USA Statutes : oregon
Title : TITLE 24 PUBLIC ORGANIZATIONS FOR COMMUNITY SERVICE
Chapter : Chapter 264 Domestic Water Supply Districts
As used in this chapter, unless the context
requires otherwise:

(1) "Board" or "board of commissioners" means the governing body of
a district.

(2) "District" means a domestic water supply district formed under
this chapter.

(3) "County" means the county in which the district, or the greater
portion of the taxable assessed value of the district, is located.

(4) "County board" means the county court or board of county
commissioners of the county.

(5) "County clerk" means the county clerk of the county.

(6) "Owner" means the holder of the record title to real property
or the vendee under a land sale contract, if there is such a contract.
[Amended by 1969 c.666 §1; 1983 c.83 §38] (1) ORS chapter 255 governs
the following:

(a) The nomination and election of commissioners.

(b) The conduct of district elections.

(2) The electors of a district may exercise the powers of the
initiative and referendum regarding a district measure, in accordance
with ORS 255.135 to 255.205. [1983 c.350 §105]FORMATIONA domestic water supply district may be formed for
the purpose of supplying inhabitants of the district with water for
domestic purposes as provided by this chapter; and, in connection
therewith, may supply, furnish and sell for any use any surplus water
over and above the domestic needs of its inhabitants to persons living
outside the district, or to other water districts, school districts or
other local governments as defined in ORS 174.116. All railroad rights of
way or improvements thereon or rolling stock moving thereover shall be
excluded from districts organized after June 9, 1943, and for purposes of
ORS 264.210 to 264.320, 264.410, 264.420, 264.430, 264.470 and this
section shall not be considered as property within the boundaries of such
districts, unless the owner of the railroad property expressly consents
to its inclusion. [Amended by 1969 c.666 §2; 2003 c.802 §81]POWERS A district formed under this
chapter shall have the power to make contracts, hold and receive and
dispose of real and personal property within and without its described
boundaries and do all other acts and things which may be requisite,
necessary or convenient in carrying out the objects of the district or
exercising the powers conferred upon it by this chapter, sue and be sued,
plead and be impleaded in all actions and suits or other proceedings
brought by or against it. [Amended by 1969 c.666 §51; 1971 c.727 §79]When an attempt has been made to organize a district under the
provisions of this chapter and subsequently by a judgment of a court of
competent jurisdiction it has been declared that the organization is
invalid, but prior to such judgment the invalid organization has levied
taxes, the funds derived from the levy shall be disposed of as follows:

(1) If the area embraced in the invalid organization is embraced in
a subsequently created organization composed of unincorporated or
incorporated territory, or combinations thereof, for the purpose of
furnishing domestic water to the inhabitants thereof, the custodian of
the taxes collected for the invalid organization shall turn them over to
the subsequent organization to be used only for the purpose of furnishing
domestic water to such inhabitants.

(2) If the subsequent organization does not embrace all territory
embraced in the invalid organization, such taxes as have been collected
from the levy upon property in areas not embraced in the subsequent
organization shall be refunded to the payers thereof by the custodian of
the taxes before the balance is turned over to the subsequent
organization.

(3) If no such subsequent organization is created to provide
domestic water for the inhabitants of such an area, within a period of
two years after the entry of the judgment of invalidation, the taxes
collected shall be refunded by the custodian of them to the taxpayers who
paid them. [Amended by 2003 c.576 §409]A domestic water
supply district created under this chapter may exercise the power of
eminent domain both inside and outside of its boundaries, and may
purchase, sell, condemn and appropriate real property, water, water
rights and riparian rights. A district also has the right to purchase or
obtain from other local governments as defined in ORS 174.116, water or
water rights, or an interest in water or water rights, or an interest in
a water pipeline owned or operated by any such local government, or to
obtain jointly with any such local government, any right, or to lay and
own individually or jointly with any local government, any water pipeline
for the purposes specified in ORS 264.110. [Amended by 1969 c.666 §53;
2003 c.802 §82](1) For the purpose of carrying into effect all or any
powers granted by this chapter, the district, when authorized at any
properly called election held for that purpose, may borrow money and sell
and dispose of general obligation bonds. Except as otherwise provided by
this section, the bonds shall never exceed in the aggregate two and
one-half percent of the real market value of all taxable property within
the boundaries of the district, computed in accordance with ORS 308.207.

(2) The bonds shall be issued from time to time by the board of
commissioners in behalf of the district as authorized by the electors,
and may be issued in an amount not to exceed one-half of one percent of
the real market value referred to in subsection (1) of this section
without the approval of the electors. The bonds shall mature serially
within not to exceed 30 years from issue date, and shall bear such rate
of interest, payable semiannually, as the board shall determine. The
bonds shall be so conditioned that the district agrees to pay to the
bearer, at a place named, the principal sum of the bonds with interest at
the rate named, payable semiannually in accordance with the tenor and
terms of the interest coupons attached.

(3) If the district has within its boundaries a population of 300
or over, it may issue bonds in an amount which shall not exceed in the
aggregate 10 percent of the real market value referred to in subsection
(1) of this section.

(4) For the purpose of additionally securing the payment of the
principal and interest on general obligation bonds issued under this
section, the district may, by resolution of its board which shall
constitute part of the contract with the holders of the bonds, pledge all
or any part of the net revenue of its water system. The board may adopt
such a resolution without submitting the question of the pledge to the
electors of the district. [Amended by 1963 c.9 §6; 1963 c.318 §1; 1969
c.666 §14; 1969 c.694 §4; 1971 c.36 §1; 1977 c.188 §2; 1981 c.94 §14;
1983 c.347 §18; 1991 c.459 §358; 2001 c.215 §2; 2003 c.802 §83] In addition to the authority to
issue general obligation bonds, the district, when authorized at any
properly called election, shall have the power to sell and dispose of
revenue bonds, and to pledge as security therefor all or any part of the
unobligated net revenue of the district or system, to purchase, acquire,
lay out, construct, reconstruct, extend, enlarge or improve a water
system, or to install hydrants for fire protection along its mains, or to
perform any of those acts in combination, for the purpose of obtaining
water for the domestic use of consumers, or for fire protection, or both,
within or without the boundaries of the district. The revenue bonds shall
be issued in the same manner and form as are general obligation bonds of
the district, but they shall be payable, both as to principal and
interest, from revenues only, as specified by this section. The revenue
bonds shall not be subject to the percentage limitation applicable to
general obligation bonds and shall not be a lien upon any of the taxable
property within the boundaries of such district, but shall be payable
solely from such part of the revenues of the district as remain after
payment of obligations having a priority and of all expenses of operation
and maintenance of the district, including any taxes levied against it.
All revenue bonds shall contain a clause reciting that both the principal
and interest are payable solely from operating revenues of the district
remaining after paying such obligations and expenses. [Amended by 1969
c.666 §15; 2003 c.802 §84] Refunding bonds of the same
character and tenor as those replaced thereby may be issued pursuant to a
resolution duly adopted by the board of commissioners without submitting
to the electors the question of authorizing the issuance of such bonds.
[Amended by 1969 c.666 §16] All general obligation and revenue
bonds, including refunding bonds, issued under ORS 264.250 to 264.270
shall be advertised and sold in the manner prescribed in ORS 287.014 to
287.022 for the sale of bonds of cities of this state. (1) A district may
assess, levy and collect taxes in an amount each year not to exceed
one-fourth of one percent (0.0025) of the real market value of all
taxable property within the limits of the district, computed in
accordance with ORS 308.207. The proceeds of the tax shall be applied by
it in carrying out the objects and purposes of ORS 264.110, 264.210 to
264.280 and 264.330 and for the purpose of financing the employees'
retirement system.

(2) A district may annually also assess, levy and collect a special
tax upon all such property in an amount sufficient to pay the yearly
interest on bonds theretofore issued by the district and then
outstanding, together with any portion of the principal of such bonds
maturing within the year. The special tax shall be applied only in
payment of interest and principal of bonds issued by the district, but
the district may apply any funds it may have toward payment of principal
and interest of any such bonds.

(3) Taxes shall be levied in each year and returned to the county
officer whose duty it is to extend the tax roll by the time required by
law for city taxes to be levied and returned.

(4) Taxes levied by the district shall become payable at the same
time and be collected by the same officer who collects county taxes, and
the proceeds shall be turned over to the district according to law. The
county officer whose duty it is to extend the county levy shall extend
the levy of the district in the same manner as city taxes are extended.

(5) Property is subject to sale for nonpayment of taxes levied by
the district in like manner and with like effect as in the case of county
and state taxes. [Amended by 1963 c.9 §7; 1965 c.348 §6; 1969 c.666 §54;
1969 c.694 §5; 1971 c.36 §2; 1991 c.459 §359; 2001 c.215 §3](1) Any district may adopt
and promulgate regulations concerning the use of water and the property
of the district. The board of commissioners may refuse to supply any
building, place or premises with water where the user fails after five
days' written notice to comply with the regulations. The written notice
shall be by first-class mail or shall be posted in some conspicuous place
on the building, place or premises to which the supply of water may be
shut off. When the notice is mailed, it shall be deemed given when it is
deposited in the United States Post Office properly addressed with
postage prepaid.

(2) Whenever the household supply of water is being jeopardized by
nonhousehold use of water, the district can order the nonhousehold use of
water to be immediately discontinued. For the purposes of this
subsection, nonhousehold use includes irrigation of lawns or fields.
[1953 c.660 §3; 1969 c.666 §18; 1991 c.249 §20; 1991 c.250 §1] Any district may
require a reasonable cash deposit to insure payment for the use or rent
of water to be furnished by the district. [1953 c.660 §1; 1969 c.666 §19]
A district shall charge consumers for the water furnished and fix and
collect the rates therefor. Rates charged may be fixed and classified
according to the type of use and according to the amount of water used.
Any contract entered into by a district with persons other than domestic
users shall provide for immediate cancellation whenever no surplus supply
of water exists over and above any and all demands of domestic users. A
district also may contract with any person, or enter into
intergovernmental agreements under ORS chapter 190, to supply, furnish
and sell surplus water on such terms and conditions and at such rates as
the board of commissioners considers advisable. [Amended by 1969 c.666
§55; 2003 c.802 §85] (1) Whenever any
increase is proposed in the existing rates charged water consumers by a
district pursuant to ORS 264.310, the board of commissioners shall first
provide for a public hearing on such proposal before any increased rates
are ordered into effect.

(2) The public hearing required under subsection (1) of this
section shall be held at a place designated by the board after notice
thereof has been given by inclusion of a notice of the public hearing in
either the water bills or a special mailing sent to consumers by the
district during the period of 30 days prior to the date of the hearing.
[1961 c.685 §§2, 3; 1969 c.666 §20; 1979 c.328 §5]
In case prompt payment of water rent or charge is not made, a district
may shut off the water supply to the building, place or premises to which
the district supplied the water. [1953 c.660 §2; 1969 c.666 §56] If any person is
required by a district to pay the cost of extending a water main adjacent
to property other than the person's own so that water service for
domestic use is provided for such other property without further
extension of the water main, the district shall require the owner of the
other property, prior to providing water service to that property, to
refund to the person required to pay the cost of extending the water
main, a pro rata portion of the cost of the extension. The right to
require such refund shall not continue for more than 10 years after the
date of installation of the extension of the water main. The amount to be
refunded shall be determined by the district and such determination shall
be final. [Amended by 1969 c.666 §21] Any
district may install hydrants for fire protection along its mains at such
points as its board of commissioners may determine, and furnish water for
such purpose. The board shall establish, from time to time, regulations
governing such installations, and furnishing of water therefrom and any
rates and charges thereon. No equipment other than the hydrants and water
therefor shall be furnished at the general expense. [Amended by 1969
c.666 §22] In
addition to the other powers granted to districts under this chapter, a
district may exercise the powers granted to sanitary districts under ORS
450.005 to 450.245 when:

(1) The district obtains all or part of its supply of water from a
watershed;

(2) The watershed is located in a sole-source aquifer designated
prior to September 29, 1991, by the United States Environmental
Protection Agency under the Safe Drinking Water Act (42 U.S.C. 300h et
seq.);

(3) The watershed is recognized under rules of the Environmental
Quality Commission as a watershed requiring protection from contamination
in order to maintain high water quality; and

(4) The district adopts a resolution declaring that the health of
the residents of the district and the general public interest requires
the district to protect the water quality of the watershed. [1991 c.665
§2; 2005 c.22 §191](1) Any district, when authorized by the electors
as provided by this subsection, may purchase fire apparatus and equipment
and maintain, service and operate the same, and may enter into
intergovernmental agreements under ORS chapter 190 for fire protection
for its inhabitants, or do either or any combination of the foregoing.
Such power shall only be given the board of commissioners by a majority
of the votes cast by electors of the district at a special election
called for such purpose by the board.

(2)(a) When the power is so granted, the board of commissioners may
levy a tax not exceeding three-twentieths of one percent (0.0015) of the
real market value of all taxable property within the boundaries of the
district, computed in accordance with ORS 308.207 for defraying the
expense of providing, maintaining, operating and servicing such fire
apparatus and equipment, and of intergovernmental agreements for the
protection of its inhabitants from fire.

(b) Upon approval of the majority of the votes cast by electors of
the district at a special election called for that purpose by the board
of commissioners, the district may levy a special tax for defraying such
expenses not to exceed four-tenths of one percent (0.0040) of the real
market value of the taxable property in the district referred to in
paragraph (a) of this subsection.

(3) This section shall not apply to any district which on July 16,
1949, was wholly or partially within any legally organized rural fire
protection district. [Amended by 1955 c.163 §1; 1963 c.9 §8; 1963 c.318
§2; 1969 c.666 §23; 1983 c.542 §1; 1991 c.459 §360; 2003 c.802 §86] A district which has
provided fire protection under ORS 264.340 may, in accordance with ORS
198.510 to 198.600, adopt a fire prevention code. [1953 c.206 §1; 1969
c.666 §24; 1971 c.268 §23; 1971 c.647 §39] The fire prevention code
referred to in ORS 264.342 may provide reasonable regulations relating to:

(1) Prevention of fires.

(2) Storage and use of combustibles and explosives.

(3) Construction, maintenance and regulation of fire escapes.

(4) Means and adequacy of exit in case of fires in factories,
asylums, hospitals, churches, schools, halls, theaters, amphitheaters,
all buildings, except private residences, which are occupied for sleeping
purposes, and all other places where large numbers of persons work, live
or congregate from time to time for any purpose.

(5) Requiring the issuance of permits by an officer designated by
the board of commissioners before burning trash or waste materials.

(6) Providing for the inspection of premises by officers designated
by the board of commissioners, and requiring the removal of fire hazards
found on premises at such inspections. [1953 c.206 §2]
When a fire prevention code has been adopted as provided in ORS 264.342,
no person shall violate the provisions of the code or fail to remove
hazards found on inspection within the time set by the inspecting
officer, after written notice to either the owner or occupant of such
premises, or burn waste materials or trash in an unguarded manner without
a permit, if a permit is required by the code. [1953 c.206 §3]Copies of the fire prevention code referred to
in ORS 264.342 shall be filed with the State Fire Marshal's office and a
copy shall be posted at each fire station within the domestic water
supply district. [1953 c.206 §4; 2003 c.802 §87](1) The authority of a district to furnish fire protection
service under ORS 264.340 may be revoked by a majority vote of the
electors voting at a special election called for that purpose.

(2) Upon revocation of the authority of a district to furnish fire
protection service under ORS 264.340:

(a) The board of commissioners may determine the disposition to be
made of any fire apparatus and equipment owned, maintained, serviced or
operated by the district.

(b) The fire prevention code adopted pursuant to ORS 264.342 is
repealed.

(3) Revocation of the authority of a district to furnish fire
protection service under ORS 264.340 shall not abrogate any contract to
which the district is a party and which relates to the fire protection
service performed under ORS 264.340, and the district shall be obligated
and authorized to complete and enforce performance of all such contracts.
(1) Any
district, when authorized by the electors, may install, maintain and
operate a system, or systems, of street, road and highway lights. Lights
shall be maintained upon streets, roads, intersections or other places
as, in the judgment of the board of commissioners, will furnish the best
lighting service to the residents within the district.

(2) The district through its board of commissioners may contract
with any supplier of electricity, private or public, to furnish the
electric energy for such systems.

(3) The district, when authorized by the electors, may at any time
thereafter levy a tax, not to exceed three-twentieths of one percent
(0.0015) of real market value in any one year for the installation of the
system and any extension thereof, and not to exceed one-twentieth of one
percent (0.0005) of real market value in any one year for maintenance and
purchase of electric energy. The tax limits provided by this subsection
shall be computed as a percentage of the real market value of all taxable
property within the limits of the district, computed in accordance with
ORS 308.207.

(4) A district may require any person to pay the cost of installing
the highway lighting system adjacent to the property of the person. The
district shall have the further right to include the cost of installing
the system as a part of an agreement with any person for extending a
water main.

(5) If authorized by the electors, the cost of maintenance and
purchase of energy may be charged to the water consumers on the basis of
one share for each water connection, payable monthly with the bills for
water charges. The district may, when authorized by the electors, change
from either system of collection to the other. The funds received from
the respective levies and charges to water users shall be used only for
the purposes collected and no other funds of the district shall be so
used.

(6) Elector approval required by this section means the approval of
a majority voting at a special election called by the board for the
purpose of submitting the matter to the electors. [Amended by 1955 c.163
§2; 1963 c.9 §9; 1969 c.666 §26; 1991 c.459 §361] Any district may perform drainage work for
the purpose of reclaiming real property located within the district,
protecting real or personal property located within the district from the
effects of water, promoting sanitation, providing for the public health,
convenience and welfare or providing services of public utility or
benefit. The district may use all applicable powers granted to it by this
chapter, including the rights and powers of eminent domain, in performing
the drainage work authorized by this section. [1959 c.381 §2; 1969 c.666
§27] (1) Districts may
enter into cooperative agreements with each other providing for the joint
acquisition, construction, ownership, use or control of facilities for
the collection, treatment, distribution or supply of water.

(2) Each district may issue and sell general obligation, revenue or
refunding bonds, subject to the limitations and procedures contained or
referred to in this chapter for the authorization, issuance or sale of
such bonds, for the purpose of paying its share of the cost of the
acquisition or construction of facilities provided for in cooperative
agreements authorized by this section. [1963 c.146 §1; 1969 c.666 §28]Note: 264.360 was enacted into law by the Legislative Assembly but
was not added to or made a part of ORS chapter 264 or any series therein
by legislative action. See Preface to Oregon Revised Statutes for further
explanation.IMPROVEMENTS AND ASSESSMENTS
Whenever the district board considers it necessary, upon its own motion,
or upon the petition of the owners of one-half of the property that
benefits specially from the improvement, to make any improvement to be
paid for in whole or in part by special assessment according to benefits,
the board shall, by motion, cause a survey and written report for such
project to be made and filed with the secretary. Unless the district
board directs otherwise, the report shall contain:

(1) A map or plat showing the general nature, location and extent
of the proposed improvement and the land to be assessed for the payment
of any part of the cost thereof.

(2) Plans, specifications and estimates of the work to be done;
however, where the proposed project is to be carried out in cooperation
with any other governmental agency, the district board may adopt the
plans, specifications and estimates of such agency.

(3) An estimate of the probable cost of the improvement, including
any legal, administrative and engineering costs attributable thereto.

(4) An estimate of the unit cost of the improvement to the
specially benefited properties.

(5) A recommendation as to the method of assessment to be used to
arrive at a fair apportionment of the whole or any portion of the cost of
the improvement to the properties specially benefited.

(6) The description and assessed value of each lot, parcel of land
or portion thereof, to be specially benefited by the improvement, with
the names of the record owners thereof and, when readily available, the
names of the contract purchasers thereof.

(7) A statement of outstanding assessments against property to be
assessed. [1969 c.686 §2] After the report has been filed
with the secretary, the district board may by motion approve the report,
modify the report and approve it as modified, require additional or
different information for the improvement, or it may abandon the
improvement. [1969 c.686 §3]
After the district board approves the report as submitted or modified,
the board shall, by resolution, declare its intention to make the
improvement, provide the manner and method of carrying out the
improvement and direct the secretary to give notice of the improvement.
Such notice shall be given by two publications one week apart in a
newspaper of general circulation within the district, and by mailing
copies of the notice by registered or certified mail to the owners to be
assessed for the costs of the improvement. The notice shall contain the
following:

(1) That the report of the improvement is on file in the office of
the secretary and is subject to public examination.

(2) That the district board will hold a public hearing on the
proposed improvement on a specified date, which shall not be earlier than
10 days following the first publication of notice, at which objections
and remonstrances to the improvement will be heard by the board; and that
if prior to such hearing there shall be presented to the secretary valid,
written remonstrances of the owners of two-thirds of the property or
two-thirds of the front footage of the property to be specifically
affected for the improvement, then the improvement will be abandoned for
at least six months, unless the improvement is unanimously declared by
the district board to be needed at once because of an emergency.

(3) A description of the property to be specially benefited by the
improvement, the owners of the property and the estimate of the unit cost
of the improvement to be paid for by special assessments to benefited
properties. [1969 c.686 §4] The district board may provide in the
improvement resolution that the construction work will be done in whole,
or in part, by the district, by a contract or by any other governmental
agency, or by any combination thereof. [1969 c.686 §5] (1) At the time of the
public hearing on the proposed improvement, if the written remonstrances
represent less than the amount of property required to defeat the
proposed improvement, if such an improvement is one that can be
remonstrated against, then on the basis of such hearing of written
remonstrances and oral objections, if any, the district board may, by
motion, at the time of the hearing or within 60 days thereafter, order
the improvement to be carried out in accordance with the resolution, or
the district board may, on its own motion, abandon the improvement.

(2) After the public hearing on the proposed improvement and after
the district board has moved to proceed with the improvement, it may pass
an ordinance assessing the various lots, parcels of land or parts
thereof, to be specially benefited with their apportioned share of the
cost of the improvement; but the passage of an assessment ordinance may
be delayed until the contract for the work is let, or until the
improvement is completed and the total cost thereof is determined. [1969
c.686 §§6,7] The district
board in adopting a method of assessment of the costs of the improvement
may:

(1) Use any just and reasonable method of determining the extent of
any improvement district consistent with the benefits derived.

(2) Use any method of apportioning the sum to be assessed as is
just and reasonable between the properties determined to be specially
benefited.

(3) Authorize payment by the district of all, or any part, of the
cost of any such improvement, when in the opinion of the board the
topographical or physical conditions, or unusual or excessive public
travel, or other character of the work involved warrants only a partial
payment or no payment by the benefited property of the costs of the
improvement. [1969 c.686 §8] Any person feeling aggrieved by the
assessments made under an assessment ordinance may, within 20 days after
the passage of the ordinance levying the assessment by the district
board, appeal to the circuit court for the county in which the district
is located. The appeal and the requirements and formalities thereof shall
be heard, governed and determined, and the judgment thereon rendered and
enforced, in the manner provided for appeals from assessments in ORS
223.005 to 223.105 and 223.205 to 223.930. The result of the appeal shall
be a final and conclusive determination of the matter of the assessment,
except with respect to the district right of reassessment provided by ORS
264.390. [1969 c.686 §9] Within 10 days after the ordinance
levying assessments is adopted, the secretary of the district shall send
by registered or certified mail a notice of assessment to the owner of
the assessed property, and shall publish notice of the assessment twice
in a newspaper of general circulation in the district, the first
publication of which shall be made not later than 10 days after the date
of the assessment ordinance. The notice of assessment shall recite the
date of the assessment ordinance and shall state that upon the failure of
the owner of the property assessed to make application to pay the
assessment in installments within 10 days from the date of the first
publication of notice, or upon the failure of the owner to pay the
assessment in full within 30 days after the date of the assessment
ordinance, then interest will commence to run on the assessment and the
property assessed will be subject to foreclosure. The notice shall also
set forth a description of the property assessed, the name of the owner
of the property and the amount of each assessment. [1969 c.686 §10] After
passage of the assessment ordinance by the district board, the secretary
shall enter in the docket of district liens a statement of the amounts
assessed upon each particular lot, parcel of land or portion thereof,
together with a description of the improvement, the name of the owners
and the date of the assessment ordinance. Upon such entry in the lien
docket, the amount so entered shall become a lien upon the respective
lots, parcels of land or portions thereof, which have been assessed for
such improvement. All assessment liens of a district shall be superior
and prior to all other liens or encumbrances on property in so far as the
laws of the state permit. Interest shall be charged at such rate as the
governing body of the district may provide on all unpaid assessments,
together with an amount sufficient to pay a proportionate part of the
cost of administering the bond assessment program and issuing the bonds
authorized under ORS 264.250, including, but not limited to, legal,
printing and consultant's fees, such amount to be determined by the
governing body, until paid on all amounts not paid within 30 days from
the date of an assessment ordinance. After expiration of 30 days
following the date of an assessment ordinance the district may proceed to
foreclose or enforce collection of the assessment liens in the amount
provided by the general law of the state. However, the district may, at
its option, enter a bid for the property being offered at a foreclosure
sale, which bid shall be prior to all bids except those made by persons
who would be entitled under the laws of the state to redeem the property.
[1969 c.686 §11; 1981 c.322 §7] Claimed errors in the
calculation of assessments shall be called to the attention of the
secretary of the district, who shall determine whether there has been an
error in fact. If the secretary finds that there has been an error in
fact, the secretary shall recommend to the district board an amendment to
the assessment ordinance to correct the error. Upon enactment of the
amendment, the secretary shall make the necessary correction in the lien
docket and send a correct notice of assessment by registered or certified
mail. [1969 c.686 §12] In the event that an assessment is made
before the total cost of the improvement is ascertained, and if it is
found that the amount of the assessment is insufficient to defray the
expenses of the improvement, the district board may, by motion, declare
such deficit and prepare a proposed deficit assessment. The board shall
set a time for a hearing of objections to such deficit assessment and
shall direct the secretary to publish one notice thereof in a newspaper
of general circulation in the district. After the hearing the board shall
make a just and equitable deficit assessment by ordinance, which shall be
entered in the lien docket as provided by ORS 264.362 to 264.394. Notices
of the deficit assessment shall be published and mailed and the
collection of the assessment shall be made in accordance with ORS 264.376
and 264.378. [1969 c.686 §13] Upon the completion of the
improvement project, if it is found that the assessment previously levied
upon any property is more than sufficient to pay the costs of the
improvements, the district board shall ascertain and declare the amount
of the excess by ordinance. When declared, the excess amounts shall be
entered on the lien docket as a credit upon the appropriate assessment.
If any assessment has been paid, the person who paid it, or the legal
representative of the person, shall be entitled to the repayment of the
rebate credit, or the portion thereof which exceeds the amount unpaid on
the original assessment. [1969 c.686 §14] The district board may abandon
proceedings for an improvement at any time prior to the final completion
of the improvement. If liens have been assessed upon any property under
ORS 264.362 to 264.394, they shall be canceled, and any payments made on
such assessments shall be refunded to the person paying the same, the
assigns or legal representatives of the person. [1969 c.686 §15]No improvement assessment shall be rendered invalid by reason of
a failure of the improvement report to contain all of the information
required by ORS 264.362, or by reason of a failure to have all of the
information required to be in the improvement resolution, the assessment
ordinance, the lien docket or notices required to be published and
mailed, nor by the failure to list the name of, or mail notice to, the
owner of any property as required by ORS 264.362 to 264.394, or by reason
of any other error, mistake, delay, omission, irregularity or other act,
jurisdiction or otherwise, in any of the proceedings or steps specified,
unless it appears that the assessment is unfair or unjust in its effect
upon the person complaining. The district board may remedy and correct
all such matters by suitable action and proceedings. [1969 c.686 §16] Whenever any assessment, deficit assessment
or reassessment for any improvement which has been made by the district
is set aside, or its enforcement restrained by any court having
jurisdiction thereof, or when the district board is in doubt as to the
validity of an assessment, deficit assessment or reassessment, or any
part thereof, the district board may make a reassessment in the manner
provided by ORS 223.405 to 223.485. [1969 c.686 §17] (1) In case the whole or
any portion of the cost of an improvement is assessed against the
property directly benefited and the owner of the property fails to pay
the amount of the lien, or any portion thereof, or the interest thereon,
when they become due, the board may proceed to foreclose the lien in any
manner provided by law for the collection of liens by municipalities and
may provide by ordinance a general procedure for the collection of liens
in any manner not inconsistent with law.

(2) The provisions of ORS 223.405 to 223.485 relating to
reassessment shall be available to districts where applicable. [1969
c.686 §19]BOARD OF COMMISSIONERS (1) Except as otherwise
provided by this chapter, the power and authority given to districts is
vested in and shall be exercised by a board of five commissioners, each
of whom shall be an elector of the district. However, if there are fewer
than 100 electors of the district, then any individual who owns and
maintains real property within the district, pays taxes levied thereon by
the district and is an elector registered anywhere in this state may
serve as a commissioner. Except as provided by subsection (2) of this
section, each commissioner shall be elected for a term of four years.

(2) Within 10 days after the formation of a district and the
election of the members of the first board, the commissioners shall meet
and organize, first taking and subscribing an oath of office. The
commissioners first elected shall determine by lot the length of term
each shall hold office. The terms of two commissioners shall expire June
30 next following the first regular district election and the terms of
three commissioners shall expire June 30 next following the second
regular district election.

(3) The board of commissioners shall fill any vacancy on the board
(1) Each office of commissioner shall be designated by
number as Position No. 1, Position No. 2 and so forth.

(2) The secretary of a district shall assign a position number to
each office on the board. The number so assigned shall be certified by
the secretary to the commissioner in office holding that position. A copy
of the certification shall be filed with the district elections officer.
[1977 c.301 §2; 1983 c.350 §103] The board of commissioners at
any regular meeting may call a special election of the electors of the
district. [Amended by 1969 c.666 §31; 1971 c.647 §41](1) The board of commissioners shall hold meetings at such
time and place within the district as it may determine. The board shall
hold at least one regular meeting in each month on a day to be fixed by
it, and may hold special meetings under such rules as it may make.

(2) The board shall, at the time of its organization, choose from
the commissioners a president, a secretary and a treasurer, who shall
hold their offices until the first regular meeting in January, or until
their successors are elected and qualified. The officers shall have,
respectively, the powers and shall perform the duties usual in such
cases. A majority shall constitute a quorum to do business and, in the
absence of the president, any other member may preside at a meeting.

(3) The board of commissioners may employ engineers,
superintendents, mechanics, clerks or other persons as it may find
requisite, necessary or convenient in carrying on any work of the
district and at a rate of remuneration as it may consider just.

(4) The board may provide life insurance and retirement or pension
plans for employees of a district, if the insurer issuing the policy is
licensed to do business in the State of Oregon. [Amended by 1965 c.307
§1; 1969 c.344 §4; 1969 c.345 §4; 1969 c.666 §§32, 66; 1971 c.403 §3]
(1) The money of a district shall be deposited in one or more
depositories, as defined in ORS 295.005, to be designated by the board of
commissioners. The money shall be withdrawn or paid out only when
previously ordered by vote of the board, and upon checks signed by the
treasurer or such other person as may be authorized by resolution of the
board. Receipts or vouchers, showing clearly the nature and items covered
by each check drawn, shall be kept on file.

(2) All the proceedings of the board of commissioners shall be
entered at large in a record book. All books, maps, plans, documents,
correspondence, vouchers, reports and other papers and records pertaining
to the business of the district shall be carefully preserved and shall be
open to inspection as public records. [Amended by 1969 c.666 §34; 1969
c.694 §6; 1971 c.36 §3; 2001 c.215 §4](1) Notwithstanding ORS 198.910 and 198.915, when, at an
election on consolidation or merger, a majority of the votes cast in each
affected district is in favor of merger or consolidation or when merger
or consolidation of districts is approved by a final order of a local
government boundary commission, if all but one of the affected districts
together contain fewer than 20 percent of the electors or owners of land
within the successor or surviving district, the district board of the
district containing the largest number of electors or owners of land
shall serve as the district board of the surviving or successor district.
The terms of office of members of the district board of the surviving or
successor district chosen under this subsection shall not be affected by
the merger or consolidation.

(2) The board selected under subsection (1) of this section or ORS
198.912 shall immediately meet as required by ORS 198.910, organize as
provided by this chapter and, by resolution, declare the districts merged
or consolidated. In areas outside the jurisdiction of a local government
boundary commission, the merger or consolidation is complete from the
date of adoption of the resolution. Within the jurisdiction of a local
government boundary commission, the merger or consolidation takes effect
as provided in ORS 199.480 (1)(c).

(3) For purposes of ad valorem taxation, a boundary change must be
filed in final approved form with the county assessor and the Department
of Revenue as provided in ORS 308.225. [1983 c.195 §2; 1997 c.590 §3;
2001 c.138 §8]CONTRACTSBefore approval of the board of commissioners is
given to a petition for annexation, the board shall secure from the
independent water supply source of the district, if any, an agreement to
supply such additional water as may be needed. [1953 c.682 §§2,3,4,5,6;
1967 c.436 §1; 1969 c.79 §1; 1969 c.666 §35; 1971 c.727 §81](1) If a city has been
annexed to a district under ORS 198.866 and 198.867 or has been joined to
a district under ORS 198.910, the city may designate the location and
type of fire hydrants to be installed within the territory of the city.
The board of commissioners shall establish the rates for the use of water
therefrom as provided in ORS 264.330. The city and the district may by
contract determine the entire matter of installation of hydrants and use
of water therefrom and payment therefor.

(2) The ownership of the water supply system within the city
boundaries shall revert to and be vested in the district. [Amended by
1969 c.666 §59; 1971 c.727 §82; 1983 c.142 §13]If a city has been annexed to a district under ORS 198.866 and
198.867 or has been joined to a district under ORS 198.910, the city and
the district may:

(1) Enter into contracts and agreements to do any act or thing
which either could have done if the annexation had not occurred.

(2) Contract and agree for the collection by the district of any
water user tax or charge imposed by the city upon water users within the
territory of the city, and the district thereupon may provide for such
collection according to its rules and regulations for the collection of
amounts due the district by water users, including but not limited to
shutting off the water supply for nonpayment. [1955 c.692 §1; 1969 c.666
§38; 1971 c.727 §83; 1983 c.142 §14]EMPLOYEES' RETIREMENT SYSTEM (1) A district may
establish an employees' retirement system. The board of commissioners may
enter into agreements necessary to establish the system and carry out the
plan and may agree to modifications of such agreements from time to time.

(2) The retirement plan may provide for retirement benefits
measured on the basis of services rendered or to be rendered by an
employee, either before or after the date on which such employee first
becomes a member of the retirement plan. The retirement plan may provide
for a minimum of years of service and a minimum and maximum age of
retirement for the employee. [1965 c.348 §2; 1969 c.666 §48] The district may
budget and provide for payment into the fund of the retirement plan an
amount sufficient:

(1) To provide on an actuarial reserve basis the amortized level
premium cost of the retirement benefits which, under the provision of the
retirement system, are to be provided by the district to its employees
who attain the retirement age or retire in accordance with the terms of
the retirement plan.

(2) To meet the actuarially computed costs of retirement benefits
measured on the basis of services rendered or to be rendered by an
employee before or after the date on which such employee becomes a member
of the retirement plan. [1965 c.348 §3] The district may collect, as a
contribution from any employee, that percentage of the salary received by
the employee which is necessary to fund on an actuarial reserve basis the
cost of retirement benefits which the employee is required to provide
pursuant to the provisions of a retirement plan. [1965 c.348 §4] Nothing in this chapter
authorizes the district to budget, provide for payments or collect
contributions to fund retirement benefits for an individual who is not in
the employment of the district at the time of the creation of a
membership status under a retirement plan. [1965 c.348 §5]MISCELLANEOUS(1) An irrigation district within which a water district is
situated, or a city supplying water to a water district, may enter into a
written agreement with a water district contemplating dissolution
undertaking to assume, in the event of such dissolution, all of the
outstanding debts and obligations of the water district and to continue
to furnish water to the inhabitants of the dissolving district for
domestic and municipal use for a term therein specified, not to exceed 25
years. Subject to the provisions of this section, the successor city
shall, if the dissolution is approved, have the powers and assume the
responsibilities, with reference to domestic water supply, as are
conferred and imposed upon cities under ORS 223.005 to 223.105, 223.205
to 223.930 and ORS chapter 225. Any person entitled to water service
within the area of the dissolved district has the same remedies at law or
in equity to enforce the rights of the person to water supply service as
are available to enforce the right to water service within the city.

(2) The successor city or district shall furnish domestic water
supply and service to persons owning or occupying property within the
dissolved district on the same terms and conditions as in the case of
those owning or occupying property within the city, or elsewhere within
the irrigation district. If the district assets and obligations are
transferred to a city, the city may charge a rate for the service that is
no more than the rate which is uniformly applied to all users in similar
classifications outside the city. No such differential rate may be
charged, however, unless such a differential is provided for, and
specifically limited, by the terms of the agreement made prior to the
dissolution. Nothing in this section authorizes a city or an irrigation
district to levy an ad valorem real property tax on property outside the
city or district.

(3) Any debts or obligations assumed by the successor city or by
the irrigation district by reason of, or during the period of, its
commitment under the agreement shall bind the city or irrigation district
until they are fully paid and discharged. No contract shall be effective
unless all of the terms thereof are reduced to writing, signed by the
entities, and filed with the county clerk as a part of and at the time
the findings and plan of dissolution are filed under ORS 198.925. [1971
c.601 §5; 1983 c.740 §67]PENALTIESViolation of any provision of ORS 264.346 is a
Class D violation. Each day's refusal to remove fire hazards after notice
by the inspecting officer to the owner or occupant of the premises
whereon such hazard exists shall constitute a separate offense. [1953
c.206 §5; 1999 c.1051 §168]

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