Whether you have already decided forming a special district suits the needs of your community, or are just beginning to explore the option, where and how to begin can be a daunting prospect. This page is meant to provide some general information on special districts, the formation process, and the benefits of membership with Special Districts Association of Oregon.

MEMBERSHIP WITH SDAO

The Special Districts Association of Oregon (SDAO) was established in 1979 to provide special districts with a unified and influential voice in the state legislature. SDAO's role has since evolved and we now support our members with lobbying efforts, education and training, research and technical assistance, and more. While SDAO does not oversee the formation process or determine whether a district can be established (this is managed by the county), our involvement begins once your district is formed and you choose to become a member. At that point, we offer a wide range of consultants, resources, and services to support and assist your district in various areas.

SPECIAL DISTRICTS IN GENERAL

One of the main benefits of special districts is that they are each established with a very focused purpose at the local level, so assessments, tax dollars, levies, etc. that are collected go directly to the district’s programs and purposes – as opposed to general-purpose governments like a city, where many different services and departments need to be funded, and recipient programs may have less control over funding. Special districts are held to the same accountability standards as cities and counties regarding use of public funds and fiduciary responsibility to the community being served and are subject to the same public entity laws regarding transparency of public records and meetings. They also provide the local community an opportunity to get involved directly with the district, since all special districts operate with a board that is typically elected from electors and/or landowners of the district.

THE FORMATION PROCESS

Once you’ve determined that forming a special district is the right path, the first step is to analyze the need for the district. This process varies depending on specific circumstances, so you will need to form a committee to undertake this task. There are no strict requirements regarding the composition or size of the committee; it just needs to be a dedicated group invested in forming the district and capable of handling the various steps, including some initial expenses.

The need analysis involves examining the area to be served, assessing the area's valuation, estimating potential revenue, and considering the debt structure, among other factors. A feasibility study must be completed, followed by a public meeting to gauge voter interest and decide whether to proceed with a petition for formation. The statutes governing the formation process are outlined in Chapter 198 of the Oregon Revised Statutes, with specific enabling statutes for each type of special district.

The SDAO Administrative Handbook has some good information on formation, including a more in-depth explanation of the initial steps, with specifics about what needs to be included in the feasibility study, timeframe for formation, forming the committee to analyze, etc. It can be a very helpful resource to refer to throughout the process.

It is important to engage an attorney versed in local government law at some point (the “when” varies based on the knowledge and comfort level of the committee to get through these initial steps), to help protect the district’s interests and ensure the process goes correctly and smoothly. If a formation committee gets to the point of retaining an attorney and needs any recommendations or referrals, SDAO Pre-Loss can assist with the referral.

The clerk for the county will also be an important resource throughout the process. As mentioned above, formation is a county-run process, so it’s really all in their hands. It is the county to whom you will submit any formation documents, and who will review and ultimately make the determination whether to approve the district.

Please email help@sdao.com for additional questions.