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2011 Oregon Attorney General Reports and Opinions 1 (2011)

handle is hein.sag/sagor0030 and id is 1 raw text is: JOHN R. KROGER                                                                      MARY H. WILLIAMS
Attorney General                                                                       Deputy Attorney General
DEPARTMENT OF JUSTICE
GENERAL COUNSEL DIVISION
March 9, 2011
Edwin I. Caleb, Klamath County District Attorney
Klamath County Courthouse
316 Main Street
Klamath Falls, OR 97601
Re:    Opinion Request OP-201 1-1
Dear Mr. Caleb:
This opinion concerns whether a county may lawfully provide a city with county road
funds for use on city roads in exchange for the city providing the county with city general funds
to help pay for operation of the county correctional facility.
We understand the following. The City of Klamath Falls (city) is located wholly within
Klamath County (county) and is the county seat. The county correctional facility is located on
the edge of the city. Due to declining revenue in the county general fund, the county sheriff s
office has closed two of the three prisoner pods at the county correctional facility, reducing
inmate capacity from 152 to 64.
The city has proposed a 2010-2011 budget that includes paying for city streets from funds
that are not restricted to particular uses (unrestricted funds), rather than from restricted road
funds. The county has funds in its county road fund that are not presently allocated, but those
funds are restricted to road uses and cannot be used to operate the county correctional facility.
The city and the county propose to enter into intergovernmental agreements under which
the county would provide county road funds to the city to construct, maintain, and repair city
roads and bridges, and the city would provide the same amount of unrestricted city funds to the
county to operate portions of the county correctional facility that are now closed. The net
financial gain or loss under these agreements would be zero, both to the city and the county.
FIRST QUESTION PRESENTED
Is the county authorized to provide county road funds derived from state gas tax revenue
and federal forest reserves to the city to be used to construct, maintain and repair city roads and
bridges?
1162 Court Street NE, Salem, OR 97301-4096
Telephone: (503) 947-4540 Fax: (503) 378-3784 TTY: (800) 735-2900 www.doj.state.or.us

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