ORS 264.550: Contracts between district and city joined or annexed to district.

If a city has been annexed to a district under ORS 198.866 and 198.867 or has been joined to a district under ORS 198.910, the city and the district may:

      (1) Enter into contracts and agreements to do any act or thing which either could have done if the annexation had not occurred.

      (2) Contract and agree for the collection by the district of any water user tax or charge imposed by the city upon water users within the territory of the city, and the district thereupon may provide for such collection according to its rules and regulations for the collection of amounts due the district by water users, including but not limited to shutting off the water supply for nonpayment.