ORS 450.607: Formation of joint authority that includes city or district by consolidation; formation within urban growth boundary; transfer of property to consolidated authority.

(1) In addition to formation under ORS 198.705 to 198.955, a joint water and sanitary authority may be formed by consolidation of a water authority and a sanitary authority or by the consolidation of a water authority or sanitary authority and any combination of cities or districts as provided by ORS 450.610 to 450.630 if the consolidation is approved by the electors or if it is approved by a local government boundary commission as provided in ORS 199.480 (1)(c). The entities included in the consolidation shall be considered joined into a single new joint authority. Except for the consolidation of an existing water authority and sanitary authority, if the consolidating entities are within the urban growth boundary of a city or the city provides water supply, wastewater treatment or surface water management and treatment, then the consolidating entities must: (a) Obtain consent for the consolidation by resolution of the affected city or district prior to calling an election; or (b) Comply with the formation procedures set forth in ORS 450.600 and satisfy the requirements of ORS 450.787. (2) If the consolidation is approved, the governing bodies of the affected entities and officers of the consolidating entities shall turn over to the board of the successor authority all funds, property, contracts and records of the consolidating entities. Upon the effective date of the consolidation, the successor joint authority shall: (a) Succeed to and hold the property, contracts, rights and powers of the consolidating entities with respect to water-related services and be a regularly organized authority as if originally organized in the manner provided by ORS 198.705 to 198.955; (b) Have the right to receive the uncollected taxes, assessments or charges levied by the consolidating entities and, upon collection, to credit the taxes, assessments or charges to the account of the successor joint authority; and (c) Subject to any debt distribution plan adopted under ORS 450.615, become liable for all the legal or contractual obligations of the consolidating entities. [1997 c.590 §6]