Whenever the
council of any city deems it necessary or expedient to construct a sewer
partially within and partially without the city, or to construct a sewer
outlet, or do any other work, acts or things without the city for proper
disposal of sewerage and drainage, the city, through its council, may
acquire by purchase, condemnation or otherwise, any property rights of
way, easement and other rights without the city as may be needed or
deemed essential for the construction of the sewer, sewer outlet, or
other works. It may also provide for and do all things which may be
necessary or deemed essential for proper construction of such sewer,
sewer outlet, and for other works, acts and things which may be deemed
necessary or essential for the proper disposal of sewerage and drainage
from the city and adjacent territory. A city,
through its council, may divert water and waterways, fill or drain lakes,
ponds or other waters, increase or diminish the flow of waters in natural
channels or dam channels and do such other acts and things as may be
found necessary or essential for the matters provided for in ORS 224.010
to 224.120 and in ORS 224.170. However, no property rights or other
vested rights shall be taken without agreement with the owner or a
proceeding of condemnation. The council may provide
for and make a local assessment for benefits against any and all property
whether within or without the city or partially within or partially
without the city and enforce a collection of such assessments. The owners of
property without the city shall be given like notice and shall have like
opportunities of remonstrance and have all other rights and remedies
which the owners of property within the city may have or be given,
including the privileges of the Bancroft Bonding Act or similar charter
provisions relating to bonding of assessments. Notwithstanding any of the provisions of
ORS 224.010 to 224.170, owners of any property against which an
assessment for a local improvement under this chapter has been imposed
may seek a review thereof under the provisions of ORS 34.010 to 34.100.
[1967 c.280 §2 (enacted in lieu of 224.060 and 224.070)] Upon final determination of
the review a transcript of the judgment shall be filed with the auditor,
clerk or other official of the city having charge of the assessment
records, whereupon it shall be entered in the records of the city and
other records as provided in ORS 224.090 and 224.100 and shall constitute
the assessment against the property. It shall bear interest from the date
that other assessments for such sewer or work bear interest and shall be
enforced and collected in like manner as the assessment is collected
against other property which may have been assessed for such sewer or
other work. In case the judgment on appeal is for the same amount as the
assessment, no entries need be made of the transcript. [Amended by 1967
c.280 §3]
No assessment under ORS 224.040 against property beyond the limits of the
city shall be a lien on the property until a certified transcript of the
assessment in so far as it affects such property has been filed with the
county clerk or other person having custody and charge of the mortgage
records of the county. From the date of such filing the assessment shall
be a lien and charge against the property upon which it is imposed, prior
and superior to all other liens and encumbrances whatsoever thereon,
except general taxes.The clerk or officer referred to in ORS 224.090 shall record the
transcript referred to in that section in the mortgage records of the
county and properly index it. The issuance of a writ of review shall not
prevent the recording and indexing of such transcript, but upon final
determination of the review a further transcript shall be recorded
showing the amount of the assessment. The second transcript shall be
indexed and recorded and the same shall, for the amount specified
therein, have the same force and effect as the first transcript would
have had. [Amended by 1967 c.280 §4; 1999 c.654 §24] The city,
through its council, may collect and enforce or provide for collecting
and enforcing payment of liens created by virtue of ORS 224.090 or
224.100 by a sale of the property in the same manner and with the same
force and effect as is or may be provided with respect to property within
the city, or a proceeding in court to foreclose such liens. In case of a sale without a
foreclosure in court a duplicate certificate of sale shall be made by the
city official making the sale and recorded with the county clerk or other
officer having charge of mortgage records of the county. In case of
redemption or issuance of a deed upon such certificate of sale a further
certificate of such fact shall be made by the proper city official and
shall be recorded in the same manner. [Amended by 1999 c.654 §25] Nothing
contained in ORS 224.010 to 224.170 shall authorize the city to assess
any property now included in any drainage district organized under ORS
547.005 to 547.030 and beyond the limits of the city unless the owner of
such property or the officers of such district consent thereto. However,
if the owner of property in such district at any time desires to connect
with and utilize any sewer or drain constructed pursuant to ORS 224.020,
a just and equitable assessment may be made and charged against the
property owned by the owner and especially and peculiarly benefited by
such connection. A city, through its
council, may enact and enforce such ordinances and other provisions as
may be necessary or essential for the proper policing, protection,
management and control of sewers, ditches, canals and other works beyond
the city limits and constructed by the city under or by virtue of ORS
224.010 to 224.170. The city may construct extensions, laterals and
branches to such sewer system upon the terms and provisions applicable to
original construction. The city may negotiate and obtain from the
federal government financial aid in construction referred to in ORS
224.140 by a work relief program, grant, loan or other means of like or
different nature. Pending the making
of an assessment for all or part of any construction referred to in ORS
224.140, the city may make temporary loans or advances from the fund
legally available under its charter in order to procure the federal aid
or perform such construction, or both. Such loan shall be refunded from a
local assessment when made and collected. If the city is without adequate
funds to make such temporary loan it may from time to time borrow funds
therefor and give its certificate of indebtedness for the money so
borrowed. This certificate shall be paid only from funds collected from
the local assessment authorized to be made for the construction. The rate
of interest upon the certificates of indebtedness shall not exceed six
percent per annum and no greater amount shall be borrowed than the
amounts necessary for the purposes of construction.
The provisions of the city charter applicable to curative measures or
reassessments shall be applicable to property without the city limits as
well as to the property within the city. The owners of property beyond
the city limits shall have like rights of objection, remonstrances,
hearing and other remedies as the owners of property within the city or
town. The right of review of any reassessment by the circuit court as
provided by ORS 224.065 relative to an original assessment, and the
provisions of ORS 224.065, 224.080 and 224.100 relative to review of an
original assessment shall be applicable to review of a reassessment.
[Amended by 1967 c.280 §5]CONSTRUCTION OF SEWER SYSTEM; BOND PLAN(1) The
governing body of the municipality, by proposed charter amendment or
ordinance, may refer the question of acquiring and constructing the
facilities to a vote of its electors, and after approval thereof by a
majority of such electors, may authorize the issuance of and cause to be
issued bonds of the municipality for such purposes. The bonds may be
general obligation, limited obligation or self-liquidating in character
in a sum not more than the amount authorized at such election. The bonds
may provide for payment of principal and interest thereon from service
charges to be imposed by the governing body for services to be extended
through employment and use of the facilities. If service charges are
imposed to be paid as provided in ORS 224.220 (1971 Replacement Part),
such portion thereof as may be deemed sufficient shall be set aside as a
sinking fund for payment of interest on the bonds and the principal
thereof at maturity.
(2) When the Environmental Quality Commission enters an order
pursuant to ORS 468.090 that requires the acquisition or construction of
facilities in a municipality for compliance, the governing body of the
municipality must refer to its electors the question of a bond issue in
an amount sufficient to finance the necessary acquisition or construction
of such facilities. The election must be held within one year of the date
on which the order of the commission becomes final.
(3) If, within eight months after the final order of the commission
becomes final, the governing body of the municipality has not called an
election in compliance with subsection (2) of this section, the
commission may apply to the circuit court of the county in which the
municipality is located or to the circuit court of Marion County for an
order compelling the holding of an election.
(4)(a) If the electors do not approve the bond issue submitted
pursuant to subsection (2) or (3) of this section, the commission may
apply to the circuit court of the county in which the municipality is
located or to the circuit court of Marion County for an order directing
that:
(A) Self-liquidating bonds of the municipality be issued and sold
pursuant to ORS 224.210 to 224.260 (1971 Replacement Part); and
(B) The proceeds be applied to the acquisition or construction of
facilities required to comply with the order of the commission.
(b) If the court finds that the facilities required by the order of
the commission are necessary to the public health under the minimum
standards of the commission, it shall issue an order directing that:
(A) Such bonds be issued and sold without elector approval in such
an amount as the court finds necessary to acquire or construct such
facilities; and
(B) The proceeds be applied for such purposes.
(5) Any court proceeding authorized by subsection (3) or (4) of
this section shall be advanced on the court docket for immediate hearing.
Note: 224.232 was enacted into law by the Legislative Assembly but
was not added to or made a part of ORS chapter 224 or any series therein
by legislative action. See Preface to Oregon Revised Statutes for further
explanation. All proceedings and elections
had prior to March 9, 1935, in cities of less than 100,000 population
under ORS 224.232 and 224.270 are validated. All bonds voted prior to
March 9, 1935, by any municipality, as defined in ORS 224.210 (1971
Replacement Part), for a sanitary disposal of sewage under ORS 224.210 to
224.260 (1971 Replacement Part) shall, when issued and sold, be legal and
binding obligations of the municipality if the issuance of bonds for that
purpose has been authorized and approved by a majority vote of the
electors voting on the question and regardless of whether the question
was submitted to the electors by the council or other governing body by
resolution, ordinance or by charter amendment. The governing body of the
municipality may, either before or after issuing the bonds, adopt plans,
specifications and estimates for a sanitary disposal of sewage with or
without following any previous plans, specifications, estimates or
methods.SEWER CONSTRUCTION IN CITIES OF 3,500 OR LESS As used in ORS
224.310 to 224.420, unless the context requires otherwise:
(1) “Municipality” means a duly incorporated city or town having a
population of not more than 3,500 inhabitants as determined from the
latest official enumeration of inhabitants, either federal or state, made
prior to the date of authorization of the construction and establishment
by the municipality of a sewerage system or of an extension to an
existing sewerage system.
(2) “Sewerage system” means complete or primary sewage treatment
and disposal facilities, sewer mains, pumping stations, and all equipment
and appurtenances necessary, useful or convenient for the treatment or
disposal of sewage, or any portion of such a system, whether within or
without the corporate limits of a municipality. [Amended by 1953 c.287
§9; 1959 c.157 §4]Municipalities that have been certified by the Environmental
Quality Commission as being in need of sewerage systems and that are
unable to sell bonds upon the public market, or are unable to obtain
satisfactory offers for bonds upon such market, for the purpose of
financing the costs of construction thereof may apply to the State
Treasurer for the purpose of financing such costs under ORS 224.310 to
224.420. The Environmental Quality Commission shall furnish to the State
Treasurer in writing a list of the municipalities that are in the
greatest need of sewerage and sanitation facilities. [Amended by 1955
c.593 §1] A
municipality shall not apply to the State Treasurer for financing under
ORS 224.320 unless:
(1) It submits to the State Treasurer plans and specifications
prepared by competent licensed engineers setting forth the type or
character of sewer system or sewerage facilities proposed for the
particular municipality and the estimated cost of the system and of the
appurtenances thereto.
(2) It submits to the State Treasurer the proposed plan of the
municipality for liquidation of indebtedness to be incurred for financing
the cost of such system or facilities. [Amended by 1953 c.287 §9] Notwithstanding the
provisions of any other Act or of any city charter, the bonds issued by
municipalities pursuant to ORS 224.350 and 224.370 shall bear such dates,
be in such form, run for such periods of time, bear such rates of
interest, and be sold by the municipalities at such prices as the State
Treasurer may determine. [Amended by 1953 c.287 §9; 1955 c.593 §2; 1981
c.94 §12](1) The State Treasurer shall be the sole judge as to
whether state funds shall be invested in the project and as to which
undertakings shall first be financed. The decision of the State Treasurer
on the subject of investment and priority shall be final.
(2) The State Treasurer may enlist the technical services of any
state officer or department in a study of the feasibility and cost of the
sewerage project.
(3) The State Treasurer, in the discretion of the State Treasurer,
may purchase, with funds subject to investment by the State Treasurer, or
with moneys from the revolving fund as provided in ORS 224.390, general
obligation sewerage system bonds of any municipality including bonds
issued under statutory or charter authority pursuant to applications to
pay assessments in installments. To facilitate the construction of a
sewerage system for a municipality, the state may purchase at current
market prices with such funds the outstanding water system bonds of the
municipality. After the purchase of such bonds, the State Treasurer may
agree with the municipality as to allocation of the net revenues of the
water system of the municipality to the payment of the principal of and
the interest upon the water system bonds, and upon the sewerage system
bonds of the municipality. If the State Treasurer deems it expedient in
the acquisition and construction of a sewerage system for a municipality
to furnish sewerage service for territory that is contiguous to a
municipality, or for territory outside the municipality that, in the
judgment of the State Treasurer, can conveniently be served by the
sewerage system thereof, the state may purchase the sewerage system bonds
of a sanitary district or districts comprising such territory, or any
part thereof, provided the public indebtedness for all purposes within
said sanitary district or districts shall not exceed 12-1/2 percent of
the real market value of all taxable property therein.
(4) The State Treasurer may authorize municipalities or sanitary
districts, or both, to issue sewerage system bonds with the right
reserved to them to redeem bonds at par value and accrued interest prior
to the final maturity dates of the bonds.
(5) The State Treasurer, in the discretion of the State Treasurer,
may authorize deferment of payment of interest upon the sewerage bonds of
the municipality or district for a period not exceeding three years, and
may provide for the issuance of such bonds with graduated rates of
interest.
(6) The State Treasurer may adopt rules and regulations specifying
the procedure to be followed by a municipality or sanitary district in
availing itself of the provisions of ORS 224.310 to 224.420. [Amended by
1953 c.287 §9; 1967 c.293 §25; 1991 c.459 §352] So long as
any of the sewerage bonds of the municipality or district are owned by
the state, the municipality or district shall not issue other bonds of
any character without prior written approval of the State Treasurer.
[Amended by 1953 c.287 §9]The State Treasurer may purchase sewerage bonds from a
municipality or sanitary district at private sale if the municipality or
district does not receive any bids for the bonds, or if bids received
therefor are unsatisfactory. General obligation sewer bonds or sewerage
system bonds, other than those issued pursuant to applications to pay
assessments in installments, may be purchased by the State Treasurer
under the provisions of ORS 224.310 to 224.420 only if the revenues of
the sewerage system of the issuing municipality or district, or both,
after the payment of operation and maintenance expenses, are pledged
wholly to the payment of the principal of and the interest upon the said
bonds, and the municipality and the sanitary district, if any, served by
the sewerage system of a municipality covenant to levy ad valorem taxes
upon all of the taxable property within their corporate limits to meet
deficiencies in such revenues for such purposes, and only if the combined
indebtedness for all public purposes, other than state or federal, within
the boundaries of the municipality, including the proposed sewerage
system indebtedness, but excluding obligations issued for other utilities
that are self-supporting or self-liquidating or are approximately so,
does not exceed 12-1/2 percent of the real market value of all property
that is by law assessable for state and county purposes within the limits
of the municipality. Notwithstanding that such revenues may have been
pledged to the payment of the principal of and the interest upon a
particular issue of general obligation bonds owned by the state, the same
revenues, with the approval of the State Treasurer, may be pledged to the
payment of the principal of and the interest on additional issues of such
bonds purchased by the state from the municipality or district. The
additional issues shall be on a parity with previous issues as to the
pledge of such revenues for such purposes. Municipalities may provide
that receipts from the payment of assessments levied under authority of
chapter 593, Oregon Laws 1955, and the interest thereon shall be applied
to payment of the principal of and the interest upon their general
sewerage system bonds issued under authority of chapter 593, Oregon Laws
1955, rather than issue Bancroft or assessment bonds pursuant to such
assessments. In order to complete the financing of a sewerage system, the
State Treasurer may purchase issues of general obligation sewerage system
bonds of municipalities or sanitary districts, payable only from ad
valorem property taxes, provided the issues do not exceed the debt limits
specified in this section. If, in addition to the net revenues of the
sewerage system of the issuing municipality, the net revenues of the
municipality-owned water system of the municipality that may become
available in not more than five years from the issue date of the sewerage
system bonds also are pledged to the said bonds, and the municipality
further covenants to levy ad valorem taxes upon all the taxable property
within its corporate limits to meet deficiencies in sewerage system and
water system revenues for such purposes, the sewerage system bonds of the
municipality may be purchased by the State Treasurer, provided the
combined indebtedness for all purposes within the boundaries of the
municipality, including the proposed sewerage system indebtedness, but
excluding obligations issued for other utilities that are self-supporting
or self-liquidating or are approximately so, does not exceed 15-3/8
percent of the real market value of the property within the limits of the
municipality. This limitation shall include the ratios of indebtedness to
real market value of other subdivisions that overlap the municipality to
an extent of more that 12-1/2 percent of the real market value of all the
taxable property of the municipality. [Amended by 1953 c.287 §9; 1955
c.593 §4; 1967 c.293 §26; 1991 c.459 §353] The State Sewer Bond
Revolving Fund is created for investment under authority of ORS 224.310
to 224.420 and for payment of costs of the State Treasurer in carrying
out the provisions of those sections. The State Treasurer may engage such
assistance and incur such expenses as may be necessary for that purpose.
The earnings of the revolving fund shall accrue to the General Fund, and
the amounts received in payment of the principal of investments thereof
shall be credited to the General Fund, to be available for the payment of
general governmental expenses. [Amended by 1963 c.341 §3](1) Each
municipality financing the cost of a sewerage system under authority of
ORS 224.310 to 224.420 shall submit to the State Treasurer for approval a
schedule of its rates and proposed method of collection of its sewerage
charges. The rates shall be such as, in the judgment of the State
Treasurer, shall provide sufficient funds with other revenues, if any,
and ad valorem property taxes to liquidate, during the period approved by
the State Treasurer, the indebtedness incurred by the municipality to
defray the cost of the sewerage system and its appurtenances. Should the
rates prove to be insufficient for such purpose, the State Treasurer may
direct the municipality to increase the rates to the point at which the
sewerage project becomes self-liquidating, and the municipality shall
establish forthwith the rates prescribed by the State Treasurer.
(2) If the municipality does not have the ability to collect
sewerage charges in connection with or as part of the charge for another
service or utility that can be curtailed to secure collection, and if the
State Treasurer so directs, delinquent assessments for sewerage charges
shall be certified to the assessor of the county in which the
municipality is located and shall be entered upon the tax rolls of the
county and be collected and accounted for in the same manner in which
city taxes are collected and accounted for. The charges shall constitute
liens against the real property of the person against whom they are
assessed.
(3) If required by the State Treasurer, the municipality shall
obtain from the State Treasurer approval of the annual budgets and tax
levies of the municipality, before they are certified to the clerk and
assessor of the county in which the municipality is located, for
extension upon the county tax rolls. [Amended by 1955 c.593 §5; 1991
c.459 §353a]If any municipality fails to meet, when due, any obligation
sold to the state under authority of ORS 224.310 to 224.420, the State
Treasurer, with the approval of the circuit court of the county in which
the major portion of the assessed valuation of the municipality is
located, may appoint a receiver to operate the system. The receiver shall
act in the capacity of receiver so long as the circuit court deems
receivership necessary to protect the interests of the state and of the
municipality. In order to insure prompt payment of interest or principal
of bonds acquired by the State Treasurer pursuant to ORS 224.380, the
State Treasurer may withhold and apply to the payment of such
obligations, any moneys which may accrue to the municipality from state
sources. Moneys so withheld shall be repaid to the municipality when the
funds with which to meet the obligations for the payment of which funds
were withheld are paid by the municipality to the state. The right to
withhold said moneys for the purpose provided in this section shall exist
only so long as any of the sewage bonds of the municipality are owned by
the state.The treasurer of each municipality
and of each sanitary district that finances the cost of a sewerage system
or facilities under authority of ORS 224.310 to 224.420 shall keep
collections or assessments for sewerage service separate and distinct
from other funds of the municipality and shall withhold from tax receipts
not less often than quarterly the full amounts proportionate to the
elapsed portion of the tax year that have been levied for the payment of
interest on and the principal of the sewerage system bonds of the city or
sanitary district. For failure to account for sewerage revenues and taxes
as provided in this section, such treasurers shall be liable upon their
official bonds. [Amended by 1953 c.287 §9]All bonds or other
obligations issued prior to November 15, 1936, by any city or town of
less than 100,000 population, for the purpose of financing in whole or in
part the construction, enlargement, extension, repair or improvement of a
sewer system, including a sewage treatment or disposal plant and all
facilities appurtenant to such system or connected therewith, where such
bonds or other obligations are payable or will be payable solely from the
gross or net revenues of such sewer system or any part thereof, including
the revenues of improvements, additions and extensions thereto which may
thereafter be constructed or acquired, as well as the revenues of the
existing sewer systems, plants or properties, if any, so enlarged,
extended, repaired or improved, and all proceedings for the authorization
and issuance of such bonds or other obligations and the sale, execution
and delivery thereof, hereby are validated, ratified, approved,
authorized and confirmed, notwithstanding that the amount of such bonds
or other obligations, together with the amount of bonds or other
obligations of such city or town outstanding at the time of the issuance
thereof, exceeds or will exceed any limitation or restriction on the
amount or percentage of indebtedness or of outstanding bonds or other
obligations of such city or town contained in the charter of such city or
town or in any general or special law, and notwithstanding any defects or
irregularities in such proceedings, and without regard to the fact that
such bonds or other obligations may have been issued pursuant to the
charter of such city or town or pursuant to any general or special law.
Notwithstanding any provision in such proceedings that such bonds or
other obligations shall be issued in manner and form satisfactory to the
Reconstruction Finance Corporation, or that such bonds or other
obligations shall be sold to the Reconstruction Finance Corporation, such
bonds or other obligations may be sold to the United States of America,
through the appropriate federal officer, agency or instrumentality in
manner and form satisfactory to such officer, agency or instrumentality.
The bonds or other obligations issued and sold prior to November 15,
1936, are the binding and legal obligations of the city or town issuing
them in the actual form in which those bonds and obligations have been
issued.SEWAGE CHARGE ON WATER USERS (1) Unless prohibited by its
charter, a city may impose on the users of water a sewage charge which
shall be billed and collected by the city. The proceeds of the sewage
charge may be used for paying, in whole or in part, the cost of planning,
constructing or operating a sewage disposal system.
(2) The sewage charge shall be established and the rate fixed by
the city’s governing body. [1957 c.400 §1]
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