Caption: Requires Voter Approval for Urban Renewal Bonds
Question: Shall City Charter be amended so that future urban renewal plans require voter approval for bond issuance?
Summary: This measure would amend the Oregon City Charter to prohibit the City Commission from approving urban renewal plans or amendments to such plans that do not require voter approval for the issuance of bonded indebtedness issued after the effective date of this measure. Such indebtedness must either be approved by the voters of Oregon City or related to indebtedness created or committed to prior to the effective date of the measure. The measure would not affect any lines of credit, bonds or other borrowings issued prior to the effective date of the measure. Finally, the measure would define “bonded indebtedness” to be synonymous with the definition in ORS 310.140(3), and would not apply to borrowings of less than one year.
Proposed charter provision requiring voter approval of urban renewal bonds
Section __. The urban renewal agency of the city (the “Agency”) shall not issue bonded indebtedness after the effective date of this section unless the bonded indebtedness complies with the restrictions of this section. The commission shall not approve any amendment to an urban renewal plan after the effective date of this section unless the plan requires that bonded indebtedness issued to carry out the plan be issued in compliance with the restrictions of this section.
A. Bonded indebtedness issued by the Agency after the effective date of this section shall either:
(i) Be approved by the voters of the city;
(ii) Be issued to refund lines of credit, bonds or other borrowings that were executed before the effective date of this section; or,
(iii) Be issued to finance written commitments of the Agency that were entered into before the effective date of this section.
B. Each urban renewal plan of the Agency that exists on the effective date of this section is hereby amended to add the following provision: “No bonded indebtedness shall be issued under this plan except in compliance with the requirements of the Charter of the City of Oregon City. Any amendment of the preceding sentence must be approved by a non-emergency ordinance of the city.”
C. For purposes of this section “bonded indebtedness” has the meaning defined for that term in ORS 310.140(3), as that section of the statutes exists on the date this section of the charter is approved by the voters of the city. That statute defines “bonded indebtedness” to mean “any formally executed written agreement representing a promise by a unit of government to pay to another a specified sum of money, at a specified date or dates of at least one year in the future.”
D. This section shall not limit the Agency’s rights or obligations under any lines of credit, bonds or other borrowings that were executed prior to the effective date of this section.