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| Home > Statutes > Usa Oregon |
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USA Statutes : oregon
Title : TITLE 30 EDUCATION AND CULTURE
Chapter : Chapter 328 Local Financing of Education
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As used in this chapter, unless the context
requires otherwise:
(1) “Administrative office for the county” means the administrative
office of the education service district, or of any common school
district that includes an entire county.
(2) “Impact aid revenues” means the revenues received by a school
district from the federal government pursuant to 20 U.S.C. 7701 to 7714.
(3) “School district” includes common and union high school
districts. [1965 c.100 §42; 1971 c.513 §60; 1991 c.167 §3; 2003 c.226 §5;
2003 c.343 §1]
(1) The governing body of each
county shall create a county school fund.
(2) When a county governing body transfers federal forest reserve
receipts under ORS 294.060 (4) subject to a condition that such moneys be
used only for a purpose described in ORS 328.205 (1)(a) or (c), a school
district receiving a share of such moneys may not use the moneys for any
other purpose. [Amended by 1965 c.100 §43; 1965 c.491 §1; 1967 c.107 §1;
1971 c.294 §4; 1989 c.579 §2; 1997 c.821 §19; 2003 c.226 §6] On the first Monday in December
the executive officer of the administrative office for the county shall
apportion the county school fund among the several districts in the
county, in proportion to the resident average daily membership for the
preceding fiscal year in each district as reported by the district to the
administrative office of the county. In the case of a joint school
district, the resident average daily membership reported to the
administrative office of the counties comprising the district shall be
prorated between the counties as the resident enrollment of the district
is prorated between the counties. Any balance accruing to the fund after
the December apportionment shall be apportioned in the same manner at
such other times during the year as the executive officer of the
administrative office may consider advisable. [Amended by 1965 c.100 §45;
1971 c.294 §5; 1975 c.770 §5] The executive officer of the
administrative office for the county, upon the written request of any
district school board, may make a partial apportionment to any district
of any money due it at the time of making a regular apportionment under
ORS 328.015, and apportion the remainder at the next regular
apportionment. The county treasurer shall pay any partial apportionment
made under this section. [Amended by 1963 c.544 §19; 1965 c.100 §48]
Any moneys in the county school fund in excess of the amount required by
law may, by order of the county governing body, be apportioned under ORS
328.015 separately from remaining county school fund moneys. Amounts
separately apportioned under this section to a school district shall not
be considered a budget resource under the Local Budget Law but shall be
used as an offset to the school district’s tax levy. [1979 c.551 §2]
The proceeds of all gifts,
devises and bequests made to Douglas County for common school purposes
shall be set apart as a separate and irreducible school fund, to be
called the Douglas County School Fund, the interest of which shall be
applied to the support and maintenance of all common schools in said
county. The county treasurer shall be the
custodian of the Douglas County School Fund. The bond as treasurer shall
include the honest and faithful performance of the duties of the county
treasurer as such custodian.(1) The county treasurer shall loan the Douglas County School
Fund in the manner provided by law at the best rate obtainable per annum
and shall rent all lands owned by the county belonging to the fund.
(2) The county treasurer shall place the interest and rentals with
other moneys the county receives for support of the common schools. The
education service district board shall apportion and the county treasurer
shall distribute the interest and rentals with, and in the same manner
as, such other moneys. [Amended by 1963 c.544 §20] The
chairperson of the board of county commissioners, clerk and treasurer of
Douglas County are appointed as a board of Douglas County School Fund
commissioners. They shall approve all applications for loans as to title
and value of security offered. The treasurer shall make no loan or lease
any land until such board has given its approval. [Amended by 1963 c.386
§5] The laws
governing the loaning of the Common School Fund of this state, so far as
applicable and not in conflict with ORS 328.105 to 328.140 shall govern
the loaning of the Douglas County School Fund.All loans shall be made in the name of the treasurer of Douglas
County but for the benefit of the fund. The treasurer shall collect all
sums due the fund in the manner provided by law.No officer of Douglas County shall charge or receive fees
for any service performed in regard to the fund. All expenses of making a
loan shall be paid for by the applicant.
The board of Douglas County School Fund commissioners may sell and convey
by deed, executed by all of said commissioners, any and all real property
devised to Douglas County for common school purposes, whenever in the
judgment of such board the interest of the school fund will be subserved
by such sale, or may rent or lease the same when it deems best. The board
may invest the proceeds of such sale as provided in ORS 328.115 to
328.135.COMMON SCHOOL FUND FOR DISTRICT NO. 1, KLAMATH COUNTY The proceeds of all gifts,
devises and bequests made to School District No. 1, Klamath County, for
common school purposes, for the use and benefit of said district shall be
set apart as a separate and irreducible school fund, to be called the
Common School Fund for District No. 1, Klamath County. The interest from
the fund shall be applied to the support and maintenance of the common
schools of said school district. The clerk of Klamath County School
District No. 1 shall be custodian of the Common School Fund for District
No. 1, Klamath County. The bond of the clerk shall require the honest and
faithful performance of the duties of the clerk as such custodian.
[Amended 1989 c.171 §43](1) The board of common school fund
commissioners for Klamath County School District No. 1 may invest all or
part of the fund in bonds of the United States of America. With regard to
any funds not so invested, the district clerk shall loan the fund in the
manner provided by law at no less than four percent per annum and rent
all lands owned by the district belonging to the fund.
(2) The interest accruing from such investments and loans and the
rent of said lands, shall be placed by the clerk with other school
district moneys and be distributed by the clerk with such other moneys in
the manner provided by law and the order of the directors or trustees of
the district. The directors of School
District No. 1 of Klamath County are appointed as a board of common
school fund commissioners for the district to approve all applications
for loans as to title and value of the security offered. The security
shall be real property in Klamath County of at least double the value of
the loan. The clerk of the district shall make no loan or release any
security without prior board approval. The
laws governing loaning of the Common School Fund of this state, so far as
applicable and not in conflict with ORS 328.155 to 328.190 shall govern
the loaning of the Common School Fund for District No. 1, Klamath County.
All loans shall be made in the name of the clerk of School District No. 1
of Klamath County, but for the benefit of the fund. The clerk shall
collect all sums due the fund in the manner provided by law. The
principal shall be reloaned.The clerk of the district shall not charge or receive fees for any
services performed in regard to the fund. All expenses of making a loan
shall be paid for by the applicant.
The board of directors of School District No. 1, Klamath County, may sell
and convey by deed, executed by all the members of said board of
directors, any and all real property devised to the district for common
school purposes, or any and all real property acquired by the district in
connection with the administration of said fund, whenever in the board’s
judgment the interests of the school fund will be subserved by such sale.
The board shall pay over the proceeds of such sale to the clerk of the
district to be invested the same as other moneys belonging to the fund.BONDS(1) Common and union high school districts may
contract a bonded indebtedness for any one or more of the following
purposes for the district:
(a) To acquire, construct, reconstruct, improve, repair, equip or
furnish a school building or school buildings or additions thereto;
(b) To fund or refund the removal or containment of asbestos
substances in school buildings and for repairs made necessary by such
removal or containment;
(c) To acquire or to improve all property, real and personal, to be
used for district purposes, including school buses;
(d) To fund or refund outstanding indebtedness; and
(e) To provide for the payment of the debt.
(2) However, when a common or union high school district is found
under ORS 327.103 not to be a standard school or when a school district
is operating a conditionally standard school under ORS 327.103 (3), the
school district may contract a bonded indebtedness only for the purposes
enumerated in subsection (1) of this section that are approved by the
Superintendent of Public Instruction pursuant to rules of the State Board
of Education.
(3) The school district may use the proceeds received from the sale
of school district bonds to pay for any costs incurred by the school
district in authorizing, issuing, carrying or repaying the bonds,
including, but not limited to, attorney, consultant, paying agent,
trustee or other professional fees and the cost of publishing notices of
bond elections, printing such bonds and advertising such bonds for sale.
[Amended by 1957 c.658 §1; 1959 c.447 §1; 1965 c.100 §49; 1971 c.513 §61;
1989 c.138 §1; 1989 c.491 §13; 2001 c.169 §4; 2003 c.195 §24] (1) The board of directors of a common or
union high school district shall call an election on a date specified in
ORS 255.345 for the purpose of submitting to the electors of the district
a question of contracting bonded indebtedness under ORS 328.205 when:
(a) A majority of the board of directors decides to call such an
election; or
(b) A petition requesting such an election is filed with the board
of directors as provided in this section.
(2) The requirements for preparing, circulating and filing a
petition under this section shall be as provided for an initiative
petition in ORS 255.135 to 255.205. The petition shall specify the
proposed amount of bonded indebtedness. [Amended by 1957 c.658 §2; 1965
c.100 §50; 1971 c.513 §62; 1973 c.57 §1; 1973 c.796 §25; 1979 c.424 §1;
1983 c.83 §46; 1983 c.350 §138] (1) When
authorized by a majority of the electors of the district, the board of a
common or union high school district may contract a district debt for an
amount which together with outstanding bonded indebtedness shall not
exceed the bonding limit of the district as provided by ORS 328.245, for
the purposes specified in ORS 328.205 and issue negotiable
interest-bearing warrants of the district, evidencing such debt, and fix
the time of payment of the warrants. Such warrants shall be considered a
type of bond.
(2) The school district, not more often than once a year, may levy
a tax on the taxable property of the district to pay the warrant interest
or principal when due. The taxes shall be collected in the same manner as
other school taxes. These warrants shall be sold, and the principal and
interest provided for and paid when due in the manner provided by law for
bonds issued under this chapter. [Formerly 328.285; 1971 c.513 §63; 1983
c.83 §47; 1991 c.67 §81] If the electors of the
district approve the contracting of bonded indebtedness, the board of
directors, without further vote of the electors, shall issue negotiable
coupon bonds of the district, at such time or times as the board directs.
[Amended by 1965 c.100 §53; 1971 c.140 §1; 1983 c.350 §139] The
bonds shall:
(1) Bear interest, not exceeding the rate established pursuant to
ORS 288.515 to 288.600, payable semiannually.
(2) Be signed by the chairperson of the district school board and
attested by the district clerk or deputy clerk. Bonds may be executed
with the manual or facsimile signature of the chairperson of the district
school board and attested by the manual or facsimile signature of the
district clerk or deputy clerk, but at least one such signature shall be
in manual form. However, all signatures may be in facsimile form if the
bonds are to be authenticated by at least one manual signature.
(3) Have annexed interest coupons bearing the original or facsimile
signatures of the chairperson of the district school board and district
clerk or deputy clerk. [Amended by 1971 c.140 §2;1977 c.311 §1; 1981 c.94
§27; 1995 c.333 §10] The principal and interest on district
bonds are payable in lawful money of the United States of America at the
office of the treasurer or fiscal officer of the county in which the
major portion of the assessed valuation of the district is located at the
time the bonds are issued. [Amended by 1965 c.100 §54; 1983 c.347 §22] The
aggregate amount of such district bonded indebtedness, including
indebtedness authorized under ORS 328.213, shall not exceed the following
percentages of real market value of all taxable property within the
district, computed in accordance with ORS 308.207:
(1) For each grade from kindergarten to eighth for which the
district operates schools, fifty-five one-hundredths of one percent
(0.0055) of the real market value.
(2) For each grade from the 9th to 12th for which the district
operates schools, seventy-five one-hundredths of one percent (0.0075) of
the real market value. [Amended by 1953 c.697 §2; 1955 c.325 §1; 1957
c.639 §1; 1959 c.641 §34; 1963 c.9 §16; 1965 c.100 §55; 1971 c.513 §64;
1975 c.770 §5a; 1991 c.459 §384]In any school district created by merger or
reorganization, the amount of bonded indebtedness and negotiable
interest-bearing warrant indebtedness which may be incurred under ORS
328.245 shall be reduced by the amount of premerger, prereorganization,
bonded indebtedness and negotiable interest-bearing warrant indebtedness
for which any school district included in an enlarged or reorganized
school district remains liable. [Amended by 1965 c.100 §56](1) The county treasurer or county fiscal officer
shall register each school district bond, including refunding bonds, and
negotiable interest-bearing warrants in a book kept for that purpose,
noting the school district, amount, date, time and place of payment, rate
of interest and such other facts as may be deemed proper. The county
treasurer or fiscal officer shall cause the bonds or warrants to be
delivered promptly to the purchasers thereof upon payment therefor, and
if the place of delivery is outside the city in which the county
treasurer or county fiscal officer’s office is situated the cost of
delivery of the bonds or warrants shall be paid by the issuing school
district.
(2) The county treasurer or county fiscal officer or a custodial
officer as defined in ORS 294.004 may hold the proceeds of the sale of
the bonds or warrants for all school districts subject to the order of
the district school board to be used solely for the purpose for which the
bonds or warrants were issued. If the treasurer or fiscal officer holds
the proceeds initially, then the treasurer or fiscal officer, as soon as
practicable, shall deliver the proceeds of the sale of the bonds and
warrants to the person designated as custodian of the school district
funds under ORS 328.441.
(3) When the bonds or warrants have been so executed, registered
and delivered, their legality shall not be open to contest by the school
district, or by any person for or on its behalf, for any reason whatever.
[Amended by 1953 c.236 §2; 1955 c.312 §1; 1965 c.100 §57; 1981 c.441 §1;
2003 c.226 §7](1) The district school board shall ascertain and
levy annually, in addition to all other taxes, a direct ad valorem tax on
all the taxable property in the school district, sufficient to pay the
maturing interest and principal of all serial school district bonds
promptly when and as such payments become due. The amount of the tax may
be increased by an amount sufficient to retire any bonds that may be
callable. The board shall in each year include the taxes in the school
district budget for such year. The taxes shall in each year be certified,
extended upon the tax rolls and collected by the same officers in the
same manner and at the same time as the taxes for general county purposes.
(2) The funds derived from the tax levies may be retained by the
county treasurer or county fiscal officer without being paid to the
school district or may be held in trust by an insured institution or
trust company, as defined in ORS 706.008, designated by the district to
hold the funds. The funds shall be kept in a separate fund to be known as
and designated “School District No. ___Bond Interest and Sinking Fund,”
which shall be irrevocably pledged to and used solely for the payment of
the interest accruing on and the principal of the bonds when due, so long
as any of the bonds or the coupons thereto appertaining remain
outstanding and unpaid. The interest earnings of the fund shall be
credited thereto and become a part thereof. For failure to retain and
account for such funds, as provided in this section, the county
treasurer, county fiscal officer or insured institution or trust company
designated by the district shall be liable upon the official bond of the
treasurer, other officer or institution, respectively.
(3) The fund shall not be diverted or used for any other purpose;
but if a surplus remains after all interest and principal have been paid
on all serial school district bonds then outstanding and unpaid, the
surplus may be transferred to such other fund as the district school
board may direct. [Amended by 1955 c.467 §1; 1965 c.100 §57a; 1981 c.441
§2; 1985 c.762 §184; 1997 c.631 §461] (1) The district
school board of each school district having an outstanding bond issue
shall file annually with the county treasurer or county fiscal officer a
copy of the school district budget and tax levy.
(2)(a) If the tax required by ORS 328.260 is not levied by the
district school board, the county treasurer shall certify the amount
necessary to the governing body of the county which shall then levy a tax
on all taxable property in the appropriate school district sufficient to
raise the required amount.
(b) If the school district has established tax zones pursuant to
ORS 328.570 to 328.579, a levy imposed under this subsection shall be
apportioned among the tax zones of the school district consistently, with
the percentages set forth in the resolution adopted under ORS 328.576.
(3) The county assessor shall extend the tax so levied upon the
county tax rolls for such school district. The tax collector shall
collect the tax and pay the sums collected into the county treasury to
the credit of the fund established by ORS 328.260. [Amended by 1965 c.100
§58; 1973 c.305 §14; 2001 c.246 §6](1) The county treasurer or county fiscal officer must cause
to be paid out of any money in the hands of the county treasurer or
county fiscal officer belonging to the school district, the interest on
or principal of, as the case may be, any bond issued by the district
promptly when and as the same becomes due at the place of payment
designated in such coupons or bonds. All coupons or bonds so paid must be
immediately reported to the district school board.
(2) No county treasurer, county fiscal officer or district school
board shall pay to the purchaser of any bond issued by a school district,
or to any agency representing such purchaser, any commission whatsoever
for the collection of the interest on or principal of any such bond. The
county treasurer or county fiscal officer shall not be required to remit
to the purchaser of any bonds or coupons the amount necessary to redeem
them until the day such bonds or coupons are due. [Amended by 1965 c.100
§58a] (1) Whenever the sinking
fund mentioned in ORS 328.260 is sufficient to permit the redemption of
any bond then subject to redemption at the option of the school district,
the county treasurer or fiscal officer of the county having custody of
such fund, when authorized by the district school board, shall call such
bond for redemption in accordance with the terms of the bond. If any
holder of such bond fails to present it at the time mentioned in the
published notice of redemption, the interest thereon shall cease, and the
treasurer shall thereafter pay only the amount of such bond and the
interest accrued thereon up to the date of redemption.
(2) When any bonds are so redeemed, the county treasurer or county
fiscal officer shall cause the same to be canceled and write across or
stamp upon the face thereof “Redeemed” and the date of redemption, and
shall deliver them to the district school board of such school district
and take its receipt therefor.
(3) Each county treasurer or county fiscal officer and the sureties
on the official bond of the county treasurer or fiscal officer as such,
shall be liable to any school district in the county for any funds placed
in the hands of such treasurer or county fiscal officer in connection
with the school district’s bond issues. [Amended by 1965 c.100 §59; 1973
c.57 §2; 1983 c.347 §23] (1) Whenever
any school district has any outstanding negotiable interest-bearing
warrant indebtedness or bonded indebtedness incurred in building or
furnishing any schoolhouse, or for the purchase of any schoolhouse site,
or in refunding bonded indebtedness, or in funding warrant indebtedness,
which is due or subject at the option of the school district to be paid
or redeemed, the school district, by and through its district school
board, may:
(a) Issue and exchange, for any such indebtedness, its bonds
bearing interest at a rate determined by the district school board; or
(b) Issue and sell such bonds and apply the proceeds of such sale
in payment of the indebtedness for the payment of which the refunding
bonds are proposed to be issued.
(2) Refunding bonds issued under subsection (1) of this section
shall in all respects conform to, and be governed, as to their issue, by
the provisions of ORS 287.008, 328.210 and 328.230 to 328.250.
(3) The refunding of indebtedness and issuing of bonds for such
purpose shall not require an election, but may be done by resolution of
the district school board at any legally called board meeting. The debt
limitations imposed by law shall not affect the right of any school
district to issue refunding bonds under authority of this section. The
validity of any bonds so issued, or of the indebtedness thereby refunded,
shall not thereafter be open to contest by the school district or by any
person for any reason whatever. [Amended by 1965 c.100 §60; 1965 c.315
§1; 1981 c.94 §28; 1983 c.347 §24] All school
bonds, including funding and refunding bonds, notes and negotiable
interest-bearing warrants which have been specifically authorized by vote
of the electors, shall be advertised for sale and sold in the manner
prescribed in ORS 287.014 to 287.022. [Amended by 1965 c.100 §61; 1975
c.642 §21] (1) Two or
more school districts may join together to market the bond issues of the
districts, subject to such terms and conditions as the districts may
agree.
(2) School districts may market bonds through an association of
which school boards are members, subject to such terms and conditions as
the school districts and the association may agree. [1993 c.554 §1]
(1) A board of directors of an education service district may proceed
under subsection (2) of this section to create a county education bond
district if two-thirds of the component school districts that are part of
the education service district and that have at least a majority of the
pupils included in the average daily membership of the education service
district, as determined by the reports of such school districts for the
preceding year, enrolled in the schools of the districts by resolution
have approved of the creation of the county education bond district.
(2)(a) The board of directors of an education service district may,
by resolution, classify and designate an area within the district as a
county education bond district. The boundaries of the county education
bond district shall be coterminous with the boundaries of the school
districts that have administrative offices that lie within the boundaries
of one county within the education service district.
(b) Once so classified and designated, the county education bond
district is a body corporate of this state and may:
(A) Acquire by purchase, gift, devise, condemnation proceedings or
any other means such real and personal property and rights of way, within
the bond district, as in the judgment of the board are necessary or
proper in the exercise of the powers of the education service district.
(B) Employ and pay necessary agents, employees and assistants.
(C) Engage in capital construction and capital improvement
activities.
(D) Make and accept contracts, deeds, releases and documents that,
in the judgment of the board, are necessary or proper in the exercise of
the powers of the bond district.
(E) Perform any act necessary or proper to the complete exercise
and effect of any of the powers of the county education bond district
under ORS 328.205 to 328.304.
(F) Contract a bonded indebtedness and levy direct ad valorem taxes
on all taxable property within the county education bond district in the
manner that component school districts and education service districts
are authorized to issue bonds and levy taxes under ORS 328.205 to 328.304
and other laws applicable to the issuance of bonds and levying of taxes
by school districts.
(c) The board of directors of the education service district shall
be the governing body of the county education bond district. The
chairperson of the board of directors of the education service district
shall be the chairperson of the county education bond district board. The
county education bond district board is authorized to transact all
business coming within the jurisdiction of the county education bond
district and to sue and be sued.
(d) The county education bond district shall exist for one year
from the date of the resolution creating the district or until any bonded
indebtedness contracted by the county education bond district for which
the district was created has been paid. The existence of a county
education bond district may not extend beyond the time period necessary
for payment of the bonded indebtedness for which the district was
originally created. The board of directors of an education service
district may designate an area as a county education bond district that
was previously designated as such by proceeding under subsections (1) and
(2) of this section.
(3) When authorized by a majority of the electors of the county
education bond district and subject to ORS 328.245, a county education
bond district may contract a bonded indebtedness for any of the following
purposes:
(a) To acquire, construct, reconstruct, improve, repair, equip or
furnish a school building or school buildings or additions thereto;
(b) To fund or refund the removal or containment of asbestos
substances in school buildings and to make repairs necessary because of
such removal or containment;
(c) To acquire or to improve all property, real and personal,
appurtenant thereto or connected therewith, including school buses;
(d) To fund or refund outstanding indebtedness; and
(e) To provide for the payment of the debt.
(4) The county education bond district board shall call an election
on a date specified in ORS 255.345 for the purpose of submitting to the
electors of the county education bond district a question of contracting
bonded indebtedness referred to in subsection (3) of this section. The
requirements for preparing, circulating and filing a petition under this
subsection shall be as provided for an initiative petition in ORS 255.135
to 255.205. The petition shall specify the proposed amount of bonded
indebtedness. If the electors of the county education bond district
approve the contracting of bonded indebtedness, the county education bond
district board, without further vote of the electors, shall issue
negotiable coupon bonds of the county education bond district, at the
time or times that the county education bond district board directs.
(5) As used in ORS 328.205 to 328.304, “school district” or
“district” includes a county education bond district as described in this
section. [1997 c.600 §2] (1)
Pursuant to an agreement between a school district board and the
governing body of an Indian tribe whose reservation is located partly or
wholly within the district, a school district board, by resolution, may
issue negotiable impact aid revenue bonds pursuant to this section.
(2)(a) As used in paragraph (b) of this subsection, the average
amount of impact aid revenues that a school district receives equals the
total amount of impact aid revenues received by the school district for
the five years immediately preceding the year the bonds are issued,
divided by five.
(b) The aggregate principal sum of impact aid revenue bonds that
may be issued by a school district board may not exceed five times the
average amount of impact aid revenues that the school district receives
annually from the federal government.
(3) A school district may use bond proceeds from impact aid revenue
bonds to:
(a) Pay the cost of school capital construction projects on the
Indian reservation where the students reside for which the school
district received impact aid revenues;
(b) Pay the cost of bond-related expenses incurred by the school
district; and
(c) Fund any reserves or sinking accounts established by the
resolution that authorized the issuance of the bonds. [2003 c.343 §3] If a school
district board issues impact aid revenue bonds under ORS 328.316, the
board shall establish:
(1) An impact aid revenue bond building fund consisting of the net
proceeds received from the sale of the bonds. The fund shall be a
continuing fund that is not subject to reversion to another fund. The
board may use moneys in the fund only for the purposes specified in ORS
328.316 (3).
(2) An impact aid revenue bond debt service fund consisting of
moneys received by the school district as impact aid revenues. The board
may use moneys in the fund only for the payment of debt service on impact
aid revenue bonds. If any surplus remains after all interest and
principal have been paid on all impact aid revenue bonds issued by the
board then outstanding and unpaid, the board may transfer the surplus to
another fund. [2003 c.343 §4]Note: Sections 37, 38 and 39, chapter 715, Oregon Laws 2003,
provide:
Sec. 37. Section 38 of this 2003 Act is added to and made a part of
ORS chapter 328. [2003 c.715 §37]
Sec. 38. Funds diversion agreement. (1) A school district may enter
into a funds diversion agreement with the Department of Education for the
purpose of making lease payments to an Indian tribe for the debt service
costs of capital improvements of public school facilities on the
reservation of the Indian tribe. A funds diversion agreement entered into
under this section must contain all of the following provisions:
(a) Moneys payable to the school district by the department from
the State School Fund will be paid directly to a debt service account in
amounts equal to the debt service owed by the school district.
(b) The department must pay the amounts required under the funds
diversion agreement to the debt service account agreed to by the Indian
tribe and the school district.
(c) The department must pay the amounts required under the funds
diversion agreement pursuant to the schedule specified in the agreement
before paying any other amounts to the school district. The agreement may
provide an exception for amounts payable under a prior funds diversion
agreement with the school district.
(d) The agreement may not be revoked by the school district.
(e) The agreement will remain in effect until all payments under
the lease have been made.
(2) If the department is not able to pay moneys to a debt service
account as required by a funds diversion agreement, the department shall
give notice to the school district within 30 days after becoming aware
that the moneys will not be paid according to the agreement.
(3) Nothing in this section or in any funds diversion agreement
entered into under this section obligates the state or the department to
pay an amount to a school district that is more than amounts the district
is otherwise entitled to receive under law. [2003 c.715 §38]
Sec. 39. Section 38 of this 2003 Act is repealed on June 30, 2029.
OREGON SCHOOL BOND GUARANTY ACT As used in ORS
328.321 to 328.356:
(1) “Common School Fund” means the state school fund described in
section 2, Article VIII, Oregon Constitution.
(2) “General obligation bond” has the meaning given that term in
ORS 288.150.
(3) “Paying agent” means the corporate paying agent selected by the
school district board for a school bond issue who is:
(a) Duly qualified; and
(b) Acceptable to the State Treasurer.
(4) “School bond” means any general obligation bond issued by a
school district.
(5) “School district” means a common or union high school district,
an education service district or a community college district.
(6) “State bonds” means those general obligation bonds issued by
the State of Oregon to meet its obligations under the state guaranty as
described in ORS 328.351.
(7) “State guaranty” means the pledge of the full faith and credit
and taxing power of the State of Oregon to guarantee payment of eligible
school bonds as set forth in ORS 328.321 to 328.356. [1997 c.614 §2; 1999
c.251 §1]Note: 328.321 to 328.361 were enacted into law by the Legislative
Assembly but were not added to or made a part of ORS chapter 328 or any
series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation. (1)(a) The State
Treasurer may, by issuing a certificate of qualification to a school
district, pledge the full faith and credit and taxing power of the state
to guarantee full and timely payment of the principal of, either at the
stated maturity or by any advancement of maturity pursuant to a mandatory
sinking fund payment, and interest on school bonds as such payments shall
become due, except that in the event of any acceleration of the due date
of such principal by reason of mandatory or optional redemption or
acceleration resulting from default or otherwise, other than any
advancement of maturity pursuant to a mandatory sinking fund payment, the
payments guaranteed shall be made in such amounts and at such times as
such payments of principal would have been due had there not been any
such acceleration.
(b) The state guaranty shall not extend to the payment of any
redemption premium.
(c) Reference to ORS 328.321 to 328.356 by its title on the face of
any school bond for which the State Treasurer has issued a certificate of
qualification that is effective as of the date of the issuance of the
school bond conclusively establishes the state guaranty.
(2) Any school bond that has been refunded and was originally
issued with a state guaranty will no longer have the benefit of the state
guaranty. For purposes of this subsection, a school bond has been
refunded if proceeds are deposited irrevocably in escrow to defease the
applicable school bond.
(3) Only school bonds issued under a valid certificate after
December 3, 1998, may be eligible for the state guaranty. [1997 c.614 §3;
1999 c.251 §2]Note: See note under 328.321.(1) Any school district may request
that the State Treasurer issue a certificate evidencing qualification of
its school bonds for the state guaranty.
(2) The State Treasurer may, in accordance with ORS chapter 183,
adopt and enforce rules that prescribe procedures for school district
applications to qualify for the certificate of qualification and state
guaranty and rules that prescribe the standards a school district must
meet to qualify and to maintain qualification. The State Treasurer, by
rule, may establish, but shall not be limited to:
(a) A requirement that a school district pay a processing fee,
sufficient to defray the State Treasurer’s costs in processing and
verifying applications, for each application and each application for
annual renewal of a certificate of qualification.
(b) Deadlines or application periods in which school districts must
submit applications.
(c) The character, quality and currency of the information on the
financial affairs and condition of a school district that must be
submitted for a school district’s application to be considered.
(d) The form and character of any certifications or affidavits
required of officials of the applying school districts concerning the
accuracy and completeness of the information provided in conjunction with
the district’s application.
(e) Any other matters necessary to making reliable assessments of
the fiscal and financial affairs and condition of applying school
districts.
(f) The manner of designating the particular school bonds to which
the State Treasurer’s certificate of qualification and the state guaranty
applies.
(g) Subject to Article XI-K of the Oregon Constitution, reasonable
limitations on:
(A) The total aggregate outstanding amount of all school bonds the
state may guarantee; and
(B) The outstanding amount of the school bonds of any single school
district the state may guarantee.
(h) The method of providing notice of denial of a certificate of
qualification.
(i) The method of providing notice of disqualification to school
districts that fail to qualify or for which changes in financial affairs
or condition or failure to provide the State Treasurer current or updated
information warrant disqualification of the school district.
(j) Requirements for promptly reporting to the State Treasurer any
changes in condition or occurrences that may affect a school district’s
eligibility to qualify or maintain its qualification to participate in
the state guaranty program.
(3)(a) After reviewing the request, if the State Treasurer
determines that the school district is eligible, the State Treasurer
shall promptly issue the certificate of qualification and provide it to
the requesting school district.
(b)(A) Unless the certificate of qualification is revoked by the
State Treasurer, and subject to the fulfillment of any conditions or
requirements imposed by the State Treasurer, the school district
receiving the certificate and all other persons may rely on the
certificate as evidencing eligibility for the state guaranty for one year
from and after the date of the certificate.
(B) No revocation of a certificate of qualification shall affect
the state guaranty of any outstanding school bonds previously issued
under a valid certificate.
(4) Any qualified school district that chooses to forgo the
benefits of the state guaranty for a particular issue of school bonds may
do so by not referring to ORS 328.321 to 328.356 on the face of its
school bonds.
(5) No school district that has school bonds, the principal of or
interest on which has been paid in whole or in part by the state under
ORS 328.341, may be eligible to issue any additional school bonds with
the state guaranty until:
(a) All payment obligations of the school district to the state
under ORS 328.346 are satisfied; and
(b) The State Treasurer certifies in a writing, to be kept on file
by the State Treasurer, that the school district is fiscally solvent.
[1997 c.614 §4; 1999 c.251 §3]Note: See note under 328.321. (1)(a) If the State
Treasurer determines that the state should not guarantee the school bonds
of a school district, the State Treasurer shall:
(A) Prepare a determination of ineligibility; and
(B) Keep the determination on file in the office of the State
Treasurer.
(b) The State Treasurer may remove a school district from the
status of ineligibility and may issue a certificate of qualification for
that school district when a subsequent application of the school district
evidences that it is no longer imprudent for the state to guarantee the
school bonds of that school district.
(2) Nothing in this section affects the state guaranty of school
bonds of a school district issued:
(a) Before determination of ineligibility or before revocation of a
certification of qualification;
(b) After the eligibility of the school district is restored; or
(c) Under a certificate of qualification issued under ORS 328.331.
[1997 c.614 §5; 1999 c.251 §4]Note: See note under 328.321.(1)(a) Each school district with
outstanding, unpaid school bonds issued with the state guaranty shall
transfer moneys sufficient for the scheduled debt service payment to its
paying agent at least 15 days before any principal or interest payment
date for the school bonds.
(b) The paying agent may, if instructed to do so by the school
district, invest the moneys for the benefit of the school district until
the payment date.
(c) A school district that is unable to transfer the scheduled debt
service payment to the paying agent 15 days before the payment date shall
immediately notify the paying agent and the State Treasurer by:
(A) Telephone;
(B) A writing sent by facsimile transmission; and
(C) A writing sent by first class mail.
(2) If sufficient funds are not transferred to the paying agent as
required by subsection (1) of this section, the paying agent shall notify
the State Treasurer of that failure at least 10 days before the scheduled
debt service payment date by:
(a) Telephone;
(b) A writing sent by facsimile transmission; and
(c) A writing sent by first class mail.
(3)(a) If sufficient moneys to pay the scheduled debt service
payment have not been transferred to the paying agent, the State
Treasurer shall, on or before the scheduled payment date, transfer
sufficient moneys to the paying agent to make the scheduled debt service
payment.
(b) The payment by the State Treasurer:
(A) Discharges the obligation of the issuing school district to its
bondholders for the payment; and
(B) Transfers the rights represented by the general obligation of
the school district from the bondholders to the state.
(c) The school district shall pay to the State Treasurer all
amounts paid by the treasurer to the paying agent, as well as interest,
penalties and any additional costs incurred by the treasurer, as provided
in ORS 328.346. [1997 c.614 §6; 1999 c.251 §5]Note: See note under 328.321.(1)(a) If one or more payments on school bonds are
made by the State Treasurer as provided in ORS 328.341, the State
Treasurer shall pursue recovery from the school district of all moneys
necessary to reimburse the state for all amounts paid by the treasurer to
the paying agent, as well as interest, penalties and any additional costs
incurred by the treasurer as described in this section. In seeking
recovery, the State Treasurer may:
(A) Intercept any payments from the General Fund, the State School
Fund, the income of the Common School Fund and any other source of
operating moneys provided by the state to the school district that issued
the school bonds that would otherwise be paid to the school district by
the state; and
(B) Apply any intercepted payments to reimburse the state for
payments made pursuant to the state guaranty until all obligations of the
school district to the state arising from those payments, including
interest and penalties, and any additional costs incurred by the
treasurer as described in this section are paid in full.
(b) The state has no obligation to the school district or to any
person or entity to replace any moneys intercepted under authority of
this section.
(2) The school district that issued school bonds for which the
state has made all or part of a debt service payment shall:
(a) Reimburse all moneys drawn or paid by the State Treasurer on
its behalf;
(b) Pay interest to the state on all moneys paid by the state from
the date the moneys were drawn to the date they are repaid at a rate to
be determined by the State Treasurer, in the State Treasurer’s
discretion, to be sufficient to cover the costs of funds to the state
plus the costs of administration of the state guaranty obligation and of
collection of reimbursement; and
(c) Pay any applicable penalties as described in subsection (3) of
this section.
(3)(a) The State Treasurer shall establish the reimbursement
interest rate after considering the circumstances of any prior draws by
the school district on the state, market interest and penalty rates and
the cost of funds, if any, that were required to be used or borrowed by
the state to make payment on the school bonds. The State Treasurer shall
have authority to establish, by negotiations with the school district or
otherwise, any plan of reimbursement by the school district that will
result in full and complete reimbursement to the state. Subject to the
requirement for full and complete reimbursement, the State Treasurer may
consider incorporating into the reimbursement plan the means and methods
to allow the school district to continue its operations during the time
the reimbursement plan is in effect.
(b) The State Treasurer may, after considering the circumstances
giving rise to the failure of the school district to make payment on its
school bonds in a timely manner, impose on the school district a penalty
of not more than five percent of the amount paid by the state pursuant to
the state guaranty for each instance in which a payment by the state is
made.
(4)(a) If the State Treasurer determines that amounts obtained
under this section will not reimburse the state in full within the time
determined by the State Treasurer or incorporated in the reimbursement
plan from the state’s payment of a school district’s debt service
payment, the State Treasurer shall pursue any legal action, including but
not limited to mandamus, against the school district or school district
board to compel the school district to:
(A) Levy and provide property tax revenues to pay debt service on
its school bonds and other obligations when due; and
(B) Meet its repayment obligations to the state.
(b) With respect to any school bonds for which the State Treasurer
has made payment under the state guaranty, and in addition to any other
rights or remedies available at law or in equity, the state shall have
the same substantive and procedural rights as would a holder of the
school bonds of a school district.
(c) The Attorney General shall assist the State Treasurer in the
discharge of the duties under this section.
(d) The school district shall pay the attorney fees, expenses and
costs of the State Treasurer and the Attorney General.
(5)(a) Except as provided in paragraph (c) of this subsection, any
school district whose funds were intercepted under this section may
replace those funds from other school district moneys or from ad valorem
property taxes, subject to the limitations provided in this subsection.
(b) A school district may use ad valorem property taxes or other
moneys to replace intercepted funds only if the ad valorem property taxes
or other moneys were derived from:
(A) Taxes originally levied to make the payment, but which were not
timely received by the school district;
(B) Taxes from a special levy imposed to make up the missed payment
or to replace the intercepted moneys;
(C) Moneys transferred from any lawfully available funds of the
school district or the undistributed reserves, if any, of the school
district; or
(D) Any other source of moneys on hand and legally available.
(c) Notwithstanding paragraphs (a) and (b) of this subsection, a
school district may not replace operating funds intercepted by the state
with moneys collected and held to make payments on school bonds if that
replacement would divert moneys from the payment of future debt service
on the school bonds and increase the risk that the state guaranty would
be called upon a second time. [1997 c.614 §7; 1999 c.251 §6]Note: See note under 328.321.(1) If, at the time the state is required to
make a debt service payment under the state guaranty on behalf of a
school district, sufficient moneys of the state are not on hand and
available for that purpose, the State Treasurer may, singly or in any
combination:
(a) Obtain from the Common School Fund or from any other state
funds that qualify to make a loan under ORS 293.205 to 293.225, if the
loan would satisfy the requirements of ORS 293.205 to 293.225, a loan
sufficient to make the required payment.
(b) Borrow money, if economical and convenient, as authorized by
ORS 288.165.
(c) Issue state bonds as provided in subsection (2) of this section.
(d) With the approval of the Legislative Assembly, or the Emergency
Board if emergency funds are lawfully available for making the required
payment in the interim between sessions of the Legislative Assembly, pay
moneys from the General Fund or any other funds lawfully available for
the purpose or from emergency funds amounts sufficient to make the
required payment.
(2) The State Treasurer may issue state bonds to meet the state
guaranty obligations under ORS 328.321 to 328.356, pursuant to Article
XI-K of the Oregon Constitution. The issuance of such state bonds shall
be at the determination of the State Treasurer and is exempt from ORS
286.505 to 286.545.
(3) Before issuing or selling any state bonds, the State Treasurer
shall prepare a written plan of financing that shall provide for:
(a) The terms and conditions under which the state bonds will be
issued, sold and delivered, in accordance with any applicable provisions
of ORS chapters 286 and 288;
(b) The taxes or revenues to be anticipated;
(c) The maximum amount of such state bonds that may be outstanding
at any one time under the plan of financing;
(d) The sources of payment of the state bonds;
(e) The rate or rates of interest, if any, on the state bonds or a
method, formula or index under which the interest rate or rates on the
state bonds may be determined during the time the state bonds are
outstanding; and
(f) Any other details relating to the issuance, sale and delivery
of the state bonds, as may be required by the applicable provisions of
ORS chapters 286 and 288. For purposes of ORS chapters 286 and 288, the
office of the State Treasurer shall be deemed the relevant state agency
authorizing the issuance of bonds and for whose benefit the bonds are
issued.
(4) In identifying the taxes or revenues to be anticipated and the
sources of payment of the state bonds in the financing plan, the State
Treasurer may include:
(a) The intercepted revenues authorized by ORS 328.346; or
(b) Any other source of repayment or lawfully available funds and
any combination of this paragraph and paragraph (a) of this subsection.
(5) The State Treasurer may include in the plan of financing the
terms and conditions of arrangements entered into by the State Treasurer
on behalf of the state with financial and other institutions for letters
of credit, standby letters of credit, reimbursement agreements and
remarketing, indexing and tender agent agreements to secure the state
bonds, including payment from any legally available source of fees,
charges or other amounts coming due under the agreements entered into by
the State Treasurer.
(6)(a) When issuing the state bonds, the State Treasurer shall
establish the interest, form, manner of execution, payment, manner of
sale, prices at, above or below the face value and all details of
issuance of the state bonds in accordance with any applicable provisions
of ORS chapters 286 and 288.
(b) Each state bond shall recite that it is a valid obligation of
the state and that the full faith, credit and resources of the state are
pledged for the payment of the principal of and interest on the state
bond from the taxes or revenues identified in accordance with its terms
and the Oregon Constitution and other laws of this state.
(7) Upon the completion of any sale of the state bonds, the State
Treasurer shall credit the proceeds of the sale, other than accrued
interest and amounts required to pay costs of issuance of the state
bonds, to the fund or account established by the State Treasurer to be
applied to the purpose for which the state bonds were issued. [1997 c.614
§8; 1999 c.251 §7; 2005 c.209 §9]Note: See note under 328.321.If the State Treasurer issues state bonds, the
treasurer shall be subject to the provisions of ORS 291.445 as an agency
that is authorized to issue general obligation bonds that are ordinarily
to be repaid from General Fund appropriations. [1997 c.614 §9; 1999 c.251
§8]Note: See note under 328.321.ORS 328.321 to 328.356 shall be known as the
Oregon School Bond Guaranty Act. [1997 c.614 §1]Note: See note under 328.321.DISBURSEMENTS; AUDITS (1)
Common school district boards and union high school district boards shall
designate the persons to be custodians of school funds of their
respective districts. Such funds shall be disbursed only in the manner
provided by ORS 328.445 (1).
(2) For the purpose of receiving deposits of school funds, the
district school board of each district described in subsection (1) of
this section shall designate such bank or banks within the county or
counties in which the district is located, as the board deems safe and
proper depositories for school district funds. The custodian designated
under subsection (1) of this section is not liable personally or upon
official bond of the custodian for moneys lost by reason of failure or
insolvency of any bank that becomes a depository under this subsection.
(3) If the district does not designate a custodian of school funds,
the county treasurer or county fiscal officer shall be custodian of funds
of all school districts. School district funds in the county treasurer’s
or county fiscal officer’s custody shall be disbursed only upon warrants
drawn on the county treasurer or county fiscal officer by the district
school board in the manner provided by law.
(4) The proceeds of the sale of school district bonds or warrants
shall be used solely for the purpose for which the bonds or warrants were
issued, including reduction of existing bond or warrant indebtedness.
[1953 c.89 §§2,3,4; 1955 c.312 §2; 1965 c.100 §66; 1975 c.770 §6; 1981
c.441 §3; 2003 c.226 §8] (1) When
funds are available for payment, school district obligations shall be
paid by check bearing the original signature of the custodian of the
district school funds; or if authorized by the district school board, the
custodian’s facsimile signature.
(2) Where a statute specifies a warrant as the means by which
school district obligations shall be paid, warrant means “check” if funds
are available for payment. [Amended by 1965 c.100 §67; 1971 c.98 §1] (1) As used in this section,
“school district obligation” includes salaries of district employees and
other regularly contracted services.
(2) Except as provided in ORS 328.445 (2), warrants in payment of
school district obligations shall be issued only when there are
insufficient funds to pay the warrant and shall be indorsed “not paid for
want of funds”. Warrants may be issued at the end of each school month,
if necessary. School warrants shall not be issued without a vote of the
district school board. They must be signed by the chairperson of the
board and countersigned by the district clerk. If the chairperson is
absent or unable to execute the warrants, the board may authorize any
member of the board to act as chairperson in executing the warrants.
(3) Unless the district school board has designated a lower rate of
interest, which rate must appear on the face of the warrants, warrants
indorsed “not paid for want of funds” shall draw the legal rate of
interest from date of indorsement until paid.
(4) Funds becoming available for payment of warrants indorsed “not
paid for want of funds” shall be applied in payment in the order in which
the warrants were so indorsed. [Amended by 1965 c.100 §68](1) At the last regular district school board meeting
preceding July 1 in each year, the district clerk shall certify to the
board a list of all school district warrants which were called for
payment more than seven years prior to July 1 next following the meeting,
and which have not been paid. The certification shall state the amount of
each of such warrants, to whom issued, and date of issuance. The district
school board shall cause notice to be published. Publication shall be in
some newspaper published in the district and having a general circulation
therein, or if no newspaper is published in the district, then in some
paper published in the county in which the school district is located
having a general circulation in the district. The notice shall contain a
statement that if such warrants are not presented for payment within 60
days from July 1, they will be canceled, and payment thereof will be
refused.
(2) At the first regular meeting of the district school board in
each school district after the expiration of 60 days from July 1 in each
year, the board shall make an order that all such warrants which have not
been so presented for payment, describing them, shall be canceled. The
board shall cancel all such warrants which were called for payment more
than seven years prior to July 1 of that year.
(3) This section shall not prohibit the district school board, in
its discretion, from paying, upon any claim arising from the canceling of
any such warrant, the principal of the warrant when presented without
interest if not indorsed for want of funds and, if indorsed for want of
funds, with interest to the date such warrant was called. [Amended by
1965 c.100 §69] (1) All common and union high
school district boards shall cause to have prepared an annual audit of
the books and accounts of the district in the manner set forth in
subsection (2) or (3) of this section. The audit statements must be filed
with the administrative office for the county on or before November 1 of
the year in which the audit is conducted.
(2) The district school board may contract for its audit with the
administrative office for the county in which the administrative office
of the school district is located. The administrative office for the
county shall secure the services of accountants who shall audit the books
and accounts of the districts and file with the administrative office for
the county a statement setting forth the financial condition of each
district. A copy of the audit report of the district shall be sent to the
appropriate district board. Each district, upon receipt of billing from
the administrative office for the county, shall pay its share of the
audit costs.
(3) The district board may employ accountants to audit the books
and accounts of the district.
(4) Accountants employed under subsection (2) or (3) of this
section must be selected from the roster of authorized municipal
accountants maintained by the Oregon Board of Accountancy under ORS
297.670.
(5) The audit required by this section shall include an audit of
those factors that are used to compute the State School Fund distribution
under ORS 327.013. [1965 c.100 §64; 1975 c.770 §7; 1997 c.821 §22; 2003
c.226 §9]
Notwithstanding ORS 280.040 to 280.145 and any other provision of law,
any school district board by resolution may provide for the replacement
or acquisition of automotive equipment by making transfers from the
district’s general fund to a fund established for that purpose. Transfers
to the fund shall be included in the school district budget prepared and
published in accordance with ORS 294.305 to 294.565. If at any time
conditions arise which dispense with the necessity for further transfers
to or expenditures from a fund established pursuant to this section, the
district school board shall so declare by resolution. The resolution
shall order the balance remaining in such fund to be transferred to the
general fund of the district and shall declare the fund closed. [1969
c.375 §2]TAXES AND INDEBTEDNESS
Subject to the Local Budget Law (ORS 294.305 to 294.565) and to sections
11 and 11b, Article XI, Oregon Constitution, each school district board
shall prepare annually the budget of the school district and shall
certify ad valorem property taxes to the assessor as provided by law.
[1977 c.840 §16; 1979 c.241 §57; 1987 c.16 §7; 1993 c.45 §34; 1997 c.541
§370; 2001 c.695 §34] (1)
All taxable property in a school district at the time any indebtedness is
incurred by such district and all taxable property subsequently located
in the area comprising such district shall be liable to taxation for the
payment of such indebtedness until paid.
(2) No taxable property in territory included in a school district
whose boundaries change as a result of creation, annexation, abolition
and other alteration of the school district shall be relieved from
liability for any indebtedness incurred prior to a boundary change. The
district school board of the district in which are located the school
facilities for which the indebtedness was incurred shall levy an annual
tax on all taxable property in such territory sufficient to meet the
interest payments and retire the indebtedness, but no tax levy shall be
necessary as long as other provisions are made for the payment of the
indebtedness.(1) As used in this section, “qualified zone academy bond”
has the meaning given the term in 26 U.S.C. 1397E, as amended and in
effect on January 1, 2002.
(2) A district school board may contract indebtedness as provided
under ORS 288.165.
(3) A district school board may issue qualified zone academy bonds
or similar tax credit bonds authorized by resolution of the district
school board. Unless the bond issue has been approved by electors under
ORS 328.205 to 328.304, the district school board must issue the bonds as
limited tax bonds under ORS 288.155 or as revenue bonds under ORS 288.805
to 288.945. [Formerly 332.085 and then 332.125; 1983 c.124 §9; 1985 c.356
§4; 1993 c.97 §25; 2001 c.537 §5] (1) The district board
of a school district may divide the district into tax zones for the
purpose of imposing and levying ad valorem property taxes at different
rates and amounts on the assessed value of all taxable property in each
zone if the school district:
(a) Supplies a portion of kindergarten through grade 12 education
in certain areas of the school district; and
(b) Supplies all of kindergarten through grade 12 education in the
remainder of the school district.
(2) The establishment and boundaries of tax zones within a district
must be based upon and reflect qualitative differences in the levels of
service provided by the district.
(3) When a district board decides to divide the district into zones
under subsection (1) of this section, the board shall conduct a public
hearing on the formation of the proposed zones. The hearing shall be held
after notice to the public is published as provided in ORS 328.573. [2001
c.246 §2] (1) The district
board of a school district seeking to establish tax zones under ORS
328.570 to 328.579 shall cause a notice of a public hearing relating to
the formation of the tax zones to be published once a week for two
successive weeks in the newspaper in general circulation in the district
that, in the judgment of the district board, will afford the best notice
to the residents of the district.
(2) The notice published under this section shall set forth:
(a) The resolve of the district board to divide the district into
zones.
(b) The boundaries of the proposed zones.
(c) The estimated percentage of the total amount of ad valorem
taxes of the district that will be imposed in each zone.
(d) The date, hour and place of the hearing.
(e) That all interested persons may attend and shall be given a
reasonable opportunity to be heard. [2001 c.246 §3] (1)
Following the notice required under ORS 328.573, the district board of a
school district seeking to establish tax zones shall conduct a public
hearing at which district residents and property owners may testify about
the proposed zones.
(2) Following the hearing, if the district board decides to
proceed, the district board shall adopt a resolution establishing the
zones, zone percentages and zone boundaries. [2001 c.246 §4] (1) If a school
district is divided into tax zones under ORS 328.570 to 328.579, the
district board shall determine, make and declare each item of ad valorem
property tax, as set forth in ORS 310.060 (2), for each zone established
in the district when the district board adopts its budget for any fiscal
year.
(2) The operating tax rate for each tax zone of the district may
not exceed the lesser of the statutory or permanent rate limit for
operating taxes of the district established under ORS 310.200 to 310.242
or section 11 (3), Article XI of the Oregon Constitution. [2001 c.246 §5]
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