation under subsection (2) of this section,the county governing body shall by orderprovide for a public hearing on the proposal.The order shall set forth the date, time andplace of the hearing. Notice of the hearingshall be given in the manner provided byORS 198.800 except that the notice shallstate that the governing bodies of the citiesor water districts have filed a resolutionwith the county governing body declaringtheir intention to initiate formation. Thehearing and election on the proposal, andelection of board members, shall be con-ducted as provided by ORS 198.800 to198.825. [1971 c.504 §4; 1983 c.740 §172; 1987 c.863 §11;1989 c.809 §3; 1993 c.577 §27]

450.685 Application of certain pro-visions to authorities. (1) Except as pro-vided by subsection (2) of this section, ORS450.070, 450.084, 450.085 and 450.600 to450.989 apply to a water authority.

(2) ORS 450.810 (1), 450.815 (7), (8) and(9), 450.820 and 450.835 do not apply to awater authority.

(3) ORS 264.240, 264.250 (2), 264.300 to264.320 and 264.505 to 264.840 are applicableto a water authority. [1971 c.504 §5; 1989 c.809 §4;1993 c.577 §28]

450.690 Public body; authority to issuerevenue bonds. A water authority is a pub-lic body for the purposes of ORS chapter287A, and revenue bonds issued by a waterauthority shall be issued in accordance withORS chapter 287A. [1987 c.863 §8; 1993 c.577 §29;2007 c.783 §187]

450.693 Services to other local gov-ernments authorized. A water authoritymay provide any of the services that it isauthorized to provide under ORS 450.600 to450.989 to other local governments as definedin ORS 174.116 situated within the bound-aries of the authority at wholesale, retail ora combination of wholesale and retail. [1993c.577 §13; 2003 c.802 §118]

450.695 Acquisition of water rights;effect on priority of rights. (1) A waterauthority may acquire water rights from anylocal government as defined in ORS 174.116.Upon request by the authority if the waterright acquired was for municipal use, theWater Resources Commission shall issue anew water right certificate to the water au-thority preserving the previously establishedpriority of water rights.

(2) In accordance with ORS 540.520 and540.530, a water authority may change thepoints of diversion of water or move the wa-ter intake sources as specified in the waterright permits or certificates of those localgovernments as defined in ORS 174.116 that



were merged into the authority. [1989 c.707 §1;1993 c.577 §30; 2003 c.802 §119]

Note: 450.695 and 450.700 were enacted into law bythe Legislative Assembly but were not added to or madea part of ORS chapter 450 or any series therein by leg-islative action. See Preface to Oregon Revised Statutesfor further explanation.

450.700 Acquisition of water rights;effect on prior rights. (1) A water authoritymay acquire water rights from any city orany district, as defined in ORS 543.655. Uponrequest by the authority, the Water Re-sources Commission shall issue a new waterright certificate to the water authority pre-serving the previously established priority ofwater rights.

(2) Upon compliance with ORS 540.520and 540.530, a water authority may changethe points of diversion of water or move thewater intake sources as specified in the wa-ter right permits of those districts that weremerged into the authority. Upon the filingof notice of such changes with the WaterResources Department, the changes shall notimpair any water right previously vested inthose districts. [1989 c.809 §1; 1993 c.577 §31]

Note: See note under 450.695.

SANITARY AUTHORITIES(Generally)

450.705 Policy; construction. (1) Ithereby is recognized and declared that thesewage disposal, drainage, insect control andrelated problems in many of the areas of thestate where the population is rapidly ex-panding can best be solved through the co-operative and integrated effort and supportof unincorporated and incorporated areas. Itis the purpose of ORS 450.600 to 450.989 toprovide a means whereby such cooperationand integration can be achieved and ORS450.600 to 450.989 is to be construed liberallyto accomplish this purpose.

(2) It is recognized also that potable wa-ter supply problems in many areas of thestate where the population is rapidly ex-panding can best be solved through the co-operative and integrated effort and supportof unincorporated and incorporated areas. Itis the purpose of ORS 450.600 to 450.989 toprovide a means whereby water authoritiescan be formed and such cooperation and in-tegration can be achieved and ORS 450.600to 450.989 is to be construed liberally to ac-complish that purpose. [1955 c.614 §1; 1971 c.504§1; 1993 c.577 §32]

450.710 Definitions for ORS 450.600 to450.989. As used in ORS 450.600 to 450.989unless the context clearly indicates other-wise:

(1) “Authority” means a sanitary author-ity established under ORS 450.600 to 450.989.

(2) “Board” means the sanitary authorityboard under ORS 450.600 to 450.989.

(3) “Construction” includes the acquisi-tion of land or other property for the con-struction of an installation and theimprovement, enlargement, alteration andreconstruction of an installation and the ac-quisition of existing sewage disposal ordrainage systems, or portions thereof.

(4) “Governing body” means the countycourt or board of county commissioners of acounty.

(5) “Owner of land” or “landowner”means a vendee under a recorded land salecontract or if there is no such contract theholder of the record title to the land inwhich vendee or holder has a present inter-est equal to or greater than a life estate asshown on the last available complete assess-ment roll in the office of the county assessor.[1955 c.614 §2; 1971 c.647 §92; 1983 c.83 §90; 1989 c.809§7]

(Formation)450.715 Areas which may be formed

into sanitary authorities. Any portion ofone or more counties, including both incor-porated and unincorporated areas as well asareas within sanitary, drainage and otherdistricts, may be formed into a sanitary au-thority under ORS 450.600 to 450.989. Suchareas need not be contiguous. [1955 c.614 §3;1989 c.809 §8]

450.720 [1955 c.614 §4; repealed by 1971 c.727 §203]

450.722 Formation of water or sani-tary authority may include dissolution ofcertain existing districts. (1) When forma-tion of a water authority or a sanitary au-thority is proposed, the petition or resolutionfor formation under ORS 198.705 to 198.955or the resolution or order for formation un-der ORS 450.600 to 450.989 may include, inaddition to the information required underORS 198.705 to 198.955 and 450.600 to450.989, a declaration that some or all of theexisting water, sanitary or drainage districtslocated entirely within the proposed waterauthority or sanitary authority shall be dis-solved upon formation of the authority.

(2) Upon formation of a water authorityor a sanitary authority, the districts declaredto be dissolved in the petition, resolution ororder for formation, either as originally filedor as amended by a local government bound-ary commission or by a county governingbody, are extinguished upon the effectivedate of the formation of the water authorityor the sanitary authority. On the effectivedate of such formation, the water authorityor sanitary authority succeeds to all the as-



sets and becomes charged with all the liabil-ities, obligations and functions of thedistricts. The district officers shall forthwithdeliver to the water authority or sanitaryauthority the district assets and records.Uncollected taxes theretofore levied by suchdistricts shall become the property of thewater authority or the sanitary authority andbe delivered to it by the county treasurerupon collection. [1993 c.577 §11]


450.725 [1955 c.614 §5; repealed by 1971 c.727 §203]

450.730 [1955 c.614 §6; repealed by 1971 c.727 §203]

450.735 [1955 c.614 §7; repealed by 1971 c.727 §203]

450.740 [1955 c.614 §8; repealed by 1971 c.727 §203]

450.745 [1955 c.614 §9; repealed by 1971 c.727 §203]

450.750 [1955 c.614 §10; repealed by 1971 c.727 §203]

450.755 [1955 c.614 §11; repealed by 1971 c.647 §149and by 1971 c.727 §203]


450.765 [1955 c.614 §13; 1967 c.609 §10; repealed by1971 c.647 §149]



450.780 [1955 c.614 §16; repealed by 1971 c.727 §203]

450.785 Initiation of formation of san-itary authority by governing body with-out petition. In addition to other methodsof initiating proceedings for the formation ofa sanitary authority under ORS 450.705 to450.860 and 450.865 to 450.945 and when theyconsider it necessary for the protection ofthe public health, safety and welfare, thegoverning bodies of one or more countiesmay on their own motion initiate the forma-tion of a sanitary authority by order in themanner provided in ORS 198.835. However,a district proposed to be initiated under thissection need not be located entirely withinone county. If the governing body of morethan one county initiates formation of a san-itary authority under this section, the gov-erning body of the principal county, as thatterm is defined in ORS 198.705, shall set thedate, time and place of the public hearing,give notice of the hearing, conduct the hear-ing and call the election as provided in ORS198.800 to 198.825. [1955 c.614 §17; 1971 c.727 §126;1983 c.740 §173]

450.787 Formation of authorities bycities and sanitary or drainage districts.(1) The governing bodies of two or more cit-

ies, two or more sanitary or drainage dis-tricts or one or more cities and one or moredistricts, when they consider it necessary forthe public health, safety and welfare, mayinitiate the formation of a sanitary authorityby resolution. The resolution shall set forththe name and boundaries of the proposedsanitary authority. The governing bodiesshall file the resolution with the governingbody of the principal county, as defined inORS 198.705. If any part of the proposedsanitary authority is within a city, the reso-lution shall be accompanied by a certifiedcopy of a resolution of the governing bodyof the city approving the resolution that ini-tiates formation of the sanitary authority.

(2) Upon receipt of the resolution, thecounty governing body or boundary commis-sion shall determine that provision of sewagedisposal or drainage services to the areawithin the proposed sanitary authority canbest be achieved by creation of a sanitaryauthority rather than by sanitary or drainagedistricts or cities. In making this determi-nation, the county governing body shall con-sider the following factors:

(a) The ability of the proposed authorityto provide sewage disposal or drainage ser-vices to the area within the proposed au-thority;

(b) The effect on both long and short-term rates for patrons within the proposedauthority;

(c) The impact, if any, of the proposedauthority on adjacent special districts andcities; and

(d) Consistency of the proposed authoritywith the adopted comprehensive plan of thecounty within the boundaries of the proposedwater authority.

(3) After the county governing body orboundary commission makes the determi-nation under subsection (2) of this section,the county governing body shall by orderprovide for a public hearing on the proposal.The order shall set forth the date, time andplace of the hearing. Notice of the hearingshall be given in the manner provided byORS 198.800 except that the notice shallstate that the governing bodies of the citiesor districts have filed a resolution with thecounty governing body declaring their inten-tion to initiate formation. The hearing andelection on the proposal, and election ofboard members, shall be conducted as pro-vided by ORS 198.800 to 198.825. [1989 c.809 §10]



(Dissolution)450.788 Law applicable to dissolution

of authority. A water authority or a sani-tary authority formed under ORS 450.600 to450.989 may be dissolved in the manner setforth in ORS 198.920 to 198.955 for otherdistricts. [1993 c.577 §12]


(Board and Elections)450.790 Sanitary authority board. (1)

The officers of the authority shall be a boardof five members elected as provided in ORS450.793 and 450.795, a chairperson of theboard appointed under ORS 450.806 and amanager appointed by the board under ORS450.806.

(2) Any elector residing within the pro-posed authority is qualified to be a memberof the board of the authority.

(3) Notwithstanding subsection (2) of thissection, a person who is an employee of asanitary authority is not qualified to serveas a member of the board of the sanitary au-thority by which the person is employed.[1955 c.614 §18; 1983 c.350 §270a; 1989 c.809 §5]


(a) The nomination and election of mem-bers of the district board.

(b) The conduct of district elections.(2) The electors of a district may exercise

the powers of the initiative and referendumregarding a district measure, in accordancewith ORS 255.135 to 255.205. [1983 c.350 §272b]

450.795 Nomination and election offirst board members; terms. (1) The fivepersons receiving the highest number ofvotes shall be elected as members of theboard.

(2) The terms of the members of the firstboard shall be determined by lot at their firstmeeting after their election. The terms oftwo of the members shall expire June 30 nextfollowing the date of the first regularelection in the authority. The terms of threeof the members shall expire June 30 nextfollowing the date of the second regularelection in the authority. [1955 c.614 §19; 1971c.647 §97; 1971 c.727 §§127,196; 1973 c.796 §64; 1975 c.647§38; 1983 c.350 §271]

450.800 Regular and special elections;terms of members; vacancies. (1) Theboard may call special elections in the au-thority to be held on a date specified in ORS255.345.

(2) Except as provided in ORS 450.795,the term of a board member is four years.

(3) The board shall fill any vacancy onthe board as provided in ORS 198.320.

(4) The board may submit to the electorsof the district at the regular election anymeasure which may properly be submitted tothe electors. [1955 c.614 §20; 1969 c.669 §10; 1971 c.647§98; 1973 c.796 §65; 1975 c.647 §39; 1983 c.83 §91; 1983c.350 §272]

450.802 [1955 c.614 §21; repealed by 1971 c.403 §18]450.804 [1955 c.614 §22; repealed by 1969 c.669 §21]

(Powers)450.806 General powers of board; se-

lection of board chairperson; appoint-ment of authority manager. (1) The boardis the governing body of the authority andshall exercise all powers thereof.

(2) The board shall every two years ap-point one of its members as chairperson toserve for a two-year term. A chairperson soappointed is eligible for reappointment aschairperson.

(3) The board shall appoint a profes-sionally qualified person as manager of theauthority. The manager shall serve at thepleasure of the board and receive such com-pensation as is fixed by the board. [1955 c.614§23; 2011 c.292 §3]

450.808 General duties of authoritymanager. The manager of the authorityshall, subject to the direction and control ofthe board, serve as the administrator andsupervisor of the functions and operations ofthe authority and shall perform all dutiesprescribed by the board. [1955 c.614 §24]

450.810 Board may adopt and enforceordinances for sanitary purposes. (1) Thedistrict board may, for the protection of thehealth, safety and general welfare of the au-thority, adopt and enforce all necessary andproper regulations or ordinances for:

(a) The control of sewage disposal anddrainage.

(b) The storage, collection, transportationand disposal of solid wastes where such reg-ulations are supplemental to the require-ments of the rules of the EnvironmentalQuality Commission adopted pursuant toORS 459.045, and are necessary to meet spe-cial local conditions.

(c) The cleanliness of roads and streetsin the authority.

(d) The control of mosquitoes and otherinsects.

(e) All other sanitary purposes not inconflict with the laws of this state.

(2) Any general ordinance of the districtboard shall be enacted in accordance withORS 198.510 to 198.600. [1955 c.614 §26; 1967 c.428§14; 1969 c.593 §39; 1971 c.268 §17; 1971 c.648 §26; 1973c.835 §163]



450.815 General powers of authority.For the purpose of carrying out the powersgranted to the authority under other pro-visions of ORS 450.600 to 450.989 and in ad-dition thereto, the authority may:

(1) Have and use a common seal.(2) Sue and be sued in its name.(3) Permit the use, by lease or otherwise,

of any property of the authority by any otherauthority, district, city or other govern-mental agency.

(4) Acquire by purchase, gift, devise,condemnation proceedings or otherwise, suchreal and personal property and rights of way,either within or without the authority, as inthe judgment of the board are necessary orproper to the exercise of its powers, and topay for and hold the same.

(5) Make and accept contracts, deeds, re-leases and documents which, in the judgmentof the board, are necessary or proper in theexercise of any of the powers of the author-ity.

(6) Employ and pay necessary agents,employees and assistants.

(7) Lay its sewers and drains in any pub-lic street, highway or road in the county, andfor this purpose enter upon it and make allnecessary and proper excavations, restoringit to its proper condition. However, the con-sent of the proper city, county or state au-thorities, as the case may be, shall first beobtained and the conditions of such consentcomplied with.

(8) Compel all residents and propertyowners in the authority to connect theirhouses and structures requiring sewage dis-posal with adjacent sewers within the au-thority.

(9) Fix sewer charges and rentals.(10) Do any act necessary or proper to

effect and carry out the purposes for whichthe authority was formed pursuant to ORS450.600 to 450.989. [1955 c.614 §25; 2001 c.104 §188]

450.817 Services to other local gov-ernments authorized. A sanitary authoritymay provide any of the services that it isauthorized to provide under ORS 450.600 to450.989 to other local governments as definedin ORS 174.116 situated within the bound-aries of the authority at wholesale, retail ora combination of wholesale and retail. [1993c.577 §14; 2003 c.802 §120]


450.820 Authority may maintain gar-bage collection system and engage in in-sect control activities. In addition to otherpowers granted to it under ORS 450.600 to450.989, the authority may:

(1) Maintain and operate disposal sitesand garbage collection systems in compliancewith the requirements of ORS 459.005 to459.437, 459.992 (1) and (2) and 466.995 (1).

(2) Engage in mosquito and other insectcontrol activities. [1955 c.614 §27; 1967 c.428 §15;1969 c.593 §40; 1971 c.648 §27]

450.825 Plan for sewage disposal anddrainage to be developed by authority. Assoon as practicable after the election of thefirst members of the board, the board shallmake a study and survey of the existingsewage disposal facilities and systems in theauthority and of its sewage disposal needs,both present and future, and prepare anoverall coordinated plan for the authoritywhich incorporates, so far as practicable, ex-isting sewage disposal and drainage systems,future sewage treatment plants, includingconnecting trunk and lateral sewers, and fu-ture drainage systems. Such plan shall berevised from time to time as circumstancesmay require. In preparing the plan or re-visions thereto, the board shall take intoconsideration expected fluctuations in popu-lation and in business and industrial activity.[1955 c.614 §28]

450.830 Authority may construct andoperate sewage disposal and drainagesystems; operation beyond authorityboundaries. The sanitary authority mayconstruct, maintain or operate sewage dis-posal and drainage systems, including sewagetreatment plants, trunk and lateral sewersand drains, or any combination thereof, forany area within the authority. Portions ofsuch systems may be constructed outside theauthority where necessary or expedient. Theauthority may furnish sewage disposal ser-vice to areas outside the authority on a con-tract basis. [1955 c.614 §29]

450.835 Contract for or purchase ofsewage disposal and drainage systems. Asanitary authority may, in performing thepowers conferred by ORS 450.830:

(1) Contract with any person, or enterinto intergovernmental agreements underORS chapter 190, for the use or joint opera-tion of all or any portion of any sewage dis-posal or drainage system; or

(2) Purchase all or any portion of anysewage disposal or drainage system on suchterms as are fair and reasonable. Where thearea served by such system, or part thereof,is situated within the authority, the author-ity may agree, on such terms as are fair andreasonable, to furnish sewage disposal or



drainage functions for the area then servedby such sewage disposal or drainage system.Under this subsection, as a part of the pur-chase agreement and on such terms as arefair and reasonable, the authority may as-sume liability for any outstanding bonded orother indebtedness incurred prior to the timeof purchase in connection with the facilitiesto be purchased. [1955 c.614 §30; 2003 c.802 §121]

450.837 Water and sanitary authorityas municipality for purpose of enforcingplumbing code; limitations. (1) Water au-thorities and sanitary authorities are munic-ipalities for the purposes of administeringand enforcing the plumbing code as providedunder ORS 455.150.

(2) However, notwithstanding ORS455.150 (3), a building official appointed by awater authority or sanitary authority or aninspector acting under the authority and di-rection of such a building official shall ad-minister and enforce only that portion of theplumbing code governing the installation andmaintenance of connections between struc-tures and the mains and sewers of the au-thority.

(3) Nothing in this section authorizes abuilding official or inspector of a water au-thority or sanitary authority to administeror enforce all or part of any specialty codeexcept the plumbing code.

(4) A water authority or sanitary author-ity shall notify the Director of the Depart-ment of Consumer and Business Services notlater than May 1 of each year as to whetherthe authority will or will not exercise thecode enforcement power granted by this sec-tion. [1989 c.809 §11; 1993 c.577 §33; 1995 c.553 §6]

(Finances)450.840 Costs for construction and op-

eration of systems and general expensesof sanitary authority; how borne. (1) Thecost of construction of a sewage disposalsystem, including treatment plants and trunkor lateral sewers, or a drainage system shallbe borne by the area directly benefited bythe system. The property within such areashall bear such cost in the manner providedin ORS 450.855.

(2) The cost of operation and mainte-nance of sewage disposal systems and drain-age systems shall be borne by the areadirectly benefited by such systems. Theproperty within such area shall bear suchcost in the manner provided in ORS 450.880.

(3) The costs and expenses of the author-ity which are not chargeable under ORS450.600 to 450.989 to any particular areawithin the authority such as overall plan-ning, expenses of the board, conduct of elec-tions and hearings and mosquito and other

insect control shall be borne by the entireauthority in the manner provided in ORS450.885 (1)(a). [1955 c.614 §31]

450.845 Areas needing sewerage in-stallations to be determined and plans forinstallations to be made. Whenever theboard deems it expedient or necessary for theprotection of the public health, safety andwelfare to cause to be constructed treatmentplants or trunk or lateral sewers or drains,or any combination thereof, the board shalldetermine the proposed boundaries of thearea to be directly benefited thereby andhave a registered professional engineer pre-pare plans and specifications for such plants,sewers or drains. Such plans and specifica-tions must be approved by the Oregon HealthAuthority and the Environmental QualityCommission and shall be filed in the officeof the sanitary authority. Parcels of landwhich may be served practicably by lateralsewers or drains connected with treatmentplants or trunk sewers or drains and are notadequately served by existing plants, sewersor drains, as the case may be, are consideredto be directly benefited by the plants, sewersor drains of the sanitary authority. If all orany portion of the cost of construction is tobe specially assessed against individual prop-erty, the engineer shall include in the plansand specifications, a description of the lo-cation and assessed value of each lot, tractor parcel of land, or portion thereof, to bespecially benefited by the improvement, withthe names of the record owners thereof andan estimate of the unit cost of the improve-ment to the specially benefited property. [1955c.614 §32; 2009 c.595 §873]

450.850 Hearing on board’s proposedconstruction plans and estimated specialassessments; notice of hearing. (1) Afterplans and specifications have been preparedand filed as provided in ORS 450.845, theboard shall hold a hearing within the au-thority and may adjourn the hearings fromtime to time.

(2) The board shall post notice of thetime and place of the hearing in at leastthree conspicuous places in the area directlybenefited, for two weeks prior to the hearingand publish such notice in a newspaper ofgeneral circulation printed and published inthe area once a week for two successiveweeks prior to the hearing or, if there is nosuch newspaper, in a newspaper of generalcirculation printed and published in thecounty in which the area, or the largest por-tion thereof, is situated. Such notice shallcontain a statement that the board proposesto construct a sewage treatment plant ortrunk or lateral sewers or drains, or anycombination thereof, for the area and astatement, if special assessments are to be



levied against property specially benefited,showing the estimated total cost of the im-provement which is to be paid for by specialassessment of benefited property and theengineer’s estimated unit cost of the im-provement to the specially benefited prop-erty, clearly indicating that this is anestimate and not an assessment; and setforth the proposed boundaries of the areaand that all interested persons may appearand be heard. [1955 c.614 §33; 1973 c.399 §1]

450.855 Action board may take athearing concerning boundaries, installa-tions to be constructed, costs and fi-nancing. At the hearing under ORS 450.850the board may:

(1) Modify the proposed boundaries of thearea directly benefited by and to pay for theproposed installations except that no land inthe authority which could not be directlybenefited by the proposed installation may beincluded and no land in the authority whichcould be directly benefited by the proposedinstallation may be excluded. If it appearsthat land should be included in the areawhich was not included within the bound-aries designated in the notice of the hearingand that the owners of such land have notappeared at the hearing the board shall ad-journ the hearing and give notice to suchowners by registered mail, by certified mailwith return receipt or by posting and pub-lishing notice in the area to be included insubstantially the same manner that notice isgiven under ORS 450.850 (2). If the notice isgiven by registered or certified mail, the no-tice shall be mailed at least 10 days prior tothe date fixed for the further hearing. Thenotice shall contain the date, time and placeof the adjourned hearing, a statement thatthe board proposes to construct sewagetreatment plants or trunk or lateral sewersor drains for an area within the authority, adescription of the additional area to be in-cluded within such area and a statement thatall persons interested may appear and beheard.

(2) Determine what installations shall beconstructed and the total cost of the con-struction. The cost of making engineeringplans and specifications shall be borne by thearea directly benefited by the installation asa part of the construction costs.

(3) Determine the manner in which theproperty within the area shall bear the costof the proposed installations. The board mayprovide, in its sound discretion, that the costshall be borne by assessments against theproperty directly benefited, by sewer con-nection charges, by collection of sewer ser-vice charges in the area or, if generalobligation bonds are to be issued and sold tofinance the construction of the installations,

by annual levies of taxes against property inthe area, or by any combination of thesemethods. If all or a part of the cost of theproposed installations are to be borne by as-sessments against the property directly ben-efited, the board may, in its sound discretion,levy the assessments in an amount basedupon the engineer’s estimate of the cost, ormay delay the assessments until the totalcost of the installation is determined. Suchcost shall be apportioned, so far as practica-ble, in accordance with the special and pe-culiar benefit each parcel of land in the areacould receive from the installation. Whereparcels of land in the area are partially orwholly undeveloped or are devoted to useswhich in no way require sewage disposalservice, the board may, in its sound discre-tion, defer assessing, imposing or levying allor any part of the assessments, sewer servicecharges or taxes against such parcels untilthe parcels or the undeveloped portionsthereof are connected with the installations.

(4) Determine the method of financingthe construction of the proposed installationsand the amount and type of bonds, if any, tobe issued and sold under ORS 450.895 to450.920 to finance the construction of theproposed installations. [1955 c.614 §34; 1973 c.399§2; 1977 c.621 §1; 1991 c.249 §37]

450.860 Portion of installation con-struction costs in an authority chargea-ble to area benefited. When in providingsewage disposal or drainage systems for anarea within the authority the board deter-mines that any portion of sewage treatmentplants or trunk or lateral sewers or drainsconstructed or acquired, or being constructedor acquired, by the authority, will be used bythe area, a fair and equitable portion of theoriginal cost of such plants, sewers or drainsand of improvements thereto, less depreci-ation, shall be charged to the area on an as-sessment or sewer service charge basis, orany combination thereof. The proceeds ofsuch assessments or charges shall be used bythe board, in its discretion, for payment ofbonds issued to construct such plants, sewersor drains or for future improvements or ad-ditions to or maintenance of such plants,sewers or drains. The determination madeunder this section shall be made at thehearing of the board in connection with anyproposed construction of sewage disposal ordrainage systems for the area. [1955 c.614 §57]

450.865 Ordinance specifying action ofboard at hearing; remonstrances. (1) Afterthe board has concluded the hearing underORS 450.850 and 450.855 it may adopt an or-dinance specifying the installations to beconstructed for the area, the boundaries ofthe area, the method of apportioning theconstruction cost to the area directly bene-



fited, whether by assessment, by sewer con-nection charges, by sewer service charges orannual levy, or combinations thereof, and themethod of financing the construction of theinstallations. A copy of the ordinance shallbe published once a week for two successiveweeks in a newspaper of general circulationprinted and published in the area directlybenefited or, if there is no such newspaper,in a newspaper of general circulation printedand published in the county in which thearea, or the largest portion thereof, is situ-ated.

(2) If within 30 days after the last publi-cation of such ordinance written remon-strances against the proposed constructionare filed in the office of the authority by amajority of the owners of the land in thearea directly benefited, no further pro-ceedings shall be had in connection with theproposed construction. However, a modifiedproposal may be initiated within six monthsthereafter.

(3) If such remonstrances are not filed bya majority of the owners of the land in thearea directly benefited, the board may pro-ceed with the construction of the installationin accordance with the ordinance. [1955 c.614§35; 1973 c.399 §3]

450.867 Election on ordinance adoptedunder ORS 450.865. (1) If the ordinanceadopted under ORS 450.865 specifies that allor a part of the cost of construction of theinstallation is to be financed through thesale of general obligation bonds of the au-thority to be repaid by annual levies of taxesagainst property in the area, the board maycall an election within the area to be directlybenefited by the construction on the questionof whether or not the construction and fi-nancing plan adopted by the ordinanceshould be implemented by the board. Thedate of the election and a brief descriptionof the proposition to be voted upon shall beincluded in the ordinance adopted under ORS450.865.

(2) If a majority of the electors voting onthe question at the election vote against theproposal, there shall be no further pro-ceedings in connection with the proposedconstruction. However, a modified proposalmay be initiated within six months after thedate of the election.

(3) If a majority of the qualified electorsvoting at the election approve the proposal,the board may proceed with the constructionof the installation in accordance with theordinance, subject to the right of propertyowners within the area to remonstrate underORS 450.865. [1973 c.399 §6; 1975 c.647 §40; 1983 c.350§273]

450.870 Assessments against benefitedproperty. (1) All assessments made pursuantto ORS 450.855 (3) shall be determined andmade by an order of the board adopted inaccordance with such procedures as shall beestablished by a general ordinance adoptedby the board. Such general ordinance shallestablish a procedure for assessing propertydirectly benefited by the installation, makingsupplementary assessments and rebates, no-tice of the proposed assessment, provide forcorrection of errors, establish the form of theassessment order and such other proceduresas are necessary to the adoption of the as-sessment order. It shall not be necessary toissue a separate order for each parcel ofland, and any number of parcels in the samearea and the same county may be includedin one order. A copy of the order making anassessment, certified and acknowledged bythe manager of the authority, shall be filedwith the county clerk of the county in whichthe land is located. Upon being filed, the as-sessment shall constitute a lien against theland assessed.

(2) Notice of all assessments levied by anauthority shall be given to the landowner bymail and shall be payable on the 30th dayafter such notice is mailed unless agreementsfor payment of such installments are madepursuant to ORS 223.205 and 223.210 to223.295. All assessments shall be paid to theauthority and a receipt shall be issuedtherefor. From time to time the board shallorder the satisfaction of the liens againstlands on which assessments have been paid,and a copy of such order shall be filed withthe county clerk of the county in which thelands are located. [1955 c.614 §36; 1973 c.399 §4; 1977c.621 §2; 1995 c.333 §23; 2001 c.215 §8]

450.875 Collection of delinquent as-sessments by lien foreclosure procedure;reassessment procedure. (1) In case thewhole or any portion of the cost of sewagetreatment plants, trunk or lateral sewers ordrains is assessed against property directlybenefited and the owner of the property failsto pay the amount of the lien, or any portionthereof, or the interest thereon, when due,the board may proceed to foreclose the lienin any manner provided by law for the col-lection of liens by local governments as de-fined in ORS 174.116 and may provide byordinance a general procedure for the col-lection of liens in any manner not inconsist-ent with law.

(2) The provisions of ORS 223.405 to223.485 relating to reassessment shall beavailable to sanitary authorities where appli-cable. [1955 c.614 §37; 2003 c.802 §122]

450.880 Sewer service charges. (1) Theauthority may adopt ordinances imposingsewer service charges within an area within



the authority, for the purpose of financingthe improvement, operation and maintenanceof a sewage disposal or drainage system ac-quired or constructed by the authority forthe area.

(2) The board may contract with any cityor district serving water in such area to col-lect such service charges with the waterbills, and the serving agency may cut offwater for nonpayment of such servicecharges. The board may pay the water-serving agency for the reasonable cost ofsuch collection services.

(3) Service charges may also be collectedand enforced in substantially the mannerprovided in ORS 454.225. [1955 c.614 §38; 1983c.740 §174]

450.885 Tax levies on property in theauthority; budget for authority. (1) Theauthority may, annually as provided in thissection:

(a) Levy a tax on all the property in theauthority to provide funds with which to payexpenses of the authority and pay generalobligation bonds of the authority which ex-penses and bonds are not chargeable underORS 450.600 to 450.989 to any particular areain the authority.

(b) Levy an additional tax on the prop-erty in any particular area within the au-thority to provide funds with which to payany part of the principal and interest ongeneral obligation bonds which are to be paidby such area where sewer service charges orassessments will not be sufficient to pay suchprincipal and interest.

(2) Assessment and collection of taxeslevied on property within the authority shallbe made by the county officers charged withassessment and collection of other propertytaxes in the county in which the propertylies.

(3) Each year, immediately after the nec-essary records are made, the county assessorof each county in which the authority is sit-uated shall transmit to the board a statementin writing, showing the total value of allproperty within the authority and withineach area within the authority which is sub-ject to levy under subsection (1)(b) of thissection as ascertained for that year from theassessment rolls of each county in whichproperty of the authority lies.

(4) The board shall prepare a budget inthe form, manner and time prescribed in theLocal Budget Law and in accordance there-with fix the amount of money to be raised bytaxation for carrying out its functions andactivities and for the payment of the princi-pal and interest of outstanding indebtednessof the authority which will become due dur-ing the year. The board shall determine the

amount of taxes to be raised from the entireauthority and the additional amount to beraised from each of the areas within the au-thority which are directly benefited by par-ticular installations.

(5) The board shall, in the manner andtime prescribed by law, transmit to thecounty assessor of each county a statementof taxes which are to be collected in suchcounty. If the board fails to levy taxes underthis section sufficient to pay the interest onand the maturing principal of all outstandinggeneral obligation bonds of the entire au-thority or on property in areas which areprimarily obligated to pay the bonds, thegoverning body of the counties in which theauthority is situated shall cause such taxesto be levied, extended and collected and, ifnecessary, cause a tax on all the property inthe authority to be levied, extended and col-lected to pay general obligation bonds of theauthority. However, any levy against allproperty in the authority under this subsec-tion shall not alter or limit the obligation ofthe area primarily obligated on the bonds asbetween such area and the authority. [1955c.614 §39; 1995 c.79 §225]

450.890 Collection of taxes; taxes areliens on property. (1) Taxes levied underORS 450.885 shall be collected at the sametime and in the same manner as county taxesare collected and, when collected, shall bepaid to the sanitary authority. Taxes col-lected to pay expenses or obligations of aparticular area shall be credited to separateaccounts or funds of the authority to be usedfor such purposes.

(2) The taxes shall be a lien upon theproperty against which they are levied andshall be of the same force and effect as otherliens for taxes. Their collection shall be en-forced by the same means as provided for theenforcement of liens for county propertytaxes. [1955 c.614 §40; 1975 c.122 §1; 2001 c.215 §9]

450.895 Bonds, general obligation orrevenue or combination of both; bonds tomature serially and be paid in install-ments. The authority may, when authorizedby a majority of the votes cast at an electionby electors of the authority, issue generalobligation bonds or revenue bonds, or acombination of both, for the purpose of pay-ing the cost of acquisition or construction,operation and maintenance of sewage treat-ment plants or trunk or lateral sewers ordrains for any area or areas within the au-thority or to carry out any other purposeauthorized under ORS 450.600 to 450.989.Each issue of general obligation bonds shallbe the general obligation of the entire au-thority but shall be the primary obligationof the area directly benefited by the sewagetreatment plant or trunk or lateral sewers



or drains constructed with the proceeds ofeach issue of such bonds and paid by assess-ment, annual levy or sewer service charges,or combinations thereof, as determined bythe board under ORS 450.855. Revenue bondsshall be payable solely out of designated re-venues of the authority and shall not bedeemed to be a general obligation of the au-thority or a charge upon its tax revenues.All bonds issued shall mature serially withinnot to exceed 30 years from date of issue,and shall be paid in annual installments ofsuch amounts as will make the combinedamount of principal and interest payableeach year as nearly equal as practicableduring the years of payment. [1955 c.614 §41]

450.897 Bancroft Bonding Act applica-ble. Sanitary authorities organized underORS chapter 450 that are in existence onNovember 1, 1981, or thereafter, are author-ized to use the bonding provisions of ORS223.205 to 223.314. [1981 c.351 §1; 1991 c.902 §113;1997 c.249 §151]


450.900 Election on bond issues; limi-tation on indebtedness. (1) Before issuingany bonds under ORS 450.895, the board ata regular meeting shall call an election andsubmit to the electors of the authority thequestion whether bonds of the authority, ei-ther general obligation, revenue, or a combi-nation of both, shall be issued and sold toraise money for the construction of sewagetreatment plants or trunk or lateral sewersor drains for any area or areas within theauthority.

(2) The order calling a bond electionshall be signed by not less than four mem-bers of the board and may submit to theelectors as one proposal the question of is-suing bonds to finance one or more sewagetreatment plants or trunk or lateral sewersor drains; or the order may submit as sepa-rate questions the issuance of bonds for anysewage treatment plants or trunk or lateralsewers or drains in such combinations as theorder may direct.

(3) The authority’s total outstandingbonds of all kinds, including improvementbonds of the kind authorized by ORS 223.205and 223.210 to 223.295, and revenue bondsshall at no time exceed in the aggregate 13percent of the real market value of all prop-erty by law assessable for state and countypurposes within the authority as reflected inthe last roll certified under ORS 311.105.[1955 c.614 §42; 1981 c.804 §102; 1983 c.83 §92; 1991 c.459§404; 1995 c.79 §226]

450.905 Notice of bond election. Noticeof a bond election shall contain:

(1) The information required by ORS255.085 (3).

(2) If general obligation bonds, which areto be paid by particular areas in the author-ity, are to be issued, a statement that thebonds will be the general obligation of theentire authority but will be the primary ob-ligation of the areas in the authority whichwill be directly benefited by the sewagetreatment plants or trunk or lateral sewersor drains constructed with the proceeds ofthe bonds and paid through assessment, an-nual levy, or sewer service charges, or com-binations thereof, as determined by the boardunder ORS 450.855 and designating specif-ically the boundaries of such area or areas.

(3) If revenue bonds are to be issued, astatement that the bonds will be payablesolely out of designated revenues of the au-thority and will not be a general obligationof the authority or a charge upon the taxrevenues of the authority. [1955 c.614 §43; 1971c.647 §99; 1975 c.647 §41; 1989 c.923 §20]

450.910 [1955 c.614 §44; repealed by 1971 c.647 §149]

450.915 Issuance of bonds. If, at thebond election, a majority of the votes cast isin favor of the issuance of bonds, the boardmay issue the bonds as prescribed in ORSchapter 287A. [1955 c.614 §45; 1969 c.694 §11; 1975c.642 §24; 1977 c.188 §4; 1981 c.526 §6; 2001 c.215 §10; 2007c.783 §188]

450.920 Disposition of proceeds of saleof bonds. The proceeds of the sale of bondsshall be deposited with the county treasurerwho is custodian of the funds of the author-ity and shall be placed by the county treas-urer in the sanitary authority fund andcredited to a special account or accountswhich are designated for use for the partic-ular purpose or purposes for which the bondproceeds are to be used. The proceeds ofsuch bonds shall be used solely for the pur-pose or purposes indicated in the order call-ing for election upon the question of theissuance of the bonds and for no other pur-pose. However, the proceeds of the sale ofthe bonds may be used for payment of theprincipal and interest of such bonds and ex-penses of the formation of the authority. [1955c.614 §46]

450.925 Issuance of refunding bonds.(1) The board may, without authorizationfrom the electors, issue refunding bonds forthe purpose of refunding outstanding bondsissued under ORS 450.895 to 450.920.

(2) The provisions of ORS 287A.360 to287A.380 are applicable to refunding bondsissued and sold under this section.

(3) The refunding bonds may be issued torefund bonds originally issued or to refund



bonds previously issued for refunding pur-poses and for no other purpose. [1955 c.614 §47;2007 c.783 §189]

450.930 Redemption of bonds beforematurity dates. In its discretion, the boardmay issue bonds of the authority with reser-vation of the right to redeem them for re-tirement or refunding purposes prior to thefinal dates of maturity. [1955 c.614 §48; 1983 c.347§28]

450.935 [1955 c.614 §49; 1983 c.124 §11; 1993 c.97 §27;repealed by 2007 c.783 §234]

450.940 [1955 c.614 §50; repealed by 1995 c.333 §37]

450.945 Custody and disbursement ofauthority funds by county treasurer. (1)The county treasurer of the county in whichthe authority, or the largest area thereof, issituated shall be custodian of all sanitaryauthority taxes paid to the county treasurerin accordance with ORS 450.890 and suchother funds that the authority may pay tothe county treasurer for deposit to the creditof the authority. The county treasurer shallpay out moneys of the authority only uponwritten order of the board, signed by thechairperson of the board and countersignedby the manager of the authority. However,where the board has authorized the managerto approve and order the payment of claimsin the amount of $500 or less, the treasurershall pay out moneys of the authority onsuch orders of the manager.

(2) The order shall specify the name ofthe person to whom the money is to be paid,the fund from which it is to be paid and shallstate generally the purpose for which pay-ment is to be made.

(3) A copy of the order shall be filed inthe records of the board. The county treas-urer shall keep the order as a voucher andshall keep account of the receipts and dis-bursements of money for the sanitary au-thority.

(4) The county treasurer shall keep sepa-rate accounts and funds, where necessary, tosegregate the various operations and con-struction projects of the authority.

(5) Notwithstanding the provisions ofsubsections (1) to (4) of this section, anyfunds of the authority other than taxes maybe deposited, at the discretion of the board,in one or more banks or savings and loanassociations to be designated by the board.Funds deposited in a bank or savings andloan association shall be withdrawn or paidout only upon proper order and warrant orcheck signed by the chairperson andcountersigned by the manager. [1955 c.614 §51;1975 c.122 §2]

(Programs for Employees)450.947 Contracts for medical, dental

and hospital services; insurance for em-ployees; effect of failure to contract. (1)An authority may enter into contracts formedical, dental and hospital services or in-surance covering employees of the authorityfor life, accidental death and dismemberment,weekly wage indemnity during disability,dental care, remedial care and hospital bene-fits. Failure to obtain insurance or servicecontracts shall not be construed as negli-gence or lack of diligence on the part of theboard or the members thereof.

(2) As used in this section, “remedialcare” includes services rendered by a personlicensed to practice one or more of the heal-ing arts within the scope of the license of theperson or any other remedial care recognizedunder the law of this state. [1973 c.399 §8]

450.949 Payment of contract costs byauthority and by employee; multiple con-tracts; qualification of insurer or hospitalassociation. (1) The authority may agree topay none, part or all of the premiums orcharges on insurance or service contracts,and it may collect from the salary of anyemployee covered by the contract the per-centage of the premiums or charges the em-ployee is required to provide pursuant to thecontract. Contributions for premiums orcharges by employees shall be only on a vol-untary basis.

(2) The authority may negotiate morethan one contract with one or more com-panies or associations if necessary to obtainoptimum coverage at minimum cost.

(3) No premium or other periodic chargeon any insurance or service contract shallbe paid unless the insurer or hospital associ-ation issuing such policy or contract is au-thorized to transact business as an insurancecompany or hospital association in this state.[1973 c.399 §9]

450.950 [1955 c.614 §52; repealed by 1971 c.727 §203]450.955 [1955 c.614 §53; repealed by 1971 c.727 §203]450.960 [1955 c.614 §54; repealed by 1971 c.727 §203]

450.963 Employees’ retirement system.(1) An authority may establish an employees’retirement system pursuant to ORS 450.963to 450.973. The authority may enter intoagreements necessary to establish the systemand carry out the plan and may agree tomodifications of such agreements from timeto time.

(2) The retirement plan may provide forretirement benefits measured on the basis ofservices rendered or to be rendered by anemployee, either before or after the date onwhich such employee first becomes a memberof the retirement plan. The retirement planmay provide for a minimum of years of ser-



vice and a minimum and maximum age ofretirement for the employee. [1973 c.399 §10]

450.965 [1955 c.614 §55; repealed by 1971 c.727 §203]

450.967 Funding of retirement plan.The authority may budget and provide forpayment into the fund of the retirement planan amount sufficient:

(1) To provide, on an actuarial reservebasis, the amortized level premium cost ofthe retirement benefits which, under theprovision of the retirement system, are to beprovided by the authority to its employeeswho attain the retirement age or retire inaccordance with the terms of the retirementplan.

(2) To meet the actuarially computedcosts of retirement benefits measured on thebasis of services rendered or to be renderedby an employee before or after the date onwhich such employee becomes a member ofthe retirement plan. [1973 c.399 §11]

450.970 [1955 c.614 §56; repealed by 1971 c.727 §203]

450.971 Employee contribution. Theauthority may collect, as a contribution fromany employee, that percentage of the salaryreceived by the employee which is necessaryto fund on an actuarial reserve basis the costof retirement benefits which the employee isrequired to provide pursuant to the pro-visions of the retirement plan. [1973 c.399 §12]

450.973 Eligibility for retirement plan.Nothing in ORS 450.947 to 450.977 authorizesthe authority to budget, provide for paymentsor collect contributions to fund retirementbenefits for an individual who is not in theemployment of the authority at the time ofthe creation of a membership status under aretirement plan. [1973 c.399 §13]

450.975 [1955 c.614 §58; repealed by 1971 c.727 §203]

450.977 Tax levy to finance programsunder ORS 450.947 to 450.977. Expenses in-curred by a district in establishing programsor providing benefits authorized by ORS450.947 to 450.977 are expenses for which anauthority may levy taxes as provided in ORS450.885. [1973 c.399 §7]

(Miscellaneous)450.980 Procedure for testing pro-

ceedings and acts of sanitary authorities.The provisions of ORS 261.605 to 261.630 re-lating to court proceedings to test the valid-ity of acts and proceedings of People’s UtilityDistricts hereby are made applicable, so faras practicable, to the proceedings and actsof sanitary authorities. [1955 c.614 §59]

450.985 Authority of South SuburbanSanitary District of Klamath Falls toincur indebtedness. (1) Subject to subsec-tions (3) to (6) of this section, the South

Suburban Sanitary District of Klamath Falls,Oregon, may incur indebtedness by borrow-ing money from financial institutions or is-suing revenue bonds and using real propertyof the district to secure the loan or providesecurity for payment of the bonds.

(2) No recourse shall be had for paymentof a loan made under this section, or interestthereon, against the general fund of the dis-trict, nor shall the credit or taxing power ofthe district be deemed to be pledged thereto.

(3) The governing body of the district,prior to borrowing money or issuing revenuebonds under subsections (1) and (2) of thissection, must find that the real propertytendered as security for the loan or bonds is:

(a) Not designated for use as park oropen space land; and

(b) Surplus to the needs of the district.(4) Prior to incurring indebtedness under

subsections (1) and (2) of this section, thegoverning body of the district shall adopt anordinance authorizing the indebtedness andshall submit the ordinance to the electors ofthe district for approval. The ordinance shalltake effect and the indebtedness shall be in-curred only upon approval of the ordinanceby a majority of those voting upon the ques-tion.

(5) Loans made or revenue bonds issuedunder subsections (1) and (2) of this sectionand secured by real property of the districtshall bear interest at the rate per annumfixed by the governing body of the districtafter consultation with the State Treasurer.

(6) Prior to foreclosure of real propertyused to secure a loan made or revenue bondsissued under subsections (1) and (2) of thissection, the governing body of the districtshall submit to the electors of the districtthe question of levying upon the taxableproperty within the district a sum sufficientto pay the principal and interest due on aloan made or revenue bonds issued undersubsections (1) and (2) of this section. Uponapproval by a majority of those voting on thequestion, the governing body shall levy thetax and pledge the revenues derived there-from toward the discharge of the obligationincurred under subsections (1) and (2) of thissection.

(7) As used in this section:(a) “District” means the South Suburban

Sanitary District of Klamath Falls, Oregon.(b) “Financial institution” means a state

or national bank, a mutual savings bank ora savings association. [1981 c.284 §§1,2,3,4,5,6]




MISCELLANEOUS450.987 Annexation by city of water

or sanitary authority territory. Upon for-mation of a water authority or sanitary au-thority, a city may annex territory situatedwithin the boundaries of the water authorityor sanitary authority, but shall not removeany water mains, sewers and drains, serviceinstallations, reservoirs, structures, facilitiesand other improvements or any service pro-vision capability from the water or sanitaryauthority unless the county governing bodyor boundary commission determines that:

(1) Withdrawal of the territory or im-provements from the water or sanitary au-thority will have no substantial adverseimpact on the ability of the water or sanitaryauthority to provide service to the remainingterritory;

(2) The withdrawal is not solely for thetax advantage of a property owner;

(3) The withdrawal will not result innoncontiguous parcels being served by thewater or sanitary authority; and

(4) The water or sanitary authority can-not provide adequate service to the subjectterritory within a reasonable time. [Formerly450.670; 1993 c.577 §34]

450.988 Filing boundary change withcounty assessor and Department of Re-venue. For purposes of ad valorem taxation,a boundary change must be filed in final ap-proved form with the county assessor and theDepartment of Revenue as provided in ORS308.225. [2001 c.138 §32]

450.989 Apportionment of cost amongserviced property owners; determinationby authority. (1) If any person is requiredby an authority to pay the cost of extendinga sewer main adjacent to another person’sproperty so that sewer service for domesticuse is provided for that other property with-out further extension of the sewer main, theauthority may require the owner of the otherproperty to refund to the authority for dis-bursement to the person required to pay thecost of extending the sewer main, a portionof the cost of the extension.

(2) The board may adopt an ordinancespecifying the method of apportioning theconstruction costs to the property served andestablishing a procedure for application forand payment of a refund.

(3) The right to require a refund underthis section shall not continue for more than10 years after the date of installation of thesewer main.

(4) The amount to be refunded shall bedetermined by the authority and such deter-mination shall be final.

(5) The authority may refuse to providesewer service until a refund is paid. [1983 c.435§2]

PENALTIES450.990 Penalties. Violation of any regu-

lation or ordinance under ORS 450.085 is aClass C misdemeanor. [Amended by 2011 c.597§202]


450 - oregonlegislature.gov · 450.895 bonds, general obligation or revenue or combination of both;...

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