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LocalGovernmentBasics-Updated11-20-19web .r � F nREGQ X859 E 4,111 0 �r LOCAL OVERNMENT BASICS 10 Essentials for City Officials 1 Home Rule....... __ _ _ __ __ 4 2 Public Meetings 7 3 Property Taxes __ _ 11 4 Public Records __ _ __ __ __ __ 13 5 Budgeting Basics 14 6 Gift Limits ............................................................................................................................17 7 Code Enforcement....... _ __ __ __ __ 18 8 Political Activity 19 9 Water Rights _ _20 10 hand Use _ _22 • • Fundamentals o Home Rule he League of Oregon Cities was first established in 1925 to protect against the erosion of local"home rule" MORE INFORMATION ON HOME RULE by the state Legislature. The League has fought to protect home rule since that time. But what,exactly,isFor a - d- -d examinationof home "home rule,"and why does it matter? 0 rego n, please see "The Origins,Evolution,and In Oregon,home rule forms the legal basis for city govern- Future of Municipal Home Rule in Oregon" ments to act. Home rule is thus an important legal concept 2017), • - at D O with real-world implications for a city's ability to serve the needs of its citizens. The following article briefly explains the origins of home rule in Oregon,how home rule impacts city government authority,and the continuing fight between city In a Dillon's Rule state,local governments lack authority to and state government over the scope of local authority. act unless they can show how a state law allows them to take an action,such as levying property taxes,maintaining a fire CITIES DERIVE THEIR EXISTENCE FROM THE STATES department,or operating a parks system. The United States of America is a"federal republic,"mean- The Dillon's Rule model allows a state legislature to closely ing that government authority is divided between the federal control local government structure,the methods of financing government and the states. The United States Constitution local government activities,local procedures,and local govern- grants limited powers to the federal government and reserves ment authority to address local problems. the remaining powers to the state governments. But what about local governments,such as cities and counties? D I L LO N"S RULE IN OREGON Interestingly,the United States Constitution makes no men- In the late 1800s,the Oregon Supreme Court formally tion of local governments. Instead,it places all government endorsed the Dillon's Rule model of state-local relations.3 authority not granted to the federal government with the Under Dillon's Rule,Oregon's cities were not able to states. Thus,the courts have uniformly concluded that cities effectively respond to local problems,as no local action could derive their authority and existence from state governments be undertaken without permission from the state Legislature, and lack any inherent authority. In fact,the Supreme Court which only met for short biennial sessions. of the United States has stated that cities are simply"conve- nient agencies"'of their states,and that states may abolish or T H E SHIFT TOWARDS HOME RUL E reorganize cities at any time. In the early twentieth century,a wave of political populism began to sweep the country. As a part of that political move- D I L LO N'S RULE ment,cities and political reformers in Oregon began to push Under the United States Constitution,cities derive their for a"home rule"amendment to the Oregon Constitution. authority from the states. For that reason,judges and legal Frustrated by the special interests that dominated the legisla- scholars took the view that city governments could only act in ture and by the time it took to address local problems,a group areas expressly authorized by a state legislature. That prin- of Oregonians led by William Simon U'Ren sought to amend ciple is often called"Dillon's Rule,"2 and is still followed in the Oregon Constitution and vest in the voters the authority many states. over local affairs through the adoption of home rule charters. In U'Ren's view,such cities would exist independently from 1 Hunter v.City ofPittsburgb,207 US 161,178-79(1907). the Legislature and would derive their authority from the 2 Dillons Rule is named for John E Dillon,an Iowa Supreme Court Justice charter,not from the state. and federal judge. See 1 John.F.Dillon,The Law of Municipal Corporations,§ 9(b),at 93(2d ed 1873). 3 City of Corvallis v.Carlile,10 Or 139(1882). ^r 4 LOCAL GOVERNMENT BASICS I March 2018 71wmorcities.org LOCAL GOVERNMENT BASICS • In 1906,consistent with a wave of home rule reform sweep- The [e g a[ voters of every city ing the nation,the voters of Oregon adopted a constitutional amendment that granted the people the right to draft and and town are hereby granted amend municipal charters. That provision states: power to enact and amend "The Legislative Assembly shall not enact, amend their municipal. charter," or repeal any charter or act of incorporation for any municipality,city or town. The legal voters of every — Oregon COnstItUtI0n city and town are hereby granted power to enact and amend their municipal charter,subject to the Consti- tution and criminal laws of the state of Oregon[.]"4 HOME RULE INCLUDES THE POWERS TO: At the same election,the voters of Oregon"reserved"initia- tive and referendum powers"to the qualified voters of each Regulate" for protection of public health, - municipality and district as to all local,special and municipal morals & weffare,- legislation of every character in or for their municipality or To district."5 Note that the home rule amendments do not use the term 0 debt. "home rule,"nor do they specifically confer substantive • incur lawmaking authority. Rather,the amendments prevent the Home rule is the right to local self-government, legislature from enacting or amending municipal charters,and without express or • -• legislative authorization. free cities from the burden of seeking approval from the state before amending their charter. What that means,in prac- tice,is that cities—and their voters—now possess substantial model charter,based on the council-manager form of govern- lawmaking authority independent of the state,although the ment,was written to provide a city with as much authority as precise relationship between cities and the state has evolved permitted under the Oregon Constitution. over the last 100-plus years,primarily through judicial inter- Oregon is a home rule state,which gives voters the authority pretation of the home rule amendments. One of the most to establish their own form of local government and empow- significant aspects of that relationship is the ability of the ers that government to enact substantive policies. Unlike a legislature to preempt certain municipal policy decisions. Dillon's Rule state,home rule authority allows cities to act as policy innovators and quickly address social problems, HOME RULE CHARTERS especially when faced with inaction from the state and federal For a city to become a home rule city,its residents must vote government. to adopt a home rule charter. By doing so,a community vests all possible legal authority in its city government. A city PREEMPTION charter operates much like a state constitution in apportioning The following list highlights some of the areas in which the authorities to various officials and setting out the system of state has preempted local governments from acting. Please government for that community,whether it be a commission, note that the list is not comprehensive. For a comprehensive mayor-council,council-manager,or strong mayor form of list of preemptions on local authority,please see the Legal government. Today,all 241 cities in Oregon have home rule Guide to Oregon's Statutory Preemptions of Home Rule charters. (November 2017),available at www.goo.gl/RsyPnn. Once adopted,a home rule charter vests in the city the authority to do all things necessary to address matters of lo- Taxi n g cal concern without legislative authorization. The League's / Cities may not impose or collect a business license tax from licensed real estate brokers. 4 Or Const,Art XI,§2. 5 Or Const,Art IV,§1(5). (continued on page 6) In a home rule city, the community vests aR possible legal authority in its city government. www.orcities.org March 2018 I LOCAL GOVERNMENT BASICS 5 • Fundamentals of Home Rule :. _ A A [ [ 241 cities in Oregon have home rule charters / The state has the exclusive right to tax tobacco products. / The state has the exclusive right to tax alcoholic ONLINE RESOURCES beverages. • HOME RULE General Governance Learn more abohome rule / Cities must hold elections in compliance with Oregon in Oregon viewing the free election law. LOC-TVepisode • - ea / Public officials,including city officials,must comply with _ the Oregon Ethics Code. ty/343uya4. The episode provides a � � / Citycompre- government must comply with Oregon's public hensiv- overview o - - topics d • records and meetings law. - Where do local governments get their legal Land Useauthority? / Cities are required to comply with statewide land use • - rule and where does it c• and development goals. from? / Cities may not prohibit certain types of housing. preemption an• the legal •. • by • Personnel / Cities must offer PERS coverage to police and firefighters. / State minimum wage laws preempt contrary city ► State preemption of local laws concerning various liquor ordinances or charter provisions. uses and consumption. / State sick leave requirements preempt contrary city ► State building code preempts local ordinances. ordinances or charter provisions. / State law restricts the use of credit score reports for / Preemption of local ordinances that makes a shooting hiring purposes. range a nuisance or trespass. / Preemption of local regulations on cell phone use in Regulatory Authority vehicles. ■ / State preemption of regulations on vending machines that dispense tobacco or e-cigarette systems. 6 LOCAL GOVERNMENT BASICS I March 2018 www.orcities.org LOCAL GOVERNMENT BASICS Publ*lc What Every Elected Official Needs to Know INTRODUCTION "A quorum may be subject to To ensure that the public is aware of the deliberations and decisions of governing bodies,as well as the information that the public meetings law even if forms the basis of those decisions,Oregon law contains a i t does not engage n a forma [ policy of open decision-making at the various levels of gov- ernment.' meeting . The key requirements of the Oregon Public Meetings Law (OPML)include: council,a county,a city,a district,or any other municipal or / Conducting meetings that are open to the public—unless public corporation. A"public body"also includes a board, an executive session is authorized; department,commission,council,bureau,committee,subcom- / Giving proper notice of meetings;and mittee,or advisory group of any of the entities in the previous sentence. If two or more members of any public body have / Taking minutes or another record of meetings. "the authority to make decisions for or recommendations to a Further,the law imposes other requirements regarding loca- public body on public body on policy or administration,"they tion,voting and accessibility to persons with disabilities. are a"governing body"for purposes of the OPML. Please note that this article is not a substitute for legal advice, MEETINGS SUBJECT TO THE PUBLIC MEETINGS LAW nor is it comprehensive. The OPML is quite complicated and public officials are encouraged to speak with their legal Not every action that a governing body takes,of course,is counsel for case-by-case advice. subject to the OPML. The law defines a"meeting"as the convening of any of the"governing bodies"subject to the law ENTITIES SUBJECT TO THE PUBLIC MEETINGS LAW "for which a quorum is required in order to make a decision Understanding which entities are subject to the OPML is or to deliberate toward a decision on any matter." Thus,the critical for ensuring compliance with the provisions of the law. definition of a meeting has three elements:(1)the conven- In short,the OPML applies to any(1)governing body of a ing of a governing body;(2)for which a quorum is required; public body,(2)when that governing body holds a meeting (3)to make a decision or deliberate toward a decision on for which a quorum is required to make a decision or deliber- any matter. The first of those elements was addressed in the ate toward a decision on any matter. ORS 192.610(5);ORS previous section. 192.630(1). The term"quorum"is not defined in the OPML. For cities, The OPML applies to meetings of a"governing body of quorum requirements are often set by charter,bylaws,council a public body." A public body is the state,any regional rules,or ordinance. A gathering of less than a quorum of a 1 ORS 192.160 establishes Oregon's policy of open decision-making through (continued on page 8) public meetings: "The Oregon form of government requires an informed public aware of the deliberations and decisions of governing bodies and the information upon which such decisions were made. It is the intent of ORS 192.610 to 192.690 that decisions of governing bodies be arrived at openly." www.orcities.org March 2018 1 LOCAL GOVERNMENT BASICS 7 Publi An executive session is defined as "any meeting or part of a meeting of a governing body which is closed to certain persons for deliberation on certain matters." governing body of a public body is not a"meeting"under the Notice OPML.2 The OPML requires that notice be provided of the time Finally,staff meetings are typically not covered by the OPML, and place of public meetings,including regular,special and as they are usually held without a quorum requirement. A emergency meetings as defined in ORS 192.640. For regular staff meeting called by a single official is not subject to the law meetings,notice must be reasonably calculated to provide because the staff do not make decisions for or recommenda- actual notice to the persons and the media that have stated in tions to a"governing body." Importantly,however,if a quo- writing that they wish to be notified of every meeting. Special rum of a governing body,such as a five-member commission, notice requirements apply to executive sessions. meets with staff to deliberate on matters of"policy or admin- istration,"the meeting is within the scope of the OPML. Space, Location, and Accessibility REQUIREMENTS OF THE LAW For any meeting,the public body should consider the probable public attendance and should meet where there is sufficient The last two sections covered which entities are subject to the room to accommodate that attendance. In the event of an law,and what meetings of those entities trigger the OPML. unexpectedly high turnout,the public body should do its best This section addresses the substantive requirements of the to accommodate the greater number of people. OPML,including notice,space and location,accessibility, ► Geographic Location public attendance,control of meetings,voting,and minutes and recordkeeping. The OPML states that meetings of a governing body of a public body must be held within the geographic boundar- ies of the area over which the public body has jurisdiction, 2 In Handy v.Lane County, a s Or App iscu ions a ong a,the Oregon at its administrative headquarters,or at"the other nearest Court of Appeals held that a series of discussions among a quorum of a governing body of a public body,even without a contemporaneous gather- practical location.„ In the case of an actual emergency ing of that quorum—a so-called"serial meeting”—could give rise to a viola- necessitating immediate action,however,a governing body tion of the prohibition set out in ORS 192.630(2). In other words,even in may hold an emergency meeting at a different location the absence of a formal"meeting"under ORS 192.630(1),a governing body than one described in ORS 192.630(4). of a public body could violate the OPML through a series of discussions among members of the governing body that added up to a quorum. On / Nondiscriminatory Site review,the Oregon Supreme Court held that the evidence in the case failed to show that a quorum of county commissioners did deliberate towards a Governing bodies are prohibited from holding meetings at decision,meaning there was not violation of the OPML,and thus the court any place where discrimination based on race,color,creed, declined to address the"serial meetings"issue raised by the Court of Ap- sex,sexual orientation,national origin,age or disability peals. See Handy v.Lane County,360 Or 605(2016). Recently,in TriMet v.Amalgamated Transit Union Local 757,362 Or 484(2018),the Oregon is practiced. A governing body may hold a meeting at a Supreme Court held that ORS 192.630(2)—which states that a"quorum location that is also used by a restricted-membership orga- of a governing body may not meet in private for the purpose of deciding nization if the use of the location by such an organization on or deliberating toward a decision on any matter"—is broader than the is not its primary use. requirement in ORS 192.630(1). In other words,a quorum of a governing body may be subject to the public meetings law even if it does not engage in a formal"meeting." 8 LOCAL GOVERNMENT BASICS I March 2018 www.orcities.org - LOCAL GOVERNMENT BASICS / Accessibility to Persons with Disabilities The OPML imposes two requirements relating to acces- ONLINE RESOURCE S sibility to persons with disabilities(see ORS 192.630(5) (a)). First,meetings subject to the OPML must be held LOC-TV: PUBLIC VS in places accessible to individuals with mobility and other PRIVATE MEETINGS' impairments. Second,the public body must make a good- faith effort to provide an interpreter at the request of deaf D• you knowqualifies or hard-of-hearing persons. . • •tic meeting? Confused Voting about -• -• un- der Oregon law? This training video answers All official actions by a governing body of a public body must those • - • • • • - • • ensure be taken by public vote. The vote of each member must be recorded unless the governing body has 26 or more members. compliance _• •• • • lic meetings law. Even then,any member of the governing body may request httpb • that the votes of each member be recorded. The governing body may take its vote through a voice vote or through writLOC-TV: HOW TO DO EXECUTIVE - ten ballots,but ballots must identify each member voting and SESSIONS RIGHT the vote must be announced. Secret ballots are prohibited. guidelinesThi State law preempts any local charter or ordinance that permits LOC-TVepisode covers _ •' voting through secret ballots. for holdingprivate meetings as . public body, known • outlining Recorded or Written Minutes approved topics, • -• media The OPML requires that the governing body of a public attendance and procedural -• body provide for sound,video or digital recording,or written discussed, • consequences • avail- minutes,of its public meetings. The record of the meet- able - • • • 6A O ing—in whatever format—must include at least the following information: / The members present; / All motions,proposals,resolutions,orders,ordinances,and measures proposed and their disposition; / The results of all votes and,except for governing bod- EXECUTIVE SESSIONS ies consisting of more than 25 members unless requested Governing bodies are permitted to meet in executive(closed) by a member of the governing body,the vote of each sessions in certain circumstances(see ORS 192.660). An"ex- member by name; ecutive session"is defined as"any meeting or part of a meeting / The substance of any discussion on any matter;and of a governing body which is closed to certain persons for / Subject to the Oregon Public Records Law,ORS 192.410 deliberation on certain matters." to 192.505,a reference to any document discussed at the Executive sessions are not the same thing as meetings that meeting.3 are exempt from the OPML. Indeed,an executive session is a type of public meeting and must conform to all applicable Written minutes need not be a verbatim transcript and sound provisions of the OPML. Importantly,the authority to go or video recordings need not contain a full recording of the meeting. Rather,the record must provide"a true reflection into executive session does not relieve a governing body of its duty to comply with other requirements of the OPML. of the matters discussed at the meeting and the views of the participants." The record must be made available to the public Permissible Purposes "within a reasonable time after the meeting." A governing body is permitted to hold an open meeting even 3 Note that reference to a document in meeting minutes does not change the when the law permits it to hold an executive session,but a status of the document under public records law. ORS 192.650(3). governing body may only hold an executive session in certain (continued on page 10) www.orcities.org March 2018 1 LOCAL GOVERNMENT BASICS 9 Public M circumstances. ORS 192.660 lists the circumstances in which a governing body may hold an executive session. Those pur- ONLINE RESOURCE S poses include: �• ► Employment of public officers,employees and agents; GUIDE TO EXECUTIVE • ► Discipline of public officers and employees; SESSIONS1 ► Performance evaluations of public officers and employees; A comprehensive review of ► Labor negotiation consultations; where, when • how ► Real property transactions; may conductsessions, ► Discussion of public records exempt from disclosure;and complete with model • • •• ► Discussions with legal counsel. Available . • • Final Decision Prohibition HANDLING DISRUPTIVE PEOPLE The OPML provides:"No executive session may be held for (2017) the purpose of taking any final action or making any final de- legal •- to helpcities • options cision." Although a governing body may reach a final consen- • dealing disruptive •, • guide sus in an executive session,the purpose of the final-decision covers - pubtic has • right • speak prohibition is to allow the public to know of the result of any • • meetings, • • .l speech • • - such consensus. A formal vote in a public session satisfies the tions, • issues involved in removing someone requirement,even if the vote merely confirms the consensus from • meeting. reached in executive session. Method of Convening an Executive Session Available at: https://bit.ly/2XvVVaa A governing body is permitted to hold a public meeting MODEL RULES OF PROCEDURE FOR consisting of only an executive session. The notice require- COUNCIL MEETINGS (2017) ments for such a meeting are the same as those for any other guide providing cities with a starting point in meeting(see ORS 192.640). In addition,the notice must cite creating their rules of procedure, where required to the statutory authority for the executive session. by the city charter, or where a council so desires. Alternatively,an executive session may be called during a Available . • • 0 ••- regular,special,or emergency meeting for which notice has already been given in accordance with ORS 192.640. The person presiding over the meeting must announce the statuFAQ ON NOTICE REQUIREMENTS FOR - tory authority for the executive session before going into the (2017) executive session. Answers to common questions about the n• CONCLUSION requirements ' • with pubhc meetings. The OPML is an important,nuanced law. A single article Available • • cannot fully describe all of its provisions or how it applies in various factual circumstances. For more detail on the OPML, please see the Oregon Attorney General's Public Records and Meetings Manual(2014),available at www.goo.gYl/ikzw5B.■ 10 LOCAL GOVERNMENT BASICS I March 2018 www.orcities.org LOCAL GOVERNMENT BASICS • • Property . • Basics 0 regon's current property tax system was shaped by Reducing the property tax rate Measures 5 and 50,two constitutional amendments passed in the 199Os. Prior to Measures 5 and 50, to meet Measure 5 limits I s Oregon jurisdictions used a levy-based system for commonly called "compression," assessing property taxes. Put simply,each taxing district(city, county,etc.)imposed the levy in the amount needed to cover and results in m i l ho n s of the taxing district's budget,which was based on community service demands. County assessors estimated the real market d o<<a r s of [o s t revenue for taxing values of all property in the state. The levy for each taxing districts every year. district was then divided by the total real market value in the district to arrive at a district tax rate. The taxes each district imposed equaled its tax rate,multiplied by its real market each taxing district was primarily determined by combining value. Generally,levies for each district were constitutionally the levies that existed locally when Measure 50 was passed. limited to an annual growth rate of 6 percent,and levies that would increase by more than 6 percent required voter approv- Neither a taxing district nor the voters can alter Measure 50 permanent rates—they remain at 1997 levels in perpetuity. al. The levy system was dramatically altered with the passage of Measure 5 in 1990. Second,Measure 50 also changed the concept of assessed value to which the tax rates are applied. Assessed value is no MEASURE 5 TAX LIMITS & COMPRESSION longer equal to the real market value of a property. Instead, In 1990,Oregon's voters amended the state constitution by the amount of tax is based on the property's"assessed value" approving Ballot Measure 5,which set limits on the amount as defined by Measure 50. Measure 50 stated that a prop- of tax that a taxing jurisdiction can impose on the real market ertys assessed value is calculated by reducing the property's value(RMV)of property. For example,education districts real market value in the 1995-96 tax year by 10 percent. could levy no more than$5 per$1,000 of RMV,and general That method of calculating assessed value codified inequities government districts(including cities and counties)could levy between comparable properties. Prior to Measure 50,the real no more than$10 per$1,000 of RMV. The caps apply only market value of properties within a county was determined to operating tax levies,not bonds. If property tax rates exceed across a six-year reappraisal cycle. When Measure 50 passed, the limits,the taxes must be reduced until they meet the limits some properties had been recently assessed,while other prop- imposed by Measure 5. Reducing the property tax rate to erties had not been assessed for four or five years. meet Measure 5 limits is commonly called"compression,"and Third,Measure 5O limited the annual growth rate of taxable results in millions of dollars of lost revenue for taxing districts property to 3 percent of assessed value—well below the aver- every year. age rate of inflation. By setting assessed values at 90 percent of 1995-96 market levels and capping the annual rate of MEASURE 50: PERMANENT RATES, ASSESSED VALUE & growth,Measure 5O permanently codified imbalances in GROWTH LIMITS assessed values. As a result,similarly valued properties may In 1997,the voters of Oregon again decided to profoundly pay dramatically different property tax amounts. alter the property tax system by approving the passage of For new properties or those that undergo a significant change, Ballot Measure 50. such as remodeling,new construction,rezoning or subdivision, First,Measure 50 imposed a permanent operating tax rate the assessed value is determined according to Oregon Revised limit on all existing taxing districts. The permanent rate for Statutes 308.149 to 308.166,known as the changed property (continued on page 12) www.orcities.org March 2018 1 LOCAL GOVERNMENT BASICS 11 Property Taxes yyy Y Neither a taxing district nor the voters can after Measure 50 permanent rates - they remain at 1997 [eve [s in perpetuity. ratio(CPR) statutes. The new assessed value is determined by applying the ratio of the assessed value to the market value of ONLINE RESOURCE S all existing property within the same class(residential,com- mercial,etc.)in either the city or the county to the improved or changed property. In most of the state,CPR is calculated CITY PROPERTY TAX on a county-wide basis. In Multnomah County,cities can REPORT • elect to calculate CPR on a city-wide basis,provided the city passes an ordinance or resolution as required by law. Statistical information • • propertying • coun- THE IMPACTS OF MEASURES 5 & 50 ties, schooldistricts and special Measures 5 and 50 have caused significant revenue challenges districts. report includes data • n tax reverreal market eceived, for taxing authorities in Oregon. Following the passage of nues • assessed ' • values, Measure 50,statewide property tax revenue immediately fellcittax compression losses • property tax by$51.4 million,due to the changing of the property tax • • system to one based on assessed values rather than one based Available https://bit.[y/2QBqpGr on market values. Since 1997,inflation has regularly exceeded the 3 percent limit set out in Measure 50,particularly for city expenses like employee healthcare and pension costs. Thus, cities have seen a growing disparity between property tax rev- (as required by Measure 5). When a property's assessed taxes enue relative to costs,even as property values continue to rise. exceed the Measure 5 limits,the tax obligation is compressed For a more detailed look at the effects of Measure 5 and 50 to the Measure 5 limits. The difference between the assessed over time,please see the League's Primer on Measures 5 and value and the compressed limit is forever lost to the taxing 50,available here:www.goo.gl/ykuFiw. district—typically,millions of dollars every year across the state. In fiscal year 2016-17,for example,more than 65 per- T H E EFFECTS O F COMPRESSION cent of Oregon's cities were negatively affected by compres- sion,representing$31.4 million in lost property tax revenue. To determine a property's tax obligation each year,a county assessor must determine the property's assessed value(as The League continues to seek reforms to Oregon's property required by Measure 50)and the property's real market value tax system that is fair for property owners,effective for cities, and does not inhibit economic growth.■ 12 LOCAL GOVERNMENT BASICS I March 2018 www.orcities.org LOCAL GOVERNMENT BASICS F 'i've Th 'iengs to Know About PRecords 1. WHAT ARE PUBLIC RECORDS? ORS 192.345—require a city to consider the public's interest State law defines a public record as:"[A]ny writing that in disclosure. Unconditional exemptions either require their contains information relating to the conduct of the public's own separate consideration or none at all. Remember,when in business***prepared,owned,used or retained by a public doubt,Oregon law favors disclosure. body regardless of physical form or characteristics."' The 4. FEES F 0 R RESPONDING TO PUBLIC RECORDS term"writing"is defined broadly and includes any"handwrit- R EQ U ESTS ing,typewriting,printing,photographing and every means of recording,including letters,words,pictures,sounds or symbols, A city may assess reasonable fees to get reimbursed for the or combination thereof,and all papers,maps,files,facsimiles or actual costs incurred while responding to a public records electronic recordings." When determining whether a record is request. The city may assess a fee for the time spent by city public,the question is whether the record relates to the busi- officials and staff researching the records,providing redactions, ness of the public,not the format of the record. This often and the city attorney's time spent reviewing the records and means that emails,text messages and social media posts—even redacting exempt materials. If the city wishes to charge a fee those created,delivered and stored on a personal device—could greater than$25,the city must notify the requester in writing be considered a public record. If a record has a relationship to a of the estimated amount of the fee,and the requester must city's business,then it's a public record. confirm in writing that it wishes to proceed. The city may request prepayment. If the actual cost incurred by the city is 2. DUTIES 0 F A CITY less than the amount paid,the city must promptly refund any Cities have the duty to make available a written procedure for overpayment.' making public records requests. The procedure must include 5. APPEALS AND CONSEQUENCES TO THE CITY the name of at least one city contact to whom requests may be sent,and the amounts of and manner of calculating fees that A person who is denied access to a public record may appeal the city charges for responding to public records requests. the city's denial. The appeal may be made to the district at- Once received,a city must acknowledge receipt of the public torney in the county in which the city is located,if the denial records request or provide a copy of the requested record within was by the city. If the district attorney denies any part of a five business days. petition,the requester may seek review in the circuit court for the county in which the city is located,or the Marion County Within 10 business days of the date it was required to ac- Circuit Court. If the denial was made by an elected official, knowledge the request,the city must either complete its the appeal may be made by petitioning the circuit court for the response to the request,or provide a written statement that it is county in which the elected official is located or the Marion still processing the request,along with an estimated completion County Circuit Court. If the requester prevails in full,the city date. These timeframes do not apply if compliance would be is required to compensate the requester for the cost of litiga- impracticable.' However,a city must still complete the request tion and trial. If the requester prevails only in part,an award of as soon as practicable and without unreasonable delay. costs and attorney's fees is discretionary. 3. DISCLOSURE OF PUBLIC RECORDS Additional guidance is available on the League's website and in The public has the right to inspect any public record in a city's the Oregon Attorney General's Public Records and Meetings possession. A city may withhold certain public records from Manual available online at:https://goo.gl/PKazDW. disclosure if they are exempt by law. Cities must segregate exempt records from nonexempt records and disclose all non- 1 Generally public records law is covered by ORS 192. exempt material. The primary list of public records exemp- 2 Reasons where compliance would be impracticable include staffing,perfor- tions may be found under ORS 192.345 and 192.355,though mance of other necessary services,or the volume of other simultaneous public exemptions are scattered throughout both state and federal records requests. law. There are two primary types of exemptions:conditional 3 Oregon Attorney General's Public Records and Meetings Manual(2014), and unconditional. Conditional exemptions—those found in Public Records Chapter,page 17. 1 www.orcities.org March 2018 1 LOCAL GOVERNMENT BASICS 13 .. Budgetoing city's adopted budget is one of the most important and informative documents city officials will use. THE BUDGET PROCESS This budget is prepared for each fiscal period and serves as a financial plan. Cities in Oregon oper- ate within a fiscal year that begins July 1 and concludes the 1. Appointbudget officer following June 30,or some cities will use a biennial budget, which covers a 24-month period beginning July 1 of the first 2. Appointelectors t• the budget fiscal year and ending on June 30 of the second fiscal year. committee The adopted budget is a legal document that establishes the authorization to receive and spend money,and limits how 3. Budgetofficer prepares proposed much money can be spent for a specific activity or program. It budget presents the estimated costs of expenditures(goods or services the city plans to purchase in the coming fiscal year)and other 4. Public noticeof budget c• budget requirements(contingency for unanticipated expenses) meeting that must be planned for,but may not actually be spent. It also presents the anticipated and actual revenues that will be 5. Budget c• available to pay for those expenditures. • Budget • approves the • ••' Preparing a budget allows a city to look at its needs in light of the funds available to meet those needs. In Oregon,all local 7. Budget summary • • . of • • get governments must plan a balanced budget,meaning that the hearing _ resources and requirements are equal. A city cannot plan to published purchase more items or services than it has money to pay for 8. • • budget e• ring them. • Adopt budget, make appropriations, A CITY'S BUDGET PROCESS impose taxes, categorize taxes Appoint a Budget Officer Certify10. _ The budget officer—who is either appointed by the city • council or defined in the city charter—prepares the proposed 11. Post-adoption budget chan•' budget in a format that meets the requirements set out in state statutes. The budget officer develops the budget calen- •urce: Local Budgeting • • 150-504-420, dar,which maps out all the steps that must be followed for the found under Forms • • e g legal adoption of the city budget. A budget calendar is not govIDOR. required by law,but is highly recommended. Appoint Electors to the Budget Committee The budget committee is an advisory group comprised of the Budget Officer Prepares a Proposed Budget city council and an equal number of appointed members. The After the budget calendar is set,the budget officer begins to appointed members of the budget committee must be electors develop the estimates of resources and requirements for the of the city. Budget committee members are appointed for coming year or biennial cycle. staggered three-year terms,and cannot be employees,officers or agents of the city. Every city budget will have at least one fund—the general fund—which accounts for daily operations. In practice,a 14 LOCAL GOVERNMENT BASICS I March 2018 www.orcities.org - LOCAL GOVERNMENT BASICS •• city budget will have a number of funds,each designed to account for a specific purpose. A budget should include THE BUDGET MESSAGE enough different types of funds to clearly show what services The budget message gives the pubtic and the and programs a local government is providing and how it is them paying for expenditures. However,it is advisable to not have budget • • • - • too many funds,as this makes the budget harder to read and understand the proposed • ••" -• -• by understand. statute to contain . brief description of There are seven types of funds used in most city budgets: policies reftected in a proposed • ••- • General Fund–records expenditures needed to run the in connection with the financial policies, explain daily operations of the local government. the important - of budget." - budget Special Revenue Fund–accounts for money that must be message must • explain proposed • es used for a specific purpose. from the prior year's budget an• any major Capital Project Fund–records the money and expen- changes •• ditures used to build or acquire capital facilities,such as land,buildings or infrastructure. Debt Service Fund–records the repayment of general Public Notice of the Budget Meeting obligation and revenue bonds and other financing obliga- The budget committee must hold at least one meeting for tions. the purpose of receiving the budget message and the budget Trust and Agency Fund–accounts for money that is held document,and to provide the public with an opportunity to in trust for a specific purpose as defined in a trust agree- ask questions about and comment on the budget. ment or when the government is acting as a custodian for The city must give public notice for the budget meeting(s) the benefit of a group. either by printing notice two times in a newspaper of general Reserve Fund–functions as a savings account to pay for circulation,or once in the newspaper and posting it on the any service,project,property or equipment that the city city's website. If the budget committee does not invite the can legally perform or acquire in the future. public to comment during the first meeting,the committee Enterprise Fund–records the resources and expenditures must provide the opportunity for public comment in at least of acquiring,operating and maintaining a self-supporting one subsequent meeting. The notice of the meeting(s)must facility or service—such as a city water or wastewater tell the public at which meeting comments and questions will Utility. be taken. Oregon budget law requires that each year a city's budget pro- Budget Committee Meets vides a financial history of each fund. The financial history The budget message is prepared in writing so it can become must include: part of the budget committee's records. It is delivered at the • The actual revenues and expenditures for the prior two first meeting of the budget committee by the budget officer, years; the chief executive officer or the governing body chair. • The budgeted revenues and expenditures for the current A quorum,or more than one-half of the committee's mem- year; bership,must be present in order for a budget committee to • The estimated balanced budget as proposed by the budget conduct an official meeting. Any action taken by the com- officer for the coming year which includes columns for the mittee first requires the affirmative vote of the majority of the budget approved by the budget committee;and membership. • The final budget adopted by the governing body. (continued on page 16) The budget also includes a column for the descriptions of expenditures and resources. www.orcities.org March 2018 1 LOCAL GOVERNMENT BASICS 15 Budgeti Budget Committee Approves the Budget Upon approval of the budget by the budget committee,the One of the budget committee's most important functions is budget officer completes the budget column labeled"approved to listen to comments and questions from interested citizens by budget committee,"noting any changes from the original and consider their input while deliberating on the budget. The proposed budget. budget committee can revise the proposed budget to reflect Budget Summary and Notice of Budget Hearing are changes it wants to make in the local government's fiscal policy provided that the revisions still produce a balanced budget. P u b l s h e d When the committee is satisfied,it approves the budget. A summary of the approved budget,which includes a narrative When approving the budget,the budget committee must description of prominent changes to the budget from year to also approve a property tax rate or the tax amounts that will year,is published in the newspaper with the notice of a public be submitted to the county assessor. The budget commit- hearing to adopt the budget five to 30 days before the budget tee should make a motion to approve the property tax so that hearing date. the action is documented in the committee meeting minutes. Hold Budget Hearing The city council must conduct a budget hearing by June 30 to receive the budget committee's approved budget,conduct de- ON L I N E RESOURCES liberations,and consider any additional public comments. The council can make any adjustments it deems necessary(with some restrictions)to the approved budget before it is adopted OREGON by June 30. The budget hearing and the resolutions or ordi- OF REVENUE RESOURCES nances necessary to adopt the budget and impose taxes can be conducted at the same public meeting. LOCAL BUDGETING MANUAL Adopt Budget, Make Appropriations, Impose Taxes, An introduction to the requirementsof Categorize Taxes • ••et Law, inc[uding informationon The council may adopt the budget at any time after the budget • - budgets. hearing so long as it is adopted by June 30. It is not a require- -• - at http://900.91/gGdnwkment that the budget be adopted at the hearing. LOCAL To adopt the budget,the city council enacts a resolution or ordinance which provides the legal authority to: •• to the Local ••- • • • Establish or dissolve funds; uol, coveringe of • ego • Budget • Make appropriations for expenditures; • -• - at http://goo.g[/h5ptkS • Adopt a budget;impose and categorize taxes;and • Perform all other legal actions pertaining to budgeting and LOCAL BUDGET LAW WEB''WEBPAGE authorizing tax levies. -••-•- dedicated • heping • - •• All enactment statements can be combined into one resolu- prepare • adopt their budgets. tion(or ordinance),which must be signed by the mayor before - page • •rms, g[ossary of submission to the county assessor's office. samp[e budgets . • information on training sessions. Certify Taxes Avai[ab[e at http://goo.g[/JCkgSE. Any property taxes must be certified to the county assessor annually,even if the city adopts a biennium budget. By July 15 of each year,a city must submit two copies of the resolution(or 16 LOCAL GOVERNMENT BASICS I March 2018 www.orcities.org LOCAL GOVERNMENT BASICS ordinance) to the county tax assessor. In addition,the notice Post-Adoption Budget Changes of property tax certification(form LB-50) and successful While it is possible for changes to be made to an adopted ballot measures for local option taxes or permanent rate budget once the fiscal year begins,this can only hap- limits must be submitted. pen under specific circumstances. Two such examples are In addition to the county tax assessor's copies,a copy of council-approved resolution transfers of funds and supple- the resolutions required to receive shared revenue must be mental budgets that make changes to adopted expenditure submitted to the Oregon Department of Administrative appropriations and estimated resources. These are actions Services by July 31. Finally,a copy of the published adopted that must be taken before more money is spent beyond what budget document,including the publication and tax certifi- is appropriated in the adopted budget. Any changes made cation forms,must be submitted to the county clerk's office to the adopted budget require that the budget remain in bal- by September 30. ance after the change. ■ What You Need to Know About Gift Limitations THE BASICS THE FOLLOWING ARE NOT CONSIDERED °GIFTS During a calendar year,a public official,candidate,or • Gifts from relatives or members of the household relative or member of the household of the public official . Unsolicited token of appreciation with a resale value or candidate may not: less than$25 • Solicit or receive • Publications and subscriptions related to official duties • Directly or indirectly • Campaign contributions • Any gifts with an aggregate value above$50 • Waiver or discount of certain registration expenses or • From any single source materials at a continuing education event to satisfy a • Reasonably known to have a legislative or administra- professional licensing requirement tive interest. • Entertainment that is incidental to the main purpose of the event A GIFT IS Received as part of the usual and customary practice • Something of economic value of one's private business or employment and unrelated • Without cost,at a discount,or as forgiven debt to holding public office • Not available to the general public on the same terms. • Offers of lawful benefits to public officials offered by • Examples: the public entity the public official represents. • Meals WHAT TO ASK YOURSELF BEFORE ACCEPTING A GIFT • Lodging • Is it a"gift?" A gift is something of economic value not • Event Tickets offered to others who aren't public officials(relatives LEGISLATIVE OR ADMINISTRATIVE INTEREST MEANS... or household members)on the same terms and condi- tions. • Economic interest • Exceptions: Do any of the exceptions apply? • Distinct from that of the public • In a matter subject to the decision or vote of a public Source: Does the gift giver have a legislative or admin- official acting in that capacity. istrative interest in my decisions or votes? • Value: If so,does the value of the gift,along with any other gift received from that source this calendar year, exceed $50? For more information please contact the Oregon Government Ethics Commission—www.oregon.gov/OGEC. www.orcities.org March 2018 1 LOCAL GOVERNMENT BASICS 17 GiL�IAM• Successful Code Enforcement 0 Six Tips to Consider ode enforcement can be a tricky job. Finding the 4 They engage in successful community outreach. A right balance between ensuring a city's codes are good code enforcement officer not only knows her city's code, properly followed and providing good customer ser- she also educates property owners and community members vice to a city's constituents is no easy task. about the code's requirements. Code enforcement officers A successful code enforcement officer excels in these six areas: with high rates of success are those who frequent neighbor- hood association meetings,engage with the chamber of com- 1 They know th e i r code. Successful code enforcement of- merce,and have regular contact with key stakeholders in the ficers are experts on their city's codes. They excel at knowing community. Making sure the community knows the code as what the code regulates,and what it does not. The best code well as she does is the mark of a successful code enforcement enforcement officers can easily point to pertinent sections of officer. their city's code when questioned by superiors and members of the public. 5.They directly engage with citizens who are in viola- t!o n of th e c i ty cod e. Notifying property owners that they 2.Th ey rev i ew th e i r cod e a n n u a l ly. Code enforcement are in violation of the city's code is never a fun task. While it officers work with their city's codes perhaps more than any can be easier to try and deal with code violations via written other city employee. It is often the code enforcement officer notices,emails and phone calls,successful code enforcement who finds the code's flaws or the proverbial loophole. Suc- officers know that sometimes face-to-face contact is the most cessful code enforcement officers are the ones who annually effective way to remedy a violation. Meeting with a person review their city's code so that,when necessary,appropriate whose property is in violation of the city code allows the code amendments can be submitted to their city council. enforcement officer the opportunity to fully explain the viola- tion,listen to the reasons behind the violation,and engage 3.They believe in interdepartmental cooperation. An with the property owner in how to successfully and most exemplary code enforcement officer works cooperatively with expeditiously achieve compliance. employees from various city departments. Code enforcement officers regularly stumble upon problem properties that neces- 6.They enforce the city's code consistently and sitate the involvement of numerous city departments. Know- equally. Successful code enforcement officers are fair code ing which employees in the various departments need to be enforcement officers. A fair code enforcement officer is looped into resolving the problems at a property is a unique one that enforces the city's code equally against all property skill possessed by successful code enforcement officers. owners,regardless of their position in the community or the location of the property. ■ 18 LOCAL GOVERNMENT BASICS I March 2018 www.orcities.org 0 wr LOCAL GOVERNMENT BASICS ASK L0 C Q: Does the state impose restric- tions on political campaigning by public employees? Each election season,the League is asked to How does a public employee engage in political • clarify the restrictions on political campaigning campaigning during her personal time when by public employees. ORS 260.432 generallyA . everyone in the community identifies her as a prohibits public employees from using their work time to support or oppose measures,candidates,re- public employee? calls,petitions or political committees. Furthermore,elected Some public employees are in high profile positions that officials cannot direct their employees to engage in political make them regularly known in their communities. And activity. in small communities,public employees are known by all residents as working for the city. In these instances,it can Who is a public employee? be hard for members of the public to distinguish the times A public employee is any person employed by the state of when a public employee is speaking on behalf of the city as Oregon,a county,a city or a special district. Examples of opposed to speaking on behalf of him or herself. Similarly,a public employees include: full-time city employees;part- public employee who wishes to engage in political cam- time city employees;city volunteers that receive no compen- paigning during his or her own private time should make it sation for their service;and appointed board or commission clear to all that he or she is acting in their personal capacity members when they are acting in their official capacity. and is not working for or representing the city. Elected officials are not public employees. The statutes Can public employees express their own personal prohibiting public employees from supporting or opposing political views while on the job? measures,candidates,recalls,petitions and political commit- yes. Public employees can express their own personal politi- tees do not apply to elected officials. Elected city mayors, councilpersons and auditors are not public employees. cal views while at work. Employees can display political stickers on their personal vehicles and wear political buttons Contractors are also not public employees. However,con- on their clothing(providing such an action doesn't violate tractors cannot be directed to engage in political activity as the city's uniform or personnel policies). part of the contractual service they are providing a city. Also,cities should note that public employee unions can When are public employees "o n the job?" have designated bulletin boards in city buildings to post information. The content of union bulletin boards is de- An employee is"on the job"when he or she is performing termined through a collective bargaining process and is not work for the city in an official capacity,regardless of when subject to ORS 260.432. and where the work is performed. For example,if a city's parks director is required to attend a chamber of commerce Conclusion event in her official capacity,the parks director is prohib- Understanding and knowing when and how public employ- ited from asking event attendees to support a local ballot ees can engage in political campaigning can be confusing. measure that would raise money for the city to build a new To assist public employees and elected officials in under- swimming pool. standing and complying with ORS 260.432 the League Some common activities that are always considered to be has created a document entitled"FAQabout Restrictions performed in an official capacity include: on Political Campaigning by Public Employees." If city • Posting material to an official city website; employees or leaders have questions about ORS 260.432, they are encouraged to consult with their city attorney for • Drafting or distributing an official city publication; additional guidance. • Appearing at an event as the city's representative. www.orcities.org March 2018 1 LOCAL GOVERNMENT BASICS 19 • • Oregon Water Rights Basics BY RICHARD M. GLICK ecuring a safe and reliable water supply is a priority concern for every Oregon community. Most cities WATER ADMINISTRATIVE in Oregon operate their own water systems,while others are served by various forms of water districts PROCESS or contracts with other cities. Municipal and industrial water use constitutes just a fraction of the total amount of 1. ApplicationOWRD water withdrawn from streams or pumped from aquifers in comparison to irrigated agriculture,but efforts to acquire or 2. If water available, • issues • expand municipal water supplies attract a lot of attention and permit sometimes controversy. The availability of new water rights is shrinking,while regulatory requirements expand. 3. Once construction • • C[aim Oregon water law,as in other Western states,follows the rule of Beneficial filed OWRD of Prior Appropriation,often described as"first in time is first in right." Prior to enactment of the state's water code in the permittee 1909,the common law was that whoever first diverts water out of a stream for a beneficial use can prevent later comers from interfering with that use. That is,the prior appropriator has a legal right to withdraw the full amount used under the original claim,even if it means junior appropriators are denied That's straightforward enough,what could possibly go wrong? water. There is no sharing of shortages under the Wild West Water rights permitting is a very public process. When the OWRD issues a proposed final order to issue a permit,the rule of prior appropriation. public has the right to file a protest,which could set off a WATER RIGHTS ADMINISTRATIVE PROCESS trial-like"contested case"hearing process. For example,a protestant may claim that the new appropriation would de- is filed with the Oregon Water Resources Department New water rights follow athree-step process. First,an appli- cation prive fish of needed flows or interfere with other water rights. Any dissatisfied party to the contested case is entitled to (OWRD),and the date of the application establishes the review by the Oregon Court of Appeals. From there,a party priority date. That's important because the entire water right ion the Oregon Supreme Court,but the court can process can take considerable time to complete. Second,if the decline may petition hear the case. OWRD finds that water is available for appropriation,and withdrawal would not"impair or be detrimental to the public WATER RIGHT TRANSFERS interest,"then it issues a permit. The permit allows develop- ment of water works and initial use. Third,when construction As the water system is developed,sometimes the permit hold- is complete,the permittee files a Claim of Beneficial Use with er finds that a change in permit conditions,such as the point of diversion,is necessary. That can be accomplished through OWRD that documents how the water is being used,which a permit amendment. After the certificate is issued,however, may differ from the rate of diversion or volume of water the process is a bit more complicated. In that case,a"transfer" specified in the permit. The OWRD then issues a certificate, which is conclusive evidence of a fully vested water right. application must be filed,and the test is whether other water right holders may be"injured"by the change. An example As long as the certificate holder continues to use the water in is a change in point of diversion higher up in the watershed, accordance with the certificate,the right continues in perpe- which could mean withdrawals of water above someone else's tuity. Generally,certificated water rights may be forfeited for diversion. Like proposed final orders for permits,proposed five consecutive years of non-use. However,municipal water transfers are also subject to protest and hearings. rights are the exception and cannot be lost for non-use. 20 LOCAL GOVERNMENT BASICS I March 2018 www.orcities.org LOCAL GOVERNMENT BASICS MUNICIPAL EXTENSIONS OF TIME Resources for City Officials The time allowed for full development of municipal water The League has a large online library of publications,guides, rights has become a contentious issue. Generally,a new per- FAQs and models available to assist public officials in carrying mit will include a date to commence and complete construc- out their duties. All of these are available at www.orcities. tion,usually within the first year. That date can be extended for five years for good cause. The problem is that cities must org/resources/reference/reference-library. plan for long-term growth. The goal of most cities is to lock Guide to Executive Sessions in a supply that will meet anticipated demand decades down Guide to Incorporation the road. A city would then develop a system in increments when it was confident the demand would be there,along Guide to Local Government Regulation of Firearms in with the ratepayers to carry the debt service. This reality has Oregon created tension between the legal requirement of prompt Guide to Local Regulation of Marijuana in Oregon development and responsible municipal planning. Guide to Recruiting a City Administrator For decades,the OWRD had simply issued successive Guide to Recruiting a City Attorney five-year municipal extensions to avoid this problem. That practice was disallowed by the courts in 2004,and in 2005 • Legal Guide to Collecting Transient Lodging Taxes in Oregon the Legislature enacted special laws pertaining to municipal Telecommunications Toolkit water right extensions. Under that statute,new municipal Model Charter for Cities water permits would extend the initial development period to 20 years,with the possibility of additional extensions of Model Department of Revenue Marijuana Tax Collection time. Following a 2013 court decision,water right permits Agreement that have not been fully developed must go through a special Model Policy for Public Contracting&Purchasing process that includes the potential for limits on withdrawals under the permit to protect fish flows. • Model Resolution on Trade Promotion, Fact-Finding Missions &Economic Development Activities ALTERNATIVE APPROACHES TO WATER SUPPLIES Model Rules of Procedure for Council Meetings Acquiring new community water supplies is a challenge call- Legal Guide to Handling Disruptive People in Public Places ing for creative solutions. Most Oregon streams are over- appropriated,meaning that there is no water available for Measures 5 &50:A Primer future appropriations. Even where water is available,condi- The Origins, Evolution &Future of Municipal Home Rule in tions imposed by the OWRD in new permits to protect fish Oregon flows can result in curtailment during a significant part of the Understanding Oregon's Unfunded Mandate Law year. Also,such water rights would be the junior-most in the stream and subject to senior rights. FAQ on Emergency Procurements An alternative used by some municipalities is to purchase FAQ on Garrity Warnings existing water rights from farmers or other cities. Others pay FAQ on Initiatives&Referendums farmers to improve irrigation efficiency,for example to install FAQ on Loudermill Rights sprinklers to replace flood irrigation,or pipe to replace open canals. No doubt other innovative approaches to municipal FAQ on Notice Requirements for Public Meetings water supply will emerge to meet the challenge. FAQ on Oaths of Office There is no new water in the world,and competition for this FAQ on Public Record Fees scarce resource will only increase especially as the effects of climate change are better understood. The League of Oregon FAQ on President's Immigration Orders Cities,working with other stakeholders,is working hard to FAQ on Quasi-judicial vs. Legislative Hearings ensure that the Legislature and the courts understand the FAQ on Restrictions on Political Campaigning by Public imperative and support public water supplies. ■ Employees Mr. Glick is a partner with the law firm of Davis Wright FAQ on Right-of-Way Vacations TremaineLLP. FAQ on Surplus Property • 2017 Legislative Bill Summary www.orcities.org March 2018 1 LOCAL GOVERNMENT BASICS 21 A City's Role in the Land Use Process BY EMILY JEROME, DEPUTY CITY ATTORNEY, CITY OF EUGENE 0 regon is known for its strict regulation of land mailed notices to surrounding property owners and an op- use,with literally hundreds of state statutes and portunity for interested persons to provide written testimony. rules on whether,how and when a city may allow For certain kinds of applications,a public hearing is required. land to be developed. State laws also govern how Many city codes include several different procedural paths a city must notify and engage its residents when the city is with varying notice and hearing requirements. For most land considering a proposed change to its land use regulations,or use applications,the city's final decision must be made within considering a landowner's application for a land use approval. 120 days of an application's submittal. Complying with these state laws takes time,methodical decision-making and staff expertise. CITY ROLES & DECISION-MAKING STATEWIDE GOALS & CITY PROCEDURES When it comes to land use,city officials play two differ- ent roles. Sometimes city officials act like the Legislature, Oregon's land use laws relate to 19"Statewide Planning considering the adoption of changes to the land use code that Goals"that address all aspects of land use planning,including: apply city-wide or within an entire zone. This role is referred Citizen Involvement(Goal 1),Natural Resources(Goal 5), to as"legislative decision-making." In other cases,city of- Economic Development(Goal 9),Housing(Goal 10),Public ficials act like the judiciary,reviewing a landowner's land use Facilities(Goal 11),Transportation(Goal 12),and Urban- application,holding hearings,considering testimony,and ap- ization(Goal 14). State law requires every city in Oregon plying code criteria to decide whether the city must approve to have a state-approved comprehensive plan to implement or deny the proposed development. This is referred to as the Statewide Planning Goals and to serve as a high-level "quasi-judicial decision-making." There are different rules for planning document for the city. Each city's comprehensive city officials,depending upon which role is being played. plan must include local policies and a land use diagram that When acting in a legislative role city officials are consider- are implemented through the city's zoning map and land use ing a change in city policy that will be generally applicable. code. City officials may exercise broad discretion when considering The zoning map and land use code are a city's primary land whether to vote for or against the proposed change. In fact, use documents. The map assigns a land use zone to every the officials may decide to simply abandon the idea without parcel of land inside the city limits. The code sets out devel- voting at all. City officials may talk with residents about a opment standards for each zone,including requirements and legislative proposal and may do their own research about it. limits for things like building height,property line setbacks, They are bound only by the general ethics laws that apply to landscaping and parking spaces. The code also lists the land all city actions. uses allowed in each zone. For each zone,the code speci- When considering a land use application in their quasi-judi- fies which of the allowed uses are permitted"outright"and cial role,city officials are bound by additional laws. To ensure which require a more intense approval process. To establish a fair process,city officials should not form an unchangeable an outright permitted use,a landowner needs only to obtain opinion about an application until they have received all a building permit,processed by city staff to make sure that testimony and evidence. Also,city officials should not read applicable development standards are met. To obtain city or talk about the pending application outside of the formal approval of other uses,the landowner must submit the speci- hearing and review process. If such an"ex parte"communica- fied land use application(such as a subdivision or conditional tion does occur,the city official should alert the planner so use permit) and demonstrate how the development proposal that remedial steps can be taken. The city's decision on a land meets criteria set out in the code. use application must be based on written findings addressing A city's land use code sets out the procedures it uses to con- the application's consistency with the approval criteria from sider land use applications. To a great extent,these proce- the code,and no other considerations. The applicable criteria dures are prescribed by state law,though city procedures often are those that were in place at the time the application was exceed state requirements. Each review process includes submitted. ■ 22 LOCAL GOVERNMENT BASICS I March 2018 www.orcities.org P: i 5 League ofOregon 1201 COURT ST. NE, SUITE 200 SALEM, OREGON 97301 (800) 452-0338 WWW.O RCITI ES.O RG