Bill Text: OR SB752 | 2011 | Regular Session | Introduced
Bill Title: Relating to facilities districts in metropolitan service districts.
Spectrum: Committee Bill
Status: (Failed) 2011-06-30 - In committee upon adjournment. [SB752 Detail]
Download: Oregon-2011-SB752-Introduced.html
76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 3481
Senate Bill 752
Sponsored by COMMITTEE ON FINANCE AND REVENUE
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Authorizes metropolitan service district to form facilities
district in same manner allowed for other service districts for
purposes of acquisition, construction, maintenance and operation
of facilities for publicly owned natural areas, open space,
trails and regional parks. Provides that governing body of
metropolitan service district is governing body of facilities
district. Authorizes facilities district to finance acquisition,
construction, maintenance and operation of facilities with taxes,
assessments, service or user charges or proceeds from bonds.
A BILL FOR AN ACT
Relating to facilities districts in metropolitan service
districts; creating new provisions; and amending ORS 174.116,
198.010 and 268.020.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Sections 2 to 20 of this 2011 Act are added to
and made a part of ORS chapter 268. + }
SECTION 2. { + Upon receiving authorization from the governing
body of the metropolitan service district as provided in sections
2 to 20 of this 2011 Act, a facilities district may acquire,
construct, maintain and operate facilities for publicly owned
natural areas, open space, trails and regional parks. + }
SECTION 3. { + Proceedings for facilities district formation
or change of organization must be initiated, conducted and
completed as provided by ORS 198.705 to 198.955. + }
SECTION 4. { + Prior to initiating the formation of a
facilities district, the governing body of the metropolitan
service district may cause engineering and program plans to be
prepared. The plans may include:
(1) Preliminary plans for the facilities to be acquired,
constructed, maintained or operated.
(2) Estimated costs of acquisition, construction, maintenance
and operation of the facilities. + }
SECTION 5. { + A facilities district may acquire, construct,
maintain and operate only those facilities that were authorized
upon formation of the facilities district. However, additional
authority regarding facilities may be given to a facilities
district by a proceeding initiated, conducted and completed in
the same manner as is provided for in the original formation of a
facilities district or as otherwise provided by law. + }
SECTION 6. { + The governing body of the metropolitan service
district shall be the governing body of a facilities district
established under sections 2 to 20 of this 2011 Act. A facilities
district shall be known by the name specified in the order
declaring its formation and by that name shall exercise and carry
out the powers and duties conferred and declared in sections 2 to
20 of this 2011 Act. Before proceeding to acquire or construct
any facilities authorized under sections 2 to 20 of this 2011
Act, the governing body of the facilities district shall make an
order to:
(1) Determine the facilities to be acquired, constructed,
maintained and operated and the part of the work to be undertaken
immediately.
(2) Determine the manner of financing the acquisition,
construction, maintenance and operation of the facilities.
(3) Determine the method by which the facilities district shall
bear the share of the cost of acquisition or construction of the
facilities that is to be apportioned to the facilities district.
(4) If the facilities of the facilities district are to be
integrated into other facilities acquired, constructed or being
acquired or constructed by another service district or by other
public bodies as defined in ORS 174.109, determine the fair and
equitable amount the facilities district should assume as its
share of the acquisition or construction of any other facilities,
for which the amount shall be paid to the other service district
or public body upon terms and conditions to which the governing
body of the facilities district has agreed.
(5) If any of the cost of the work is to be assessed against
benefited property, describe the portions of the facilities
district, if any, within which facilities will not be financed by
assessment. + }
SECTION 7. { + (1) The order required by section 6 of this
2011 Act and any order amending that order is subject to
referendum vote within the facilities district, notwithstanding
the prior authorization of the facilities by election during
formation proceedings. The referendum may be ordered by
resolution of the governing body of the facilities district, or
by petition filed as provided in this section.
(2) The requirements for preparing, circulating and filing a
referendum petition under this section shall be as provided in
ORS 255.135 to 255.205, except that notwithstanding ORS 255.165,
the petition must be submitted not later than the 60th day after
the date of the order.
(3) If a majority of those voting approve the order required by
section 6 of this 2011 Act, the governing body of the facilities
district shall so declare by order entered in its journal. If a
majority of those voting disapprove the order, the results shall
be entered in the journal. + }
SECTION 8. { + The facilities district may, in accordance with
the order required by section 6 of this 2011 Act, finance the
acquisition, construction, maintenance or operation of facilities
for a facilities district using:
(1) Moneys from a fund established under section 12 of this
2011 Act;
(2) Assessments collected against the property in the
facilities district with or without issuance of bonds authorized
under ORS 223.205, 223.210 to 223.295 and 223.770;
(3) Service or user charges collected in the facilities
district;
(4) Facilities district ad valorem taxes;
(5) Proceeds from the sale of bonds;
(6) Moneys obtained as provided under ORS 280.040, 280.050,
280.060, 280.070, 280.080 and 280.090; and
(7) Any combination of moneys from the provisions of
subsections (1) to (6) of this section. + }
SECTION 9. { + (1) If the cost, or any portion of the cost, of
facilities for a facilities district is to be assessed under
section 8 of this 2011 Act against the property directly
benefited, the governing body of the facilities district shall,
before attempting to implement the facilities, adopt a general
ordinance providing for the method of assessment. The ordinance
shall:
(a) Contain provision for notice to affected property owners of
intention to implement described facilities and to assess
benefited property for a part or all of the cost;
(b) Provide for a hearing at which affected property owners may
appear to object to the implementation of the proposed
facilities;
(c) Provide that if the facilities district receives written
objections prior to the conclusion of the hearing signed by more
than 50 percent of the affected property owners representing more
than 50 percent of the affected property, the proposed facilities
will not be implemented;
(d) Provide for notice of and a hearing on proposed
assessments, which notice and hearing may be combined with the
notice and hearing described in paragraphs (a) and (b) of this
subsection;
(e) Provide for the general method of assessing the property
directly benefited and of the recording of liens against the
property directly benefited, and of making supplementary
assessments and rebates; and
(f) Provide for establishing the boundaries of each assessment
district as work is proposed.
(2) Assessments in the facilities district shall, so far as
practicable, be apportioned within the facilities district in
accordance with the special and peculiar benefit each lot or
parcel of land receives from the facilities.
(3) Where parcels of land, or portions of parcels, are
undeveloped, the governing body of the facilities district may,
in its discretion, defer assessing or imposing all or any portion
of the assessments on such parcels until the parcels are served
by the facilities. + }
SECTION 10. { + The facilities district may by order or by
ordinance, for the purpose of paying the costs of operation and
maintenance of facilities, and for the repayment of bonds, impose
service or user charges on property served by the facilities. The
facilities district may, from time to time when necessary, use
moneys from the revolving fund for such maintenance and operation
on a reimbursable basis. User charges, connection fees or service
charges shall be based upon the costs of operation, maintenance
and supervision of facilities and the costs of bond
repayment. + }
SECTION 11. { + (1) When assessments are made under sections 2
to 20 of this 2011 Act, the assessments shall be entered in a
permanent lien docket that shall be kept in the office of the
county clerk of the county in which the property is located. The
docket shall show the amount of each lien, property against which
it has been assessed, the owner of the property and any
additional information required to keep a permanent and complete
record of the assessment and the payments on the assessment.
(2) If the owner of the property against which an assessment
has been made fails to pay the assessment, or any portion of the
assessment, or the interest on the assessment, when due, the
facilities district may proceed to foreclose the lien in any
manner provided by law for the collection of liens by local
governments as defined in ORS 174.116 or may provide by ordinance
a general procedure for the collection of such liens in any
manner not inconsistent with law.
(3) The provisions of ORS 223.405 to 223.485 relating to
reassessment shall be available to the facilities district, where
applicable, in connection with assessments made under sections 2
to 20 of this 2011 Act. + }
SECTION 12. { + (1) The governing body of the metropolitan
service district may, for the purpose of establishing a revolving
fund to provide moneys to finance the acquisition or construction
under sections 2 to 20 of this 2011 Act of facilities in the
metropolitan service district that may be necessary to implement
the plans provided for in sections 2 to 20 this 2011 Act, levy an
ad valorem tax of not to exceed 50 cents per year, for a period
not to exceed five years, for each $1,000 of real market value of
taxable property within all areas of the metropolitan service
district to be served by the facilities included in the plans.
The revenues derived from the taxes shall be deposited with the
metropolitan service district and credited to the revolving fund.
Moneys in the revolving fund shall be disbursed by the
metropolitan service district only upon order of the governing
body of the metropolitan service district and used solely for the
purposes authorized in sections 2 to 20 of this 2011 Act.
(2) The boundaries of the territory within which a tax
authorized by subsection (1) of this section may be levied shall
be determined by the governing body of the metropolitan service
district after a public hearing. The governing body of the
metropolitan service district shall publish notice of the hearing
once a week for two successive weeks prior to the hearing in a
newspaper of general circulation published within the proposed
boundaries of the territory or, if there is no such newspaper, in
a newspaper of general circulation in the metropolitan service
district. Any elector or any owner of property within the
territory may appear at the hearing to protest inclusion of the
property of the elector or owner within the territory, but the
governing body of the metropolitan service district may not
exclude land that, in its judgment, will be served by the
facilities included in the plans. + }
SECTION 13. { + For purposes of ad valorem taxation, a
boundary change must be filed in final approved form with the
county assessor for any counties in which the boundary change is
occurring and the Department of Revenue as provided in ORS
308.225. + }
SECTION 14. { + (1) A facilities district may, when authorized
by a majority of the votes cast at an election by electors of the
facilities district, issue general obligation bonds for the
purpose of paying the cost of acquisition or construction of
facilities. Each issue of general obligation bonds shall be the
general obligation of the facilities district and the principal
and interest on the bonds shall be paid by the facilities
district by assessments, service or user charges or ad valorem
taxes imposed or levied within the facilities district as may be
determined by the governing body of the facilities district under
section 8 of this 2011 Act. Bonds authorized by this section
shall be issued in accordance with ORS chapter 287A, except as
otherwise provided in this section.
(2) In addition to the authority to issue general obligation
bonds, the governing body of the facilities district, when
authorized at any properly called election, shall have the power
to sell and dispose of revenue bonds, and to pledge as security
for the revenue bonds all or any part of the unobligated net
revenues of the facilities district to purchase, acquire, lay
out, construct, reconstruct, extend, enlarge or improve
facilities. The revenue bonds shall be issued as prescribed in
ORS chapter 287A, but the revenue bonds are payable from revenues
only, both as to principal and interest. The revenue bonds are
not subject to the percentage limitation applicable to general
obligation bonds and are not a lien upon any of the taxable
property within the boundaries of the facilities district, but
are payable solely from any part of the revenues of the
facilities district that remain after payment of obligations
having a priority and of all expenses of operation and
maintenance of the facilities district. All revenue bonds must
contain a clause reciting that both the principal and interest
are payable solely from the operating revenues of the facilities
district that remain after paying any obligations and expenses.
(3) The total outstanding general obligation bonds of the
facilities district, including improvement bonds of the kind
authorized by ORS 223.205 and 223.210 to 223.295, may not exceed
in the aggregate 13 percent of the real market value of all
property assessable by law for state and county purposes within
the facilities district as reflected in the last roll certified
under ORS 311.105. + }
SECTION 15. { + A facilities district that has not previously
imposed ad valorem property taxes may vote to establish a
permanent rate limit for operating taxes in accordance with
section 11 (3)(c), Article XI of the Oregon Constitution, and
thereafter the facilities district may levy ad valorem property
taxes on property within the facilities district for the purposes
authorized by sections 2 to 20 of this 2011 Act. If a facilities
district has established a permanent rate limit in accordance
with this section, the provisions of ORS 294.305 to 294.565 shall
apply to the facilities district. + }
SECTION 16. { + For the purpose of carrying out the powers
granted under sections 2 to 20 of this 2011 Act, a facilities
district may:
(1) Acquire, construct, supervise, manage, control, operate and
maintain facilities.
(2) Acquire by purchase, gift, devise, condemnation proceedings
or by any other means, such real and personal property and rights
of way, either within or without the metropolitan service
district, as in the judgment of the governing body of the
facilities district are necessary or proper in the exercise of
the powers of the facilities district, and to pay for and hold
the property and rights of way.
(3) Make and accept contracts, deeds, releases and documents
that, in the judgment of the governing body of the facilities
district, are necessary or proper in the exercise of the powers
of the facilities district.
(4) Employ and pay necessary agents, employees and assistants.
(5) Construct facilities in and on any public street, highway
or road and for this purpose enter upon the street, highway or
road, make all necessary and proper excavations, and thereafter
restore the street, highway or road to its proper condition.
However, the consent of the appropriate city, county or state
authorities, as the case may be, must first be obtained and the
conditions of the consent complied with.
(6) Do any act necessary or proper to the complete exercise and
effect of any of its powers under sections 2 to 20 of this 2011
Act. + }
SECTION 17. { + (1) A facilities district may enter into
agreements with any city, any county, the federal government, the
state or any of its agencies, any service district organized for
a public purpose or any person for a period not to exceed 30
years for the cooperative financing of the acquisition,
construction, maintenance and operation of facilities.
(2) A facilities district may enter into agreements with any
county, city, service district organized for a public purpose or
person for the use, lease or joint operation of any facilities or
any portion of those facilities. + }
SECTION 18. { + (1) Except as otherwise provided in sections 2
to 20 of this 2011 Act, all moneys received by a facilities
district must be paid to the metropolitan service district and
deposited in an appropriate facilities district fund. The
metropolitan service district must establish separate accounts in
the facilities district fund or separate funds in the
metropolitan service district treasury for the segregation of
sinking or reserve funds or accounts, of operating funds or
accounts or of any other funds or accounts found necessary or
expedient by the facilities district. Moneys received by a
facilities district may not be used for any purpose other than
carrying out the purposes of sections 2 to 20 of this 2011 Act,
and all funds, facilities, personnel or supplies of the
metropolitan service district used for those purposes shall be
charged to the appropriate facilities district fund or account.
(2) Notwithstanding the requirement for a facilities district
to pay facilities district moneys to the metropolitan service
district for deposit in an appropriate facilities district fund
in the metropolitan service district treasury under subsection
(1) of this section, the governing body of a metropolitan service
district may order the governing body of a facilities district to
hold and manage its own moneys in one or more facilities district
funds or accounts with a financial institution as defined in ORS
706.008. The order must provide for transfer of any moneys of the
facilities district then held or later received by the
metropolitan service district for the facilities district.
Thereafter, the facilities district shall be solely responsible
for management of moneys of the facilities district and shall
designate a facilities district officer or employee to assume the
duties and responsibilities otherwise imposed upon the
metropolitan service district.
(3) Moneys deposited by the facilities district in a facilities
district fund or account may be withdrawn or paid out only upon a
proper order and warrant or upon a check signed by the facilities
district officer or employee designated to assume the duties and
responsibilities otherwise imposed upon the metropolitan service
district. The order must:
(a) Specify the name of the person to whom the moneys are to be
paid;
(b) Specify the fund or account from which the moneys are to be
withdrawn or paid out;
(c) State generally the purpose for which the moneys are to be
withdrawn or paid out; and
(d) Be entered in the record of proceedings of the facilities
district. + }
SECTION 19. { + A facilities district established under
sections 2 to 20 of this 2011 Act is not affected if all of part
of the area within the facilities district is incorporated in or
annexed to a city or any other special district. + }
SECTION 20. { + Officers and employees of a metropolitan
service district or facilities district may enter upon privately
owned lands to survey or lay out facilities by direction of the
governing body of the metropolitan service district or governing
body of the facilities district. However, the governing body of
the metropolitan service district or governing body of the
facilities district must cause notification to be given to each
occupant of the lands, either by registered or certified mail or
by other lawful means. The notice must be given at least five
days before the metropolitan service district or facilities
district officers or employees enter upon the lands. An officer
or employee of a metropolitan service district or facilities
district entering privately owned lands pursuant to this section
may not damage or destroy trees, shrubs, buildings or other items
of value on that land without first obtaining the consent of the
owner. + }
SECTION 21. ORS 268.020 is amended to read:
268.020. As used in this chapter:
(1) 'District' means a metropolitan service district
established under this chapter.
(2) 'District charter' means a home rule charter enacted by the
electors of a district under section 14, Article XI, Oregon
Constitution.
{ + (3) 'Facilities district' means a service district formed
by a metropolitan service district under sections 2 to 20 of this
2011 Act. + }
{ - (3) - } { + (4) + } 'Metropolitan area' means that area
which on October 4, 1997, lies within the boundaries of
Clackamas, Multnomah and Washington Counties.
{ - (4) - } { + (5) + } 'Improvement' means the facilities
and other property constructed, erected or acquired by and to be
used in the performance of services authorized to be performed by
a { + metropolitan service district or facilities + } district.
{ - (5) - } { + (6) + } 'Metropolitan significance' means
having major or significant district-wide impact.
{ - (6) - } { + (7) + } 'Person' means a public body as
defined in ORS 174.109, individual, corporation, partnership,
association, firm, trust, estate or any other legal entity.
{ - (7) - } { + (8) + } 'Regional framework plan' means the
Metro regional framework plan defined in ORS 197.015 and any
{ + metropolitan service + } district ordinances that implement
the plan.
SECTION 22. ORS 174.116 is amended to read:
174.116. (1)(a) Subject to ORS 174.108, as used in the statutes
of this state 'local government' means all cities, counties and
local service districts located in this state, and all
administrative subdivisions of those cities, counties and local
service districts.
(b) Subject to ORS 174.108, as used in the statutes of this
state 'local government' includes:
(A) An entity created by statute, ordinance or resolution for
the purpose of giving advice only to a local government;
(B) An entity created by local government for the purpose of
giving advice to local government and that is not created by
ordinance or resolution, if the document creating the entity
indicates that the entity is a public body; and
(C) Any entity created by local government other than an entity
described in subparagraph (B) of this paragraph, unless the
ordinance, resolution or other document creating the entity
indicates that the entity is not a governmental entity or the
entity is not subject to any substantial control by local
government.
(2) Subject to ORS 174.108, as used in the statutes of this
state 'local service district' means:
(a) An economic improvement district created under ORS 223.112
to 223.132 or 223.141 to 223.161.
(b) A people's utility district organized under ORS chapter
261.
(c) A domestic water supply district organized under ORS
chapter 264.
(d) A cemetery maintenance district organized under ORS chapter
265.
(e) A park and recreation district organized under ORS chapter
266.
(f) A mass transit district organized under ORS 267.010 to
267.390.
(g) A transportation district organized under ORS 267.510 to
267.650.
(h) A metropolitan service district organized under ORS chapter
268 { + or a facilities district formed by a metropolitan
service district + }.
(i) A translator district organized under ORS 354.605 to
354.715.
(j) A library district organized under ORS 357.216 to 357.286.
(k) A county road district organized under ORS 371.055 to
371.110.
(L) A special road district organized under ORS 371.305 to
371.360.
(m) A road assessment district organized under ORS 371.405 to
371.535.
(n) A highway lighting district organized under ORS chapter
372.
(o) A 9-1-1 communications district organized under ORS 403.300
to 403.380.
(p) A health district organized under ORS 440.305 to 440.410.
(q) A sanitary district organized under ORS 450.005 to 450.245.
(r) A sanitary authority, water authority or joint water and
sanitary authority organized under ORS 450.600 to 450.989.
(s) A county service district organized under ORS chapter 451.
(t) A vector control district organized under ORS 452.020 to
452.170.
(u) A rural fire protection district organized under ORS
chapter 478.
(v) A geothermal heating district organized under ORS chapter
523.
(w) An irrigation district organized under ORS chapter 545.
(x) A drainage district organized under ORS chapter 547.
(y) A diking district organized under ORS chapter 551.
(z) A water improvement district organized under ORS chapter
552.
(aa) A water control district organized under ORS chapter 553.
(bb) A district improvement company or a district improvement
corporation organized under ORS chapter 554.
(cc) A weather modification district organized under ORS
558.200 to 558.440.
(dd) A fair district formed under ORS chapter 565.
(ee) A soil and water conservation district organized under ORS
568.210 to 568.808 and 568.900 to 568.933.
(ff) A weed control district organized under ORS 569.350 to
569.450.
(gg) A port organized under ORS 777.005 to 777.725 and 777.915
to 777.953.
(hh) The Port of Portland created under ORS 778.010.
(ii) An airport district established under ORS chapter 838.
(jj) A heritage district organized under ORS 358.442 to
358.474.
(kk) A radio and data district organized under ORS 403.500 to
403.542.
SECTION 23. ORS 198.010 is amended to read:
198.010. As used in this chapter, except as otherwise
specifically provided, 'district' means any one of the following:
(1) A people's utility district organized under ORS chapter
261.
(2) A domestic water supply district organized under ORS
chapter 264.
(3) A cemetery maintenance district organized under ORS chapter
265.
(4) A park and recreation district organized under ORS chapter
266.
(5) A mass transit district organized under ORS 267.010 to
267.390.
(6) A metropolitan service district organized under ORS chapter
268 { + or a facilities district formed by a metropolitan
service district + }.
(7) A special road district organized under ORS 371.305 to
371.360.
(8) A road assessment district organized under ORS 371.405 to
371.535.
(9) A highway lighting district organized under ORS chapter
372.
(10) A health district organized under ORS 440.305 to 440.410.
(11) A sanitary district organized under ORS 450.005 to
450.245.
(12) A sanitary authority, water authority or joint water and
sanitary authority organized under ORS 450.600 to 450.989.
(13) A vector control district organized under ORS 452.020 to
452.170.
(14) A rural fire protection district organized under ORS
chapter 478.
(15) An irrigation district organized under ORS chapter 545.
(16) A drainage district organized under ORS chapter 547.
(17) A water improvement district organized under ORS chapter
552.
(18) A water control district organized under ORS chapter 553.
(19) A weather modification district organized under ORS
558.200 to 558.440.
(20) A port organized under ORS 777.005 to 777.725 and 777.915
to 777.953.
(21) A geothermal heating district organized under ORS chapter
523.
(22) A transportation district organized under ORS 267.510 to
267.650.
(23) A library district organized under ORS 357.216 to 357.286.
(24) A 9-1-1 communications district organized under ORS
403.300 to 403.380.
(25) A heritage district organized under ORS 358.442 to
358.474.
(26) A radio and data district organized under ORS 403.500 to
403.542.
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