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Special District White Paper L After receiving a petition, the Boundary Commission must conduct a study, hold one or more public hearings, make a decision and file its final order within 120 days. The Commission must base its order on the study and hearings. These specific statutory requirements do not apply to the County Board in the case of a port district or county road district, although the Board also must hold one or more hearings on a petition related to these special districts. The Boundary Commission or County Board may approve the formation petition as submitted, approve it with boundary modifications only, or deny the request. If the Boundary Commission approves the petition it forwards its final order to the County Board. If the proposal is for formation of a district and a permanent tax rate limit for operating revenues is proposed, placing the proposal on a primary or general election ballot is mandatory, and it is subject to the constitutional double majority requirement. The single question placed on the ballot is to contain two parts: (a) should the district be formed and (b) should the proposed permanent operating tax rate limit be approved. (Details on the necessary steps are listed in Appendix F.) The double majority requirement may be difficult to meet. In many primary elections, a majority of electors may not vote and the measure then cannot pass even if it gets the support of a majority of those voting. Many governments prefer to place revenue measures on the general election ballot in an even - numbered year, which is a permitted alternative to the double majority requirement. This defines the timeframe for formation of a new special district with a permanent rate limit. The next general election ballot in Oregon will be on November 5, 2002. If a measure is to go on the 2002 general ballot and appear in the City voters' pamphlet, it must be fully approved by the Boundary Commission or County Board and be ready for the ballot by mid - August, 2002. Since the Metro Plan must be amended in a process that can take 12 months, this timeline is unrealistic. On the other hand the general election in November 2004, which is a presidential election year, is a realistic target date. Appendix G shows comparative timelines for formation processes targeting both the 2002 and the 2004 November elections, assuming comprehensive plan changes will be required, property taxes will be used to finance operations of the district, and the question is placed on the general election ballot. Annexation of Territory to a Special District An annexation proposal to join an area to an existing special district may be initiated by resolution of the affected district board, by petition of electors, by resolution of the Boundary Commission for districts under its jurisdiction. If the annexation proposal includes the territory of a city, the city council must have approved the petition prior to filing. Territory within an existing special district may not be annexed to another district subject to the same principal Act. If the district is not subject to the Boundary Commission, the annexation petition is filed with the County Board of Commissioners. Again, if the annexation proposal includes the territory of a city, the city council must have approved the petition. In reviewing the petition, the Board of Commissioners is directed by statute to consider the local comprehensive plans for the area. An election on the proposal must be held in both the district and the area proposed for annexation. This would apply to county road districts and port districts. A simple majority in both the district and the Special Districts Paper - Final 11- 8- 01.doc Page 21 of 41 City Council Agenda page 45