McPherson v. Coos Bay-North Bend Water Board

The collection of a public-safety fee by the Coos Bay-North Bend Water Board as an intermediary for the City of North Bend does not violate the city’s charter. Under Western Radio Services Co. v. Verizon Wireless, LLC, 297 Or App 446 (2019), declaratory judgment actions must end in “a declaration as to the rights of the parties.”

McPherson appealed from a grant of summary judgment for the Coos Bay-North Bend Water Board (“the board”) in her declaratory judgment action seeking to invalidate the City of North Bend’s (“the city”) practice of collecting a public-safety fee on residents’ water bill. On appeal, McPherson argued that using funds collected by the board violated the city’s charter, chapter 10, section 38, which specified the purposes for which “income derived from operation of a water system” could be used. The collection of a public-safety fee by the Coos Bay-North Bend Water Board as an intermediary for the City of North Bend does not violate the city’s charter. Under Western Radio Services Co. v. Verizon Wireless, LLC, 297 Or App 446 (2019), declaratory judgment actions must end in “a declaration as to the rights of the parties.” The Court reasoned that the public-safety fee was not “income” of the board because it remitted the fees to the city, and that the fee was not “derived from operation of a water system” because the fee was not related to the water system and the board acted “only in an administrative capacity . . . for the city.” However, the Court noted that dismissal was not an appropriate disposition for declaratory judgment actions. Vacated and remanded for entry of judgment declaring rights of the parties.