Chapter 224 — CitySewers and Sanitation
2009 EDITION
CITYSEWERS AND SANITATION
CITIES
CONSTRUCTIONOF SEWER SYSTEM; ASSESSMENT PLAN
224.010 Definitionsfor ORS 224.010 to 224.170
224.020 Authorityof city to construct sewage system
224.030 Authorityof city to alter water flow; limitations
224.040 Assessmentof property; collection
224.050 Rightsof owners outside city limits
224.065 Writof review
224.080 Recordand effect of judgment
224.090 Assessmentlien on property outside city limits; priority
224.100 Recordsand indexes of transcripts; effect of writ of review
224.110 Enforcingliens on property outside city limits
224.120 Salewithout foreclosure
224.130 Assessmentof property in drainage district
224.140 Authorityto control sewer system
224.150 Federalaid
224.160 Procurementof funds for construction
224.170 Lawsand charter provisions applicable to reassessments
CONSTRUCTIONOF SEWER SYSTEM; BOND PLAN
224.232 Bondelection; Environmental Quality Commission order; court enforcement; issuanceof bonds without elector approval
224.270 Validationof bond issues
SEWERCONSTRUCTION IN CITIES OF 3,500 OR LESS
224.310 Definitionsfor ORS 224.310 to 224.420
224.320 Municipalitieseligible for state help in financing sewer systems
224.330 Conditionsprecedent to financing application
224.340 Bonds;form; interest; sale price
224.350 Generalpowers of the State Treasurer under ORS 224.310 to 224.420; rules
224.370 Municipalitynot to assume further obligations
224.380 Limitationson authority of State Treasurer to purchase bonds
224.390 StateSewer Bond Revolving Fund
224.400 Controlof State Treasurer over rates, collection of charges and delinquentassessments; budget approval
224.410 Authorityto appoint receiver and withhold earmarked moneys on default
224.420 Dutyof local treasurer to keep funds separate and withhold bond payments; liabilityof treasurer
224.450 Validationof revenue bonds issued by cities of less than 100,000; sale of bonds to thefederal government
SEWAGECHARGE ON WATER USERS
224.510 Sewagecharge on water users
CONSTRUCTIONOF SEWER SYSTEM; ASSESSMENT PLAN
224.010Definitions for ORS 224.010 to 224.170. As used in ORS 224.010 to 224.170,unless the context requires otherwise:
(1)“City” means any incorporated city or town.
(2)“Council” means the council or other municipal authority of a city.
224.020Authority of city to construct sewage system. Whenever the council of any citydeems it necessary or expedient to construct a sewer partially within andpartially without the city, or to construct a sewer outlet, or do any otherwork, acts or things without the city for proper disposal of sewerage anddrainage, the city, through its council, may acquire by purchase, condemnationor otherwise, any property rights of way, easement and other rights without thecity as may be needed or deemed essential for the construction of the sewer,sewer outlet, or other works. It may also provide for and do all things whichmay be necessary or deemed essential for proper construction of such sewer,sewer outlet, and for other works, acts and things which may be deemednecessary or essential for the proper disposal of sewerage and drainage fromthe city and adjacent territory.
224.030Authority of city to alter water flow; limitations. A city, throughits council, may divert water and waterways, fill or drain lakes, ponds orother waters, increase or diminish the flow of waters in natural channels ordam channels and do such other acts and things as may be found necessary oressential for the matters provided for in ORS 224.010 to 224.120 and in ORS224.170. However, no property rights or other vested rights shall be takenwithout agreement with the owner or a proceeding of condemnation.
224.040Assessment of property; collection. The council may provide for and make alocal assessment for benefits against any and all property whether within orwithout the city or partially within or partially without the city and enforcea collection of such assessments.
224.050Rights of owners outside city limits. The owners of property without the cityshall be given like notice and shall have like opportunities of remonstranceand have all other rights and remedies which the owners of property within thecity may have or be given, including the privileges of the Bancroft Bonding Actor similar charter provisions relating to bonding of assessments.
224.060 [Amended by1959 c.220 §1; repealed by 1967 c.280 §1 (224.065 enacted in lieu of 224.060)]
224.065Writ of review.Notwithstanding any of the provisions of ORS 224.010 to 224.170, owners of anyproperty against which an assessment for a local improvement under this chapterhas been imposed may seek a review thereof under the provisions of ORS 34.010to 34.100. [1967 c.280 §2 (enacted in lieu of 224.060 and 224.070)]
224.070 [Amended by1959 c.220 §2; repealed by 1967 c.280 §1 (224.065 enacted in lieu of 224.070)]
224.080Record and effect of judgment. Upon final determination of the reviewa transcript of the judgment shall be filed with the auditor, clerk or otherofficial of the city having charge of the assessment records, whereupon itshall be entered in the records of the city and other records as provided inORS 224.090 and 224.100 and shall constitute the assessment against theproperty. It shall bear interest from the date that other assessments for suchsewer or work bear interest and shall be enforced and collected in like manneras the assessment is collected against other property which may have been assessedfor such sewer or other work. In case the judgment on appeal is for the sameamount as the assessment, no entries need be made of the transcript. [Amendedby 1967 c.280 §3]
224.090Assessment lien on property outside city limits; priority. No assessmentunder ORS 224.040 against property beyond the limits of the city shall be alien on the property until a certified transcript of the assessment in so faras it affects such property has been filed with the county clerk or otherperson having custody and charge of the mortgage records of the county. Fromthe date of such filing the assessment shall be a lien and charge against theproperty upon which it is imposed, prior and superior to all other liens andencumbrances whatsoever thereon, except general taxes.
224.100Records and indexes of transcripts; effect of writ of review. The clerk orofficer referred to in ORS 224.090 shall record the transcript referred to inthat section in the mortgage records of the county and properly index it. Theissuance of a writ of review shall not prevent the recording and indexing ofsuch transcript, but upon final determination of the review a furthertranscript shall be recorded showing the amount of the assessment. The secondtranscript shall be indexed and recorded and the same shall, for the amountspecified therein, have the same force and effect as the first transcript wouldhave had. [Amended by 1967 c.280 §4; 1999 c.654 §24]
224.110Enforcing liens on property outside city limits. The city,through its council, may collect and enforce or provide for collecting andenforcing payment of liens created by virtue of ORS 224.090 or 224.100 by asale of the property in the same manner and with the same force and effect asis or may be provided with respect to property within the city, or a proceedingin court to foreclose such liens.
224.120Sale without foreclosure. In case of a sale without a foreclosure in court aduplicate certificate of sale shall be made by the city official making thesale and recorded with the county clerk or other officer having charge ofmortgage records of the county. In case of redemption or issuance of a deedupon such certificate of sale a further certificate of such fact shall be madeby the proper city official and shall be recorded in the same manner. [Amendedby 1999 c.654 §25]
224.130Assessment of property in drainage district. Nothing contained in ORS 224.010to 224.170 shall authorize the city to assess any property now included in anydrainage district organized under ORS 547.005 to 547.030 and beyond the limitsof the city unless the owner of such property or the officers of such districtconsent thereto. However, if the owner of property in such district at any timedesires to connect with and utilize any sewer or drain constructed pursuant toORS 224.020, a just and equitable assessment may be made and charged againstthe property owned by the owner and especially and peculiarly benefited by suchconnection.
224.140Authority to control sewer system. A city, through its council, may enactand enforce such ordinances and other provisions as may be necessary oressential for the proper policing, protection, management and control ofsewers, ditches, canals and other works beyond the city limits and constructedby the city under or by virtue of ORS 224.010 to 224.170. The city mayconstruct extensions, laterals and branches to such sewer system upon the termsand provisions applicable to original construction.
224.150Federal aid.The city may negotiate and obtain from the federal government financial aid inconstruction referred to in ORS 224.140 by a work relief program, grant, loanor other means of like or different nature.
224.160Procurement of funds for construction. Pending the making of an assessment forall or part of any construction referred to in ORS 224.140, the city may maketemporary loans or advances from the fund legally available under its charterin order to procure the federal aid or perform such construction, or both. Suchloan shall be refunded from a local assessment when made and collected. If thecity is without adequate funds to make such temporary loan it may from time totime borrow funds therefor and give its certificate of indebtedness for themoney so borrowed. This certificate shall be paid only from funds collectedfrom the local assessment authorized to be made for the construction. The rateof interest upon the certificates of indebtedness shall not exceed six percentper annum and no greater amount shall be borrowed than the amounts necessaryfor the purposes of construction.
224.170Laws and charter provisions applicable to reassessments. The provisionsof the city charter applicable to curative measures or reassessments shall beapplicable to property without the city limits as well as to the propertywithin the city. The owners of property beyond the city limits shall have likerights of objection, remonstrances, hearing and other remedies as the owners ofproperty within the city or town. The right of review of any reassessment bythe circuit court as provided by ORS 224.065 relative to an originalassessment, and the provisions of ORS 224.065, 224.080 and 224.100 relative toreview of an original assessment shall be applicable to review of areassessment. [Amended by 1967 c.280 §5]
224.210 [Repealed by1973 c.213 §9]
224.220 [Amended by1971 c.573 §1; repealed by 1973 c.213 §9]
224.230 [Amended by1967 c.427 §1; repealed by 1973 c.213 §9; amended by 1973 c.835 §162; amendmenttreated as reenactment, see 224.232]
CONSTRUCTIONOF SEWER SYSTEM; BOND PLAN
224.232Bond election; Environmental Quality Commission order; court enforcement;issuance of bonds without elector approval. (1) The governing body of themunicipality, by proposed charter amendment or ordinance, may refer the questionof acquiring and constructing the facilities to a vote of its electors, andafter approval thereof by a majority of such electors, may authorize theissuance of and cause to be issued bonds of the municipality for such purposes.The bonds may be general obligation, limited obligation or self-liquidating incharacter in a sum not more than the amount authorized at such election. Thebonds may provide for payment of principal and interest thereon from servicecharges to be imposed by the governing body for services to be extended throughemployment and use of the facilities. If service charges are imposed to be paidas provided in ORS 224.220 (1971 Replacement Part), such portion thereof as maybe deemed sufficient shall be set aside as a sinking fund for payment ofinterest on the bonds and the principal thereof at maturity.
(2)When the Environmental Quality Commission enters an order pursuant to ORS468.090 that requires the acquisition or construction of facilities in amunicipality for compliance, the governing body of the municipality must referto its electors the question of a bond issue in an amount sufficient to financethe necessary acquisition or construction of such facilities. The election mustbe held within one year of the date on which the order of the commissionbecomes final.
(3)If, within eight months after the final order of the commission becomes final,the governing body of the municipality has not called an election in compliancewith subsection (2) of this section, the commission may apply to the circuitcourt of the county in which the municipality is located or to the circuitcourt of Marion County for an order compelling the holding of an election.
(4)(a)If the electors do not approve the bond issue submitted pursuant to subsection(2) or (3) of this section, the commission may apply to the circuit court ofthe county in which the municipality is located or to the circuit court ofMarion County for an order directing that:
(A)Self-liquidating bonds of the municipality be issued and sold pursuant to ORS224.210 to 224.260 (1971 Replacement Part); and
(B)The proceeds be applied to the acquisition or construction of facilitiesrequired to comply with the order of the commission.
(b)If the court finds that the facilities required by the order of the commissionare necessary to the public health under the minimum standards of thecommission, it shall issue an order directing that:
(A)Such bonds be issued and sold without elector approval in such an amount as thecourt finds necessary to acquire or construct such facilities; and
(B)The proceeds be applied for such purposes.
(5)Any court proceeding authorized by subsection (3) or (4) of this section shallbe advanced on the court docket for immediate hearing. [1973 c.835 §162amending 224.230 treated as reenactment of 224.230 repealed by 1973 c.213 §9;2005 c.22 §166]
Note: 224.232 wasenacted into law by the Legislative Assembly but was not added to or made apart of ORS chapter 224 or any series therein by legislative action. SeePreface to Oregon Revised Statutes for further explanation.
224.240 [Amended by1965 c.283 §1; repealed by 1973 c.213 §9]
224.250 [Amended by1967 c.293 §23; 1967 c.427 §2; repealed by 1973 c.213 §9]
224.260 [Repealed by1973 c.213 §9]
224.270Validation of bond issues. All proceedings and elections had prior to March 9,1935, in cities of less than 100,000 population under ORS 224.232 and 224.270are validated. All bonds voted prior to March 9, 1935, by any municipality, asdefined in ORS 224.210 (1971 Replacement Part), for a sanitary disposal ofsewage under ORS 224.210 to 224.260 (1971 Replacement Part) shall, when issuedand sold, be legal and binding obligations of the municipality if the issuanceof bonds for that purpose has been authorized and approved by a majority voteof the electors voting on the question and regardless of whether the questionwas submitted to the electors by the council or other governing body byresolution, ordinance or by charter amendment. The governing body of themunicipality may, either before or after issuing the bonds, adopt plans,specifications and estimates for a sanitary disposal of sewage with or withoutfollowing any previous plans, specifications, estimates or methods.
SEWERCONSTRUCTION IN CITIES OF 3,500 OR LESS
224.310Definitions for ORS 224.310 to 224.420. As used in ORS 224.310 to 224.420,unless the context requires otherwise:
(1)“Municipality” means a duly incorporated city or town having a population ofnot more than 3,500 inhabitants as determined from the latest officialenumeration of inhabitants, either federal or state, made prior to the date ofauthorization of the construction and establishment by the municipality of asewerage system or of an extension to an existing sewerage system.
(2)“Sewerage system” means complete or primary sewage treatment and disposalfacilities, sewer mains, pumping stations, and all equipment and appurtenancesnecessary, useful or convenient for the treatment or disposal of sewage, or anyportion of such a system, whether within or without the corporate limits of amunicipality. [Amended by 1953 c.287 §9; 1959 c.157 §4]
224.320Municipalities eligible for state help in financing sewer systems. Municipalitiesthat have been certified by the Environmental Quality Commission as being inneed of sewerage systems and that are unable to sell bonds upon the publicmarket, or are unable to obtain satisfactory offers for bonds upon such market,for the purpose of financing the costs of construction thereof may apply to theState Treasurer for the purpose of financing such costs under ORS 224.310 to224.420. The Environmental Quality Commission shall furnish to the StateTreasurer in writing a list of the municipalities that are in the greatest needof sewerage and sanitation facilities. [Amended by 1955 c.593 §1]
224.330Conditions precedent to financing application. A municipalityshall not apply to the State Treasurer for financing under ORS 224.320 unless:
(1)It submits to the State Treasurer plans and specifications prepared bycompetent registered engineers setting forth the type or character of sewersystem or sewerage facilities proposed for the particular municipality and theestimated cost of the system and of the appurtenances thereto.
(2)It submits to the State Treasurer the proposed plan of the municipality forliquidation of indebtedness to be incurred for financing the cost of suchsystem or facilities. [Amended by 1953 c.287 §9; 2009 c.259 §23]
224.340Bonds; form; interest; sale price. Notwithstanding the provisions of anyother Act or of any city charter, the bonds issued by municipalities pursuantto ORS 224.350 and 224.370 shall bear such dates, be in such form, run for suchperiods of time, bear such rates of interest, and be sold by the municipalitiesat such prices as the State Treasurer may determine. [Amended by 1953 c.287 §9;1955 c.593 §2; 1981 c.94 §12]
224.350General powers of the State Treasurer under ORS 224.310 to 224.420; rules. (1) The StateTreasurer shall be the sole judge as to whether state funds shall be investedin the project and as to which undertakings shall first be financed. Thedecision of the State Treasurer on the subject of investment and priority shallbe final.
(2)The State Treasurer may enlist the technical services of any state officer ordepartment in a study of the feasibility and cost of the sewerage project.
(3)The State Treasurer, in the discretion of the State Treasurer, may purchase,with funds subject to investment by the State Treasurer, or with moneys fromthe revolving fund as provided in ORS 224.390, general obligation seweragesystem bonds of any municipality including bonds issued under statutory orcharter authority pursuant to applications to pay assessments in installments.To facilitate the construction of a sewerage system for a municipality, thestate may purchase at current market prices with such funds the outstandingwater system bonds of the municipality. After the purchase of such bonds, theState Treasurer may agree with the municipality as to allocation of the netrevenues of the water system of the municipality to the payment of theprincipal of and the interest upon the water system bonds, and upon thesewerage system bonds of the municipality. If the State Treasurer deems it expedientin the acquisition and construction of a sewerage system for a municipality tofurnish sewerage service for territory that is contiguous to a municipality, orfor territory outside the municipality that, in the judgment of the StateTreasurer, can conveniently be served by the sewerage system thereof, the statemay purchase the sewerage system bonds of a sanitary district or districtscomprising such territory, or any part thereof, provided the publicindebtedness for all purposes within said sanitary district or districts shal