Procedures for district formed subject to dissolution
(1) If a county service district is formed subject to a provision specifying a fiscal year for dissolution of the district, the board of directors shall, no later than 45 days after the start of that fiscal year, make the findings required by ORS 198.925 (Findings of fact by district board) and adopt a plan of liquidation and dissolution providing for payment of nonassenting creditors, unless the board adopts an order as specified in subsection (2) of this section. Dissolution shall be effective as of the end of the fiscal year. Dissolution shall be governed by ORS 198.945 (Trustees for dissolved district) to 198.955 (Disposition of assets).
(2) The district board may order that the district continue only if, after a public hearing, it determines that there is a public need for continued existence of the district because:
(a) Liquidation and dissolution cannot be accomplished in a manner that would protect the rights of nonassenting creditors; or
(b) The services provided continue to be needed by the public, the district is providing the services in an efficient and effective manner and continuation will not significantly discourage future boundary change proposals.
(3) A public hearing on continuation shall be preceded by notice published at least 14 days before the hearing in a newspaper of general circulation within the district. Notice of the hearing shall also be mailed to all incorporated cities within the district and to the boundary commission, if any.
(4) An order continuing the district shall specify a fiscal year, not later than the 10th fiscal year after the date of the order, in which the district shall dissolve unless another determination of public need for continued existence occurs.
(5) An order continuing the district shall be forwarded to the boundary commission, if any, within 10 days. If the district is not within the jurisdiction of a boundary commission the order may be contested as provided in ORS 198.785 (Proceeding to contest validity of formation or change of organization) (2). [1987 c.504 §§2,3,4]
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