2007 Oregon Code - Chapter 523 :: Chapter 523 - Geothermal Heating Districts
Chapter 523 —
Geothermal Heating Districts
2007 EDITION
GEOTHERMAL HEATING DISTRICTS
MINERAL RESOURCES
GENERAL PROVISIONS
523.010Â Â Â Â Definitions
CREATION AND POWERS
523.015Â Â Â Â Definitions
for ORS 523.020
523.020Â Â Â Â City
as geothermal heating district
523.030Â Â Â Â Formation
of geothermal heating districts; disposal of surplus; exclusion from district
523.040Â Â Â Â Powers
of district; emergency power; applying for financing gifts and grants
523.050Â Â Â Â Water
and real property transactions; right to obtain geothermal heat from other
sources
523.060Â Â Â Â Cooperative
agreements; bonds
523.070Â Â Â Â Authority
to perform drainage work
OPERATION
523.110Â Â Â Â Regulations
on use of geothermal heat; effect of failure to comply
523.120Â Â Â Â Deposit
or other security for use of heat
523.130Â Â Â Â Rates;
contracts with users
523.140Â Â Â Â Rate
increase procedure
523.150Â Â Â Â Termination
of service for nonpayment of heating charge
523.160Â Â Â Â Refund
of heating service extension costs by owner of adjacent property
ASSESSMENTS
523.210Â Â Â Â Special
assessment for improvements; report; contents
523.220Â Â Â Â Action
on special assessment report by board
523.230Â Â Â Â Approval
of special assessment report; notice of improvement; contents
523.240Â Â Â Â Means
of constructing improvement
523.250Â Â Â Â Order
to carry out or abandon improvement after public hearing; assessment ordinance
523.260Â Â Â Â Method
of assessment
523.270Â Â Â Â Appeal
of assessment
523.280Â Â Â Â Notice
of assessment to property owners; publication; contents
523.290Â Â Â Â Entry
of amount of assessment; lien; priority; foreclosure
523.310Â Â Â Â Errors
in assessment
523.320Â Â Â Â Deficit
assessment; hearing; objections; notices
523.330Â Â Â Â Excess
assessment; credit; rebate
523.340Â Â Â Â Abandonment
of improvement; cancellation of liens; refunds
523.350Â Â Â Â Restriction
on rendering assessment invalid; correction by board
523.360Â Â Â Â Reassessment
523.380Â Â Â Â Foreclosure
of assessment lien
TAXING POWER
523.410Â Â Â Â Ad
valorem taxation; special tax; collection; enforcement; boundary changes
523.420Â Â Â Â Disposal
of taxes levied by invalid district
BONDS
523.460Â Â Â Â General
obligation bonds; limit; issuance; maturity; interest; election; pledge of
revenue
523.470Â Â Â Â Revenue
bonds; terms; issuance
523.480Â Â Â Â Refunding
bonds
523.490Â Â Â Â Issuance
of bonds
DISSOLUTION
523.510Â Â Â Â Assumption
of debts and obligations of district upon dissolution
ADMINISTRATION
523.610Â Â Â Â Board;
election; authority; term; vacancy
523.625Â Â Â Â Election
laws applicable
523.630Â Â Â Â Meetings;
officers; quorum; employees; employee benefits
523.640Â Â Â Â Special
election
523.660Â Â Â Â District
funds; deposit; records
523.670Â Â Â Â Agreements
between district and annexed or joined city
523.680Â Â Â Â EmployeesÂ’
retirement system; establishment; contents
523.690Â Â Â Â Payments
to retirement plan fund
523.700Â Â Â Â Employee
contributions to retirement plan
523.710Â Â Â Â Limit
on eligible individuals in retirement plan
GENERAL PROVISIONS
     523.010
Definitions. As used in this
chapter unless the context requires otherwise:
     (1) “Board” or “board of commissioners”
means the governing body of a district.
     (2) “By-product” means any mineral or
minerals (exclusive of oil, hydrocarbon gas, helium or other hydrocarbon
substances) which are found in solution or in association with geothermal
resources and which have a value of less than 75 percent of the value of the
geothermal resources or are not, because of quantity, quality, or technical difficulties
in extraction and production, of sufficient value to warrant extraction and
production by themselves.
     (3) “District” means a geothermal heating
district formed under this chapter.
     (4) “County” means the county in which the
district, or the greater portion of the taxable assessed value of the district,
is located.
     (5) “County board” means the county court
or board of county commissioners of the county.
     (6) “County clerk” means the county clerk
of the county.
     (7) “Geothermal heat” means heat derived
from geothermal resources.
     (8) “Geothermal resources” means the
natural heat of the earth, the energy, in whatever form, below the surface of
the earth present in, resulting from, or created by, or which may be extracted
from, the natural heat, and all minerals in solution or other products obtained
from naturally heated fluids, brines, associated gases, and steam, in whatever
form, found below the surface of the earth, exclusive of oil, hydrocarbon gas,
helium or other hydrocarbon substances, but including, specifically:
     (a) All products of geothermal processes,
embracing indigenous steam, hot water and hot brines;
     (b) Steam and other gases, hot water and
hot brines resulting from water, gas or other fluids artificially introduced
into geothermal formations;
     (c) Heat or other associated energy found
in geothermal formation; and
     (d) Any by-product derived from them.
     (9) “Inhabitant” when used with respect to
a district includes a business located within the district.
     (10) “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. [1975 c.782 §1; 1983 c.83 §98]
CREATION AND
POWERS
     523.015
Definitions for ORS 523.020.
For the purposes of ORS 523.020 and this section, notwithstanding ORS 523.610
to 523.670, “board,” as defined in ORS 523.010, includes the governing body of
a city. “District,” as defined in ORS 523.010, includes an incorporated city. [1977
c.212 §1]
     Note: 523.015 and 523.020 were enacted into law by
the Legislative Assembly but were not added to or made a part of ORS chapter
523 or any series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.
     523.020
City as geothermal heating district. (1) An incorporated city, when empowered by its charter to do so, may
provide geothermal heating services to persons within and without its
boundaries in accordance with the provisions of ORS chapter 523, where not in
conflict with ORS 523.015 and this section.
     (2) The powers conferred by ORS chapter
523 and ORS 523.015 and this section are in addition to the powers conferred by
any other law and not in substitution for any right, power or privilege vested
in a city. [1977 c.212 §2]
     Note: See note under 523.015.
     523.030
Formation of geothermal heating districts; disposal of surplus; exclusion from
district. A geothermal
heating district may be formed for the purpose of supplying inhabitants of the
district with geothermal heat as provided by this chapter. In connection with
supplying geothermal heat, a district may supply, furnish and sell for any use
any surplus geothermal heat over and above the heating needs of its inhabitants
to persons outside the district, or to 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 under ORS 198.010, 198.180, 198.510, 198.705, 199.420,
255.012, 366.321, 451.573 and this chapter and for purposes of this chapter
shall not be considered as property within the boundaries of such districts,
unless the owner of the railroad property expressly consents to its inclusion. [1975
c.782 §2; 2003 c.802 §128; 2007 c.179 §8]
     523.040
Powers of district; emergency power; applying for financing gifts and grants. (1) 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.
     (2) In an emergency or in order to meet
peak demand a district may supply its inhabitants with heat derived from an
energy source other than from geothermal resources for purposes of
supplementing the geothermal heat supplied by the district.
     (3) In addition to any other power of a
district, it may apply and qualify for and receive any private or federal
grants, loans or other funds available for carrying out the objects of the
district. [1975 c.782 §3]
     523.050
Water and real property transactions; right to obtain geothermal heat from
other sources. A geothermal
heating district may purchase, sell and hold interests in water and real
property in carrying out the objects of the district. A district also has the
right to purchase or obtain from cities or other geothermal heating districts,
geothermal heat, or an interest in geothermal heat, or an interest in a
geothermal heat pipeline owned or operated by a city or other geothermal
heating district, or to obtain jointly with a city or other geothermal heating
district, any right, or to lay and own individually or jointly with any city or
other geothermal heating district, any geothermal heat pipeline for the
purposes specified in ORS 523.030. [1975 c.782 §5; 2003 c.802 §129]
     523.060
Cooperative agreements; bonds.
(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 geothermal
heat.
     (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. [1975 c.782 §18]
     523.070
Authority to perform drainage work. 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 geothermal heating, 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. [1975 c.782 §17]
OPERATION
     523.110
Regulations on use of geothermal heat; effect of failure to comply. Any district may adopt and promulgate
regulations concerning the use of geothermal heat and the property of the
district. The board of commissioners may refuse to supply any building, place
or premises with geothermal heat where the user fails after 10 daysÂ’ written
notice to comply with the regulations. The written notice shall be by
registered mail or by certified mail with return receipt and shall be deemed
given when it is deposited in the United States Post Office properly addressed
with postage prepaid. [1975 c.782 §11; 1991 c.249 §40]
     523.120
Deposit or other security for use of heat. Any district may require a reasonable cash deposit or an irrevocable
letter of credit to insure payment for the use or rent of geothermal heat to be
furnished by the district. [1975 c.782 §12; 1991 c.331 §75]
     523.130
Rates; contracts with users.
A geothermal heating district shall charge consumers for the geothermal heat
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
geothermal heat used. Any contract entered into by a district with persons
other than domestic users shall provide for immediate cancellation whenever no
surplus supply of geothermal heat exists over and above any and all demands of
domestic users. A district also may contract with any person or may enter into
an intergovernmental agreement under ORS chapter 190 to supply, furnish and sell
surplus geothermal heat on such terms and conditions and at such rates as the
board of commissioners considers advisable. [1975 c.782 §13; 2003 c.802 §130]
     523.140
Rate increase procedure. (1)
Whenever any increase is proposed in the existing rates charged geothermal heat
consumers by a district pursuant to ORS 523.130, 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 the geothermal heating bills sent to consumers by the district
during the period of 30 days prior to the date of the hearing. [1975 c.782 §14]
     523.150
Termination of service for nonpayment of heating charge. In case prompt payment of geothermal heating
rent or charge is not made, a district may shut off the geothermal heating
supply to the building, place or premises to which the district supplied the
geothermal heating. [1975 c.782 §15]
     523.160
Refund of heating service extension costs by owner of adjacent property. If any person is required by a district to
pay the cost of extending a geothermal heating pipeline adjacent to property
other than the property of the person so that geothermal heating service is
provided for such other property without further extension of the geothermal
heating pipeline, the district shall require the owner of the other property,
prior to providing geothermal heating service to that property, to refund to
the person required to pay the cost of extending the geothermal heating
pipeline, 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 geothermal heating pipeline. The amount to
be refunded shall be determined by the district and such determination shall be
final. [1975 c.782 §16]
ASSESSMENTS
     523.210
Special assessment for improvements; report; contents. 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. [1975 c.782 §19]
     523.220
Action on special assessment report by board. 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. [1975 c.782 §20]
     523.230
Approval of special assessment report; notice of improvement; contents. 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. [1975 c.782 §21]
     523.240
Means of constructing improvement. The board of a geothermal heating district 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 public body as defined in
ORS 174.109, or by any combination thereof. [1975 c.782 §22; 2003 c.802 §131]
     523.250
Order to carry out or abandon improvement after public hearing; assessment
ordinance. (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. [1975 c.782 §23]
     523.260
Method of assessment. 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. [1975
c.782 §24]
     523.270
Appeal of assessment. 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 523.360. [1975 c.782 §25]
     523.280
Notice of assessment to property owners; publication; contents. 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. [1975 c.782 §26]
     523.290
Entry of amount of assessment; lien; priority; foreclosure. 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 insofar as the laws of the state permit.
Interest shall be charged at the rate of six percent per annum 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. [1975
c.782 §27]
     523.310
Errors in assessment.
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. [1975 c.782 §28]
     523.320
Deficit assessment; hearing; objections; notices. 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 523.210 to 523.380. Notices of the deficit assessment shall be published
and mailed and the collection of the assessment shall be made in accordance
with ORS 523.280 and 523.290. [1975 c.782 §29]
     523.330
Excess assessment; credit; rebate. 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. [1975 c.782 §30]
     523.340
Abandonment of improvement; cancellation of liens; refunds. 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 523.210 to
523.380, 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. [1975 c.782 §31]
     523.350
Restriction on rendering assessment invalid; correction by board. 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 523.210, 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 523.210 to 523.380, 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. [1975 c.782 §32]
     523.360
Reassessment. 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. [1975 c.782 §33]
     523.370 [1975 c.782 §34; repealed by 1995 c.333 §37]
     523.380
Foreclosure of assessment lien.
(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. [1975 c.782 §35]
TAXING POWER
     523.410
Ad valorem taxation; special tax; collection; enforcement; boundary changes. (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 523.030
to 523.050 and 523.420 to 523.490 and for the purpose of financing the
employeesÂ’ 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.
     (6) 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. [1975 c.782 §10; 1991
c.459 §421; 2001 c.215 §16; subsection (6) of 2001 Edition enacted as 2001
c.138 §40]
     523.420
Disposal of taxes levied by invalid district. When an attempt has been made to organize a district under the
provisions of this chapter and subsequently by a judgment of a court 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 geothermal heat 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
geothermal heat 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 geothermal heat 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. [1975 c.782 §4; 2003 c.576 §468]
BONDS
     523.460
General obligation bonds; limit; issuance; maturity; interest; election; pledge
of revenue. (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 limits 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 voters, 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 interest not exceeding
seven percent per annum 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
corporate limits 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 geothermal heating system. The board may
adopt such a resolution without submitting the question of the pledge to the
electors of the district. [1975 c.782 §6; 1977 c.188 §7; 1983 c.347 §29; 1991
c.459 §422; 2001 c.215 §17]
     523.470
Revenue bonds; terms; issuance.
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
geothermal heating system, for the purpose of obtaining geothermal heating for
the use of consumers, 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 bond 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 corporate limits 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. [1975 c.782 §7]
     523.480
Refunding bonds. 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. [1975 c.782 §8]
     523.490
Issuance of bonds. All
general obligation and revenue bonds, including refunding bonds, authorized
under ORS 523.460 to 523.480 shall be issued as prescribed in ORS chapter 287A.
[1975 c.782 §9; 2007 c.783 §212]
DISSOLUTION
     523.510
Assumption of debts and obligations of district upon dissolution. (1) A city may enter into a written
agreement with a geothermal heating district contemplating dissolution
undertaking to assume, in the event of such dissolution, all of the outstanding
debts and obligations of the district and to continue to furnish geothermal
heat 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 of geothermal heating
districts under this chapter. Any person entitled to geothermal heating service
within the area of the dissolved district has the same remedies at law or in
equity to enforce the rights to geothermal heating service as are available to
enforce the right to geothermal heating service within the district.
     (2) The successor city or district shall
furnish geothermal heat 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 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 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 by reason of, or during the period of, its commitment under
the agreement shall bind the city 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. [1975 c.782 §47]
ADMINISTRATION
     523.610
Board; election; authority; term; vacancy. (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 registered in the
district. Except as provided by subsection (2) of this section, each
commissioner shall be elected for a term of four years.
     (2) Not later than the 40th day 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 as follows:
     (a) The terms of two commissioners shall
expire June 30 next following the first regular district election; and
     (b) The terms of the other 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 as provided in ORS 198.320. [1975 c.782 §36; 1983 c.83
§99; 1983 c.350 §295]
     523.620 [1975 c.782 §37; repealed by 1983 c.350 §331]
     523.625
Election laws applicable.
(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 §298]
     523.630
Meetings; officers; quorum; employees; employee benefits. (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
     523.640
Special election. The board
of commissioners at any regular meeting may call a special election of the
electors of the district. [1975 c.782 §38]
     523.650 [1975 c.782 §40; repealed by 1983 c.350 §331]
     523.660
District funds; deposit; records. (1) The money of a district shall be deposited in one or more
depositories, as defined in ORS 295.001, 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. [1975 c.782 §41; 2001 c.215 §18]
     523.670
Agreements between district and annexed or joined city. If a city has been annexed to a district
under ORS 198.866 and 198.867 or 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 geothermal heat tax or charge imposed by the city upon
geothermal heat 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 geothermal heat
users, including but not limited to shutting off the geothermal heat supply for
nonpayment. [1975 c.782 §42; 1983 c.142 §17]
     523.680
EmployeesÂ’ retirement system; establishment; contents. (1) A district may establish an employeesÂ’
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. [1975 c.782 §43]
     523.690
Payments to retirement plan fund. 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. [1975 c.782 §44]
     523.700
Employee contributions to retirement plan. 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. [1975
c.782 §45]
     523.710
Limit on eligible individuals in retirement plan. 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. [1975 c.782 §46]
_______________
CHAPTERS 524 AND 525
[Reserved for expansion]
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