Kassel v. City of Salem

Plaintiff seeks a declaratory judgment that defendant City’s purchase of a private water company (Company) from intervenors is invalid. His complaint alleges that neither applicable statutes nor the city charter authorize the City to purchase a water company whose facilities and service area are adjacent to but outside the city limits.

ORS 225.020(l)(a) is the statutory source of authority for such municipal action. It provides:

"(1) When the power to do so is conferred by or contained in its charter or act incorporation, any city may build, own, operate and maintain waterworks, water systems,…