ORS 261.355
Procedure for issuance and sale of revenue bonds
(1)
For the purpose of carrying into effect the powers granted in this chapter, any district may issue and sell revenue bonds, when authorized by a majority of its electors voting at any primary election, general election or special election.(2)
All revenue bonds issued and sold under this chapter shall be so conditioned as to be paid solely from that portion of the revenues derived by the district from the sale of water, waterpower and electricity, or any of them, or any other service, commodity or facility which may be produced, used or furnished in connection therewith, remaining after paying from those revenues all expenses of operation and maintenance, including taxes.(3)
Notwithstanding subsection (1) of this section and subject to subsection (4) of this section, any district may, by a duly adopted resolution of its board, issue and sell revenue bonds for the purpose of financing betterments and extensions of the district, including renewable energy facilities or the purchase or sale of electricity, electrical capacity or renewable energy certificates, but the amount of revenue bonds so issued shall be limited to the reasonable value of the betterments and extensions plus an amount not to exceed 10 percent thereof for administrative purposes. Revenue bonds shall not be issued and sold for the purpose of acquiring an initial utility system or acquiring property or facilities owned by another entity that provides electric utility service unless:(a)
The acquisition is a voluntary transaction between the district and the other entity that provides electric utility service; or(b)
The electors within the district have approved issuance of the bonds by a vote.(4)
Not later than the 30th day prior to a board meeting at which adoption of a resolution under subsection (3) of this section will be considered, the district shall:(a)
Provide for and give public notice, reasonably calculated to give actual notice to interested persons including news media which have requested notice, of the time and place of the meeting and of the intent of the board to consider and possibly adopt the resolution; and(b)
Mail to its customers notice of the time and place of the meeting and of the intent of the board to consider and possibly adopt the resolution.(5)
Except as otherwise provided in this section, any authorizing resolution adopted for the purposes of subsection (3) of this section shall provide that electors residing within the district may file a petition with the district asking to have the question of whether to issue such bonds referred to a vote.(6)
If within 60 days after adoption of a resolution under subsection (3) of this section the district receives petitions containing valid signatures of not fewer than five percent of the electors of the district, the question of issuing the bonds shall be placed on the ballot at the next date on which a district election may be held under ORS 255.345 (Special election dates) (1).(7)
When petitions containing the number of signatures required under subsection (6) of this section are filed with the district within 60 days after adoption of a resolution under subsection (3) of this section, revenue bonds shall not be sold until the resolution is approved by a majority of the electors of the district voting on the resolution.(8)
Any district issuing revenue bonds may pledge that part of the revenue which the district may derive from its operations as security for payment of principal and interest thereon remaining after payment from such revenues of all expenses of operation and maintenance, including taxes, and consistent with the other provisions of this chapter.(9)
Prior to any district board taking formal action to issue and sell any revenue bonds under this section, the board shall have on file with the secretary of the district a certificate executed by a qualified engineer that the net annual revenues of the district, including the property to be acquired or constructed with the proceeds of the bonds, shall be sufficient to pay the maximum amount that will be due in any one fiscal year for both principal of and interest on both the bonds then proposed to be issued and all bonds of the district then outstanding.(10)
Except as otherwise provided in this section, the district shall order an election for the authorization of revenue bonds to finance the acquisition or construction of an initial utility system, including the replacement value of the unreimbursed investment of an investor owned utility in energy efficiency measures and installations within the proposed district, as early as practicable under ORS 255.345 (Special election dates) after filing the certificate required under subsection (9) of this section. An election for the authorization of revenue bonds to finance the acquisition or construction of an initial utility system shall be held no more than twice in any one calendar year for any district. In even-numbered years no election shall be held on any other date than the date of the primary election or general election.(11)
A district may issue revenue bonds under ORS 287A.150 (Authority of public body to issue revenue bonds) without an election authorizing the issuance, except that revenue bonds shall not be issued under ORS 287A.150 (Authority of public body to issue revenue bonds) for the purpose of acquiring an initial utility system or acquiring property or facilities owned by another entity that provides electric utility service unless:(a)
The acquisition is a voluntary transaction between the district and the other entity that provides electric utility service; or(b)
The electors within the district have approved issuance of the bonds by a vote. [Amended by 1959 c.548 §1; 1979 c.558 §24; 1987 c.267 §71; 1991 c.358 §5; 1991 c.572 §§1,2; 1995 c.79 §91; 1995 c.712 §97; 2003 c.14 §125; 2007 c.301 §41; 2007 c.783 §232c; 2007 c.895 §12a]
Source:
Section 261.355 — Procedure for issuance and sale of revenue bonds, https://www.oregonlegislature.gov/bills_laws/ors/ors261.html.
Notes of Decisions
Purpose stated in both resolution and election notice tracked this section and ORS 261.305, granting powers to people’s utility districts, that purpose was legal, and resolution and notice were valid on their face. Pac. Power & Light v. Emerald P.U.D., 58 Or App 21, 646 P2d 1360 (1982), Sup Ct review denied
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